The Relationship Between Financial Literacy and Business Sales Performance of Local Microbusiness Owners
Abstract
The purpose of this study is to seek information and address the gap in research about financial literacy and its relation to business sales performance. Particularly considering the generally low levels of financial literacy among microbusiness owners, raised of business failures due to inefficient financial management. It aims to explore the relationship between financial literacy and business sales outcomes. The result of this study can be used to develop financial literacy initiatives, to incorporate business and finance education into local economic development planning, and to help microbusinesses owners gain both confidence and skill to manage and grow their businesses successfully. The study utilized a quantitative research with a descriptive-correlational design. The descriptive design determined the level of financial literacy of microbusiness owners in terms of budgeting, bookkeeping, and debt management, as well as their business sales performance. Findings revealed a very high level of budgeting and debt management except in bookkeeping with moderate level however the overall financial literacy indicates a very high level of owners’ financial literacy. The level of businesses sales performance of microbusiness owners revealed a very high level, indicating excellent performance. There were significant positive correlation between financial literacy and business sales performance, underscoring the important role of financial literacy in improving business sales performance. This study recommends that policymakers and relevant government agencies should support the creation and execution of training programs aimed on improving bookkeeping practices. Future researcher may also delve into further exploration to other sector of microbusiness not just retail and wholesale.
How to Cite This Article
Jocelyn M Lintican, Annalie L Orao, Khissa S Bayao, Jenny Rose L Sudlayan, Marlon John A Tinhay, Flora Mae B Batonghinog (2025). The Relationship Between Financial Literacy and Business Sales Performance of Local Microbusiness Owners . Journal of Frontiers in Multidisciplinary Research (JFMR), 6(2), 530-537. DOI: https://doi.org/10.54660/.JFMR.2025.6.2.530-537