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Our study is entitled Financial Management Practices of Small and Medium Textile and

Garment Businesses in the City of Pasay. The study tackles about the financial management
practices of textile and garment businesses in the City of Pasay and the level of effectiveness of
their practices, which practices would be beneficial to their business, and how would the findings
of this research will help them improve their existing operations.

INTRODUCTION
Small and Medium Enterprises (SMEs) have a very important role in developing the Philippine
economy. One of its major contribution is employment which is greater than the jobs provided
by large enterprises. These enterprises may vary with the industry they are engaged with, but
they all have the same goal, which is to survive. Financial management plays a vital role in the
success of a business. It is involved not only in the allocation of funds but also, in the overall
strategy of the firm.
Textile and garment businesses in the country once made a huge contribution in employment and
exportation which helps in the growth of the economy. Despite of this, the industry has lost its
competitiveness in the manufacture of low cost and mass-produced clothing products to the
highly mechanized and low cost garment industries of its new competitors. The competitive
position of the country's garment industry has always been threatened because the country is not
as competitive as the other major Asian garment exporters.
With this taken into account, we, the researchers come up with the following statement of the
problem:
 What is the profile of the individual respondents engaged in financial management in
terms of age, sex, civil status, highest educational attainment, present position and
number of years in the position?
 What is the profile of the company where the individuals engaged in financial
management are currently working in terms of the form of business organization, asset
size, number of years in the operation and number of employees?
 What is the level of effectiveness of financial management practices of Small and
Medium Textile and Garment Businesses in the City of Pasay in terms of financial
planning, cash management, receivable management, inventory management and payable
management?
 Is there a significant difference in the respondents’ level of effectiveness of Small and
Medium Textile and Garment Businesses’ financial management practices when they are
grouped according to their profile?
To know the answers for these questions, we, the researchers use different research
methodologies to gather data which be discussed by Ms. Jose.

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