Strengthening Financial Management of OK OCE-Supported MSMEs to Enhance Business Sustainability

Background: Micro, Small, and Medium Enterprises (MSMEs) play an important role in local economic development and employment creation, yet many face financial management challenges that may hinder effective business management and long-term sustainability.Aims: This Community Service Program aimed to strengthen the financial management capacity of OK OCE-supported MSMEs through practical training and mentoring in simple bookkeeping, cash flow management, financial planning, and the separation of personal and business finances.Methods: The program involved 30 MSME participants and employed a participatory approach consisting of needs assessment, pre-test, financial management training, contextual practical exercises, direct mentoring, discussion and consultation, post-test, and follow-up evaluation. Program outcomes were assessed by comparing pre-test and post-test scores across five financial management indicators.Results: Participants demonstrated an average immediate post-program improvement of 41.6 percentage points across the five indicators, with improvements ranging from 40 to 43 percentage points. The greatest improvement was observed in simple budgeting, which increased from 35% to 78% (+43 percentage points).Conclusion: The training and mentoring program was associated with immediate improvements in participants’ understanding of basic financial management, particularly in financial recording, cash flow management, budgeting, separation of personal and business finances, and the use of financial information for decision-making. These improvements provide a foundation for more structured financial management practices, while their longer-term contribution to business resilience and sustainability requires further follow-up evaluation.