Relationship of Entrepreneurial Competencies and Financial Performance among Micro Enterprises in Southern Bukidnon: Basis for an Entrepreneurial Competence Program

This study examined the relationship between entrepreneurial competencies and financial performance among micro-entrepreneurs in a local municipality in Southern Bukidnon, Philippines. Micro-enterprises play a dynamic role in local economic development, employment generation, and poverty reduction, making it essential to understand the competencies that contribute to their financial success. Specifically, the study assessed entrepreneurial competencies in terms of risk-taking, persistence, commitment to work contracts, information seeking, goal setting, and self-confidence, and evaluated financial performance based on profit, sales, and cash flow. The study sought to determine the extent to which entrepreneurial competencies influence the financial performance of micro-enterprises. Using a quantitative research design, data were collected from micro-entrepreneurs through an adapted survey questionnaire. Descriptive statistics were employed to determine the levels of entrepreneurial competencies and financial performance, while simple linear regression analysis was used to examine the effect of entrepreneurial competencies on financial performance. The use of these statistical techniques enabled a comprehensive assessment of the relationship between the study variables. The findings revealed that entrepreneurial competencies significantly and positively influence financial performance, as evidenced by the regression results (p = .002). Micro-entrepreneurs generally demonstrated favorable levels of entrepreneurial competencies and financial performance, suggesting that the possession of entrepreneurial skills contributes to improved business outcomes. These results emphasize the importance of strengthening entrepreneurial competencies as a means of improving business performance and financial outcomes. The study provides valuable insights for entrepreneurship development initiatives, highlighting the importance of sustaining and further strengthening existing entrepreneurial competencies through targeted training and capacity-building programs. Such initiatives may focus on enhancing the application and consistency of these competencies to further improve business performance, competitiveness, and long-term financial sustainability among micro-entrepreneurs.

Entrepreneurial competencies, financial performance, micro-entrepreneurs, entrepreneurship, business performance

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