Microfinance Service Utilization and Challenges of Micro, Small and Medium Enterprises in Metro Manila

The Philippine business landscape was predominantly comprised of MSMEs from which microfinancing products and services were very vital on their financial performances. Microfinancing has stimulated economic activities leading to economic growth. In 2020, the unprecedented situation brought about by the COVID-19 pandemic traversed financial sources of businesses not just in the Philippines but also around the globe. Primarily, MSMEs were greatly affected of such crisis that prompted the researcher to evaluate microfinance’s financial tools and in the end, develop programs that will help these MSMEs alleviate financial difficulties during uncertain times. In recognition of the evident role of microfinancing to MSMEs, this paper aimed to examine the level of availment through performance of microfinance’s services by MSMEs. The study applied a quantitative method with sequential and correlational research designs for data collection. About 500 MSMEs operating in Metro Manila participated as survey enterprises in the study. A researcher-made survey questionnaire subjected to validation of professionals and experts in the fields of accountancy, business, finance and/or management was used. The paper applied arithmetic mean, standard deviation, inferential statistics, and correlational analysis as statistical treatment. Findings indicate that there were positive relationships between the level of performance of microfinance products and services as utilized by the enterprises when grouped according to their profile; and the enterprises outperformed almost all of the five (5) indicators of microfinance’s financial tools and services.