Status And Conditions Of Community-Based Micro, Small, And Medium Enterprise (MSMEs) In Dumaguete City: Basis For MSMEs Management Model

This study examines the status and conditions of community-based Micro, Small, and Medium Enterprises (MSMEs) in Dumaguete City, focusing on organizational structure, operational challenges, and business performance. MSMEs, constituting 99.6% of registered businesses in the Philippines, play a crucial role in employment generation. However, persistent issues such as limited financing, inadequate strategic planning, and operational inefficiencies hinder their growth. This study employs McKinsey's 7S Model, evaluating Structure, Strategy, Systems, Skills, Staff, Style, and Shared Values within organizations. A quantitative research design was adopted, incorporating surveys and interviews with MSME owners and managers. SERVQUAL was utilized to assess service quality, while Structural Empowerment Theory evaluated management effectiveness. Data analysis included statistical tests to determine relationships between MSME profiles and business outcomes. Results indicate that business experience, asset size, workforce composition, and strategic planning significantly influence MSME sustainability and growth. However, gaps in management skills, technology adoption, and resource allocation hinder operational efficiency. Aligning business strategies with market demands remains a challenge, affecting competitive advantage. The study concludes that addressing internal inefficiencies through a structured MSME Management Model can enhance business resilience. Recommendations include forming strategic alliances, strengthening supplier partnerships, and implementing targeted training programs. Additionally, policy support and financial accessibility are critical to fostering MSME development. These findings contribute to discussions on MSME sustainability and provide actionable insights for policymakers and industry stakeholders.