Group 1 - Cash Management of Selected Micro Enterprises in National Capital Region Amidst Pandemic - Final Paper

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
EFFECTIVNESS OF THE USE OF MOBILE E-WALLETS AMONG PUP

MANILA CAF STUDENTS DURING THE COVID-19 PANDEMIC
A Research Proposal
Presented to the College of Accountancy and Finance
Polytechnic University of the Philippines
Sta. Mesa, Manila
In Partial Fulfillment of the Requirements for the Degree

Bachelor of Science in Management Accounting
by
Abarro, Earl Jansen A.

Amante, Rhena Rose Princes B.
Buan, Jessa C.
Dela Cruz, Jhoanna Krista C.
Delima, Kiezler Jed T.
Iloseo, Carlos Alfred R.
Ocampo, Jessa V.
Santos, Joshua Ruth
Velasco, Shiela Marie P.
Villarama, Jane Clarence R.
2022
Mr. Normand Miranda, CPA, MBA

POLYTECHNIC UNIVERSITY OF THE
PHILIPPINES
CERTIFICATION
This thesis, EFFECTIVENESS OF THE USE OF MOBILE E-WALLETS

AMONG PUP MANILA CAF STUDENTS DURING THE COVID-19 PANDEMIC,
prepared and submitted by EARL JANSEN A. ABARRO, RHENA ROSE
PRINCES B. AMANTE, JESSA C. BUAN, JHOANNA KRISTA C. DELA CRUZ,
KIEZLER JED T. DELIMA, CARLOS ALFRED R. ILOSEO, JESSA V. OCAMPO,
JOSHUA RUTH SANTOS, SHIELA MARIE P. VELASCO, JANE CLARENCE R.
VILLARAMA, in partial fulfillment of the requirements for the degree, BACHELOR
OF SCIENCE IN MANAGEMENT ACCOUNTING has been examined and
recommended for Oral Examination.
Mr. NORMAND MIRANDA, CPA, MBA

Adviser
APPROVAL SHEET
Approved by the Panel on Oral Examination on July 20, 2022 with the grade
of___ .
Mr. Ryan Roque, CPA, DBA Ms. Kit Acxela E. Bolaton, CPA,
MBA Panelist Panelist
Accepted in partial fulfillment of the requirements for the degree Bachelor

of Science in Management Accounting
JULIETA G. FONTE, CPA, PhD

College Dean
Abarro, Amante, Buan, Dela Cruz, De lima, Iloseo, Ocampo, Santos, Velasco, Villarama
i EFFECTIVNESS OF THE USE OF MOBILE E-WALLETS AMONG PUP
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ACKNOWLEDGEMENT
The completion of this research would not have been possible without the
guidance and support of those who have been with us from the beginning. The
group would like to express their deepest gratitude and gracefully acknowledge
the following:
First and foremost, we thank and praise our Gracious and Almighty Lord
for the wisdom and knowledge He has bestowed upon us. Despite the
communication issues and limited resources brought by the pandemic, His
presence makes us feel at ease. We celebrate and give thanks to God for giving
us strength, courage, patience, and protection throughout the process.
We are grateful to our dear families for their moral support and words of
encouragement whenever we feel discouraged. Also, for the financial provision
they give us for the funding of this research.
We would also like to express our immeasurable gratitude to our research
adviser, Prof. Normand John G. Miranda, who assisted in every chapter of this
study and for voluntarily sharing his knowledge and expertise to make this
research a better scholarly work.
To Dr. Ryan Roque and Prof. Lady Diana Noleal, for their time and
expertise in checking our paper for the first part of our research, which helped us
improved our work.
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To Dr. Rudolf Calimag, Prof. Mark Anecito R. Perlas, CPA, and Prof.
Mechico A. Manansala, CPA, MMBM for their time in validating our
questionnaire. We also appreciate their constructive comments, which helped us
in formulating our questionnaire better.
To our statistician, Mr. Mervin Bantula, for facilitating the statistical test
and providing the statistical data required to complete the study. We are thankful
for his suggestions and patience in answering our questions.
To the selected respondents, for their participation in answering our pre-
survey questionnaire needed for reliability test.
To the third year and fourth year students from College of Accountancy
and Finance, our actual respondents, who diligently answered our survey
questionnaire, we are grateful for your time, effort, cooperativeness, and
information that you have extended unto us. This study was completed due to
your help.
We would like to express our gratitude to all of our friends, classmates,
and those who were not mentioned for their unwavering support and assistance
in any manner to pursue this study.
iii EFFECTIVNESS OF THE USE OF MOBILE E-WALLETS AMONG PUP
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CERTIFICATION OF ORIGINALITY
This is to certify that the research work presented in this thesis/

dissertation,
EFFECTIVENESS OF MOBILE E-WALLETS AMONG PUP CAF STUDENTS
DURING THE COVID-19 PANDEMIC, for the degree Bachelor of Science in
Management Accounting at the Polytechnic University of the Philippines
embodies the result of original and scholarly work carried out by the
undersigned. This dissertation does not contain words or ideas taken from
published sources or written works that have been accepted as the basis for the
award of a degree from any other higher education institution, except where
proper referencing and acknowledgment were made.
Researchers
ABARRO, EARL JANSEN A. AMANTE, RHENA ROSE PRINCES B.
BUAN, JESSA C. DELA CRUZ, JHOANNA KRISTA
DELIMA, KIEZLER JED T. ILOSEO, CARLOS ALFRED R.
OCAMPO, JESSA V. SANTOS, JOSHUA RUTH
VELASCO, SHIELA MARIE P. VILLARAMA, JANE CLARENCE R.
JULY 10, 2022

Date signed
iv EFFECTIVNESS OF THE USE OF MOBILE E-WALLETS AMONG PUP
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v EFFECTIVNESS OF THE USE OF MOBILE E-WALLETS AMONG PUP
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ABSTRACT
Title: Effectiveness of the Use of Mobile E-Wallets Among
PUP Manila CAF Students During the COVID-19
Pandemic
Researchers: Earl Jansen A. Abarro, Rhena Rose Princes B. Amante.,
Jessa C. Buan, Jhoanna Krista C. Dela Cruz, Kiezler Jed T.
Delima, Carlos Alfred R. Iloseo, Jessa V. Ocampo, Shiela
Marie P. Velasco, Jane Clarence R. Villarama
Degree: Bachelor of Science in Management
Accounting Institution: Polytechnic University of the
Philippines
Year: 2022
Adviser: Mr. Normand Miranda, CPA
The researchers aimed to assess the effectiveness of mobile e-wallets during the
COVID-19 pandemic by analyzing how PUP-Manila CAF students used their
mobile e-wallets in relation to e-commerce in terms of performance expectancy,
effort expectancy, social influence, and facilitating conditions.
The researchers adopted a quantitative research method and used a survey
questionnaire as the instrument for collecting data. The statistical techniques
applied in the study included Frequency and Percentage Distribution, Weighted

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Mean, Standard Deviation, Mann-Whitney U Test, and Kruskal Wallis H-test.
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The results of the study showed that in terms of cash planning (grand mean of
4.08), determining optimal cash balance (grand mean of 4.06), managing cash
flows (grand mean of 3.88), and investing idle cash (grand mean of 3.86) there is
a “Slight Agree” in the perceptions of the respondents as usual cash
management practices of micro and small enterprises in the National Capital
Region. It was also revealed that there is a significant correlation between the
cash management practices utilized and the micro-enterprises, when grouped
based on years of operation, and number of employees. Furthermore, the
concluded that most of the respondents are operating either through physical or
online stores, and some utilize both. Most of them started about 2 years or earlier
with below Php100,000 capital which came from most of their savings.
Keywords: Micro-enterprises, Cash Management, Cash Planning, Determining
Optimal Cash Balance, Managing Cash Flows, Kruskal Wallis H-Test, Likert
Scale
Abejuela, Bembo, Maang, Mandani, Martinez, Panganiban, Parilla, Rastica, Reserva, Soriano
vi CASH MANAGEMENT OF SELECTED MICRO-ENTERPRISES
IN NATIONAL CAPITAL REGION AMIDST
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TABLE OF CONTENTS
Page
Title Page
Certification-and-Approval Sheet i
Acknowledgement ii - iii
Certification of Originality iv
Abstract v - vi
Table of Contents vii - ix
List of Figures x
1 The Problem and Its Settings

Introduction 1
Theoretical Framework 5
Conceptual Framework 7
Statement of the Problem 9
Hypothesis 10
Scope and Limitations of the Study 11
Significance of the Study 12
Definition of Terms 14
2 Review of Related Literature and Studies

Cash 18
Cash Management 20
Cash Flow 29
Micro-Enterprises/Micro Businesses 32
National Capital Region 36
Synthesis of the Reviewed Literature and Studies 36
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Page
3 Methodology
Method of Research 41
Population, Sample Size, and Sampling Technique 39
Description of Respondents 43
Research Instrument 44
Data Gathering Procedure 44
Statistical Treatment of Data 46
4 Results and Discussion
Table 1: Demographic Profile of Respondents According to the 50

Type of Business Operation
Table 2: Demographic Profile of Respondents According to Years of 51
Operation
Table 3: Demographic Profile of Respondents According to 53
Capitalization
Table 4: Demographic Profile of Respondents According to Source 54
of Capitalization
Table 5: Demographic Profile of Respondents According to Number 55
of Employees
Table 6: Demographic Profile of Respondents According to Monthly 56
Income
Table 7: Respondents’ Assessment on the Cash Management 57
Practices in terms of Cash Planning
Practices in terms of Determining Optimal Cash Balance
Practices in terms of Managing Cash Flows
Practices in terms of Investing Idle Cash
Table 11: Respondents’ Assessment on the Significance of Cash 68
Management Practices based on Type of Business
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Page
Table 12: Respondents’ Assessment on the Significance of 71
Cash Management Practices based on Years of Operation
Cash Management Practices based on Capitalization
Cash Management Practices based on Source of Capitalization
Cash Management Practices based on Number of Employees
Cash Management Practices based on Monthly Income
5 Summary of Findings, Conclusion, and Recommendations
Summary of Findings 85
Conclusion 89
Recommendations 91
References 93
Appendices
Appendix 1: Research Instrument 109
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LIST OF FIGURES
Number Title Page
1 Functions of Cash Management 6
2 Research Paradigm 7
3 Computation of Sample Size 40

4 Likert Scale 46
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Chapter I
CHAPTER 1: THE PROBLEM AND ITS SETTINGS
This chapter stated the introduction, the statement of the problem, its
scope and limitations, and the significance of the study of the present research.
This is to assimilate the information regarding the study and provide a glimpse on
what is the purpose and objectives of the study.
Introduction
Being the lifeblood of every business, cash is the most essential asset.
Generating enough cash from business’ activities will help to cover costs and
invest in the business growth (Thangavelu, 2021). Moreover, positive cash flows
are often tagged as one of the key factors for long-term business success.
Therefore, businesses must generate adequate cash flows in order to survive.
According to TheInvestorsBook.com (2019), Cash management is the
collection, handling, control, and investment of the organizational cash and cash
equivalents. It is done to ensure the optimum utilization of a company or
business’ liquid resources. Optimal efficiency is the main goal of managing cash.
It can be achieved by efficiently optimizing the “Big Three” of cash management
(Prospa.com): (1) receivables or the revenues where cash has an inflow
movement; (2) payables where cash has an outflow movement; and (3)
inventory. In all types of business, cash management is an important job. If the
business fails to pay its obligation on time due to cash insufficiency, the company
will be forced
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to file for insolvency. To avoid insolvency, the company should manage its cash
through proper cash handling and monitoring. Having optimal cash management
will allow overall business efficiency, majorly reducing the risk that the firm is
exposed to.
However, with the ongoing crisis circulating around the globe, the
business world has been struggling to survive. Pandemic has provided so many
challenges for enterprises that led some to its downfall. According to the
International Labour Organization (2020), one of the greatest challenges brought
by the pandemic is the insufficient cash flow to maintain staff and operations.
Surveys carried out by Employers and Business Membership Organizations
(EBMOs) have found that more than 85% of 4,500 enterprises across 45
countries worldwide have said that the crisis imposed medium to high financial
impact on their operations. From which, micro and small businesses are
significantly affected.
Locally, the Philippine economy has faltered from the sudden outbreak as
it is built around the mobility of people and remittances-fed growth which are all
vulnerable to pandemic-induced systems (Mendoza, 2021). Most businesses
were unable to shift to a more efficient containment strategy due to pandemic
restrictions and protocols which provided them with disrupted cash flows and
huge amounts of obligations. Consequently, some portions in the business sector
are barely operating and worst, are forced to close operations. According to a
survey on 13,878 firms that aims to assess the impacts of Covid-19 on them,
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their businesses, 9% have closed due to compliance with pandemic-related
regulations, 21% have voluntarily decided to close their operations and 7% have
closed their business permanently. This has been due to a continuous decrease
in sales, insufficient cash inflows to cover costs, and such (World Bank, 2021).
National Capital Region is one of the Philippines’ fastest-growing
commercial and financial regions and a home for MSMEs with a significant
number of micro-enterprises. These enterprises are also currently at the stake of
shutting down their operations majorly due to the pandemic having insufficient
funds and cash flows on hand. In fact, 16% of the micro, small and medium
enterprises (MSMEs) nationwide have closed - a significant fraction comes from
the National Capital Region (Angara, 2021).
Considering cash flow challenges, cash and liquidity needs are paramount
during turbulent periods. Hence, it is a significant factor in business success to
have optimal cash management especially now that the pandemic is still going
on. Dealing with stress and uncertainty provided by the crisis, businesses should
include and prioritize cash flow management as part of their resilience planning
(Grant Thornton, 2020). With proper management of cash flows, businesses may
be able to reduce the risks, especially financial risks, that they are exposed to.
As pandemic continues to surge, microbusinesses are at a greater risk of
disruption in terms of cash inflows. Hence, cash management within the business
is already a necessity. Consequently, this study focuses on assessing National
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Capital Region’s micro-businesses cash management in terms of the level of
effectiveness considering the overwhelming status brought in by the crisis.
In the end, the researchers will provide insights into how well
microbusinesses are doing in terms of managing their cash flows and what cash
management systems are suitable for them in the current situation.
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Theoretical Framework
This section includes theories that explain and support the significance of
knowing cash management of selected micro-enterprises in the national capital
region amidst the pandemic. The theory will help stabilize the study since it
connects the topic to existing knowledge, making it easier for the researchers to
have a basis for the process and methods that may be done. Also, it helps the
researchers to limit the data collection by presenting variables that are truly
relevant and needed in the topic.
Managing cash in terms of payments, receipts, and other transactions of
the business that cost inflow and out of business is developing over time into a
much more sophisticated method. Cash management is defined as various
activities that should be undertaken to ensure that proper handling of finances is
done to meet obligations. According to recent studies, it is found that small
businesses have poor cash management attention (Denver, 2005). It is important
for smaller companies because they can survive for a long time without a profit
but fail when they cannot meet a payment.
In accordance with Guitman, Joehnk, and Bacon (2011), cash flow
management decision-making focuses on functions of cash management;
efficient cash management requires cash planning, cash flow management, cash
control, and maintenance of adequate cash balance. Given functions that would
lead to effectively managing cash of a certain business, those functions would be
used as
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a reference in determining the factors that affect cash management practices of
selected micro-enterprises in the National Capital Region.
Figure 1 illustrates the association of cash planning, determining optimal
cash balance, managing cash flows, and investing in building an efficient cash
management system.
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Conceptual Framework
Figure 2 shows the relationship of the following factors: first is the profile of
respondents according to the type of business whether the online or physical
operation, number of years in operation, capitalization, source of capitalization,
and the monthly income. The cash management of micro-enterprises in the
National Capital Region will be assessed according to the following factors: cash
planning, managing cash flows, determining optimal cash balance, and investing
idle cash. This will be verified through the distribution of survey questionnaires
and
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statistical treatment. After gathering the results, recommendations were then
formulated. Lastly, it will be published for further use.
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Statement of the Problem
This study aims to assess the factors of the cash management practices of
Micro-Enterprises in the National Capital Region.
Specifically, it attempts to answer the following questions:
1. What is the profile of the respondents in terms of the following:
1.1 Type of Business
1.2 Number of years in operation
1.3 Capitalization
1.4 Source of capitalization
1.5 Number of employees
1.6 Monthly Income
2. How do the respondents assess the factors of the cash management practices
of Micro-Enterprises in the National Capital Region in terms of the following
aspects:
2.1 Cash Planning
2.2 Managing Cash Flow
2.3 Determining Optimal Cash Balance
2.4 Investing Idle Cash
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3. Is there a significant difference in the Cash Management of Selected Micro-
Enterprises in the National Capital Region when they are grouped according to
profile?
Hypothesis
H0 - There is no significant difference in the Cash Management of Selected
Micro-Enterprises in the National Capital Region.
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Scope and Limitations of the Study
The study intends to discuss the cash management practices, the level of
effectiveness of each cash management practice based on the experience of the
owners or admin staff of selected micro-enterprises in National Capital Region.
The respondent's demographic profile is limited by the respondent's type
of business (Online or Physical store or both), number of years in operation,
capitalization, source of capitalization, number of employees, and monthly
income. The aforementioned profiles are important to researchers because
they make actionable recommendations that will benefit the company owners. In
addition, the cash management factors will only be limited to cash planning,
managing cash flows, determining optimal cash balance, and
investing idle cash. Furthermore, the parameter was
approximately 400 only. It will be composed of either owners or admin staff of
each business of micro-enterprisesbased on the guidelines of Magna Carta for
Micro, Small, and Medium Enterprises (MSME). Micro-enterprises have a
capitalization that is limited to the total amount of assets and liabilities of less
than or equal to Php 3,000,000.00 with minimum
and maximum employees 1-9 only.
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Significance of the Study
The study is deemed to be significant to the following individuals and/or
organizations:
Micro Enterprises. It will give insights to these types of businesses in the
National Capital Region to better understand the importance of cash
management. This will also contribute to the knowledge and important
information needed by businesses that will guide them in their practice of
effective and efficient cash management.
Local Government Unit. The study contains information that will help the
government and its leaders in developing approaches and strategies that will
better shape the living state of their constituents. This can be used as an
instrument for various program regulations, projects, and tax incentives for micro-
enterprises.
Banks and Lenders. The results of this study give the banks and lenders
ample data on how they can serve micro-businesses better as they are
considered primary financial service providers.
Financial Advisors. It provides them with aid on how they can help micro-
enterprises plan their cash flows, capital expenditure, and better financing terms.
This can also serve as a benchmark for their own research related to cash
management.
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Academe. The concepts and terms in cash management collected from
this study can help the improvement of the academy's curricula. Moreover, this
will benefit the students because the study will provide real-life implications for
cash management.
Future Researchers. This research is of great significance to other
researchers as it will serve as a reference for their studies in a similar field that
will be conducted in the future. In addition, this will aid them in formulating ideas
and concepts for new research studies.
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Definition of Terms
The following terms are conceptually defined in this study:
Bookkeeping. Also known as record keeping, it records transactions and
business events in the form of journal entries in the accounting system (What is
Bookkeeping, n.d.)
Cash Asset Protection Policy. A financial consumer benefit that is included in
Partnership policies provided by the State at no charge (What is asset protection,
2021).
Cash Budget. An estimate of cash receipts and their payments during a future
period of time (What is A Cash Budget, 2021).
Cash Conversion Cycle. A metric that expresses the time it takes for a
company to convert its investments in resources, into cash flows from sales
(Hayes, A., 2022).
Capitalization. The total investment of the owner/s in a business enterprise
(Definition of capitalization, n.d.).
Collateral. Property pledged by a borrower to protect the interests of the lender
(Collateral, n.d.).
Credit History. A record of how the repayment of debts is managed, it also
contains additional information of an entity’s finances (Jayakumar, A., 2021).
Digitization. The process of converting information into digital format
(Contributor, 2007).
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Embezzlement. The fraudulent taking of personal property by someone to whom
it was entrusted (Embezzlement, n.d.).
Expenditure. A payment or in the incurrence of a liability in exchange for goods
or services (Bragg, 2022).
GAAP. Generally Accepted Accounting Principles (GAAP) are a collection of
commonly followed accounting rules and standards for financial reporting (US
GAAP: Generally Accepted Accounting Principles, n.d.)
Idle Cash. A cash that is not used in a way that can increase the value of a
business (Corporate Finance Institute, 2020).
IFRS. A set of accounting rules for the financial statements of public companies
that are intended to make them consistent, transparent, and easily comparable
around the world (Palmer, B., 2021).
Inventory. Refers to all the items, goods, merchandise, and materials held by a
business for selling in the market to earn a profit (What is Inventory? | Definition,
Types & Examples of Inventory - Zoho Inventory, 2020).
Leverage. The relationship between the amount of money that a company owes
to banks and the values of the company (Cambridge Dictionary, 2022).
Linear Probability Model. A regression model where the outcome variable is a
binary variable, and one or more explanatory variables are used to predict the
outcome (Linear Probability Model, n.d.).
Liquidity. Refers to how quickly an investment can be sold without negative
impact to its price (Corporate Finance Institute, 2020).
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Micro-credit. Also called micro-banking or micro-finance, is a means of
extending credit, usually in the form of small loans with no collateral, to non-
traditional borrowers (T. Editors of Encyclopedia, 2016).
Misappropriation. Wrongful use, especially the dishonest or inappropriate use of
other’s money or data (Definition of misappropriation, n.d.)
Negotiable Instruments. These are written contracts or documents which
promise payment to the assignee or a specified person (Negotiable Instruments –
Meaning, Types & Uses, 2021).
Payables. Or Accounts Payable, is a short-term debt when a company
purchases goods on credit (What Is Accounts Payable? Definition of Accounts
Payable, Accounts Payable Meaning, n.d.)
Receivables. Or Accounts Receivable, is the proceeds or payment which the
company will receive from its customers who have purchased its goods and
services on credit (What Is Accounts Receivable? Definition of Accounts
Receivable, Accounts Receivable Meaning, n.d.).
Sales Cycle. The repeatable and tactical process salespeople follow to turn a
lead into a customer (Bean, J., 2019).
Speculative Purpose. Also called financial speculations, is the act of buying or
selling assets that take on more risk (Matthews, K., 2021).
Supply Chain Business. A network between a company and its suppliers to
produce and distribute a specific product to the final buyer (Kenton, W., 2021).
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Working Capital. The sum of the cash and highly liquid investments that a
business has on hand to pay for day-to-day operations (Working Capital Definition
| Bankrate.Com, n.d.).
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CHAPTER II:
REVIEW OF RELATED LITERATURE AND STUDIES
This chapter substantial writings relevant to the study. Also embodied
some antecedent studies and previous theses that are of relation and importance
to the present study. This is to establish that the study has a sufficient
documentary basis which support the present undertaking.
Cash
Marketbusinessnews.com (2020) gave definition to cash as the money in
its most physical form, which means that it can be either banknotes or
coins/paper bills. Other forms of cash include short-term deposits, checks, and
other negotiable instruments. It is also mentioned in the article, that in the view of
finance and bookkeeping, it is one of the company’s current assets that is in
currency or currency equivalents which are immediately accessible for use.
Cash is a term used in accounting and bookkeeping to describe current
assets that are made up of currency or currency equivalents that may be used
right away or within a short period of time (as in the case of money market
accounts). Cash is viewed as a tool to meet financial obligations as well as a
reserve for payments (Candela, 2020).
Cash is a scarce, but one of the vital resources that have several effects to
the success of one company. This is usually expressed as all liquid cash
available to the business and cash deposited in banks. This is one of the
important resources
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that a business, whether small or large in order to perform their functions and
operate. (Chintha and Prasad, 2021).
"Cash is king," as the phrase goes, represents the widespread perception
that cash liquidity is an important element of a company's overall financial
strength. This term is often used in business to highlight money as the most
valuable asset (Gamkrelidzeand Japaridze, 2020).
Yanuaria (2017) strongly believe that cash dictates the past, present, and
future of every business. A business will be hard to manage and succeed if the
owner cannot manage the cash effectively. Yanuaria added that when cash is
abundant, it is much easier to run the operation and make business decisions
compared when it is limited or scarce. On the opposite side, when there is a
problem in cash management, an owner finds a hard time to sustain and grow
the business. And if not resolved, worst case scenario is that the business may
eventually shutdown. This backed the popular saying that goes “Cash is King”
because it dictates the financial health and direction of the business.
According to Smith (2021) in his article entitled, “Reasons Why Cash is
King for Businesses and Individuals, it mentioned the age-old saying “Cash is
King” which means that businesses and/or an individual must have a proper
amount of cash on hand, in order to avoid business failure or bankruptcy, and for
individuals, its availability prepares them for uncertain times, as it is the most
valuable investment tool.
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In an article of the Associated Press (2022) titled, “Extra Cash for Low-
Income Mothers may Influence Baby Brains”, stated that giving extra cash to low-
income mothers helps the brain development of infants. The investigation of the
researchers with regards to the increase in payments to mothers proved that
reducing poverty can directly affect the infant’s nutrition, not just physically, but
also mentally.
Cash Management
Cash Management according to the article posted in 2017 of mpm.ph, is
the ability to maximize the cash balance of a company for different reasons such
as, additional income, maintenance fund for
other operation, liabilities, and emergencies, and in profit
sharing or declaration of dividends. This is helpful for ensuring the stability in the
operation, growth opportunity, and business expansion. It is also known as
treasury management, which aims to fulfill the required working capital of the
company for the period, handling and organizing costs, creating capital
expenditure plans and proper fund utilization, and initiating investments. Cash
management have several types, which are: (1) Cash Flow from Operating
Activities; (2) Free Cash Flow to Equity; (3) Free Cash Flow to the
Firm; and (4) The Net Change in Cash (Thakur, 2019).
Another definition of cash management according to Thakur (2020), is the
process of collecting, managing, and using cash flows to maintain a reasonable
level of liquidity, and it includes financial instruments such as treasury bills,
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certificates of deposit, and money market funds, as well as individuals and
businesses.
In an article of Thangavelu (2021) titled, “Why Cash Management is Key
to Business Success”, it was stated that there are three areas that can offer
possibilities for better cash management, these includes accounts receivable,
accounts payable and inventories.
A properly integrated planning approach in a fully unified environment,
according to Stevens (2020), is critical to cash management. You always have an
accurate, detailed, and live insight into your business when all planning
processes are connected and linked to actuals, and you can trust that it will
always be there at your fingertips.
Another study mentioned the rationale of doing cash management, which
is the study entitled, “The Rationale for Entity Cash Management: An Empirical
Study”, which states that cash holdings of companies in Nigeria is dependent on
its size, leverage, net working capital, and the return on total assets. And this
result, should serve as their guide in maintaining an appropriate amount of cash
holding for their future endeavors (Bankole, et al., 2018).
Ainsworth, an international CFO written an article in 2019 entitled,
“Forecast for Success – A Guide to Cash Management” that give the importance
of cash management, as well as the actions and techniques that can be used. He
said that “Successful cash management strategies will help provide funds for
investing in growth, pay down debt, and return money to owners and
shareholders, and should
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be prioritized and understood by all parts of a business, not just the finance
function”.
In relation to the article of Ainsworth, reckon.com (2021) also gave cash
management techniques that will help a company generate positive cash flow, as
well as a guide for managing well the business. There are three core elements in
cash management and their sub-elements: (1) Business Cash Management
Techniques, which include (a) getting to top of invoices and payments, (b) cash
flow forecasting, and (c) small business cash flow management; (2) Shortening
the Sales Cycle; and (3) Understanding Working Capital.
Pabba (2020) conducted, “A Study on Cash Management at Sri Krishna
Silks”, which analyzes the cash management of Sri Krishna Silks. The researcher
stated in his findings that the cash management practices of the company is
working well, their cash and funds from operations are used efficiently and
continuously increasing year by year. Using the financial ratios, is observed that
the company is in good shape, as they meet their obligations, they have a
satisfactory position in terms of inventory control, and able to meet its required
operating cash.
In 2020, the study of Chintha and Prasad entitled, “A Study on the Impact
of Cash Management on the Financial Performance of the Listed Manufacturing
Companies from Muscat Securities Market, Sultanate of Oman”, observed that
factors such as the amount of manufacturing sales contracts received, the social
development status of the business, impact of the financial crisis within the
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economy influences the cash management practices that will be helpful to policy
makers to understand the factors that serve impact to cash management and
how they can regulate these factors.
A study of Cabanas (2018) cash control got the highest rank and most
effective in cash management practices of micro entrepreneurs’ borrower clients
of Tulay sa Pag-unlad, Inc in Metro Manila branch “reviewing cash receipts
regularly and keeping track all voided transactions, overages and shortage
collections and safeguarding cash in a secure location until it deposited” one of
the practices which is very significant in controlling cash. This is to avoid the
misappropriation and/or embezzlement where small enterprises are likely
suffering this instance.
In 2016, in the study of Enow and Kamala titled, “Cash Management
Practices of Small, Medium and Micro Enterprises in the Cape Metropolis, South
Africa”, it mentioned that MSMEs in the vicinity can effectively manage their cash,
which is similar to the abovementioned study, however, they cannot optimize the
use of their scarce resource, and turn into an opportunity, because only few of
these entities use their surplus cash for investments and other speculative
purposes.
Similar findings from the above study are showed in the study, “Cash
Management Practice and Medium Scale Enterprises Performance: Perspective
of Selected Food and Beverages Firm in Oyo State Nigeria” by Oladejo, et al.
(2017). It revealed that the firms are holding their cash for precautionary and
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speculative purposes, emergency funds and meeting its bills and obligations,
which proves that even in Food and Beverage industry, cash management plays
an important role. However, it is recommended that a portion of their surplus
cash must be put even in short-term investments that are highly liquid and low
risk. Another practice that SMEs in Food and Beverage should embrace is the
cash budget system, which will help the companies in their cash planning.
In Kenya, the study titled, "Influence of Cash Management Practices on
Performance of Small-Scale Enterprises in Mbale Town, Kenya", focused on
finding the effect of three cash management practices, namely, (1) Business
record keeping; (2) Cash budgeting; and (3) Cash conversion cycle. And the
results showed that these practices are significant to SSEs, and improved their
performance (Wesonga, 2017).
The study of Magno (2021) entitled, “Common Problems encountered in
Cash Management Practices of Selected Small-scale Businesses in Pangil,
Laguna”, found out that common problems encountered when doing cash
management practices can affect different levels such as the receiving,
disbursing, controlling, and investing.
The study titled, “Impact of Cash Management on Profitability in Small
Manufacturing Organization” by Pandey (2019), found that in terms of
profitability, poor cash management practices affect the profitability of small
manufacturing organization, thus it is important that small business owners
should have adequate
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knowledge in cash management practices as it is one of the important elements
to be successful in business.
In support to the claims of Dr. Pandey, Washington State University:
Carson College of Business (2020) stated that U.S. Bank revealed that the cause
of more than 80% business failures in America is due to poor cash management,
which is also common especially to micro and small businesses.
Ngirangu, (2017) and his study, “Effect of Cash Management on the
Financial Performance of the Companies Listed at the Nairobi Securities
Exchange”, is almost related to the aforementioned study, as it used secondary
data from Nairobi Securities Exchange, Capital Markets Authority, and the list
companies’ financial statements from 2010 to 2016, in order to ascertain the
effect of cash management on the financial performance of the listed companies.
And with the use of multiple regression and correlation analysis, the researcher
found that the size of the company has a negative and insignificant effect to the
financial performance of the company, as for the cash conversion cycle, it has a
positive yet insignificant effect to the financial performance of the company, while
only the leverage had a positive and significant effect to the companies’ financial
performance.
Alvarez and Argente (2021) stated in their study, “Cash Management in
Times of COVID-19”, that many individuals and businesses have embraced
various payment methods as result of the risk and restrictions imposed during the
pandemic. The higher volume of internet purchases necessitates the use of less
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cash. Additionally, several central banks began cleaning and controlling paper in
the early phases of the pandemic. With the goal of reducing the virus’s spread
even though the danger of infection from cash is now known to be very minimal,
these efforts have encouraged many street-side businesses to either cease using
cash or to make other forms of payment more accessible.
October 2020, Grant Thornton posted an article entitled, “Importance of
Cash Management during Turbulent Times” and according to them, that cash
management in an organization should be the key priority especially in
conducting COVID-19 risk evaluations, and to do so, the organization must
develop appropriate strategies according to different scenarios and determine the
inherent risks that will affect the organization, as well as the providers and
customers. This pandemic showed that novel challenges for types of business,
and those companies that have keen eye for their cash flow and liquidity, will
have a better chance of survival in the market.
Bernier and Castonguay (2020), stated that “when an unexpected event
like the COVID-19 crisis disrupts your operations and threatens your business’
financial health, you need a clear understanding of your financial situation so that
you can make timely decisions”, and they also gave three tips on how to
effectively managing cash even in times of pandemic: First, evaluate the current
situation and the companies’ financial health; second is to create plans both in
short-term and long-term for cash flows in different scenarios; and lastly, develop
a cash asset protection strategy.
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In the article titled, “Cash Management 2021 - Importance of Cash
Management during the Crisis and Beyond” by Michelle Perry (2021), it is
mentioned that cash management has been more complex as organizations
enters the stages of digitization. Few corporates have cleaner data to analyze,
and adoption of machine learning, as well as artificial intelligence treasury tools
showed that the processes can be sped up to arrive to solutions, which is also a
realization that can be expected to pay performance dividends in the future.
Aside from the complexity of a modernized cash management, during this
pandemic, according to Krieger (2020), entrepreneurs faced different challenges
which are as follows: Securing Upstream and Downstream, Resizing the
Company to Adapt to the New Network, Adapting to New Industrial Trends, and
Preventing Liquidity Crises, Preserving the Essential. From this, Krieger also
mentioned, that companies, therefore, should consider this crisis an opportunity
to rethink their business models to survive.
The article of Grube, et al. (2020) featured a similar idea in cash
management from the abovementioned article of Krieger, that the pandemic is an
opportunity for companies to build its momentum in order to attain cash
excellence. The more that organizations, seize this opportunity and turn it into
strength, the more they will be competitive, as well as strong when another crisis
strikes. The authors also added that in cash management, timing is very
essential.
In 2021 article, “How Philippines’ Cash Management Services thrived
amongst MSMEs amidst the Crisis” by Guagua stated that only few Micro, Small,
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and Medium Enterprises (MSMEs) in the Philippines adopted Cash Management
Services not because of the common idea that they resist in utilizing online
platforms, but rather, most of the banks gave their cash management services to
large-sized companies. But due to the growing number of MSMEs,
circumstances changes, banks now accommodate them by creating scalable and
flexible services with self-service capabilities.
As certain changes happened because of the COVID-19 pandemic, it is
not just the businesses and our personal lives are affected, but also the
government. Cited in the study of Gamkrelidze and Japaridze, (2020) entitled,
“Cash Management – A Critical Part of Public Finance Management and Its
Implications in Light of COVID-19 Pandemic”, that cash management is also
important even in government for the reasons that: (a) It ensures that there is an
available and adequate cash for expenditures to pay, (b) It minimizes the
government borrowing costs, (c) It is able to maximize the returns on idle cash,
and (d) To manage risk. That is why, effective, and efficient cash management
through daily consolidation and forecast of the position of government cash flow,
active coordination to counterparties, both internal and external, and proper
financial management and technical systems, helps the government evaluate
thoroughly the impact of emergency situations, like the COVID pandemic, and
reprioritize the activities that will help in giving solutions to the challenges of cash
preservation and cash generation.
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Cash Flow
In 2022, the article from accountingtool.com defines cash flow as net
amount that the company generated or received, known as cash inflows, and
spent or disbursed (cash outflows) for the set period. Every business maintains to
have a positive level of cash flow, in order to attract more investors. It is
summarized and reported through the statement of cash flows, which follows and
guided by GAAP and IFRS accounting frameworks.
Schwarz (2020) is a Senior Director of Global Product Marketing written
an article entitled, “Cash Flow Analysis: Basics, Benefits and How to Do It”,
mentioned same definition as for the abovementioned article, but in this article,
cash flows is differentiated from profit, as profit is the total amount that the
company have after expenses are deducted to the revenue, while cash flow is
about the flows in and out of the company. It also mentioned its three different
types, namely, cash flow from operating activities, cash flows from investing
activities and cash flows from financing activities that is all included to the
statement of cash flows.
In addition to the abovementioned article, another article titled, “Why Cash
Management is Key to Business Success”, mentioned that profit do not give the
whole picture of what the company have, on the other hand, cash flow holds the
well-being of the company because through this, you can see the cash inflow and
outflow of the company.
Aside from the difference of cash flow and profit, the article posted in
bishwobiddaloy.com (2019) titled, “The Essence of Cash Flow”, that cash flow is
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simply the difference of the total amount of cash that came into the amount that
went out. It follows the same equation on getting the firm’s assets; cash flows
from assets are equal to the value of cash flow to creditors plus cash flow to
stockholders.
There are also tools that can help companies in managing their cash
flows, and one of these tools is cash budget. According to the study of Akenne
(2017), a cash budget is a tool used to manage the cash flow of a business. This
is a budget that is focused on the cash coming into the business and the cash
that leaves the business. It is the tool that forecasts the cash receipts and cash
payments of the business and determines the closing balance of cash and cash
equivalents held by the business at the end of each period.
The study of Abubakir, et al. (2021) entitled, “The Role of the Cash Flow
Statement to Provide Accounting Information for the Financial Decision-making
Process”, rely on the 2018 real data from the International Islamic Bank of
Kurdistan, and from those data, the researchers obtained a conclusion that the
information provided from the cash flow statement is essential in the decision-
making process of the bank. Through this kind of statement, the activities can be
examined accurately, from operational, financing and its investments. It also
mentioned that the direct method of doing cash flow statement is easier and
user- friendly compared to the indirect method, especially to those who do not
have background in accounting.
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The aforementioned study, it determined the role of cash flow statement in
the financial decision-making process of a bank, the study of Muniroh and Yuliati
(2021) entitled, “Do Cash Flow and Accounting Profit Information Affect Stock
Prices?”, is focused on determining the effect of cash flow to the stock prices of
the food and beverage sub-sector manufacturing companies that are listed on
Indonesia Stock Exchange from 2015-2019. The researchers found that from the
activities related to cash flow statement, only in the investment activities and
accounting profit could affect the stock prices.
The study, “The Impact of Cash Flow Statement on Firm Value in
Indonesia” by Itan and Riana (2021) determines the impact of cash flow
statement on firm value in Indonesian companies that are listed in the Indonesia
Stock Exchange, which similar to the study of Muniroh and Yuliati in terms of the
target companies to observe. This study showed that when in terms of the firm
value, it has a significant effect on the operating cash flow while insignificant to
investing and financing.
Soboleva, et al. (2018) studied “Monitoring of Businesses Operations with
Cash Flow Analysis” with the goal of developing recommendations that will help
small and medium-sized businesses in monitoring their operations. In doing the
study, it used different research methods and computational procedures. From
this, the researchers were able to develop a cash flow evaluation model that uses
factor analysis, and can help companies predict the financial difficulties, to find an
early solution and mitigate such difficulties.
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Aside from developing a model to monitor the cash flow, it is also
important to see how cash flow affect the financing activities of the company, and
it is featured in the study of Nguyen and Nguyen (2020) entitled, “The Impact of
Cash Flow Statement on Lending Decision of Commercial Banks: Evidence from
Vietnam”, where they found out that in both short and long-term lending decisions
are affected by the information from cash flow statement, and lacking information
in cash flow statement could also affect the confidence of the lenders, especially
the commercial banks of Vietnam.
To properly monitor and see the impact of cash flow in a company, there
are practices on how to manage a healthy cash flow. These practices help
keeping the company on track and/or free from financial problems. The following
are some of the practices in managing cash flow: (1) Closely monitoring the cash
flow, (2) Making projections frequently, (3) Early detection of issues or problems,
(4) Understanding basic accounting, (5) Have an emergency backup plan, (6)
Grow carefully, (7) Invoice quickly, and (8) Use technology wisely and effectively
(thehartford.com, 2019).
Micro-enterprises/ Micro Businesses
James (2021) defined micro-enterprises as small firms that are mostly
financed by micro-credit, which is a small loan that is offered to persons who do
not have collateral, credit history, employment history, and/or savings. And these
small loans are enough for a local business to start-up.
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Generally, MSMEs are the backbone of the national economy. However,
despite their contribution to the economy, this group of enterprises are prone to
failure. This scenario happens as MSMEs’ entrepreneurs have limited knowledge
in running a business, from financial to non-financial aspects. They are also
unaware or unconvinced of the benefits that accounting and financial
management could bring for the purpose of efficient control or operation, and
decision-making (Ahmad, 2016).
Oluoch (2016) has cited that the major causes of small enterprises’ failure
are lack of planning, mishandling of finances and poor financial management.
And because of their size in the market, a simple mistake in their management
could lead to closure. So, it is needed that people who will engage in such
business, should have enough knowledge in business to help it grow and
become a success. In the study entitled, “Growth of Micro and Small-Scale
Enterprises and its Driving Factors: Empirical Evidence from Entrepreneurs in
Emerging Region of Ethiopia” by Meressa (2020), stated that the result of
regression analysis showed that initial investment, access to land, finance,
location, sectoral engagement, market linkage, and business experience are
significant in explaining growth, but insignificant in terms of gender, education,
ownership, formal recording, and
financial management.
However, despite such circumstances, micro businesses continue to play
an important role in the economy and strengthens the American communities and
considered to be at the heart of their country’s foundation. As Americans are now
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more inclined to self-employment, it becomes a key part to small company
economy (Bulger, 2020).
In the Philippines, MSMEs drive the national economy as they account for
99.51% of the total business operating in the country. MSMEs contributes to the
country’s total exports revenue of about 25% from the 60% exporter in the
Philippines. And out of this 99.51%, 88.77% is constituted by micro businesses.
Also, according to the number of MSMEs in 2020, the top 5 industry sectors
were:
(1) Wholesale and retail trade; Repair of motor vehicles and motorcycles; (2)
Accommodation and Food services; (3) Manufacturing, (4) Other service
activities (other than food services); and (5) Insurance activities (Department of
Trade and Industry, 2020).
MSMEs played a significant role in the development of the Philippine
economy. They contribute to the reduction of poverty by employment creation for
the country's growing labor force. They promote financial development both
within and outside of the country (Anoos, et al., 2020).
However, in the study of Sustani, et al. (2021) titled, “MSMEs Financial
Management during the Pandemic”, mentioned that COVID-19 pandemic
disrupted supply chain businesses, especially the small and medium enterprises.
That is why, it is essential to have an assessment of financial performance for
MSMEs. After assessing the financial conditions of MSMEs, they must consider
financial strategy as an important factor to maintain stability and develop
business in a better direction.
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Rao and Shinozaki (2021) stated in their study entitled, “COVID-19 Impact
on Micro, Small, and Medium-sized Enterprises under the Lockdown: Evidence
from a Rapid Survey in the Philippines”, that COVID-19 brought change to
people’s lives and business activities not just in the Philippines, but also globally.
This examined the impact of the initial 1-month lockdown to MSMEs in the
Philippines, in accordance with the initial policy measures and implications of the
government. And they observed through Linear Probability Model (LPM)
regression, that there are MSME groups that are greatly affected by the
pandemic such as the education, construction, accommodation and tourism, and
food services, while there are groups who coped better like the information and
communication technology, and real estate.
In relation to the abovementioned study, it is mentioned in the article titled,
“MSME Sector is Key to COVID-19 Inclusive Recovery for PH”, that most of the
Micro, Small and Medium Enterprises (MSMEs) are operating in a lower capacity,
and some are still temporarily closed despite the lifting of the enhanced
community quarantine (ECQ). They continue to experience disrupted cash inflow
and more expenses, which resulted to income losses from April to June 2020
compared to their income during pre-pandemic period (ph.undp.org, 2020).
But compared to the prior studies, the study, “Road to Recovery and
Resilience for Philippine MSMEs During the COVID-19 Pandemic”, by
Flaminiano, et al. (2021) shows that small businesses can survive even in times
of crises, such as the COVID-19 pandemic, if they give importance to agility,
resilience, and
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innovation. Also, MSMEs should nurture more its relationship to the customers,
lenders, employees, and suppliers to create an environment that is collaborative
and would benefit each other during times of crises.
National Capital Region (NCR)
In an article posted in nnc.gov.ph (2020), National Capital Region is
known to be the only region in the Philippines that is without any province.
Instead, it is divided in to 17 local government units (LGUs) which is composed of
16 cities, which includes Caloocan, Las Piñas, Makati, Malabon, Mandaluyong,
Manila, Marikina, Muntinlupa, Navotas, Parañaque, Pasay, Pasig, Quezon City,
San Juan, Taguig, and Valenzuela, and the sole municipality in the region,
Pateros. This said region is the exact location that will be used in conducting the
survey related to the cash management practices of Micro-Enterprises.
Synthesis of the Reviewed Literature and Studies
The synthesis of concepts, principles, theories, approaches, and
procedures deliberated is essential, as well as, beneficial to the deeper
understanding and discernment of the current study. It serves as a guide to
ensure that the research study will bear a valid, accurate and reliable results. The
collected review of literature and studies were thoroughly analyzed in order for us
to see the disparities and/or gap, relationship, as well as the importance of
conducting the study and its findings.
Based on the literature and studies that are cited, cash is the most
important resource of an entity, and cash management is an essential practice in
doing
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business to meet the adequate cash requirement, optimizing the utilization and
generation of cash, and ensuring that the business have spare amount that is
enough for emergencies and reserves.
As cash is the most liquid asset of a company, the researchers find it fit to
be given importance especially in its proper management that would not just help
a company pay for its obligations and achieve its cash requirements, but also to
help them save and/or gain more money other than their business income,
through their idle cash, as this would also be beneficial for them for uncertain
times, such as the pandemic as mentioned in the article, “Reasons Why Cash is
King for Businesses and Individuals”.
This is also the stand that is given by Yanuaria. According to the article
she wrote, cash dictates the past, present, and future of every business, and it
makes sense, as investors would likely be more attracted to a business with good
history and track record in its cash assets and cash management, as it will help
them assess whether the business is worth investing or not based on its past and
present endeavors.
As mentioned in the above statement, cash can never grow, unless
otherwise, the business practices appropriate cash management techniques and
guided by a properly constructed plan, which is according to the written article of
Stevens and supported by Bankole and his colleagues through their study
conducted in Nigeria. Aside from it, another writer in the name of Ainsworth
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mentioned the importance of doing cash management, as aid in generating funds
for a business’ investments, debt payments and return on equity.
However, there are findings from the previous studies both in the local and
international scene that there are different cash management practices, and not
all of them are given importance, instead, only few are common practices are
used by companies, namely, (a) record keeping, (b) cash budgeting, and (c) cash
conversion cycle. Thus, the current study will give focus to other practices such
as, cash planning, cash flow management, determining optimal cash balance,
and investing idle cash.
Although separately, there are studies and research conducted in the past
that are significant to the practices that is given focus to the current study, still,
there are only few that exists in the Philippine context. For this reason, and with
the support of the collected review of literature and studies, the researchers will
explore, assess, and give deeper understanding to the factors of cash
management practices of micro-enterprises in the National Capital Region.
Other significant studies that make cash management practices, very
important to use when doing business are the studies of Pabba, Chintha and
Prasad, and Cabanas. Where all showed promising results to different business
industries that used cash management practices and saved them from the threat
of loss and financial crisis.
Pabba’s study which focused on the silk industry, showed that with the use
of cash management practices, their cash flows are more efficient, their funds
from
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operations yearly increases, and they have now more control over their inventory
compared before. While Chintha and Prasad observed that through cash
management, government can create policies that would lessen the effects of
financial crisis and other economic malaise in the Sultanate of Oman. In the local
context, the study of Cabanas, gave the importance of having an effective cash
management to ensure that there will be no incident of misappropriation,
overages or shortages, and embezzlement to small enterprises.
But there are also studies that although carries beneficial factors of cash
management, it also points out some deficiencies that cannot give the
businesses the optimal benefits because only few are knowledgeable enough
about investments. Only few are willing to take the risk of investing their surplus
cash, and most of these people are putting their cash to short-term investments
that they see bear lower risk and more liquid. Which is why this present study is
an opportunity to assess if aside from the basic and common cash management
practices, micro-enterprises in the Philippines, also do investments of their
surplus or idle cash in other to generate more cash to their business or just
keeping it idle or remain deposited in banks.
When it comes to the uncertain times, like the pandemic, which affected all
businesses worldwide, cash management became more complex, but stayed
helpful, as more and more businesses turn from physical operations of business
to digital or online. It is mentioned in an article written by Grant Thornton, that in
these turbulent times, cash management garner importance in developing
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strategies that would help a business survive amidst the changes in the
environment and the risks it creates. This is also the point of view shared by
Bernier and Castonguay when they remind that in this kind of situation,
businesspeople must stay focused and have a clear understanding their position
and financial situation, to make definite decisions that will protect their
businesses, and stay on track. In addition, Krieger points out that this crisis can
be turned into opportunity for changes in a business model to adapt to the current
situation.
This review of the related literature and studies also gave the researchers
relevant and adequate concepts, information, evidence, and generalizations that
would help in determining whether there would be any significant difference to
the cash management practices of micro-enterprises in the National Capital
Region.
This study is different and not a duplicate of any studies conducted in the
past. There are several similarities, in terms of methodology, statistical tools, as
well as, comparable objective, but the present endeavors utilize different
variables and location. The abovementioned literatures and studies will only
serve as guidance to the presently conducted study to never lose sight of its true
purpose and objectives.
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Chapter III
METHODOLOGY
This section contains the research design and methodology used in this
study, and how these guided the data collections and analysis to assess the
research study.
Method of Research
Quantitative research will be used in the study. Quantitative research is
designed to gather and analyze numerical data, including ratings, figures, and
also the demographical data of respondents. It can be used to find patterns and
averages, make predictions, test causal relationships (Bhandari 2020 Revised
2021).
Population, Sample Size, and Sampling
Technique Population
The target population of the study refers to the group of people, things, or
events that are of interest to a researcher. The target population is where the
survey will be disseminated and analyzed by the researcher.
The target population in the National Capital Region is the micro-
enterprises that will be randomly surveyed by disseminating questionnaires on
the internet since it will be the most applicable way to gather data due to the
pandemic.
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Provided data about registered micro-enterprises in the National Capital Region
by the DTI (Department of Industry), there are a total of 168,044 micro-
enterprises to conduct the survey.
Since the total target population is big, the sample size is determined using
Cochran’s Formula stated below:
Where:
n = Sample size
e = Desired precision level
Z = Abscissa of the normal curve that cuts off an area at the tails
p = Estimated proportion of an attribute that is present in the population
q = 1-p
The sample size is computed based on the Cochran’s Formula which gives a
sampling number of 384 micro-enterprises in NCR as seen below; (computation
done by Raosoft Sample Size Calculator.)
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The sample size identified for this study as shown in figure 3, consisted of
a total of 384 micro-enterprise in the National Capital Region. Since the sample
size is already computed, the survey questionnaire will be distributed randomly
online using all social media platforms like Facebook, Instagram, Twitter, and the
like. The researcher limits this study to the cash management of selected micro-
enterprises in NCR amidst the pandemic.
Description of Respondents
The target respondents of the study are the owners or the admin staff of
the micro-enterprises in the National Capital Region. Respondents will be studied
according to the type of business (Online or Physical store or both), number of
years in operation, capitalization, source of capitalization, number of employees,
and monthly income. Micro-enterprises as per the Magna Carta for Micro, Small,
Medium Enterprises (MSME) have a capitalization that is limited to the total
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amount of assets and liabilities of less than or equal to Php 3,000,000.00 with
minimum and maximum employees 1-9 only.
Research Instrument
The instrument of the research comprises the phases or aspects of the
instruments, the items, how items are selected and validated, and the number of
items. Data will be gathered using the survey method.
The survey questionnaire is used as the main instrument in collecting
information. The questionnaire will be composed of two (2) parts. The first part
includes information about the respondents in terms of the type of business
(Online or Physical store or both), number of years in operation, capitalization,
source of capitalization, number of employees, and monthly income. The second
part is assessing the factors affecting cash management practices of micro-
enterprises in NCR such as cash planning, managing cash flows, determining
optimal cash balance, and investing idle cash
Data Gathering Procedure
Data gathering is a procedure to collect, gather and analyze data to be
used as a variable for the study. As for quantitative researchers, the most
commonly used data gathering procedures are surveys, face-to-face interviews
or through emails and phone calls, and case studies.
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This study will solely use electronic survey questionnaires as the research
instrument, due to the current situation in the country caused by the COVID-19
lockdowns and restrictions, it is nearly too impossible to conduct other
procedures, that’s why it has been decided by the researchers to just maximize
available resources without compromising health and safety.
After survey questions are approved and finalized, they will be embedded
into a google form, a dry run will be conducted to make sure that the form is
functioning smoothly and there is no technical error especially in collecting data.
The survey form link will be disseminated in various social networking sites like
Twitter, Facebook, Messenger, and Instagram, attached in the link are the
requirements for the respondents needed to ensure that all the responses are
valid and came from the desired respondents. Included in the survey form is
consent and data privacy section to provide proof that the respondents are aware
that their responses will be used in conducting this study with confidentiality.
Gathering responses from the respondents will be done in a certain time
given to gather data. Since Google form is used to gather data, the researchers
will easily track an accurate number on how many respondents have already
answered.
In the retrieval part, Google Form is designed to help collect information in
an easier manner, Survey link will be connected to a Spreadsheet to
automatically record the responses. After collection, data will be analyzed and
interpreted.
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Statistical Treatment of Data
The data that will be collected by the researchers will be organized and
classified depending on the research design and the problems that were
formulated. The data collected will be tallied and tabulated to facilitate the
presentation and interpretation of information. To interpret and analyze the data
effectively, the researchers will employ the following statistical treatment;
1. Frequency Distribution
The frequency distribution, as a statistical tool, visualizes the distribution of
observations inside a given test. Frequency distributions are frequently used
by analysts to depict or interpret the data obtained in a sample. The frequency
distribution is a graph or data set that displays the frequency of occurrence of
each possible outcome of a repeatable event that has been observed
numerous times. This will be used to determine the frequency counts and
percentage distribution of personal related variables of the respondents.
Formula:
% =is the percentage
F= is the Frequency
N =is the total number of respondents
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100= is a constant value
2. Percentage Distribution
The Percentage Distribution is used to measure the responses as a
percentage of the number of respondents who participated in the survey. It is
calculated by dividing the frequency by the sample total number of
respondents being studied. It is computed as follows:
Formula:
Where:
% = Percentage
f =Frequency
n = number of cases or total
sample 100 is constant
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3. Weighted Mean
Another statistical used by the researcher was the weighted mean. It was
to determine the average responses of the different options provided in the
various parts of the survey questionnaire used. The method was used in
conjunction with the five-point scale.
Formula:
Where:
xW = weight
X = frequency
N = number of respondents
Ʃ = summation
4. Likert Scale
This will be used to interpret the items/factors in the survey questionnaire.
The researchers will use a five-point likert scale to represent the level of how
the following factors affect the effective cash management of the selected
micro enterprises in National Capital Region.
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The Likert scale's range and interpretation for the factors that affect the cash
management of micro enterprises are shown in figure 4.
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Chapter 4
RESULTS AND DISCUSSION
This chapter presented, analyzed, and interpreted the data gathered that
went statistical treatment. To answer the questions communicated with the
statement of the problem, the tabulated data were studied and examined.
Analytical tables are arranged in accordance with the sequence of specific
questions.
1. Profile of the Respondents in terms of Type of Business Operation,
Number of Years in Operation, Capitalization, Source of Capitalization,
Number of Employees, and Monthly Income
Table 1
Demographic Profile of Respondents According to the Type of
Business Operation
Type of Business Rank

Frequency Percentage (%)
Operation
Online Operation 155 38.2 2
Physical Operation 159 39.2 1
Both 92 22.7 3
Total 406 100.0
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Table 1 displays the demographic profile of respondents as to the type of
business. There are 406 respondents, 159 or 39.2% conduct physical operation,
155 or 38.2% conduct online operation, and 92 or 22.7% conduct both physical
and online operations. The results showed a small gap between physical and
online operation.
Corporate Finance Institute (2022), on their website, defines business
operation as an activity that businesses engages in daily to increase the value of
the enterprise and earn a profit. While most sales come through stores, online is
accelerating because of shopping trends begun at the onset of the pandemic.
According to Basset (2021), the pandemic rewards those who move fastest.
Thus, the ability to go digital to keep pace with customers without financial,
technical, and cultural constraints help the business thrive amidst the pandemic.
It can be concluded that physical operation is still the most practiced
business operation, while online operation is growing and inching closer.
Table 2
Demographic Profile of Respondents According to Years of Operation
Number of Years in Rank

Frequency Percentage (%)
Operation
2 years and below 276 68.0 1
3- 4 years 54 13.3 2
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5- 6 years 29 7.1 4
More than 6 years 47 11.6 3
Total 406 100.0
Table 2 exhibits the demographic profile of respondents as to number of
years in operation. As shown in the table above, majority of the respondents
have been operating for 2 years and below which stands for 276 or 68%, 54 or
13.3% had 3-4 years of operation, 47 or 11.6% had more than 6 years of
operation, and 29 or 7.1% had 5-6 years of operation.
The disruption caused by pandemic has triggered people to rethink their
entire lives, providing a unique window of opportunity to offer new and exciting
brands and services to consumers (Shoykhet, 2020). There are several factors
that may explain the online microbusiness boom. Soaring unemployment rates in
the early months of the pandemic forced millions to look for new income streams.
And compared to previous recessions, potential entrepreneurs now have more
widely available broadband, greater digital fluency, and a more mature e-
commerce marketplace that simplifies website creation, marketing, and online
sales (Hartman and Parilla, 2022).
It is concluded that most of the respondents came from micro businesses
with 2 years and below business operating experience.
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Table 3
Demographic Profile of Respondents According to Capitalization
Capitalization Frequency Percentage (%) Rank
Below Php 100,000 345 85.0 1
Php 100,001 – Php 500,000 43 10.6 2
Php 500,001 – Php

10 2.5 3
1,000,000
Php 1,000,001 – Php

4 1 4
2,000,000
Php 2,000,001 – Php

4 1 4
3,000,000
Total 406 100.0
Table 3 shows the demographic profile of respondents as to the amount
used in the business. The table shows that 345 or 85% of the respondent’s
capitalization amounted below Php 100,000, 43 or 10.6% ranges from Php
100,001 – Php 500,000, 10 or 2.5% ranges from Php 500,001 – Php 1,000,000,
or 1% ranges from Php 1,000,001 – Php 2,000,000, and another 4 or 1%
amounted to 2,000,001 but not more than Php 3,000,000.
According to Tamplin (2021), capitalization refers to the amount of
capital required by a business enterprise. As stated in Magna Carta for Micro,
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Small, and Medium Enterprises (MSMEs) in terms of capitalization which is
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limited to the total amount of assets inclusive of those arising from loans less
land, Php 3,000,000.00 or less with employees from 1 to 9 are categorized as
micro-enterprises.
It is concluded that the demographic profile of respondents as to the
amount of capitalization used in the business amounted “Below Php 100,000.”
Table 4
Demographic Profile of Respondents According to Source of Capitalization
Source of Capitalization Frequency Percentage (%) Rank
Bank Loans 23 5.7 3
Savings 330 81.3 1
Debt from Family and

49 12.1 2
Friends
Government subsidy 4 1 4
Total 406 100.0
The table provides the demographic profile of respondents as to the
source of capitalization of the business. It shows that Savings has the highest
percentage, 81.3% or 330, followed by Debt from Family and Friends, 49 or
12.1%, next is Bank Loans, 23 or 5.7%, and lastly, Government Subsidy, 4 or
1%.
Self-financing a business gives the owner much more control than other
finance options. It also means that the owner need not pay back or rely on
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investors or lenders, who could decide to withdraw their support anytime.
Sourcing business capitalization out of savings help owners to prioritize their
business expenditures and avoid excessive spending. (nibusinessinfo.co.uk, n.d.)
It is concluded that the demographic profile of respondents as to the
source of capitalization of the business uses their “Savings”.
Table 5
Demographic Profile of Respondents According to Number of Employees
Number of Employees Frequency Percentage (%) Rank
1- 3 employees 345 85.0 1
4-6 employees 41 10.1 2
7-9 employees 20 4.9 3
Total 406 100.0
Table 5 exhibits the frequency and distribution of respondents as to the
number of employees. As shown in the table above, majority of respondents
have 1 – 3 employees who represent 85%, while 41 or 10.1% of the respondents
have
4 – 6 employees, and 20 or 4.9% of respondents have 7 – 9 employees.
A micro business is a type of small business that employs fewer than 10
people. Although micro businesses can have up to 10 employees including the
owner, many are owned and operated by a single person. (Lauckner & Ramirez,
2022)
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It can be concluded from the result that the most respondents as to
number of employees are “1 – 3 employees.”
Table 6
Demographic Profile of Respondents According to Monthly Income
Monthly Income Frequency Percentage (%) Rank
Below Php 100,000 361 88.9 1
Php 100,001 – Php 2

42 10.3
300,000
Php 300,001 – Php 3

2 0.5
500,000
More than Php 500,001 1 0.2 4
Total 406 100.0
Table 6 shows the demographic profile of respondents according to
monthly income. As shown in the table above, 361 or 88.9% of respondents,
which represent majority earn monthly income below Php 100,000, 42 or 10.3%
earn monthly income amounting Php 100,001 – Php 300,000, while 2 or 0.5%
earn
monthly income amounting Php 300,001 – Php 500,000, lastly, 1 or 0.2% earns
monthly income more than Php 500,000.
Due to ease of formation and low capitalization with fewer people to
employ, many micro-businesses have flourished over the years. Association for
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Opportunity (2019) supports the reasoning through their article which states that
micro-businesses have more advantage in penetrating the market giving
opportunities to both the entrepreneur and labor force.
It can be concluded from the result that most of micro enterprises earn a
monthly income below Php 100,000.
2. Respondents’ Assessments on the Cash Management Practices of
Micro Enterprises in the National Capital Region
2.1 In terms of Cash Planning
Table 7
Respondents’ Assessment on the Cash Management Practices in terms of
Cash Planning
Verbal
Cash Planning Mean Rank
Interpretation
Microenterprises must determine the cash
that is necessary for daily operation, this
certain amount is maintained under petty 4.24 Slightly Agree 1
cash fund that is used and replenished
every day.
Microenterprises should use a re-order

4.01 Slightly Agree 4
point system for inventories, to avoid
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excessive delivery and storage cost of
items.
The business prepares a cash budget in
advance to show all the planned monthly
cash receipts and any planned cash 3.98 Slightly Agree 5
payments, to identify any times where there
may be a shortage of cash.
Microenterprises should practice basic
accounting to properly manage revenue, 4.05 Slightly Agree 3
expenses, liabilities, and capital.
Responsibilities of Microenterprises like
payables and other expenses in the 4.12 Slightly Agree 2
operation and financing is prioritized.
Slightly
Grand Mean: 4.08
Agree
Legend: Strongly Disagree (1.00 – 1.50), Slightly Disagree (1.51 – 2.50), Agree
(2.51 – 3.50), Slightly Agree (3.51 – 4.50), Strongly Agree (4.51 – 5.00)
The mentioned practices in table 7, “Microenterprises must determine the
cash that is necessary for daily operation, this certain amount is maintained
under petty cash fund that is used and replenished every day” with a weighted
mean of 4.24, “Responsibilities of Microenterprises like payables and other
expenses in the
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operation and financing is prioritized” with a weighted mean of 4.12,
“Microenterprises should practice basic accounting to properly manage revenue,
expenses, liabilities, and capital” with a weighted mean of 4.05, “Microenterprises
should use a re-order point system for inventories, to avoid excessive delivery
and storage cost of items” with a weighted mean of 4.01, and “The business
prepares a cash budget in advance to show all the planned monthly cash
receipts and any planned cash payments, to identify any times where there may
be a shortage of cash” with a weighted mean of 3.98 are all verbally interpreted
as “Slightly Agree”.
Determining the amount of cash maintained and replenished under petty
cash fund and prioritizing responsibilities of microenterprises such as payables
are the two most effective on the sub-variables. According to Yanuaria (2017), it
is much easier to run the operation and make business decisions when cash is
abundant compared when it is limited or scarce. This is supported by an article
entitled, “Reasons Why Cash is King for Businesses and Individuals” by Smith, K.
(2021) which states that businesses and/or an individual must have a proper
amount of cash on hand, in order to avoid business failure or bankruptcy, and for
individuals, its availability prepares them for uncertain times, as it is the most
valuable investment tool.
The least effective of the sub-variables, on the other hand, is preparing a
cash budget in advance to show all the planned monthly cash receipts and any
planned cash payments. Findings in the studies entitled, “Cash Management
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Practice and Medium Scale Enterprises Performance: Perspective of Selected
Food and Beverages Firm” by Oladejo, M.O., et al. (2017) and "Influence of Cash
Management Practices on Performance of Small-Scale Enterprises in Mbale
Town, Kenya", show that the cash budget system should be embraced by
MSMEs as part of cash management practices. However, it is less being
practiced among many small businesses for they do not have enough knowledge
of cash budgets, according to Perry (2007),
In conclusion, the respondents’ assessments of cash management
practices in terms of cash planning are observed as “Slightly Agree”.
2.2 In terms of Determining Optimal Cash Balance
Table 8
Determining Optimal Cash Balance
Verbal
Determining Optimal Cash Balance Mean Rank
Interpretation
Microenterprises should receive cash

receipts regularly
Management of the enterprise should
monitor business transactions to keep track

of voided transactions and cash
shortage/overage.
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Microenterprises should maintain separate
records of cash receipts and cash 4.14 Slightly Agree 2
disbursements.
Management should weigh the risks and
returns associated in maintaining the desired 3.96 Slightly Agree 5
cash balance.
Management must understand all sources of
income and items of expenditure to 4.15 Slightly Agree 1
determine the right amount of cash balance.
Slightly
Grand Mean: 4.06
Agree
Table 8 displays the respondents’ assessment of cash management
practices in terms of determining optimal cash balance. It can be seen in the
table that “Management must understand all sources of income and items of
expenditure to determine the right amount of cash balance” receives the highest
weighted mean of 4.15, “Microenterprises should maintain separate records of
cash receipts and cash disbursements” has a weighted mean of 4.14,
“Microenterprises should receive cash receipts regularly” has a weight mean of
4.06, “Management of the enterprise should monitor business transactions to
keep track of voided

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transactions and cash shortage/overage” has a weighted mean of 4.02, and
“Management should weigh the risks and returns associated in maintaining the
desired cash balance” receive the lowest weighted mean of 3.96. All
assessments are verbally interpreted as “Slightly Agree”.
Understanding all sources of income and items of expenditure and
maintaining separate records of cash receipts and cash disbursement are most
effective in determining optimal cash balance. While the results show minimal
difference, this explains that all sub-variables play significant role in determining
optimal cash balance Harford, Mansi, and Maxwell (2008).
In conclusion, the respondents’ assessments on cash management
practices in terms of Determining Optimal Cash Balance are observed as
“Slightly Agree”.
2.3 In terms of Managing Cash Flows
Table 9
Managing Cash Flows
Verbal
Managing Cash flows Mean Rank
Interpretation
Microenterprises should automate the

recording of cash inflow and outflows to
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avoid duplication and errors from
operations.
Have a credit collection policy with the
indicated credit period, credit limit, discount

rate and period, and interest for late
payment.
Microenterprises track and make early
payments to liabilities to avail discounts from 3.93 Slightly Agree 3
suppliers to avoid interest expenses.
Make an invoice promptly as soon as
microenterprises have delivered a product 3.94 Slightly Agree 2
or service.
Microenterprises know and use cash flow
statements to provide a view of the cash 3.95 Slightly Agree 1
situation for a period.
Slightly
Grand Mean: 3.88
Agree
Table 9 shows the respondents’ assessment on the cash management
practices in terms of managing their cashflows. It can be seen that
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“Microenterprises know and use cash flow statements to provide a view of the
cash situation for a period” garnered the highest weighted mean with 3.95, “Make
an invoice promptly as soon as microenterprises have delivered a product or
service” followed with a weighted mean of 3.94, “Microenterprises track and
make early payments to liabilities to avail discounts from suppliers to avoid
interest expenses” has a weighted mean of 3.93, “Microenterprises should
automate the recording of cash inflow and outflows to avoid duplication and
errors from operations” has a weighted mean of 3.81, and “Have a credit
collection policy with the indicated credit period, credit limit, discount rate and
period, and interest for late payment” garnered the lowest weighted mean of
3.77. All assessments are verbally interpreted as “Slightly Agree”.
Every business maintains to have a positive level of cash flow, in order to
attract more investors. It is summarized and reported through the statement of
cash flows, which follows and guided by GAAP and IFRS accounting frameworks
(accountingtool.com). Cash flow holds the well-being of the company because
through this, you can see the cash inflow and outflow of the company
(investopedia.com).
practices in terms of Managing Cashflows is observed as “Slightly Agree”.
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2.4 In terms of Investing Idle Cash
Table 10
Investing Idle Cash
Verbal
Investing Idle Cash Mean Rank
Interpretation
Microenterprises must turn idle cash into
positive investments (e.g., investing in

productive assets, purchasing debt or equity
securities).
Microenterprises can utilize idle cash
through operational purchases (e.g., 4.09 Slightly Agree 1
purchase of inventories).
Management may opt to deposit idle cash
into sinking funds to meet short-term

obligations (e.g., prepayments, other
operational expenses, debts).
It is better for microbusinesses to deposit
idle cash into bank accounts to earn interest

(e.g., checking accounts, savings accounts,
term deposits).
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Businesses may invest idle cash in training
and seminars that will help improve their 3.67 Slightly Agree 5
financial and managerial skills.
Slightly
Grand Mean: 3.86
Agree
Table 10 displays the respondent’s assessment of the cash management
practices in terms of investing idle cash. The results show that “Microenterprises
can utilize idle cash through operational purchases (e.g., purchase of
inventories)” garnered the highest weighted mean of 4.09, “It is better for
microbusinesses to deposit idle cash into bank accounts to earn interest (e.g.,
checking accounts, savings accounts, term deposits)” followed with a weighted
mean of 3.95, “Microenterprises must turn idle cash into positive investments
(e.g., investing in productive assets, purchasing debt or equity securities)” has a
weighted mean of 3.84, “Management may opt to deposit idle cash into sinking
funds to meet short- term obligations (e.g., prepayments, other operational
expenses, debts)” has a weighted mean of 3.77, and “Businesses may invest idle
cash in training and seminars that will help improve their financial and managerial
skills” garnered the lowest weighted mean of 3.67. All assessments are verbally
interpreted as “SlightlyAgree”.
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According to Ross & Westerfield (2005) as cited by Kontuš & Mihanović
(2019), a company may invest in short-term marketable securities, if it has any
temporary cash surplus. Since holding idle cash is thought to be inefficient, short-
term investments are typically made when a company has extra cash that it may
use in order to earn a higher return.
practices in terms of Investing Idle Cash is observed as “Slightly Agree”.
3. Is there a significant difference in the Cash Management of Selected
Micro-Enterprises in the National Capital Region when they are
grouped according to Profile?
Based on the Third (3rd) statement of the problem, researchers want to
know if there are significant difference in the Cash Management of Selected
Micro- Enterprise when they are grouped according to profiles. Researchers’
statistician used Kruskal Wallis H Test to see if certain responses have a
significant difference between different group.
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Table 11
Respondents’ Assessment on the Significance of Cash Management
Practices based on Type of Business
Type of
Indicators H - value P - value Decision Remarks
Business
Online
Operation
Cash Failed to Not
Physical 5.894 0.052
Planning Reject H0 Significant
Operation
Both
Online
Determining
Operation
Optimal Failed to Not
Physical 5.731 0.057
Cash Reject H0 Significant
Operation
Balance
Both
Online
Operation
Managing
Physical 10.554 0.005 Reject H0 Significant
Cash flows
Operation
Both
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Investing Online Failed to Not

4.773 0.092
Idle Cash Operation Reject H0 Significant
Table 11 shows the group of cash practices and the type of business as
well as the remarks about each group. The cash planning, determining optimal
cash balance and the investing idle cash of either online, physical or having both
online and physical operation can be seen failed to reject the H0 or the null
hypothesis. Cash planning have P- value of 0.052 which is greater than 0.05,
meaning it accept the null hypothesis. Determining Optimal balance have P-value
of 0.057, it is still greater than level of significance of 0.05 it simply means that it
also accepts the null hypothesis, same goes with investing idle cash it has 0.092
P-value which means that it also accepts the null hypothesis. Having a reject
decision about the above-mentioned group of cash practices will simply indicate
that regardless of what type of business operation they have, they will have the
same cash management for cash planning, determining optimal cash balance
and by investing idle cash.
The only exception in this table is the Managing of Cash flows it has P-
value of 0.005 which is within the level of significance, based on results there is a
reject Ho decision, resulting in a remark of significant. Having significant remarks
mean that there is a difference depending on the business operation in terms of
managing cashflows. The difference is supported by article published by
Quaderno (2021), they say that Ecommerce is not just all about of making sales
and shipping
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products, but like other type of business, managing cash is necessary. Quaderno
mentioned that making sure that customers pay on time is one of the major
concerns in Ecommerce, having delay in payment may affect the operation of the
business. Another is that they’ve mentioned on what are concerned cost incurred
by online store and the physical store. In Physical store, one of the concerned
costs in cashflow is the rent expense, while on Online store, the concerned is the
advertising cost as part of their cash flow. Article by Hann P. (2020), state the
cash flow management that offline stores or the physical stores are used to
properly manage their cash flows. One of the managing tools for offline or
physical is that instead of owning all things for the store, try leasing things, they
said that leasing can be a good option to cut cost and buying more store non-
daily necessities will give monetary pressure on the business. Which is not a
problem for online stores, because as the start of pandemic a lot of online
business doesn’t have a certain commercial space for their products but instead,
they use their house to stock theirproducts.
In summary, managing of cash flow of online operated business, physical
operated business and business that have physical and online operation, have
different ways on how they manage their cashflow, because they have different
factors that they need to consider.
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Table 12
Practices based on Years of Operation
Number of
Indicators Years in H - value P - value Decision Remarks
Operation
2 years and
below
Cash 3- 4 years Reject

9.042 0.029 Significant
Planning 5- 6 years H0
More than 6
years
2 years and
Determining below
Optimal 3- 4 years Reject

Cash 5- 6 years H0
Balance More than 6
years
2 years and
Managing Reject
below 16.412 0.001 Significant
Cash flows H0
3- 4 years
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5- 6 years
More than 6
years
Investing 2 years and Reject

Idle Cash below H0
Table 12 shows the result of survey base on whether there is a significant
effect of having variety of years in operation of the business when implementing
their cash management techniques. Based on the table, in terms of Cash
planning, the p-value 0.029 which is within the level of significance of 0.05. Thus,
the null hypothesis was rejected and that there is a significance difference on
using cash planning when grouped according to number of years in operation.
Determining optimal cash balance got a p-value of 0.006 which is, then, within
the level of significance of 0.05. Thus, the null hypothesis was rejected. There is
also a significance difference on the practice of determining optimal cash balance
when grouped according to number of years in operation. In terms of Managing
Cashflows, it can also be seen that it also has a significant difference when
grouped depending on the number of years in operation, having a p-value of
0.001 meaning it is within also to the significance level again, managing cashflow
also reject the null hypothesis. Lastly is the investing of idle cash it have a p-
value of
0.025 which is, then, again more than the level of significance of 0.05. Thus, the
null hypothesis is also rejected.
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Based on survey results, there is a significant difference in terms of years in
operation, it means that business operating from 2 years and below and business
that operating more than 6 years already, have different way of implementing
their cash managements, whether it is about cash planning, determining optimal
cash balance, managing cash flow, and investing their idle cash.
This claim is supported by the study of Mungal and Garbharran (2014). It
was stated on the result of their study that the stability and record-keeping
practices of a business seem to be influenced by how long it has been in
operation. Therefore, the longer a firm has been in operation, the more likely it is
that it will maintain accurate records that will improve its cash management
strategies, particularly about its cash flow situation.
Table 13
Practices based on Capitalization
H- P-
Indicators Capitalization Decision Remarks
value value
Below Php
Cash 100,000 Failed to Not

1.278 0.865
Planning Php 100,001 – Reject H0 Significant
Php 500,000
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Php 500,001 –
Php 1,000,000
Php 1,000,001
– Php
2,000,000
More Than
Php 2,000,001
Below Php
100,000
Php 100,001 –
Php 500,000
Determining Php 500,001 –

Failed to Not
Optimal Cash Php 1,000,000 3.024 0.554
Reject H0 Significant
Balance Php 1,000,001
– Php
2,000,000
More Than
Php 2,000,001
Managing Below Php Failed to Not

5.898 0.207
Cash flows 100,000 Reject H0 Significant
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Php 100,001 –
Php 500,000
Php 500,001 –
Php 1,000,000
Php 1,000,001
– Php
2,000,000
More Than
Php 2,000,001
Below Php
100,000
Php 100,001 –
Php 500,000
Php 500,001 –
Investing Idle Failed to Not
Php 1,000,000 5.603 0.231
Php 1,000,001
– Php
2,000,000
More Than
Php 2,000,001
Table 13 presents also using a Kruskal wallis H-test it gives a meaningful
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assessment on the cash management practices when grouped according to
capitalization. Based on the table, in terms of Cash planning, the p-value 0.865
which is higher than the level of significance of 0.05. Thus, the null hypothesis
was accepted and that there is no significance difference on using cash planning
when grouped according to capitalization. Determining optimal cash balance got
a p- value of 0.554 which is, then, more than the level of significance of 0.05.
Thus, the null hypothesis was accepted. There is no significance difference on
the practice of determining optimal cash balance when grouped according to
capitalization. In terms of Managing Cashflows, it can also be seen that it has no
significant difference when grouped depending on the capitalization, having a
p-value of
0.207 meaning greater to the significance level again, managing cashflow also
accept the null hypothesis. Lastly is the investing of idle cash it have a p-value of
0.231 which is, then, again more than the level of significance of 0.05. Thus, the
null hypothesis was also accepted.
The respondents’ assessment on the cash management practices when
grouped according to capitalization in terms of cash planning, determining
optimal cash balance, managing cash flows, and investing Idle cash when
grouped according to source of capitalization are not significant, therefore, the
null hypothesis is “Accepted”.
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Table 14
Practices based on Source of Capitalization
Source of
Indicators H - value P - value Decision Remarks
Capitalization
Bank Loans
Savings
Debt from
Cash Failed to Not
Family and 6.261 0.100
Planning Reject H0 Significant
Friends
Government
subsidy
Bank Loans
Savings
Determining
Debt from
Optimal Failed to Not
Family and 3.757 0.289
Friends
Balance
Government
subsidy
Bank Loans 3.785 0.286
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Savings
Debt from
Managing Family and Failed to Not
Cash flows Friends Reject H0 Significant
Government
subsidy
Investing Failed to Not

Bank Loans 2.237 0.525
Idle Cash Reject H0 Significant
Table 14 is presented also using a Kruskal Wallis H-test it gives a
meaningful assessment on the cash management practices when grouped
according to source of capitalization. Based on the table, in terms of Cash
planning, the p-value 0.100 which is higher than the level of significance of 0.05.
Thus, the null hypothesis was accepted and that there is no significance
difference on using cash planning when grouped according to source of
capitalization. Determining optimal cash balance got a p-value of 0.554 which is,
then, more than the level of significance of 0.05. Thus, the null hypothesis was
accepted. There is no significance difference on the practice of determining
optimal cash balance when grouped according to source of capitalization. In
terms of Managing Cashflows, it can also be seen that it has no significant
difference when grouped depending on the capitalization, having a p-value of
0.286 meaning greater to the significance level again, managing cashflow also
accept the null hypothesis. Lastly
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is the investing of idle cash it have a p-value of 0.525 which is, then, again more
than the level of significance of 0.05. Thus, the null hypothesis is also accepted.
grouped according to source of capitalization in terms of Cash planning,
determining optimal cash balance, managing Cash flows, and investing Idle cash
when grouped according to source of capitalization are not significant, therefore,
the null hypothesis is “Accepted”.
Table 15
Practices based on Number of Employees
Number of H- P-
Indicators Decision Remarks
Employees value value
1- 3
employees
Cash 4-6
6.099 0.047 Reject H0 Significant
Planning employees
7-9
employees
1- 3
employees
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4-6
Determining
employees
Optimal Cash
7-9
Balance
employees
1- 3
employees
Managing 4-6
Cash flows employees
7-9
employees
Investing Idle 1- 3 Failed to Not

2.919 0.232
Cash employees Reject H0 Significant
Table 15 presents also using a Kruskal Wallis H-test. Based on the table,
in terms of Cash planning, the p-value 0.047 which is lower than the level of
significance of 0.05. Thus, the null hypothesis was rejected and that there is a
significance difference on using cash planning when grouped according to
number of employees. Determining optimal cash balance got a p-value of 0.041
which is, then, less than the level of significance of 0.05. Thus, the null
hypothesis was rejected. There is a significance difference on the practice of
determining optimal cash balance when grouped according to number of
employees. In terms of Managing Cash flows, it can also be seen that it has a
significant difference when
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grouped depending on number of employees, having a p-value of 0.043 meaning
lower to the significance level again, managing cash flow also reject the null
hypothesis. Lastly is the investing of idle cash which has a p-value of 0.232 which
is greater than the level of significance of 0.05, which accept the null hypothesis.
The results shown in table 15 is supported by the article written by Jacob
(2018). It is mentioned that employees in a business are considered the
“frontliners” that keep it running, so paying staffs on time makes good relationship
and business sense between the owner and its employees. That is why it is
important to have a good management of cash flow to be able to pay them on
time or be able regularly set aside a cash for them. Based on an article published
by Stephen King (2018), utilizing payroll can improve cash flow. It is said that
having an error free payroll process is critical for keeping the business to run
smoothly and can improve the business cash flow.
grouped according to number of employees in terms of cash planning,
determining optimal cash balance, managing cash flows are significant, meaning
it reject the null hypothesis. While the investing idle cash is failed to reject,
therefore, the null hypothesis is accepted.
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Table 16
Practices based on Monthly Income
Monthly H- P-
Indicators Decision Remarks
Income value value
Below Php
100,000
Php 100,001 –
Cash Php 300,000 Failed to Not

1.444 0.695
Planning Php 300,001 – Reject H0 Significant
Php 500,000
More than Php
500,001
Below Php
100,000
Determining Php 100,001 –
Optimal Php 300,000 Failed to Not

2.038 0.564
Cash Php 300,001 – Reject H0 Significant
Balance Php 500,000
More than Php
500,001
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Below Php
100,000
Php 100,001 –
Managing Php 300,000 Failed to Not

1.482 0.686
Cash flows Php 300,001 – Reject H0 Significant
Php 500,000
More than Php
500,001
Investing Below Php Failed to Not

2.496 0.476
Idle Cash 100,000 Reject H0 Significant
Table 16 is presented also using a Kruskal Wallis H-test it gives a
meaningful assessment on the cash management practices when grouped
according to monthly income. Based on the table, in terms of Cash planning, the
p-value 0.695 which is higher than the level of significance of 0.05. Thus, the null
hypothesis was accepted and that there is no significance difference on using
cash planning when grouped according to source of capitalization. Determining
optimal cash balance got a p-value of 0.564 which is, then, more than the level of
significance of 0.05. Thus, the null hypothesis was accepted. There is no
significance difference on the practice of determining optimal cash balance when
grouped according to source of capitalization. In terms of Managing Cashflows, it
can also be seen that it has no significant difference when grouped depending on
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the capitalization, having a p-value of 0.686 meaning greater to the significance
level again, managing cashflow also accept the null hypothesis. Lastly is the
investing of idle cash it have a p-value of 0.476 which is, then, again more than
the level of significance of 0.05. Thus, the null hypothesis is also accepted.
grouped according to monthly income, in terms of cash planning, determining
optimal cash balance, managing cash flows, and investing idle cash when
grouped according to business monthly income are not significant, therefore, the
null hypothesis is “Accepted”.
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Chapter 5
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
This chapter presents the summary, conclusions and recommendations of
the study based on the gathered, analyzed and interpreted data of the cash
management of selected micro-enterprises in national capital region amidst
pandemic.
Summary of Findings
The main purpose of this study was to assess the factors of the cash
management practices in terms of cash planning, optimal cash balance,
managing cash flow and investing idle cash of Micro-Enterprises.
The method of research that was used by the researcher is descriptive
and the data gathering instrument used are questionnaires which answered by
400 selected micro-enterprises. The statistical tools that were utilized in the
study are Frequency and Percentage Distribution, Weighted Mean and Kruskal
Wallis H- test.
1. Profile of the Respondents in terms of Type of Business Operation,
Number of Years in Operation, Capitalization, Source of Capitalization, Number
of Employees, and Monthly Income
In terms of the type of business, 159 respondents or 39.2% were conducting a
physical operation and the least was both with 92 respondents or 22.7%. In
terms of the number of years in operation, 276 respondents or 68% are
operating for 2 years and below while 29 respondents or 7.1% are operating for
5 to 6 years. In
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terms of the amount used in the starting the business, 345 or 85% of the
respondent’s capitalization amounted below PHP 100,000 and ranges PHP
1,000,001 – PHP 2,000,000 and PHP 2,000,001 – PHP 3,000,000 has 1% or 4
respondents. In terms of the source of capitalization, 330 or 81% of the
respondents have their savings as the source of their capitalization and only 4
respondents or 1% used government subsidy as their source of capitalization. In
terms of the number of employees, most respondents answered 1-3 employees
which represent 85% of the population and only 20 respondents or 4.9%
answered 7-9 employees. In terms of the monthly income, 88.9% of the
respondents earn monthly income of below PHP 100,000 and only 1 respondent
0r 0.2% earns monthly income amounting to PHP 500,001 or more.
2. Respondents’ Assessments on the Cash Management Practices of Micro
Enterprises in the National Capital Region
2.1 In terms of Cash planning
Respondents’ perception in cash management in terms of cash planning is
highly appreciated in “Microenterprises must determine the cash that is
necessary for daily operation, this certain amount is maintained under petty cash
fund that is used and replenished every day” with a weighted mean of 4.24 while
the least appreciated is “The business prepares a cash budget in advance to
show all the planned monthly cash receipts and any planned cash payments, to
identify any times where there may be a shortage of cash” with a weighted mean
of 3.98. All of the assessments are verbally interpreted as “Slightly Agree”.
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2.2 In terms of Determining Optimal Cash Balance
The statement “Management must understand all sources of income and
items of expenditure to determine the right amount of cash balance” receives the
highest weighted mean of 4.15 and “Management should weigh the risks and
return associated in maintaining the desired cash balance” receive the lowest
weighted mean of 3.96. All assessments are verbally interpreted as “Slightly
Agree”.
2.3 In terms of Managing Cash Flows
Respondents’ assessment on the cash management practices in terms of
managing their cash flows shows that “Microenterprises know and use cash flow
statements to provide a view of the cash situation for a period” garnered the
highest weighted mean with 3.95 and “Have a credit collection policy with the
indicated credit period, credit limit, discount rate and period, and interest for late
payment” garnered the lowest weighted mean of 3.77. All assessments are
verbally interpreted as “Slightly Agree”.
2.4 In terms of Investing Idle Cash
The results show “Microenterprises can utilize idle cash through
operational purchases (e.g., purchase of inventories)” garnered the highest
weighted mean of 4.09 and Businesses may invest idle cash in training and
seminars that will help improve their financial and managerial skills” garnered
the lowest weighted mean of 3.67. All assessments are verbally interpreted as
“Slightly Agree”.
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3. Is there a significant difference in the Cash Management of Selected
Micro- Enterprises in the National Capital Region when they are grouped
according to Profile?
Based on the assessment of the respondents in terms of the type of
business, the cash planning, determining optimal cash balance and the investing
idle cash of either online, physical or having both online and physical operation
have a P-value of greater that 0.05 which results to failed to reject the Ho or the
null hypothesis. Managing of Cash flows have a P-value of 0.005 which is within
the level of significance, based on results there is a reject Ho decision, resulting
in a remark of significant. Thus, the null hypothesis based on respondents’
assessment on the cash management practices when grouped according to
type of business are failed to reject.
grouped according to years in operation in terms of cash planning, determining
optimal cash balance, managing cash flows, and investing idle cash have a P-
values within or lower than the level of significant of 0.05 which means they are
significant. Therefore, the null hypothesis is “Rejected”.
grouped according to capitalization and the source of capitalization in terms of
cash planning, determining optimal cash balance, managing cash flows and
investing idle cash have a P-values higher than the level of significant of 0.05
which means they are not significant. Therefore, the null hypothesis is
“Accepted”.
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grouped according to number of employees in terms of cash planning,
determining optimal cash balance, managing cash flows having a P-values of
less than 0.05 are significant and the investing idle cash have P-value of 0.232
which is greater than the level of significant results to failed to reject the null.
Thus, the null hypothesis is “Rejected”
grouped according to monthly income, in terms of cash planning, determining
optimal cash balance, managing cash flows, and investing idle cash when
grouped according to business monthly income are all greater than 0.05 which
means there is no significant difference. Therefore, the null hypothesis is
“Accepted”.
Conclusion
The following are the conclusions drawn based on the summary of findings:
1. For the business profile, majority of the respondents are operating
through physical stores while many establish online platform, and
some utilizes both. Most of them started for about 2 years or earlier,
many are operating between 3-6 years, and some has been in
operation for more than 6 years. Majority of the respondents started
with below Php100,000 capital which came from most of their savings.
Some used Php100,000 to Php500,000 from borrowing capital from
family and friends. During
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the operation, most of the respondents have 1-3 employees, while
some only have 7-9 employees.
2. Generally, the perceptions of respondents are “Slightly Agree” on the
usual cash management practices of micro, and small enterprises in
the National Capital Region in terms of Cash Planning with grand
mean of 4.08, Determining Optimal Cash Balance with grand mean of
4.06, Managing Cash Flows with grand mean of 3.88, and Investing
Idle Cashwith grand mean of 3.86.
3. As per respondents' assessment, when grouped based on the type of
business, the null hypothesis is rejected in terms of managing cash
flows, but in terms of cash planning, determining optimal cash balance,
and investing idle cash the null hypothesis is accepted. When it is
grouped based on years of operation, the null hypothesis is all rejected
in terms of cash planning, determining optimal cash balance, managing
cash flows, and investing idle cash. When it is grouped based on
capitalization and source of capitalization, the null hypothesis both
failed to be rejected in terms of cash planning, determining optimal
cash balance, managing cash flows, and investing idle cash. When it is
grouped based on the number of employees, the null hypothesis is
rejected in terms of cash planning, determining optimal cash balance,
managingcash flows, however, the null hypothesis is accepted in terms
investing idle cash. When it is grouped based on monthly income, the
null
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hypothesis is failed to be rejected in terms of cash planning, determining
optimal cash balance, managing cash flows, and investing idle cash.
Recommendations
In the light of the findings and conclusions, the researcher derived the
followingrecommendations:
1. Microenterprises should prioritize liabilities and operational expenses
to be able to evaluate the amount of cash needed for daily operations
and the amount maintained under the petty cash fund.
2. Practice basic accounting and prepare a cash budget to efficiently
manage cash receipts and payments and forecast if there would be a
shortage.
3. Separate records of cash receipts and cash disbursements should be
managed in order to keep track of possible cash shortages/overages.
There should also be a separation of duties particularly in accounts
receivable collection functions responsible for designing credit
collection policies.
4. Microenterprises should understand all sources of income and
expenditure within the operation to determine the right amount of cash
balance.
5. Processes including keeping, recording, and tracking transactions,
should be automated to prevent duplication and errors.
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6. Effective and efficient management encompasses early payments of
liabilities to avoid interests, invoices promptly created when products
and services are delivered, and subsequently cash flow statements
made toprovide a view of the cash for the period.
7. Maximizing advantages of potential revenues should be considered by
microenterprises. Idle cash must be turned into positive investments
through the purchase of additional inventories, deposit into bank-
earning interest, or fund training and seminars to improve financial and
managerial skills.
Other Recommendations
8. Conduct another study taking into consideration the cash management
practices that are not utilized in the present study, specifically the cash flow
management to know how cash flow influences cash availability and
shortages/overages.
9. Conduct another study focusing on individual cash management practices
used in the study to have deeper knowledge and information about it and
understand more about how this will affect the success or failure of a
business.
10. Future researchers should explore the comparison of cash
management practices of online sellers and sellers with physical stores to
know which type of operation is more effective in doing cash management, as
well as to understand the difference of how they are managing their cash.
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APPENDIX I
RESEARCH INSTRUMENT
A. Letter of Consent and Data Privacy Act of 2012
Dear Respondent,
Good day!
We are students of Polytechnic University of the Philippines - Sta. Mesa,

under Bachelor of Science in Management Accounting.
As part of our requirement, your valuable input is required for the research
study about the Cash Management of Selected Micro-Enterprises in the
National Capital Region Amidst the Pandemic. This study is undertaken to
identify the current cash management practices being performed and reasons as
to why certain practices are omitted.
Your participation in this study is voluntary, this survey will only take less
than 10 mins of your time. You may refuse to participate or withdraw from the
study at any time with no negative consequence. Confidentiality and anonymity of
records identifying you as a participant will be maintained by the University.
Yours truly,
Abejuela, Marlou H.
Bembo, Gwen Mari D.
Maang, Aimer Shayne A.
Martinez, Aica Marie A.
Panganiban, Angelica A.
Parilla, Marvin
Rastica, Karen Joy B.
Reserva, Cherry Mae Ann S.
Soriano, Michaela A.
Researchers
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DATA PRIVACY ACT OF 2012
In accordance with the Data Privacy Act and its implementing Rules and
Regulations, by proceeding to answer the questionnaire and disclosing your
personal information, you hereby give consent the group of students from
Bachelor of Science in Management Accounting 4-5 of Polytechnic University of
the Philippines to collect, access, use and process, in electronic or other forms,
any personal information for exclusive purpose of gathering data in conducting
this research.
I understand that my personal information is protected by Republic Act
10173, and that I am required to provide truthful information.
o Yes, I agree and give my consent
B. Demographic Profile of the Respondents
Instructions: Select the most appropriate response
Business Name: (Optional)

a. Type of Business
Online Operation Physical Operation
Both
b. Number of years in operation 2

years and below
3- 4 years
5- 6 years
More than 6 years
c. Capitalization
Below Php 100,000
Php 100,001 – Php 500,000
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Php 500,001 – Php 1,000,000
Php 1,000,001 – Php 2,000,000
More Than Php 2,000,001
d. Source of capitalization Bank

Loans
Savings
Debt from Family and Friends
Government subsidy
e. Number of employees
1- 3 employees
4-6 employees
7-9 employees
f. Monthly Income
Below Php 100,000
Php 100,001 – Php 300,000
Php 300,001 – Php 500,000
More than Php 500,001
C. Factors affecting cash management practices of micro-enterprises in

NCR.
Instructions Rate the following factors affecting the cash management practices
of selected micro-enterprises. 5 – Strongly Agree; 4 – Slightly Agree; 3 – Agree; 2
– Slightly Disagree; 1 – Strongly Disagree.
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Factors Affecting Cash Management 1 2 3 4 5

2.1 Cash Planning
Microenterprises must determine the cash that is
necessary for daily operation, this certain amount is
maintained under petty cash fund that is used and
replenished every day."
Microenterprises should use a re-order point system for
inventories, to avoid excessive delivery and storage cost
of items
The Business prepares a cash budget in advance to
shows all the planned monthly cash receipts and any
planned cash payments, to identify any times where there
may be a shortage of cash.
Microenterprises should practice basic accounting to
properly manage revenue, expenses, liabilities, and
capital.
Responsibilities of Microenterprises like payables and
other expenses in the operation and financing is
prioritized.
2.2 Determining Optimal Cash Balance

Microenterprises should receive cash receipts regularly
Management of the enterprise should monitor business
transactions to keep track of voided transactions and
cash shortage/overage
Microenterprises should maintain separate records of
cash receipts and cash disbursements
Management should weigh the risks and returns
associated in maintaining the desired cash balance
Management must understand all sources of income and
items of expenditure to determine the right amount of
cash balance
2.3 Managing Cash flows

Microenterprises should automate the recording of cash
inflow and outflows to avoid duplication and errors from
operations
Have a credit collection policy with the indicated credit
period, credit limit, discount rate and period, and interest
for late payment
Microenterprises track and make early payments to
liabilities to avail discounts from suppliers to avoid interest
expenses.
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Make an invoice promptly as soon as microenterprises

have delivered a product or service.
Microenterprises know and use cash flow statements to
provide a view of the cash situation for a period.
2.4 Investing Idle Cash

Microenterprises must turn idle cash into positive
investments (e.g., investing in productive assets,
purchasing debt or equity securities)
Microenterprises can utilize idle cash through operational
purchases (e.g., purchase of inventories)
Management may opt to deposit idle cash into sinking
funds to meet short-term obligations (e.g., prepayments,
other operational expenses, debts)
It is better for microbusinesses to deposit idle cash into
bank accounts to earn interest (e.g., checking accounts,
savings accounts, term deposits)
Businesses may invest idle cash in training and seminars
that will help improve their financial and managerial skills
PANDEMIC

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

EFFECTIVNESS OF THE USE OF MOBILE E-WALLETS AMONG PUP

In Partial Fulfillment of the Requirements for the Degree

Abarro, Earl Jansen A.

Mr. Normand Miranda, CPA, MBA

This thesis, EFFECTIVENESS OF THE USE OF MOBILE E-WALLETS

Mr. NORMAND MIRANDA, CPA, MBA

Accepted in partial fulfillment of the requirements for the degree Bachelor

JULIETA G. FONTE, CPA, PhD

communication issues and limited resources brought by the pandemic, His

us strength, courage, patience, and protection throughout the process.

encouragement whenever we feel discouraged. Also, for the financial provision

they give us for the funding of this research.

We would also like to express our immeasurable gratitude to our research

research a better scholarly work.

improved our work.

Mechico A. Manansala, CPA, MMBM for their time in validating our

questionnaire. We also appreciate their constructive comments, which helped us

in formulating our questionnaire better.

for his suggestions and patience in answering our questions.

To the selected respondents, for their participation in answering our pre-

survey questionnaire needed for reliability test.

questionnaire, we are grateful for your time, effort, cooperativeness, and

We would like to express our gratitude to all of our friends, classmates,

in any manner to pursue this study.

This is to certify that the research work presented in this thesis/

ABARRO, EARL JANSEN A. AMANTE, RHENA ROSE PRINCES B.

BUAN, JESSA C. DELA CRUZ, JHOANNA KRISTA

DELIMA, KIEZLER JED T. ILOSEO, CARLOS ALFRED R.

OCAMPO, JESSA V. SANTOS, JOSHUA RUTH

VELASCO, SHIELA MARIE P. VILLARAMA, JANE CLARENCE R.

JULY 10, 2022

Title: Effectiveness of the Use of Mobile E-Wallets Among

PUP Manila CAF Students During the COVID-19

Researchers: Earl Jansen A. Abarro, Rhena Rose Princes B. Amante.,

Jessa C. Buan, Jhoanna Krista C. Dela Cruz, Kiezler Jed T.

Delima, Carlos Alfred R. Iloseo, Jessa V. Ocampo, Shiela

Marie P. Velasco, Jane Clarence R. Villarama

Degree: Bachelor of Science in Management

Accounting Institution: Polytechnic University of the

Adviser: Mr. Normand Miranda, CPA

COVID-19 pandemic by analyzing how PUP-Manila CAF students used their

mobile e-wallets in relation to e-commerce in terms of performance expectancy,

effort expectancy, social influence, and facilitating conditions.

The researchers adopted a quantitative research method and used a survey

questionnaire as the instrument for collecting data. The statistical techniques

applied in the study included Frequency and Percentage Distribution, Weighted

a “Slight Agree” in the perceptions of the respondents as usual cash

management practices of micro and small enterprises in the National Capital

cash management practices utilized and the micro-enterprises, when grouped

based on years of operation, and number of employees. Furthermore, the

Keywords: Micro-enterprises, Cash Management, Cash Planning, Determining

1 The Problem and Its Settings

2 Review of Related Literature and Studies

Statistical Treatment of Data 46

4 Results and Discussion

Table 1: Demographic Profile of Respondents According to the 50

Number Title Page

1 Functions of Cash Management 6

3 Computation of Sample Size 40

what is the purpose and objectives of the study.

Therefore, businesses must generate adequate cash flows in order to survive.

According to TheInvestorsBook.com (2019), Cash management is the