Financial constraints: Its impact on access to financing of micro, small, and medium businesses in Calapan City

Micro, small, and medium-sized enterprises (MSMEs) play an important role in a country's progress, particularly in the Philippines. Lack of access to finance has been identified as the most severe hindrance to MSMEs' growth and development. Thus, the purpose of this study is to evaluate the awareness of MSMEs in accessing finances and know their capacity to handle financial constraints. The factors discussed were the structure of the financial sector, awareness of funding opportunities, collateral requirements, and small business support services. The research focused on a sample size of 363 MSMEs. The research design of this study is quantitative since the research questions seek to answer and lead to numerical data. The researchers used a descriptive research method as it seeks to ascertain if there is a significant relationship between financial constraints and MSMEs' access to finance in Calapan City. Self-structured questionnaires were used to collect the primary data. By examining the factors or indicators of the study, the researchers found that financial constraints such as collateral requirements, small business support services, the structure of financial institutions, and awareness of funding opportunities, had a significant relationship towards accessing finance of MSMEs in Calapan City. Therefore, the study suggested that MSMEs should look for a financial institution that provides loan products and services that are consistent with their demands for business funding. Business owners should improve their financial management abilities by attending government-provided training and seminars. Further studies are highly recommended to discover other factors affecting MSMEs' financing access.