Working Capital Management of Ornamental Plant Industry

Business sustainability covers both profitability, survival, and resiliency. Their goals, more than profitability, is to be in going concern principle which entails seeing operation amidst downturns. Planning intensively on adaptation to changes in the market and environment creates financial and operational sustainability. Well-managed working capital will result in better financial handling, boost income and foster good chance survivability. The main aim of the study is to determine the profile of the respondents in terms of form of ownership, years of business operation, initial capital, and source of capital; determine the Working Capital Management of the Ornamental Plant Industry in Padre Garcia, Batangas in terms of: cash management, inventory management and payable management; determine the significant difference in responses in the Working Capital Management of Plant Industry when grouped according to profile variables; and to propose plan of action to improve working capital management. Descriptive method was used. Theparticipants of the study constitute 79 out of 95 ornamental plant nursery owners of Bukal SEA-K GardenAssociation. The researchers used an adapted questionnaire from the study titled “Working CapitalManagement of SMEs in Lipa City” conducted by Alcantara, et al. (2017). The results were tabulated,presented, analysed and interpreted. The study showed that the majority of the plant business owners are sole proprietors who operated their business for 5 years and below, an initial capital of P 5,000 and below, and personal investment as their source of capital, that the plant business owners generally performed cash and payable management rarely but performed inventory management often, and that sole proprietors significantly differ in their practice of payable management. Different strategies were proposed to improve working capital management of the ornamental plant industry

Keywords – Cash Management, Inventory Management, Payable management