MICROFINANCING FOR MARGINALIZED MICRO - ENTREPRENEURS: NEXUS FOR A COVID - RESPONSIVE PARADIGM

Abstract

Microfinance institutions’ mission is to assist micro-entrepreneurs in improving their business conditions. However, the status quo has shifted significantly since the COVID–19 pandemic struck the country. Hence, the purpose of this study is to examine the role of microfinance in improving the current conditions of the businesses of the micro-entrepreneurs. The descriptive-correlational design was utilized with a validated survey questionnaire constructed by the researcher as the primary research instrument and data collection tool. The study was conducted in the twenty-six (26) Barangays considered as rural areas of Santiago City. The number of micro-entrepreneurs chosen for this study in Santiago City was one hundred thirty (130), as determined by the G*Power 3.1 Software. The study's findings revealed that financial intermediation, social intermediation, enterprise development, and social services are important roles of micro financing in improving their businesses. Meanwhile, microfinance's financial intermediation, social intermediation, enterprise development, and social services roles had a significant impact on the micro-businesses of marginalized micro-entrepreneurs. The findings further revealed a significant relationship between the financial intermediation roles of microfinance and the effects of enterprise development on the respondents' micro-businesses. Finally, the COVID-19 pandemic has had a significant impact on the micro-businesses of marginalized micro-entrepreneurs. As a result, there is a significant relationship between and among the effects of the COVID-19 pandemic and the growth and sustainability of the respondents’ businesses.