Financial Literacy and Technology Adoption to Strengthen the Profitability and Sustainability of Selected Masbate-Made Crafts, Food and Local Products

Abstract

This study examined the influence of financial literacy and technology adoption on the business performance of Masbate-made product producers, focusing on profitability and long-term sustainability. Grounded in Human Capital Theory and the Technology Acceptance Model, the study employed a descriptive–correlational research design to analyze the relationships among variables. Data were collected using a structured questionnaire administered to 15 purposively selected MSME owners engaged in crafts, food, and other local products in Masbate. Descriptive statistics and Pearson’s r correlation were used to analyze the data. Findings revealed that respondents generally possessed a functional level of financial literacy, particularly in budgeting, record-keeping, pricing, and financial decision-making, although gaps were noted in separating personal and business finances. Technology adoption was high in digital marketing, customer engagement, and digital payment awareness, but the use of advanced financial tools and e-commerce platforms remained less consistent. Business performance indicated stable profitability and positive sustainability, although many enterprises still rely on seasonal markets. Correlation results showed that financial literacy had a strong and significant positive relationship with both profitability (r = 0.619, p = 0.014) and sustainability (r = 0.774, p = 0.001). Technology adoption demonstrated a very strong and significant relationship with sustainability (r = 0.817, p = 0.000), but only a moderate and non-significant relationship with profitability. The study concludes that strengthening financial competencies and expanding digital tool utilization are essential for enhancing MSME performance. It recommends improved financial management practices, increased use of digital financial tools, and expanded participation in e-commerce platforms, supported by targeted training programs. The study aligns with Sustainable Development Goals such as SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 4 (Quality Education), as it promotes enterprise productivity, innovation, and skill development. Its sustainability impact lies in improving income stability, strengthening local economies, and supporting the long-term viability of rural enterprises.