Study on the contribution of microfinance institutions in the performance of small and medium enterprises: The case of Pampanga

Date of Publication


Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions


Ramon V. Del Rosario College of Business


Financial Management Department

Thesis Adviser

Ma. Fluellen Bautista

Defense Panel Chair

Junette Perez

Defense Panel Member

Joce Anne Alimon

Marycris Albao


Small and medium enterprises (SME) play a vital role in the sustainability and development of economies more so in developing countries such as the Philippines. However, it has been well documented in various researches that there are numerous constraints hindering the growth and development of SMEs, none more prominent than lack of adequate financing. That said, microfinance institutions (MFI) are viable options for SMEs to be able to obtain the financing needed to enhance and develop their respective businesses.

This study addressed two main research problems. The first of which dealt with the question how does MFIs influence the profitability of SMEs in Pampanga for the year period 2014-2015 in terms of business characteristics, financial and growth indicators? The second problem that was addressed in this study is if there was indeed a significant difference in the effects of MFIs in the profitability of SMEs when they were grouped according to industry, years of operation, number of employees, enterprise category and whether they were a MFI or non-MFI borrower. To address the problems raised by this study, the researchers surveyed a total of 27 SMEs in the province of Pampanga and utilized both multiple linear regression (MLR) and analysis of variance (ANOVA) to analyze the collected data.

MLR was used to assess the influence of MFIs in the profitability of SMEs in terms of the three main indicators as measured. Results conveyed that MFIs had a significant impact on certain indicators under financial and growth namely: retained earnings, net profit, amount of microfinance, other funding sources, trainings and new equipment. In terms of using ANOVA, it was assessed that there was a significant difference in the effect of MFIs towards SMEs when they were grouped according to enterprise category and years of operation.

Ultimately, this study hopes to serve as a framework and inspiration for future researches that will help strengthen the relationship between MFIs and SMEs and help both industries to achieve sustainable and unprecedented growth and development.

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

viii, 99, 4 leaves : illustrations ; 28 cm. + 1 computer disc ; 4 3/4 in.


Microfinance--Philippines--Pampanga; Small business--Finance--Philippines--Pampanga

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