“Factors Affecting Business Performance of Small and Medium Size Enterprise (SMEs) In Poblacion, Monkayo”

Abstract

This study aimed to examine the relationship between factors affecting performance and business performance among small and medium enterprises (SMEs) in Poblacion, Monkayo. Specifically, it sought to determine the level of performance measurement, assess the extent of factors affecting performance, and analyze the relationship and effect between these variables. A quantitative research design was employed using a survey questionnaire administered to 300 SME respondents.
Descriptive statistics revealed that performance measurement had a mean of 3.7967, indicating a relatively high level of business performance, while factors affecting performance obtained a higher mean of 4.0177, suggesting strong agreement on their importance. Pearson correlation analysis showed a moderate positive relationship between the variables (r = 0.476, p < 0.01), indicating that improvements in influencing factors are associated with increased business performance. Furthermore, regression analysis confirmed that factors affecting performance significantly predict performance measurement (β = 0.476, t = 9.340, p < 0.05), with the model also found to be statistically significant (F = 87.238, p < 0.05).
The findings imply that key business factors such as financial management, marketing strategies, and operational practices play a crucial role in enhancing SME performance. It is therefore recommended that SME owners strengthen these areas and engage in continuous improvement practices. Additionally, government agencies and institutions should provide support through training programs and financial assistance. Future researchers are encouraged to explore other variables that may further explain business performance.