Working Capital Management and Triple Bottom Line Sustainability: Empirical Evidence from Microenterprises
DOI:
https://doi.org/10.55578/jedip.2603.001Keywords:
Working Capital Management, Microenterprises, Sustainability, Business Practices, Financial Accounts, Economic Profile, Inventory Management TechniquesAbstract
This study examines the influence of working capital management (WCM) practices on the sustainability of microenterprises in the central business district of Goa, Camarines Sur, Philippines. Using a causal–explanatory research design, data were collected from 139 randomly selected microenterprises through structured survey questionnaires with high reliability (Cronbach’s α = 0.91). Descriptive statistics, weighted mean, and ordinal regression analysis were employed to analyze the economic profile, WCM practices, and sustainability across economic, social, and environmental dimensions. Results show that 57% of enterprises operate in the service sector, 41% have capitalization of Php50,000 or below, 42% are operating for 0–3 years, and 66% employ only 0–3 workers, indicating the dominance of small-scale and resource-constrained businesses. In terms of liquidity practices, 53% reported a net cash conversion cycle of 0–10 days, 81% collected receivables within 10 days, 65% turned over inventory within 10 days, and 74% settled payables within 10 days, reflecting relatively efficient short-term financial management. Overall WCM practices were rated High (mean = 3.90), particularly cash management (4.24) and inventory management (4.33). Microenterprises also demonstrated high sustainability levels, with economic sustainability (3.88), social sustainability (4.09), and environmental sustainability (4.31), yielding an overall mean of 4.12. Ordinal regression results indicate that WCM explains 30.78% of the variability in sustainability (Pseudo R² = 0.3078; LR χ² = 98.33; p < 0.001). While overall WCM did not exhibit a statistically significant aggregate effect, specific practices, including cash budgeting, inventory control techniques, and timely bill payments, showed significant contributions to sustainability.
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Copyright (c) 2026 May Delfino, Vanessa Barcillano, Emmanuel A. Onsay (Author)
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