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BUSINESS RESEARCH ANALYSIS
ON
“EFFECTS OF PANDEMIC ON SMALL BUSINESSES IN NAVAL”
Submitted in Partial Fulfillment of the Requirements
For the Degree of
Bachelor of Science in Business Administration
Submitted by:
Abad, Ma. Lourdes R.
Arnoco, Shirley
Caliwan, Mary Rose
Quijada, Nelyn H.
BSBA FM-3B
March 2022
Republic of the Philippines
BILIRAN PROVINCE STATE UNIVERSITY
ISO 9001: 2015 CERTIFIED
SCHOOL OF ARTS AND SCIENCES
2. Chapter I
INTRODUCTION
Background and Rationale of the Study
The COVID-19 pandemic has stayed with us for too long that it impacts
the overall wellbeing of the country, whether its people, the economy or any sectors
vital for its progress. At the threshold of pandemic, thousands of businesses were
halted, hundreds of millions of Filipinos lost their jobs and the people struggled to make
ends meet. As the SARS-CoV-2 virus has spread around the globe, concerns have
shifted from supply-side manufacturing issues to decreased business in the service
sector (Times, 2020). The pandemic caused the 2nd
largest global recession in history,
with more than a third of the global population at the time being placed on lockdown
(Kaplan, Frias, & McFall-Johnsen, 2020).
The pandemic has had far-reaching economic consequences beyond the
spread of the disease itself and efforts to quarantine it (Chohan, 2022). Border
restrictions were implemented, the mobility of people was limited, and the fear of
infections rose to a great number. These implementations cause businesses to
struggle to function. The overall overview of economic business was highlighted as
greatly impacted with the pandemic that led to a notable decrease.
Small businesses in general are no stranger on these occurrences, because
they are the ones that were greatly affected. Small business generates small profit.
So, paired with the pandemic, it became even smaller that even bringing food to the
table takes a toll on the business financial plan.
According to data from the Philippine Statistics Authority, there
were 998,342 micro, small, and medium enterprises (MSMEs) operating in the
Philippines as of 2018, accounting for 99.52 % of the 1,003,111 businesses in the
country. Of the MSMEs, 887,272 were micro enterprises, 106,175 were small
enterprises, and 4,985 were medium enterprises (Aldaba, 2012). This shows that a lot
3. Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Philippines 6560
Tel. (053) 507-0014ן Telefax. (053) 507-0014
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.phן Email: sas@bipsu.edu.ph | Facebook: www.facebook.com/iambipsusas
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were affected during the pandemic. Although small businesses are rather small, it
holds a large placeholder on the economic business sector.
There are different types of businesses. Based on employment, small
businesses or enterprises consist of 10-99 employed individuals. In Naval town in
Biliran Province, there are 139 registered small business enterprises. All these
businesses suffered losses with the pandemic. However, one business type crawled
its way with pandemic. While other types of businesses suffer, there is a study showing
how online selling boom throughout the pandemic. It is because people opted to buy
online due to the inconveniences brought by the pandemic. The coronavirus disease
2019 (COVID-19) pandemic has caused the rise and fall of several industries
worldwide. Even though e-commerce platforms have long been on the rise, the
process was fast-tracked when quarantine guidelines were put into place (Mallorca,
2020).
These become the reason why the proponents want to study the effects
affecting small businesses during pandemic. As well as compare them to the business
types it goes with.
Theoretical framework
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 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.
4. The drop in active business owners was the largest on record, and losses to
business activity were felt across nearly all industries (Fairlie, 2020). The
aforementioned study is different with the current study since the time frame of the
study was limited only on the early covid pandemic phase. However, the proponents’
study indicates the effects of the pandemic from the start to the current year 2022.
In March 2020, the COVID-19 pandemic arrived in the United States. Along
with illness and death, the pandemic brought widespread economic disruption.
Businesses closed and unemployment surged to levels not seen since the Great
Depression. The number of people who were self-employed and working was 20
percent lower in April 2020 than in April 2019. This issue brief shows the effects of the
COVID-19 pandemic on small businesses. While economic damage was widespread,
the severity varied substantially across locations, industries, and demographic
categories. Locations with larger declines included metropolitan and coastal areas.
Industries with larger declines included restaurants and taxi and limousine services.
Differences by location and industry contributed to differences across demographic
categories, with larger declines for Asian and Black business owner (Wilmoth, 2021).
It is obvious that corona virus pandemic has seriously disrupted the world economy
and continuing to ravage the existence of businesses. The small and medium
businesses are worst hit. The SMEs are often faced with problems such as: inability to
pay salaries, repay loans and rent (Enesi & Ibrahim, 2021).
The study above by Wilmoth 2021 is generally the same concept of the current
study the proponents are studying. However, the study has a widespread since it was
conducted on the United States and Nigeria respectively, whereas the proponents’
study is limited to the Biliran Province in the Philippines.
5. Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Philippines 6560
Tel. (053) 507-0014ן Telefax. (053) 507-0014
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Website: www.bipsu.edu.phן Email: sas@bipsu.edu.ph | Facebook: www.facebook.com/iambipsusas
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Conceptual Framework
Figure 1.0 Business Flow during Pandemic
The figure shows how Covid-19 restricted businesses that lead to its recession.
Covid started on early 2020 and is currently sweeping lives unto this very day of 2022.
On the second arrow shows that restrictions, provisions, and lockdown that were
implemented causeda lot of traffic on the economic business sector. Due to these, the
business functions were limited as well as the employees of the businesses. Due to
little customers and demands, it was proven that businesses were in recession.
Objectives of the Study
Investigate the factors affecting small businesses during the pandemic
Compare the effects on different types of small business that are greatly
affected by the pandemic. (10 types of SME’s in the Philippines)
1
• Covid
2
• Restrictions
• Lockdown
3
• Limited business function
• Business Recession
6. Significance of the Study
Small businesses – To help small business owners in creating a more
innovative solution that fits the pandemic situation. In that way, the business can thrive
and live with the new normal setting.
Small business owners - To give them the perspective of how the business
struggles and to let them cope with it themselves.
Department of Trade and Industry – This helps the DTI on their data gathering
giving them a new perspective of the most affected businesses in Naval during
pandemic.
Local Government Unit – To help aid the struggling small businesses find a
new opportunity or new ways of making a profit amidst pandemic.
Scope and Limitation of the Study
The scope indicates that the study is only exclusive in the municipality of Naval
here in Biliran Province. Hence, the study is limited only to small business enterprises
in the area. The study provides evidence on what the factors affecting small
businesses during the pandemic. It also shows a comparison on the effects on the
different types of businesses that were greatly affected.
Definition of Terms (introduce this as your first paragraph)
Small business- business enterprises that consists of 10-99 employees
DTI – Abbreviation for Department of Trade and Industry. It is responsible for
realizing the country’s goal of globally competitive and innovative industry and services
sector that contribute to inclusive growth and employment generation.
LGU – Abbreviation for Local Government Unit. They oversee the governance
of a city, town, or province
SARS-Cov -2 – another term for coronavirus-19 or covid-19
