Assessing Budgeting Practices of Micro and Small Business Owners in the Municipality of Bantayan

This study assessed the budgeting practices of micro and small business owners in the Municipality of Bantayan, focusing on four dimensions: budgeting behavior, financial record keeping, financial planning and control, and use of budgeting tools. Guided by the OECD INFE Core Competencies Framework (2018) and the Behavioral Theory of the Firm by Cyert and March (1963), the study explored the extent of these practices, the challenges encountered, and the behavioral tendencies that influence financial decision making. A descriptive and correlational design was employed using a structured Likert scale questionnaire. A total of 60 respondents, composed of 30 micro and 30 small business owners, participated in the study. Results showed that financial record keeping was the most consistently practiced, while financial planning and use of budgeting tools were less established. Respondents commonly reported challenges such as lack of financial training, difficulty in separating personal and business funds, and limited familiarity with digital tools. Behavioural patterns such as reliance on trial and error and informal planning routines were also observed. Significant differences in budgeting practices were identified based on business size and years of operation, particularly in financial record keeping and use of tools. These findings point to the need for localized and behaviourally informed financial education that is sensitive to the everyday realities of small business owners in rural areas.