Marketing Strategies and Financial Risk Attitude of Small and Medium Enterprises in Relation to Business Performance

Abstract

Small and Medium Enterprises (SMEs) play a vital role in the Philippines' economic development, contributing significantly to job creation, innovation, and overall growth. Despite their numerical dominance, SMEs face significant challenges that hinder their growth and long-term sustainability. This study is anchored on Kotler’s Marketing Mix Theory, which emphasizes that strategic marketing decisions are essential for achieving business success through the 4Ps: Product, Price, Place, and Promotion. Specifically, this study examined the relationship between marketing strategies and the financial risk attitude of mall-based SMEs, as well as their influence on business performance, to serve as a basis for strategic enhancement. Utilizing a descriptive–correlational research design, data were gathered from a total of 192 SME owners and managers. Findings revealed that most respondents were risk-tolerant, reflecting a proactive approach toward investment and business expansion. Marketing strategies were generally rated as effective, with product positioning ranking highest, followed by promotion, pricing, and place. Business performance was assessed as satisfactory, with financial performance scoring slightly higher than internal operations. Additionally, longer operational experience significantly contributed to better business outcomes, highlighting the importance of strategic maturity. While marketing strategies showed a positive alignment with performance, financial risk attitude emerged as the stronger determinant—suggesting that a willingness to take calculated risks directly enhances competitiveness and profitability. These insights underscore the need for integrated framework programs that strengthen both financial risk management and marketing capabilities to achieve sustainable SME growth.