An Empirical Study on Cost Management Practices in MSMEs and Their Impact on Financial Performance

This paper explores the cost management practices adopted by Micro, Small, and Medium Enterprises (MSMEs) and evaluates their impact on financial performance. Given the growing importance of cost efficiency in a competitive market, understanding how MSMEs manage costs can offer insights into sustainable business practices. A structured questionnaire was distributed to 100 MSMEs, and the data were analyzed using frequency distributions and correlation analysis. The study found that proactive cost control mechanisms significantly correlate with better financial outcomes, including profitability, cash flow stability, and operational efficiency.