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Covid-19's Impact on Small Businesses

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0% found this document useful (0 votes)
8 views26 pages

Covid-19's Impact on Small Businesses

Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL

Poblacion, President Roxas, Capiz

The Impact of Covid-19 in Small Business Entrepreneur

A research paper presented to the faculty and staff of Feliciano

Yusay Consing National High School as a requirement for Reseacrh

Report subject for academic year 2021-2022.

Name of Researchers:
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz

Chapter 1

Introduction to the Study

This chapter is composed of five parts: (1) background and

Theoretical Framework of the study, (2) Statement of the Problem

and Hypotheses, (3) Significance of the Study, (4) Definition of

Terms, and (5) Delimitation of the Study.

Part One, Background and Theoretical Framework of the Study,

gives the introduction, justifies the need for the conduct of the

study, discusses the importance of selecting the problem, and

presents the theoretical framework which serves as the study’s

frame of reference.

Part Two, Statement of the Problem and Hypotheses, states

the general and specific problems that the study sought for

answers. It also presents the hypotheses tested.

Part Three, Significance of the Study, describes the

individuals who will benefit from the results of the study and
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
the manner by which they will derive variables information from

the investigation undertaken.

Part Four, Definition of Terms, provides the conceptual and

operational definition of important terms and operational

definition of important terms and key variables used in the

study.

Part Five, Delimitation of Study, specifies the scope of the

study in terms of the participants, research design, sampling

procedure, data gathering instruments, locale and duration of the

study, research variables and their categories, statistical tools

employed and the level of significance.

Background and Theoretical Framework of the Study

Small business entrepreneurship is a small business owners

who have small capital. A small business could set up its

business structure as a partnership, sole proprietorship or

privately owned corporation. It has less revenue than larger

corporations or bigger business.

An entrepreneur is an individual who creates a new business,

or a different seasons bearing most of the risk and enjoying most

triumphs and rewards. The entrepreneur is commonly seen as


FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
innovator, a source of new ideas, goods, services and business of

procedures.

And now that we are facing Covid-19 pandemic who affects all

businesses neither it’s a small or big. An entrepreneur plays a

very important role in any economy. Using their skills and

initiative necessary to anticipate needs and bringing good news

to market.

In times like this that Covid-19 pandemic is existing, many

entrepreneurship that proves to be successful in facing the risk

of creating a start-up rewarded with profits, fame and continued

growth opportunities.

Overall, these first estimates of impacts of COVID-19 on

small businesses from April 2020 CPS indicates that losses were

spread across demographic groups and types of business, no group

was immune to negative impacts of social distancing policy

mandates and demand shifts. These results build on the findings

from a few previous studies of the early effects of the corona

virus on small businesses. Employer business application as

measured by the U.S. census weekly Business Formation Statistics

fell in the five weeks from mid-March to mid-April by over 27

percent relative to the previous year(Wilmoth 2020).


FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
Estimates from the U.S. Census Small Business Pulse Survey

indicate that roughly 50 percent of business report having a

large negative effect from the COVID-19 pandemic and that only

15-20 percent of businesses have enough cash on hand to cover 3

months of operations (U.S. Census Bureau 2020; Bohn, Meija and

Lafortune 2020).

Figure 1 below shows the conceptual framework of the study

where the independent variables are the Responses of small

Entrepreneur and the dependent variables will be The Impact of

Covid-19

Independent Variables Dependent Variable

Responses of
Entrepreneur The Impact of
Small Covid-19

Figure 1.A schematic diagram showing the relationship that exists


between the responses of small entrepreneur and the impact of the
Covid-19
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
Statement of the Problem

This study aimed to determine the Impacts of Covid 19 in Small

Business Entrepreneurs of Dulangan, Pilar, Capiz.

More specifically, this study sought to answer the following

questions:

1. What is the demographic profile of the respondents in

terms of:

A. Sex

B. Capital

C. Kind of business

2. What are the responses of small entrepreneur towards

Covid-19?

3. What are the perceived impacts of pandemic to the small

entrepreneur?

4. Is there a significant difference in the responses of

small entrepreneur when grouped according to their

profile?

5. Is there a significant difference in the perceived

impacts of pandemic when respondents are grouped according

to their profile?
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
Based on the aforementioned problems, the hypothesis was

formulated:

1. There are no significant differences in the perceived impacts

of pandemic when respondents are grouped according to their

profile.

Significance of the Study

The result of this study will be essential and a great

benefit to the following:

Small Business Entrepreneurs in Barangay Dulangan Pilar Capiz

public market. The outcome of the study will provide background

on the strategy to be recommended to the vendors in Barangay

Dulangan, Pilar, Capiz public market. This research will enable

the small business entrepreneurs to determine the impacts and of

Covid-19 to their businesses and to have appropriate responses

toward this pandemic.

Consumers. This research will serve as their guide in order for

them to know the effects of covid-19 pandemic to the

entrepreneurs.
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
Future Entrepreneur. This will benefit the future entrepreneur

for them to have knowledge in developing unique strategies and

tactics in their business. It will also give them idea on how to

response and deal with such impact.

Future Researcher. The outcome of the study is beneficial to the

future researchers. This study will serve as a resource material

for future researchers whose study is in connection with this

study. Also to give knowledge to the researchers about the

effects of Covid-19 in the small business and to be aware on what

business they can build while having this kind of situation.

Definition of Terms

The findings of this study would be useful to investigate

the effects of Covid-19 in small businesses entrepreneur.

Small Business is defined as a privately owned corporation,

partnership, or sole proprietorship that has fewer employees and

less annual revenue than a corporation or regular sized business.

The definition of "small"— in terms of being able to apply for

government support and qualify for preferential tax policy —


FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
varies by country and industry(2021 American Society for

Quality).

In this study, Small Business refers to a privately owned

company that is run by either single person although constituted

by one or more persons and legally endowed with various rights

and duties including the capacity of succession, a partnership,

or just a corporation particularly at Dulangan, Pilar, Capiz

Public Market.

Entrepreneur, is an individual who creates a new business,

bearing most of the risks and enjoying most of the rewards. The

entrepreneur is commonly seen as an innovator, a source of new

ideas, goods, services, and business/ procedures.

([Link]

In this study, Entrepreneur is someone who prefer to start a

business that can eventually create a full-time, sustainable

business with employees. An entrepreneur may also be termed as an

innovator, who deals in the manufacture and delivery of ideas,

products, and services and procedures to meet an unfulfilled

consumer demands.

A Consumer is a person or a group who intends to order,

orders, or uses purchased goods, products, or services primarily

for personal, social, family, household and similar needs, not


FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
directly related to entrepreneurial or business activities.

([Link]

In this study, Consumer is any individual or group who is

the final user of a product or service. The primary source of

demand for all the goods is the consumer.

Capital is the money it has available to pay for its day-to-

day operations and to fund its future growth. The four major

types of capital include capital, debt, equity, and trading

capital. ([Link] > terms)

In this study, Capital is the money businesses use to

finance their operations. The cost of capital is simply the

interest rate it costs the business to obtain financing.

Impact implies changes in people’s lives. This might include

changes in knowledge, skill, behavior, health or living

conditions for children, adults, families or communities. These

effects can be economic, socio-cultural, institutional,

environmental, technological or of other types. (Lexico by

Oxfords)

In this study, Impact is one of the variables which pertains

to the feelings of the entrepreneurs related to Covid-19

pandemic.
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
Covid-19 Pandemic it pertained to as illness caused by a

novel coronavirus now called severe acute repiratory syndrome

coronavirus 2 (SARS-CoV-2; formely called 2019-nCoV, which was

first identified amid an outbreak of respiratory illness cases in

Wuhan City, Hubei Province, China. (Cinnemo, et. Al., 2021)

In this study, Covid-19 pandemic pertains to where the

entrepreneurs small business are based on.

Response is a written or verbal answer to a question in a

test, questionnaire, survey, etc. (Oxford Languages)

In this study, Response is the act of responding, an answer

or reply to a question.

Delimitation of the Study

The survey- correlational research design was used in this

study to determine the Impacts of Covid-19 in Small Business

Entrepreneur of Dulangan, Pilar, Capiz.

This study involve 10 identified small business entrepreneurs

who will serve as the subjects of the study.

There were two sets of questionnaires for this research. A

10-item questions for Response to pandemic and also 10-item

questions for Impact of pandemic.


FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
The mean, standard deviation, frequency count, and

percentage as a statistical tool were utilized for the analyses

of descriptive data and T-test will be used as the inferential

statistical tools to determine the differences among the

variables in the study. All inferential tests were set at 0.05

alpha level of significance.

Chapter 2

Review of Related Literature

This chapter sought to review literature pertinent to COVID-


19 pandemic encountered by entrepreneurs in terms of the impact
on their small business.

This chapter primarily presents the foreign literatures,


related literatures and local literatures. This includes ideas,
generalization or conclusions, methodologies, and others. Those
that were included in this chapter helps in familiarizing
information that are similar to the present study.

Foreign Literature

According to Alexander W. Bartik (2020) In addition to its


impact on public health, coronavirus disease 2019 (COVID-19) has
caused a major economic shock. In this paper, we explore the
impact of COVID-19 on the small business landscape in the United
States, focusing on three questions. First, how did small
businesses adjust to the economic disruptions resulting from
COVID-19? Second, how long did businesses expect the crisis to
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
last, and how do expectations affect their decisions? Third, how
might alternative policy proposals impact business and employment
resilience?

To explore, we surveyed more than 5,800 small businesses


that are members of Alignable, a network of 4.6 million small
businesses. The survey was conducted between March 28 and April
4, 2020. The timing of the survey allows us to understand
expectations of business owners at a critical point in time when
both the progression of COVID-19 and the government’s response
were quite uncertain.

The results suggest that the pandemic had already caused


massive dislocation among small businesses just several weeks
after its onset and prior to the availability of government aid
through the Coronavirus Aid, Relief, and Economic Security
(CARES) Act. Across the full sample, 43% of businesses had
temporarily closed, and nearly all of these closures were due to
COVID-19. Respondents that had temporarily closed largely pointed
to reductions in demand and employee health concerns as the
reasons for closure, with disruptions in the supply chain being
less of a factor. On average, the businesses reported having
reduced their active employment by 39% since January. The decline
was particularly sharp in the Mid-Atlantic region (which includes
New York City), where 54% of firms were closed and employment was
down by 47%. Impacts also varied across industries, with retail,
arts and entertainment, personal services, food services, and
hospitality businesses all reporting employment declines
exceeding 50%; in contrast, inance, professional services, and
real estate-related businesses experienced less disruption, as
these industries were better able to move to remote production.

Based on Robert Fairle (2020) Social-distancing


restrictions and health- and economic-driven demand shifts from
COVID-19 are expected to shutter many small businesses and
entrepreneurial ventures, but there is very little early evidence
on impacts. This paper provides the first analysis of impacts of
the pandemic on the number of active small businesses in the
United States using nationally representative data from the April
2020 Current Population Survey—the first month fully capturing
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
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early effects. The number of active business owners in the United
States plummeted by 3.3 million or 22% over the crucial 2-month
window from February to April 2020. The drop in active business
owners was the largest on record, and losses to business activity
were felt across nearly all industries. African-American
businesses were hit especially hard experiencing a 41% drop in
business activity. Latinx business owner activity fell by 32%,
and Asian business owner activity dropped by 26%. Simulations
indicate that industry compositions partly placed these groups at
a higher risk of business activity losses. Immigrant business
owners experienced substantial losses in business activity of
36%. Female business owners were also disproportionately affected
(25% drop in business activity). Continuing the analysis in May
and June, the number of active business owners remained low—down
by 15% and 8%, respectively. The continued losses in May and
June, and partial rebounds from April were felt across all
demographic groups and most industries. These findings of early-
stage losses to small business activity have important
implications for policy, income losses, and future economic
inequality.

The widespread closing of stores and businesses in the


United States and around the world due to the coronavirus is
unprecedented. Stores, factories, and many other businesses have
closed by policy mandate, downward demand shifts, health
concerns, or other factors. Many of these closures may be
permanent because of the inability of owners to pay ongoing
expenses and survive the shutdown. The impact on small businesses
around the world is likely to be severe.

The early effects of COVID-19 on small business and


entrepreneurs are not well known because of the lack of timely
business-level data released by the government. This paper
addresses this limitation by creating estimates of the number of
business owners from monthly Current Population Survey (CPS)
microdata files. Using these timely data, I examine how COVID-19
impacted small business owners in mid-April 2020—the first month
to capture the widespread shelter-in-place restrictions in the
United States. I then expand the analysis to include the next 2
months as many states that had restrictions started to relax
those restrictions.
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz

According to Eric W. Liguori (2020) The upheaval caused by


the spread of COVID-19 is having a devastating effect on small
businesses. A review of the data on COVID-19’s impact on micro-,
small, and medium-sized enterprises suggests the economic fallout
from this pandemic will get worse for small businesses and their
employees before it gets better. To help combat the negative
effects, this article offers practical and tactical strategies
for navigating the uncertainty and risk especially prevalent in
today’s pandemic-filled business environment.

The upheaval caused by the spread of COVID-19 is having a


devastating effect on small businesses. A recent Goldman Sachs
survey (2020) of 10,000 small business owners found that 96
percent have already been impacted by the coronavirus and 51
percent report their business cannot survive 3 months of an
economic shutdown. Exacerbating the problem, 67 percent report
difficulty accessing emergency funding and 53 percent acknowledge
that their employees do not have the ability to telecommute.
These statistics are alarming and suggest the economic fallout
from COVID-19 will get worse for small businesses and their
employees before it gets better.

While it is nearly impossible to plan for a disruptive event


such as Covid-19, maintaining the spirit of determination and
fortitude that propels entrepreneurs is now more important than
ever. We certainly do not wish to minimize the financial and
psychological effects of this upheaval; rather, we would
encourage small business owners to enhance collaboration efforts
and engage the innovative mindset that drove them into business
in the first place. After all, “successful entrepreneurs and
small business owners are ruthless pragmatists, effectuators, and
exploiters of resources. They are nimble, quick to eliminate what
does not add value, and are not afraid to make bold decisions or
even cut corners” (Pittz & Liguori, 2020, p. vii.

Perhaps the greatest determinant of success for


entrepreneurs and small business owners is maintaining a keen eye
on the needs and desires of their customers. In times of drastic
change, this perspective is even more important, as existing
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
business models will be destroyed and new opportunities will be
created. Understandably, it is incredibly difficult to focus on
identifying and exploring new opportunities while lamenting the
loss of profits, customers, and possibly even key employees.
However, with the very survival of their small businesses at
stake, it is vital for owners to exercise their muscles of
resilience and adopt a mindset of opportunity recognition.

If small business owners can take solace in anything, it is


that the internet has democratized the marketplace and created
numerous possibilities for engaging with customers. Virtual
business channels provide a unique opportunity to reinvigorate
the search for product–market fit and the hunt for new business
models capable of surviving and thriving in a COVID-19-impacted
world. While small business owners should certainly spend
appropriate time assessing the viability of government rescue
programs to maintain their operations, the optimal means of risk
mitigation is the identification of new customers and new
opportunities to pursue growth and infuse some positive momentum
back into the business. This pandemic will eventually pass and
small business owners who use this time to meaningfully connect
with their customer base, develop stronger community ties,
improve their own skillsets, and innovate their business models
will emerge stronger than ever before.

As full-time entrepreneurship educators, we are fortunate to


work with lots of entrepreneurs each year, ranging from new
start-ups just hitting the market to more established ventures in
growth mode. We both also run our own ventures that, like yours,
have been impacted by this global pandemic. Thus, we not only see
but also feel the uncertainty in the business world right now,
and yet we remain optimistic. In reflecting back on our
cumulative 40+ years of experience in-and-around small businesses
it became clear that while this all feels new and different, many
small business owners already have much of the experience needed
to navigate this crisis. Many of you have navigated ups and downs
before, have seen business models you thought were great fail,
have experienced resource scarcity firsthand, and know what it is
like to go out and create new ways to create value and find new
customers. These things are the essence of entrepreneurship—value
creation, resource leveraging, passion and perseverance for long-
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
term goals—and they are things for small businesses to consider
as they navigate an objectively grim environment right now.

To help small businesses navigate the current COVID-19-


impacted environment, we wanted to share a few ways small
business owners can work to successfully manage this pandemic.
First, it is important for small business owners to virtually
keep their fingers on the pulse of the changing market. Reviewing
(or establishing) social media accounts and checking for drops or
shifts in traffic (via clicks and impressions) will usually
signal that something is happening, which will manifest in
changing online conversations. It is only natural that search
trends will shift from topics that are no longer at the forefront
of customers’ minds (for example, floral arrangements or elective
medical procedures), and opportunity can arise for small business
owners who are able to determine where the conversation has
shifted. Numerous online analytics tools let you see what search
terms are trending, both on Google and Amazon, so take advantage
of these tools.

Second, maintaining current customer relationships is


critical, and communicating effectively with existing customers
is key to building trust. Small business owners should leverage
their websites and social media channels to communicate any
changes in business operations (for example, changing store hours
or major inventory shifts). For customers who are regulars, or
account for significant revenue, consider reaching out to them
personally to check in and maintain the relationship. While there
is an economic reality needed to maintain sales and revenue, do
not be shortsighted—the current pandemic is an opportunity to
help deepen these customer connections, so be sure to help them
address their human needs as much as their business needed
whenever possible.

Third, similar to connecting with and meeting the needs of


customers, considering the needs of your employees is also
critical. The economic reality for many businesses right now is
layoffs, furloughs, and equally awful outcomes. If your business
is in a position where shedding workforce to preserve the venture
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
is required, we empathize—it a miserable position in which to be.
However, in times like these it is more important than ever to be
a strong leader—so be transparent, accountable, and
overcommunicate. Transparency means letting employees know what
is happening to the business from a revenue and business model
perspective. While many owners tend to keep this kind of
information confidential, sharing more than normal and letting
employees understand the economic reality in the short term can
help them understand your business model, builds trust, and can
create value for you in the long term. Accountability means when
layoffs need to be made, founders take responsibility for those
decisions and shield intermediaries (managers) from the blame.
Henry Ward, chief executive officer of Catra, discussed exactly
how he took accountability in a recent post and it’s absolutely
worth a read ([Link]
layoff-cbb80e3e8a5d). Overcommunicating means exactly that—more
communication to employees is better than less—and it is
important to remember that, while you as owners and entrepreneurs
are accustomed to dealing with uncertainty and ambiguity, most
employees are not as comfortable or experienced under these kinds
of conditions. We are all in this together, so the human
connection is perhaps more critical than ever before to our
cumulative success.

Last, it is important to stay connected to your


entrepreneurial ecosystem. Research shows that maintaining a
positive culture within the entrepreneurship ecosystem stimulates
higher levels of creativity and innovation (cf., Liguori,
Bendickson, Solomon, & McDowell, 2019; Martins & Terblanche,
2003). Community and industry connections are vital and can be
sources of opportunity recognition (for example, what strategies
have others found to diversify, expand, or salvage revenue
streams?), new ideas, critical financing, and reminders of
inspiration and resilience (Pittz, White, & Zoller, 2019).
Entrepreneurs everywhere are feeling the pressure of this
pandemic and the more we can share best practices, empathize,
and, to a limited healthy extent, commiserate, the stronger our
ventures will be. Fortunately, many of the entrepreneurial
support organizations in our communities are facilitating virtual
connectivity opportunities. For example, the Kauffman
Foundation’s 1 Million Cups program, which operates in a few
hundred cities, has been running virtual community events each
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
week; TechStars’ just facilitated a virtual COVID-19-themed
StartupWeekend event; and many municipalities around the globe
have continued their programming efforts in virtual environments.

In closing, at the outset of this pandemic, we published a


book providing guidance for managing the risks associated with
decisions faced by small businesses. In it, we note that
“[b]ecoming a successful entrepreneur is impossible without
accepting risk—the question has always been about which risk to
take and at what time” (Pittz & Liguori, 2020, p. viii). This
type of practical, no nonsense advice for making marketing and
financing decisions, bringing on partners and employees,
networking with key connectors, and managing disruption as
inexpensively and aggressively as possible is highly apropos for
these times. The book is designed to help entrepreneurs move
quickly, rapidly iterate their business models based on
marketplace feedback, and provide guideposts for managing the
risks inherent in all start-up ventures. These ideas are even
more important now as COVID-19 has dramatically changed the
business landscape and left most businesses in a state of damage
control. Entrepreneurship is always full of challenges and COVID-
19 is already proving to be perhaps the greatest challenge that
most small businesses will ever face. Undoubtedly, markets (and
life) will be altered for the foreseeable future and the small
businesses who best adapt to these changing conditions will be
those that thrive.

Local Literature

As cited by Shigeriho Shinozaki (2021) The novel coronavirus


disease, COVID-19, has brought significant change to people’s
lives and business activities nationally, regionally, and
globally. The Philippines took swift action—including enhanced
community quarantine (ECQ)—to contain the pandemic and launched
an emergency subsidy program with massive public spending to
support disrupted households and businesses. The strict lockdown
ran from mid-March to the end of May 2020 in the national capital
region and high-risk provinces, causing huge economic losses. Six
months after the March lockdown, the Philippine economy has moved
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
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to the recovery stage, but micro, small, and medium-sized
enterprises (MSMEs) are continuing to confront a sharp drop in
demand and revenue. We examine the initial impact on MSMEs of the
ECQ and lockdown measures using evidence obtained from a rapid
nationwide survey conducted from the end of March to mid-April
2020 and derive policy implications.

Based on Ronnie Salonga (2020) It has been more than two


months since the quarantine was implemented and the effects of
COVID-19 on businesses in the Philippines are drastically being
felt. With several establishments forced to close down, the
Philippine economy could be on its way to the verge of collapse
if the pandemic isn’t contained.

Since the implementation of the Enhanced Community


Quarantine (ECQ), companies are trying to keep up with the new
set of demands and protocols. However, it will not suffice if the
pandemic persists for a longer period of time. Here are some
insights into the impact of COVID-19 on businesses in the
Philippines.

We often hear words like “social distancing” and the “new


normal” these days as we live through the pandemic. For the
educational sector, schools have been suspended by the government
since last March. Both the Department of Education and various
college universities are now eyeing online learning as their tool
to continue progressing academically during these times. However,
these have proved to be insufficient as not all of the population
has a stable broadband connection in their homes.

Certain businesses that are labeled essential have been


allowed to continue on running, with a few rules implemented to
maintain safety measures. Public markets are strictly
implementing the rules of social distancing, with some
municipalities providing “mobile palengkes” to their citizens.
Other essential services such as hospitals, food establishments,
and banks also continue to provide work for their employees.
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
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However, people who had jobs in what are considered “non-
essential sectors” are now taking the negative blow of this new
normal. Some employers are unable to provide full compensation or
work from home arrangements. Employees who live in other cities
are having difficulty traveling to their workplace due to
checkpoints. Other companies have suffered such a great loss that
they had to let some people go. The pandemic has been crippling
both Filipino families and businesses alike.

There is no doubt that the economy as a whole is now on the


brink of a recession. Several business industries have taken a
much slower pace due to the global pandemic affecting the flow of
supply and demand in the country. According to Rappler, the
National Economic and Development Authority (NEDA) has estimated
that the Philippines’ gross domestic product (GDP) may be as low
as -0.6% this year.

It is estimated that the Philippines may lose between P276.3


billion and P2.5 trillion based on how long the pandemic will
ensue. In the worst-case scenario, the economy may slow down to a
recession as labor supply drops to 19.7%. On the other hand,
labor supply may only drop to 7.4% with most of the industries
thriving if the country successfully combats the virus in the
second quarter of the year.

Still, as COVID-19 continues, many Filipinos may lose their


jobs. Industries like BPO, tourism, and aviation sectors have
laid off their employees due to a lack of financial resources to
support them. Meanwhile, in terms of construction, it is widely
known that the infrastructures of the “Build, Build, Build”
program are reliant on China for funding. Having the pandemic
around paused not only the construction itself but also the
compensation of the workers involved. Many of whom are daily wage
earners.

Additionally, there are still several business buildings


that are yet to be finished. The pause in construction due to
COVID-19 may postpone future economical endeavors.
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Chapter 3

Research Design and Methodology

This chapter is divided into three parts: (1) Purpose of the

study and Research Design, (2) Methods, and (3) Statistical Data

Analysis Procedure.

The First Part, Purpose of the study and Research Design,

restates the main problem and discusses the research design.

The Second Part, Methods, describes the participants, the

data gathering instruments, and data-gathering procedures used in

the study.

The Third Part, Statistical Data Analysis Procedures,

reports the procedure for scoring and the statistical analysis

used to interpret the hypothesis.

Purpose of the Study and Research Design


FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
This study focused on the impact of Covid-19 in small

business entrepreneurs of Dulangan, Pilar, Capiz.

This study utilized the survey-correlational research

design. According to David (2005), survey method obtains data to

determine specific characteristics of a group. The purpose of a

survey is to get a general picture of the characteristics of a

study population at particular time. Moreover, Gall et al. (2003)

explained, “correlational research refers to studies in which the

purpose is to discover relationships between variables and

subjecting the variables to correlational analysis.

The independent variable is the Responses of small

entrepreneurs while the dependent variable is the impacts of

Covid-19.

The data gathered will be computer-processed using the

statistical package for the Social Science (SPSS) Software.

Descriptive statistical tools such as frequency count, mean, and

standard deviation will be employed. On the other hand, T-test

will be used as inferential tests. All inferential tests will be

set at 0.05 alpha levels of significance.

Methods

Participants
FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz

This involve 10 identified small business entrepreneur who

will serve as subjects of the study.

Data Gathering Instrument

The researcher will use questionnaire to gather the needed

data. To these instruments, the respondent’s personal profile

will be attached to collect data on sex, capital and kind of

business.

Responses to pandemic. To determine the responses of the

small business entrepreneurs to pandemic, a 10-item questions

will be used.

Impact of pandemic. To determine the impacts of pandemic to

small business entrepreneurs, a 10-item questions will be used.

Data Gathering Procedures


FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
In conducting the study, a permission letter will be secured

from the school Principal of Feliciano Yusay Consing National

High School to formally conduct the study on the scheduled date.

The students will be given an explanation of the nature,

purpose and objectives of the study. They were fully assured that

any information that they provide would be kept confidential and

would be used only for the purpose of this study and would not be

used for any other purposes without their consent. Moreover, the

respondents were informed that their participation in the study

is voluntary and that they have freedom to refuse if they do not

want to participate. Upon understanding and acceptance of all the

terms of this research by the respondents, data gathering will

conducted.

Data will be collected through the use of the researcher

formulated and researcher-adopted questionnaires via survey in a

given date and place of the study. The completed instruments will

be reviewed carefully to ensure the validity of the data

collected. After which, the data will be encoded into the

computer for processing and analysis.

Statistical Data Analysis and Procedure


FELICIANO YUSAY CONSING NATIONAL HIGH SCHOOL
Poblacion, President Roxas, Capiz
The data will be processed and analyzed using the

Statistical Package for Social Sciences (SPSS) PC software. The

following were the appropriate statistical tools used in this

study:

Frequency count and Percentage. Frequency count and

Percentage will used to find out the number of respondents that

belongs to a particular category.

Mean. Mean will be employed to ascertain impact of Covid-19

pandemic to the life of small business entrepreneurs.

Standard Deviation. Standard Deviation will be utilized to

determine the homogeneity and heterogeneity of the responses.

T-test. This will be used to determine if there are

significant differences that exist between the variables of the

study. The alpha level was set at .05.

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