Today businesses are operating in ever more complexity (Suriyankietkaew, S., & Avery, G., 2016). Sustainability
leadership is being challenged by the relentless march of climate change, water
scarcity, energy scarcity, the fragility of the ecosystem, involvement of the
society, which threatens to cause economic, social as well as environmental
discontinuities (Nelson, J., 2012). The global economy battles
to find its way forward in the aftermath of a severe recession; global warming,
climate change, resource depletion and ecosystem degradation are stark
indicators of severe and intensifying environmental stress; and the fragility
of the human sphere is emphasized by a deeply divided and conflict-ridden
global society competing for power over and ownership of a limited resource
base (Hind, P., & Smit, A., 2012). According to International Federation of
Accountants (IFAC) the world population will grow from seven billion people in
2012 to nine billion in 2050, that this growth will increase demand for scarce
natural resources that cannot be met if production and consumption remain as
they are today – creating major challenges in environmental sustainability and
social welfare and barriers to sustainable growth in society and business. Sustainability
leadership is important as it can help end poverty and help company’s bottom
line (Reynolds, R., 2015). Businesses that embrace sustainability can enhance
both their reputation to investors and their value over the longer term.  Business leaders have a key role in
establishing and implementing sustainability initiatives (MacDonald, L., n.d) Establishing
sustainable leadership is needed to reduce any circumstances that can affect in
an organization (Zulkiffili, N.A.b.  & Latiffi, A.b.A ., 2016).             Financial management is one of the
reasons why the business is successful. It affects every process in an
organization, from managing cash flow and monitoring the business performance
to the developing of strategies to ensure that business owners can make the
most of opportunities (Association of Chartered Certified Accountants ACCA,
2016). Dealing with long-term and short-term (Pandey,2010) financial planning
and financial control (Gitman, 2011). Businesses are being looked up as sources
of opportunity and reason of economic progress at the same time they receive
negative impact in terms of resource depletion, environmental degradation, and
pollution (Hind, P., & Smit, A., 2012). Good financial management is the
bedrock of the positive performance of any business but mismanagement of
financial procedures have a highly negative effect on the sustainability of the
business (Focas, F., 2016).  Businesses need to adopt a range of financial management practices in order
to balance economic, social and ecological objectives while attaining high
business performance, resilience, and sustainability (Suriyankietkaew and Avery
2016). How
the business owners manage sustainability factors will gradually determine how
well they perform financially and whether they can deliver sustainable business
(IFAC).Based on 2015 statistical data provided by the Philippine Statistics
Authority (PSA) published in the Department of Trade in Industry website, there
are 900,914 establishments in the Philippines. Of these, 99.5% (896,839) are
micro, small, and medium enterprises (MSMEs) and the remaining 0.5% (4,075) is
large enterprises. The Micro, small, and medium enterprises (MSME) plays a huge
role in Kidapawan City’s economic growth. Despite these achievements, the MSMEs
have a problem in management (Kilonzo, J.M, Ouma, D. (2015). SMEs entrepreneurs
have a lack of knowledge about leadership practices that can help to influence
and motivate employees for the sustainability of the business (Zulkiffi & Latiffi,
2016).Owing
to the fact that the Micro, Small, Medium Enterprises (MSMEs) contribute to the
local and global economic development (Waweru & Ngugi, 2011; Karadag, 2015;
Mendoza, 2015), the study on their financial management practices and sustainability
leadership in micro small medium entrepreneurs is timely and of great
important. This will provide empirical evidence for the business sector,
government institutions and authorities to respond immediately and
appropriately to the needs of the enterprise owners thereby prevent embedding
business failures. This study is important not because it fills the gap, but
also it sets out to address this gap knowledge. To date, there is no
significant research related to financial management practices and financial
characteristics of MSMEs conducted in Kidapawan City and there is also no
research that examines the simultaneous impact of financial management
practices to entrepreneurs. 

 

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