Financial Literacy in Enhancing Risk Resilience Among Small and Medium Enterprises

This study examines the role of financial literacy in enhancing risk resilience among small and medium enterprises (SMEs) in selected municipalities of Laguna, Philippines. A mixed-methods research design was employed, combining quantitative data from 150 SME owners through survey questionnaires and qualitative insights from interviews with five SME owners. The findings revealed that SMEs exhibited high levels of financial literacy, particularly in savings and budgeting, which significantly strengthened their ability to manage financial risks and operational uncertainties. Although investment practices were present, they were less emphasized due to resource limitations and varying risk preferences. Statistical analysis confirmed a significant relationship between financial literacy—particularly in savings, investment, and budgeting—and SMEs' resilience in navigating financial disruptions. Demographic factors such as educational attainment and business experience were found to influence both financial literacy and risk resilience positively. This study concludes that financial literacy is not only a managerial competency but also a critical survival mechanism for SMEs. The results highlight the need for targeted financial education programs and collaborative support systems to enhance the long-term stability and competitiveness of SMEs.