Determinants of Growth Performance and Challenges of Micro, Small, and Medium Enterprises (MSMEs) in Roxas, Isabela

This study investigated the growth performance and challenges of Micro, Small, and Medium Enterprises (MSMEs) in Roxas, Isabela, using a descriptive approach with 311 registered MSMEs as respondents. The study found that while high interest rates and collateral limitations posed significant challenges, respondents did not perceive access to affordable financing, financial resource constraints, or complex loan application processes as significant obstacles. Despite these challenges, respondents acknowledged the importance of various financial factors, such as flexible credit terms, cost of credit, and awareness of funding opportunities, in influencing MSME growth performance. Furthermore, the study revealed that management team qualifications and average monthly net turnover significantly impacted growth perception, while years of operation, number of employees, and total value assets did not. Issues and problems faced by MSMEs negatively impacted growth performance. The study recommends that financial institutions collaborate to lower interest rates and simplify loan processes. The government should promote financial literacy, collaborate with MSME groups, and offer workshops for MSME owners. MSME owners are urged to seek more government support, adopt positive business practices, and explore new funding sources to adopt innovation and growth.