Profitability and efficiency evaluation of the financial management of a socio-economic intervention

Open access


The role of small businesses is critical in the growth of an economy, and in certain circumstances these necessitate financial aid for their sustainability. The main objective of the study is to evaluate the profitability and efficiency of the financial management of the intervention for the improvement of the socio-economic condition of the small businesses in Santol, La Union, Philippines. The article specifically addressed the functionality of the financial aid relative to the actions taken by the beneficiaries for their small businesses, the profitability and efficiency of financial management condition of the small businesses, and the impact on the socio-economic condition of the small business beneficiaries. The study utilized the descriptive type of research mixing qualitative and quantitative analysis by applying financial ratios. It covered the small businesses from three associations and their 127 members. It was found that the association-beneficiaries deposited the money in a bank before the loaning services. The small businesses became profitable and efficient in utilizing the financial aid. The overall socio-economic impact is good as reflected in the results of their financial management. The small businesses of the associations were able to continue operating and provided loaning services to their needy members. It is concluded that with close monitoring and evaluation, small businesses that were granted financial aid are profitable and efficient in their financial operations. It is then recommended that monitoring and evaluation as well as the provision of interventions for the small businesses be sustained to ensure contribution of small businesses to the economic growth of the society.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Ammakiw J. S. (2013) “Evaluation of extension programs and services of the Kalinga Apayao State College Tabuk City Philippines” International Journal of Advanced Research in Management and Social Sciences Vol. 2 No. 12.

  • “Assessing a client's need for intervention” (2013). Retrieved from:

  • Brigham E. and Houston J. (2009) Fundamentals of financial management Mason: Cengage Learning.

  • Brown M.J. (2017) “How important are small businesses to local economies?” Retrieved from:

  • Cabanilla L.S. (2002) “Achieving food security: The role of and constraints faced by LGUs” PASCN Discussion Paper University of the Philippines. Retrieved from:

  • Cabauatan W.F. (2013) “Needs assessment on grassroots leadership in selected barangays in the Municipality of Santol La Union” Saint Louis College Faculty Research Journal Vol. X No. 1.

  • Cheriyan N.K. (2013) “Theories in financial management” Retrieved from:

  • Cities and Municipalities Competitiveness Index (2016). Retrieved from:

  • Frank R.H. and Bernanke B.S. (2013) Principles of economics fifth edition. New York USA: Mc-Graw Hill/Irwin.

  • Frase L. and Ormiston A. (2004) Understanding financial statements New Jersey: Pearson Prentice Hall.

  • Paguia D. and Garcia R. (2013) “Household and community needs of Barangay Poblacion Santol La Union” Saint Louis College Faculty Research Journal Vol. X No. 1.

  • Garcia R.C. (2017) “Integrating community services and research: A livelihood needs assessment at the countryside of the Philippines” Journal of Education and Practice Vol. 8 No. 3.

  • Ingram D. (2017) “The advantages of businesses in the local economy” Retrieved from:

  • Investopedia (2017) Retrieved from:

  • Mason M.K. (2017) “What causes small businesses to Fail?” Retrieved from:

  • Municipality of Santol (2016). Retrieved from:

  • OECD Directorate for Science Technology and Innovation (2014) Assessing the impact of state interventions in research – Techniques issues and solutions” Retrieved from:

  • Pearce J.A. II and Robinson R.B.Jr. (2007) Strategic management: Formulation implementation and control tenth edition New York: McGraw-Hill.

  • Philippine Standard Geographic Code (2016) Retrieved from

  • Pound B. Gündel S. Martin A. and Apenteng E. (2011) Metaevaluation of extension evaluation Switzerland: Lindau.

  • Reeves H. (2011) “Financial statement analysis for small Businesses: A resource guide” Virginia Small Business Development Center Network. Retrieved from:

  • Salaman G. Storey J. and Billsberry J. (2005) Strategic human resource management: Theory and practice second edition Sage Publications.

  • Social Impact Assessment Tools and Methods (2002) Retrieved from:

  • Taye H. (2013) “Evaluating the impact of agricultural extension programmes in sub-Saharan Africa: Challenges and prospects” African Evaluation Journal Vol. 1 No. 1.

  • The Millennium Development Goals Reports (2015). Retrieved from:

  • Waters C. (2013) “Top reasons for small business failure: Study” Retrieved from:

  • Watershed and Water Resources Research Center (n. d.) Ecosystems Research and Development Bureau. WWRRC-REGION 1 Ecosystems Research Station. San Fernando City La Union Philippines. Retrieved from:

  • “What is impact assessment?” (2014) Retrieved from:

  • Wongtschowski M. Oonk L. and Mur R. (2016) “Monitoring and evaluation for accountability and learning” KIT Working Paper 2016:3. Retrieved from:

Journal information
Impact Factor

CiteScore 2018: 0.70

SCImago Journal Rank (SJR) 2018: 0.203
Source Normalized Impact per Paper (SNIP) 2018: 0.351

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 1893 1259 88
PDF Downloads 1293 939 27