Cash Flow Management Practices of Vegetable Vendors in Baguio City

Abstract ―​

This study examines the cash flow management practices of vegetable vendors in Barangay Magsaysay, Baguio City, aiming to identify the financial challenges they encounter and the strategies they employ to sustain their businesses. It provides valuable insights for enhancing vendors' financial stability and profitability, supporting policymakers in designing effective financial literacy programs and supportive policies, and guiding financial institutions in creating tailored financial products. This research aligns with the United Nations Sustainable Development Goal (SDG) 8, particularly Target 8.3, which seeks to promote development-oriented policies that support productive activities, decent job creation, and the growth of micro-, small-, and medium-sized enterprises or MSMEs through access to financial services aligned with SDG Indicator 8.3.1. Using a qualitative descriptive approach, the researchers conducted interviews with five vendors, revealing that many struggle with unstable income, spoilage of unsold goods, and limited capital. Most vendors do not maintain written records of earnings and expenses, relying instead on mental tracking and daily experience. Despite these challenges, they prioritize essential expenses, save when possible, and often resort to borrowing or consignment to sustain their operations. This study underscores the critical importance of financial literacy programs, improved access to financing, and the development of practical financial tools to support better cash flow management. These findings offer valuable insights for policymakers, business educators, and community leaders committed to empowering small vendors and fostering resilient local economies.