Financial Sustainability of Community-Based Micro-Enterprises: A Multi-Case Study on Informal Record-Keeping Among Sari-Sari Stores in a Rural Philippine Setting

Abstract

This multi-case study investigates the financial management practices and sustainability of 18 community-based micro-enterprises operating in Barangays Camambugan, Poblacion, Pangpang, and Son-oc in Ubay, Bohol, Philippines. Conducted as a faculty development research initiative at Ubay Community College (UCC), the study draws from consolidated case study data generated by DM102 Financial Management students during their final presentations on April 8, 2026. The enterprises studied represent three business categories: sari-sari stores and mini-groceries, food service establishments, and service-based businesses.
Using a qualitative multi-case study design supplemented by descriptive statistics, the research documents financial management behaviors, performance indicators, and sustainability risks. To address the student-generated nature of primary data, a systematic triangulation protocol — cross-referencing case reports, observed behavioral patterns, and theoretical benchmarks — was applied to strengthen validity. Findings reveal that 77.78% of the studied businesses (14 out of 18) lack any formal record-keeping system, relying instead on personal memory and verbal recall. This study theorizes this phenomenon as the Memory-Based Financial System (MBFS) — a distinct, nameable pattern of financial behavior situated within informal economy theory and extending the mental accounting literature through its emphasis on systemic organizational fragility rather than individual cognitive heuristics.
Monthly net profits range from ₱910 to ₱25,000 (mean ≈ ₱7,468). Three interconnected themes emerge: financial sustainability is illusory without formal records; financial informality perpetuates a vicious cycle locking businesses out of formal credit; and the college-community economic relationship creates both opportunity and seasonal vulnerability. The study proposes the S.M.A.R.T. Financial Literacy Intervention Framework, operationalized in an integrated conceptual model, as a practical five-component program implementable by UCC in partnership with local government and DTI-Bohol.