Maryhill College, Inc.

PERCEIVED EFFECTS OF THE PANDEMIC ON SMALL BUSINESS

PERFORMANCE IN BARANGAY IBABANG DUPAY, LUCENA CITY

A Research Paper

Presented to
Ms. Marjorie Umali

In Partial Fulfillment
For The Practical Research II

Presented by:
Lindio, John Alphi P.
Abanilla, Czarina Lyneh C.
Andaya, Catherine Fate O.
Barnedo, Katrina KC C.
Triviño, Bea Angeli G.

Grade 11 - Wisdom

February 2022
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CHAPTER I

THE PROBLEM

This chapter includes the introduction of the research problem and the statement

of the research questions. As well as the theoretical framework, conceptual framework,

significance and purpose of the study, scope and delimitations, and the definition of terms

presented in the study.

Introduction

On January 30, 2020, The World Health Organization declared the outbreak a

Public Health Emergency of International Concern and a pandemic on 11 March 2020. It

is an outbreak of COVID-19, a novel coronavirus and infectious respiratory disease. It is

caused by SARS-CoV-2, also known as the severe acute respiratory syndrome

coronavirus 2, which first appeared in Wuhan, China, and eventually spread throughout

the world. This contagious disease had a wide range of effects, including the lives of

millions of people, as well as their health and, of course, the economy. Quarantines and

lockdowns were imposed, limiting mobility and commercial activity with social

distancing, temporary closures of businesses and schools, and travel restrictions. As a

response to these repercussions, people had to put their occupations on hold; students had

no choice but to learn as the authorities implemented a new mode of learning or cease for

a while as to the underprivileged, and frontliners have contributed all of their assistance

to healthcare facilities throughout the outbreak. These actions stalled the spread of
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COVID-19, but they had serious consequences for family incomes, jobs, education, food

security, and, most importantly, businesses.

The coronavirus disease (COVID-19) has taken the world, regional, and national

economies by surprise. People's lives and economic activities have been severely

restricted in order to secure their health and control the spread of the virus. While critical

in safeguarding public health against the spread of COVID-19, the enhanced community

quarantine and other quarantine/lockdown measures (henceforth referred to as ECQ)

dramatically limited business activities throughout much of the Philippines (Asian

Development Bank, 2020). The first lockdown was imposed in the Philippines in March

2020, leading to the closure of all public locations and the suspension of schools.

Businesses were also affected at the time; with everyone confined to their houses,

revenue was not in as good condition as it had been prior to the outbreak. Private-sector

businesses have lowered production and delivery, and have been compelled to lay off

workers temporarily. They are struggling to stay in business due to a complete lack of

working capital. It has occurred with businesses being permanently closed or declaring

bankruptcy.

Soon after the outbreak of the COVID-19 pandemic, many governments began

extending financial and other forms of support to micro, small, and medium enterprises

(MSMEs) and their workers because smaller firms are more vulnerable to negative

shocks to their supply chain, labor supply, and final demand for goods and services than
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larger firms (T. Sonobe et al, 2021). Micro, small and medium enterprises (MSMEs) have

a very important role in developing the Philippine economy as most of the country's

enterprises are MSMEs. Businesses are considered Micro, Small, and Medium Enterprise

(MSME) based on their total assets in which Micro enterprises own not more than

P3,000,000, Small with P3,000,001 – P15,000,000, and Medium with P15,000,001 –

P100,000,000. This is provided in Republic Act No. 6977, as amended (also known as

the “Magna Carta for Micro, Small and Medium Enterprises (MSMEs) “, previously

called the “Magna Carta for Small Enterprises” (P&L law, 2020).

COVID-19 has affected and forced businesses to develop different methods of

conducting business (Puriwat et al., 2021). Small businesses are likely to be severely

affected, as they tend to be more concentrated in sectors that have been directly affected

by COVID-19 response measures (e.g. retail and services) and are typically more credit

constrained than larger businesses (Cao and Leung, 2020; Kumar and Francisco, 2005).

Importantly, small businesses comprise the majority of companies in the economy and

are responsible for a substantial share of employment (Humphries et al., 2020).

According to Teixeira et al. (2021), Business Performance is the company's ability to

make the best use of the resources it manages in its business activities. The business

performance of a company is based on multiple criteria such as management style,

customer relationship management, and the quality of the service provided, but also the

effectiveness of incentive compensation schemes and employee motivation (Riberolles,

2021).
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Businesses can survive during the COVID-19 pandemic if they reimagine their

financial, business, employee, and customer strategies. But moving beyond the pandemic

into a post-COVID world relies on the business‟s ability to continue to adapt and

consider its customers‟ needs in new ways (Idol, 2020). Businesses must navigate the

effects of the COVID-19 pandemic while also attempting to meet the needs, wants, and

demands of their customers. A study conducted by Harel et. al (2019) showed that small

businesses utilized open innovation tools. They utilized technology as the medium of

communication, marketing, transactions, and other facets of their business. Technology

has become an integral part of everyone‟s lives most especially, in the continuation of

business activities and operations amid the pandemic. However, some companies are

unable to adopt digital solutions, especially small businesses. It has exerted an impact on

business performance amid the threat of the coronavirus, which this study aims to

recognize. This investigation will seek to determine the perceived effects of the pandemic

on business performance, particularly the performance of small businesses operating here

in Lucena City.

Statement of the problem

The study sought to find out the perceived effects of the pandemic on business

performance.

Specifically, it seeks to answer the following questions:

1. What is the demographic profile of the business?

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1.1 The company's age (in years)

1.2 Industry

1.3 Provided goods or services

1.4 Average monthly earnings

2. What was the impact of the pandemic on:

2.1 Financial Situation

2.2 Marketing strategies

2.3 Making use of technology

3. Is the company's performance satisfactory in terms of the number of:

3.1 Sales

3.2 Employees

3.3 Clients and customers

Theoretical framework

The theoretical framework focuses on theories developed by experts. There are

some theories relevant to the present study that seeks to explain and support the possible

interpretation of the research report.

The study is anchored on the Contingency theory of organizations by Lex

Donaldson (2001). The essence of the contingency theory paradigm is that organizational

effectiveness results from fitting characteristics of the organization, such as its structure,

to contingencies that reflect the situation of the organization (Burns and Stalker 1961;
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Lawrence and Lorsch 1967; Pennings 1992; Woodward 1965, as cited in Donaldson

2001). Contingencies include the environment (Burns and Stalker 1961), organizational

size (Child 1975), and organizational strategy (Chandler 1962). Because the fit of

organizational characteristics to contingencies leads to high performance, organizations

seek to attain fit. For this reason, organizations are motivated to avoid the misfit that

results after contingencies change, and do so by adopting new organizational

characteristics that fit the new levels of the contingencies.

Therefore the organization becomes shaped by the contingencies because it needs

to fit them to avoid loss of performance. Organizations are seen as adapting over time to

fit their changing contingencies so that effectiveness is maintained. Thus contingency

theory contains the concept of a fit that affects performance, which, in turn, impels

adaptive organizational change. This results in organizations moving into fit with their

contingencies, so that there is an alignment between the organization and its

contingencies, creating an association between contingencies and organizational

characteristics (Burns and Stalker 1961; Woodward 1965; Van de Ven and Drazin 1985).

The theory's relevance stems from the pandemic's impact on the performance of

businesses. They can be seen adapting to changing conditions by matching organizational

factors to maintain effectiveness and high performance. There is a connection between

business and the theory's contingencies, such as strategies, size, and environment, and the

study's goal is to determine the same contingencies and their alignment with the business.
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Conceptual Framework

Figure 1: Perceived Effects of the Pandemic on Business Performance

Figure 1 illustrates the flow of the research by the input-process-output

framework in conducting the study. The study aimed to identify the perceived effects of

the pandemic on business performance. The researchers input the demographic profile,

the impact of the pandemic, and the business performance based on the number of sales,

employees, clients, and customers.

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In the process, the researchers gather data from the respondents by conducting a

survey through the use of questionnaires. The data collected was organized and analyzed

through related literature and studies that aid them in understanding the impact of the

pandemic on business performance. The data was interpreted statistically.

As the output, the researchers were expected to identify the effect of the pandemic

on the performance of small businesses, the use and application of technology on

business operations, and the standing of the companies amid the pandemic.

Significance of the Study

This study seeks to disseminate and provide information on the pandemic's

perceived effects on business performance in Lucena City. This topic can enable

entrepreneurs to understand the pandemic's beneficial and detrimental effects on their

businesses, as well as how it influenced individuals in numerous ways.

The findings of this study will be beneficial to the following people.

To the Entrepreneurs, this study will give them knowledge as it will discuss the

outcome of their business upon the pandemic. Entrepreneurs can also devise various

marketing strategies and utilize technology for rebuilding their businesses in the face of

the ongoing pandemic. Adopting technology as a fallback for entrepreneurs whose

businesses were affected by the pandemic could give them an advantage.

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To the employees, this study will provide the employees with information

regarding the present conditions of the business where they are employed. The

information will give assurance that the company will be able to pay their salaries and

provide additional benefits in exchange for their services. Employees, on the other hand,

can contribute to the improvement of the business by making recommendations and

solutions on how to recover it. This study will help employees expand their abilities,

which can also aid the business.

To the consumers, this study will provide consumers with information from which

they will be able to determine whether the service or product is worth consuming.

Considering customers are the primary source of revenue, they should be aware of the

existing crisis. Therefore, this information will guide customers to recognize the concept

of technology in business. Wherein, consumers could support entrepreneurs by boosting

their businesses through the use of technology, such as re-posting on different social

media platforms (Facebook, Instagram, etc.).

To future researchers, this study will provide future researchers with references

that will assist them in relating this topic to their research. It can enable future researchers

to obtain greater expertise. This will help them conduct further studies about the effects

of the pandemic on the performance of small businesses within Lucena City.

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Scope and Delimitations

This study is primarily concerned with the perceived effects of the pandemic on

the performance of small businesses in Lucena City. The study considered the

demographic profile of the business, such as the company's age in years, industrial sector,

products or services provided, and average monthly income. However, the study only

focused on small businesses with an asset size (less land) of P3,000,001 - 15,000,000

pesos and an employment size of 10 - 99 employees, regardless of the type of business

ownership, such as single proprietorship, cooperative, partnership, or corporation.

Furthermore, the businesses are within barangay Ibabang Dupay of Lucena City only.

The data will be gathered within the period of 2022. To complete the study, the

researchers will use questionnaires to conduct surveys as the instrument to gather data

and information. Related literature and studies are the primary basis for establishing

questions for the respondents.

Definition of Terms

For a clear understanding of the study, the terms below are conceptually and

operationally detailed.

Business - the activity of making, buying, or selling goods or providing services in

exchange for money.

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Effects - something that inevitably follows an antecedent. In this study, the effects refer

to the impact of the pandemic on the performance of small businesses.

Pandemic - an outbreak of a disease that occurs over a wide geographic area and typically

affects a significant proportion of the population. The pandemic during the study period

was the coronavirus outbreak that affected businesses and their performance.

Perceived - refers to attaining awareness or understanding.

Performance - understood as the company's ability to achieve the best value of

investment in the business (Frost, 2005).

Technology - refers to the application of scientific knowledge to the practical aims of

human life. Operationally, it describes all technology that helps an organization run its

business and operational processes.

CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents a review of the published literature as well as previous

investigations by other researchers that were relevant to this study. Also, this chapter

provides a broader overview of the variables of the study, such as the pandemic and

business performance, for a more accurate understanding of the study.

Related Literature
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In general, the term “performance” is defined as a measure of achievement for

individuals, companies and processes. Performance is understood as the company's

ability to achieve the best value of investment in the business (Frost, 2005). For Yıldız et

al. (2014), performance refers to an effectiveness in carrying out the enterprise‟s tasks,

which results in achieving its stated objectives. The value of a company is determined by

its performance. In order to increase the value of the business, it is necessary to increase

the business‟ performance. This means that it is necessary to improve the performance of

business processes, in particular the main business processes (Závadský, 2005).

According to Richard et al. (2009), organizational performance encompasses three

specific areas of firm outcomes: (a) financial performance (profits, return on assets,

return on investment, etc.); (b) product market performance (sales, market share, etc.);

and (c) shareholder return (total shareholder return, economic value added, etc.).

Achieving high performance level implicitly indicates enterprise success (Mahmudova &

Kovács, 2018).

According to Donaldson (2015), structural contingency theory holds that the

effect on organizational performance of organizational structure depends upon how far

the structure fits the contingencies, such as uncertainty, strategy, and size. Furthermore,

structural contingency theory points out that organizational structure must be adaptable to

each business and that each business must make moves to ensure they are operating

within the most efficient structure to support the business. A variety of factors, referred to

as contingency factors, influence structural contingency decisions and plans (Long, n.d.)

Gimeno et al. (1997) have argued that a company‟s survival depends on two dimensions:
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economic performance and threshold of performance, the latter being understood as „the

level of performance below which the dominant organizational constituents would act to

dissolve the company‟ (p. 750). Gimeno et al. considered and emphasized the owners'

expectations as one of the reasons why businesses continue to operate even when their

economic performance is low and clearly unsatisfactory.

The threat of lockdown has become conscious in the MSMEs sector, bringing

plentiful problems in the financial crisis, demand, supply chain trouble, freezing of

import and export opportunities, etc. (Banu & Suresh, 2020). The consequences are wide

and open, like loss of employment, reduction in revenue generation, declined sales and a

cut back in the income of the working class (Hariharan et al., 2021). According to Parilla

(2021), indirect impacts include a reduction in the labour supply and a loss in

productivity due to increased absenteeism and tardiness in the workplace. It also impacts

local and international travel and decreases public gatherings such as concerts, sporting

events, and other festivities. Furthermore, some employees who were given paid time off

from work decreased the overall productivity of their business (Woo et al., 2011). Small

businesses were more likely to experience a year-over-year decrease in revenue, and also

less likely to be able to take on more debt and adopt or incorporate various technologies

(Tam, Sood, & Johnston, 2021).

MSMEs are the backbone of many economies worldwide that provide income and

employment generation to a large number of people around the globe (Shafi, Liu, & Ren,

2020). According to Enrico Gaveglia, Officer-in-Charge of UNDP Philippines in his

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statement with the United Nations Philippines, “MSMEs play a crucial role in the

Philippines‟ efforts to recover from the crisis brought about by this pandemic. At the

same time, the MSMEs sector is the most vulnerable one in the era of the COVID-19

pandemic because of its size, the scale of business, limited financial executive resources

and notably they do not have the capacity to compact with something so unexpected

(Sipahi, 2020). Moreover, since MSMEs are financially fragile, smaller in size and

resources, they are more vulnerable to the environmental crisis than their counterparts,

i.e. large enterprises (Asgary et al., 2020; Bartik et al., 2020; Eggers, 2020; Prasad et al.,

2015; Samantha, 2018; Williams & Schaefer, 2013, as cited in Shafi, Liu, & Ren, 2020).

COVID-19 has enormous depressing impacts on the MSMEs sector through disruption in

demand chain problems of the production process and raw material and labour

availability, which resulted in shrinking revenue generation (Singh, 2020).

While no businesses are immune to the pandemic‟s effects, small businesses are

most threatened due to their limited resources and their potential lack of planning and

preparation for disaster (Josephson et al., 2017). Small firms in hospitality, retail,

personal services, entertainment, and the arts were most affected (Bartik et al. 2020).

MSMEs are highly dependent on the cash economy, which has been adversely affected

by the pandemic (Williams & Schaefer, 2013). According to Harel (2021), many small

businesses operate in the retail and service sectors and serve the end consumer through

face-to-face interactions. These sectors were the most adversely affected by the COVID-

19 pandemic, due to the restrictions and closures imposed by the authorities (Cao &

Leung, 2020). As noted, small businesses often operate in niche and highly specific
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markets and are able to provide something different from standardized products and

services offered by large companies. In the industry sectors particularly, many of them

act as specialist suppliers of parts, components, and subassemblies and work as

subcontractors to large industrial companies (Yew Wong & Aspinwall, 2004), which for

the most part continued to operate during the COVID-19 period, in view of their status as

essential industrial enterprises to the economy.

According to Cua (2021), the increase in pandemic cases, as well as efforts to

slow the virus's spread, has caused business disruption and hampered economic growth.

The forecasted contraction will emerge gradually over the course of the year, with the

Philippines being one of the major economies in East Asia and the Pacific region to

experience the most severe contractions. MSMEs comprise 99.5% of business

establishments in the Philippines and employ about 63% of the country's workforce

However, since the implementation of community lockdowns, MSMEs continued to

suffer from disrupted cashflow and continuing expenses, which led to income losses

(United Nations Philippines, 2020). Lockdowns enforced by the authorities throughout

the country have harmed people's livelihoods (Statista Research Department, 2021).

Local restrictions have forced enterprises to reduce operation hours or close their

business (MicroSave, 2020). According to Shinozaki and Rao (2021), the COVID-19

pandemic and lockdown measures resulted in two distinct business groups: contracting

firm groups that were negatively impacted by the lockdown and those that benefited from

it. It found that education, construction, accommodation and food services (including
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tourism), and manufacturing were hurt most; power and energy, information and

communication technology, and real estate coped better.

In order to prevent the virus from spreading, governments established a number of

societal and economic restrictions, limiting people's physical mobility and exchanges. As

a result of the decrease in face-to-face contact, the transition of societal and economic

activity to digital platforms, including digital entrepreneurship, has accelerated

(Dannenberg et al. 2020). While some businesses are struggling, others are thriving. This

is true for a number of Internet-based businesses, such as those related to online

entertainment, food delivery, online shopping, online education, and solutions for remote

work (Donthu & Gustafsson, 2020). Aside from these limitations, the COVID-19

pandemic had an impact on consumer preferences and business innovation projects.

Businesses, micro, small, and medium enterprises (MSMEs), as well as major

corporations, have benefited from these innovation programs (Gavrila Gavrila and De

Lucas Ancillo 2021; del Olmo-Garca et al. 2020). Businesses and consumers are

increasingly shifting to digital platforms, providing and purchasing more goods and

services online, and increasing e-share commerce's share of global retail sales from 14%

in 2019 to 18% in 2020, and expected to reach 22% by 2024, as pandemic circumstances,

such as lockdowns and quarantines, are treated as the new normal (UNCTAD 2021;

Coppola 2021).

Small and medium enterprises need to increase sustainable business to survive in

a changing and uncertain environment (Rostek & Weretka, 2012). From a SME
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perspective, innovation commonly indicates new products or processes that address

customer needs more competitively and profitably than existing ones (O‟Regan &

Ghobadian, 2006; Zahra et al., 1999). According to Guo et al. (2020), SMEs‟ efforts

towards digitalization, manifested by their degree of digitalization, adoption of digital

technologies, and business mode can help them better respond to public crises. Further,

digitalization contributes to improvements in SMEs‟ performance through the

implementation of public crisis response strategies. The introduction of innovative forms

of Information and Communications Technology (ICT) services by SMEs to deliver

financial services to all population segments are crucial for improving previous business

processes (Cao, 2021). Most of these studies have suggested that ICT plays a critical role

in improving the quality, quantity, and sharing of information (e.g., Mohout and

Fiegenbaum, 2015; Pérez-López et al., 2019, as cited in Laban & Deya, 2019), allowing

organizations to better allocate their resources and achieve their objectives. These

assertions are simplified by Laban and Deya (2019), who state that organizations use

innovation-enhancing ICT to commercialize their products and gain a competitive

advantage. Many previous studies (e.g., Everett, 2003; El-Gohary, 2012; Oliveira et al,

2014, as cited in Li et al., 2021) show that compatibility can help organizations achieve

greater performance.

Related Studies

In 2021, Vigilia et al. (2021) in their study on the impact of the COVID-19

pandemic in the restaurant business in the City of Cabanatuan, Province of Nueva Ecija,
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Philippines, revealed that the pandemic caused the closure of small restaurants, sales

tremendously decreased, loss of income and jobs, loan obligation defaults, and state of

mind of its stakeholders. All or 100% of the respondents said that the COVID-19

pandemic was affected by the COVID-19 pandemic. As for coping mechanisms,

restaurants use massive online advertisements to market the product, sell ready-to-cook

raw materials, shift and reduce employee work hours, and use delivery services. The

researchers employed a descriptive research design with a sample size consisting of 36

restaurants and eateries. Purposive sampling was employed due to ongoing movement

and quarantine restrictions being imposed by the Philippine government. The study

utilized the unstructured interview as the research instrument, and simple descriptive

statistics were used for its data analysis.

Bartik et al. (2020) in their study, “The impact of COVID-19 on small business

outcomes and expectations” revealed that just a few weeks into the crisis, mass

unemployment and closings had already occurred. The risk of closure was negatively

related to the expected duration of the crisis wherein businesses held widely disparate

views on the likely duration of COVID-related disruptions. Also, many small businesses

are in financial jeopardy. The researchers conducted a survey of more than 5,800 small

businesses between March 28 and April 4, 2020. The survey included a total of 43

questions, with basic information about firm characteristics (including firm size and

industry), questions about the current response to the COVID-19 crisis, and beliefs about

the future course of the crisis.

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A related study conducted by Harel (2021), looked at the impact of the

Coronavirus Disease 2019 (COVID-19) pandemic on the revenues of small businesses

operating in industrial sectors and at the extent to which these businesses changed or

adjusted their business activity, or changed the extent to which they utilized open

innovation tools and implemented innovation promotion processes. The findings show

that the pandemic did not have adversely affected the majority of small businesses in the

industrial sector, and they did not change or adjust their business activities or the extent

of innovation. Most small businesses that generate revenue by subcontracting work to

other businesses on a business-to-business (B2B) basis and through long-term agreements

are likely to cope better during periods of economic difficulty and uncertainty. The

findings also show that businesses operating in international markets have been

successful in adapting to changing demand and trade restrictions.

The study of Christa, U. & Kristinae, V. (2021), "The effect of product innovation

on business performance during COVID-19 pandemic" showcases that planning,

organizing, actuating, and controlling (POAC) therefore has an influence in order to

maintain the positive impacts of local goods industries. The participants in the study were

300 local product business actors in Central Kalimantan and Bali. Efforts are needed to

sustain local product business, maintain the key to organizational success based on

knowledge sharing and innovation in improving business performance so that local

products remain sustainable. It also involves encouraging businesses to integrate market

orientation into relevant information in order to recognize changes and demands, as well
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as knowledge sharing and innovation in order to improve the commercial performance of

local products that meet consumer needs.

The study “The Impact of COVID-19 on Business Activities and Supply Chains

in the ASEAN Member States and India” conducted by Oikawa et al. (2021), uncovers

the impact of coronavirus disease (COVID-19) on the business performance, outlook, and

regional supply chains of manufacturing and non-manufacturing firms in the Association

of Southeast Asian Nations (ASEAN) the Member States and India. The findings indicate

a strong private dynamism in the region. Firms' business performance during the

pandemic ranged from positive to negative, and firms that were adaptable to the COVID-

19 shock – in terms of quickly reorganizing their supply chains – were more likely to

perform well and have a better outlook. From November 2020 to February 2021, the

researchers conducted an extensive questionnaire survey via the internet and received

effective responses from 1,789 companies – including local firms, large and small,

medium-sized enterprises, and multinational firms in all 11 countries.

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CHAPTER III

RESEARCH METHODOLOGY

This chapter presents the methods and procedures used in conducting the study. It

consists of the research design, the location of the study, the population and sample from

which the data will be drawn, the data collection procedure, and the statistical treatment

of the data.

Research Design

The study will utilize the descriptive method, specifically, descriptive survey and

descriptive-correlational. A descriptive survey is employed to determine the demographic

profile of the respondents as well as the impact of the pandemic on small businesses,

subdivided into three components: financial situation, marketing strategies, and making

use of technology. The study used descriptive-correlational measures to assess the

performance of small businesses in Lucena City as satisfactory in terms of sales,

employees, and customers. The researchers are expected to identify the effects of the

pandemic on the performance of small businesses, the use and application of technology

on business operations, and the standing of the companies amid the pandemic as the

outputs of the study.

Research Locale
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The study will be conducted in barangay Ibabang Dupay in Lucena City, the

capital of Quezon province. Ibabang Dupay has the highest population among the thirty-

three (33) barangays in Lucena City, with a total population of 34,286 (Department of

Health, 2021). It accounts for 11.97% of the total population of Lucena. The barangay

hall is located in San Antonio Subdivision, which is governed by Hon. Jacinto A. Jaca,

the barangay chairman.

Ibabang Dupay is one of the largest barangays in Lucena, which comprises a

myriad of businesses and firms that provide a full range of facilities and services. It is

home to SM City Lucena, the city's largest mall and one of the first SM Malls in Luzon,

as well as prestigious educational institutions like Lucena City National High School,

Manuel S. Enverga University Foundation, and Southern Luzon State University. It is

also the home of two of the best hospitals in Lucena and Quezon province, St. Anne

General Hospital Inc. and Lucena MMG General Hospital. This prompted the researchers

to select this barangay as the locale of the study, with small business owners chosen as

the target respondents.

Research Population and Sample

The respondents were chosen utilizing purposive sampling. The following criteria

in the selection of the respondents: (a) resident of barangay Ibabang Dupay of Lucena

City; (b) own or manage a small business with an asset size (less land) of P3,000,001 -

15,000,000 pesos and an employment size of 10 - 99 employees, and (c) willing to

participate in the study.

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Based on the population projection of the Department of Health for the year 2021,

Ibabang Dupay has a total population of 34,286 which represents 11.97% of the total

population of Lucena. Thus, the total population of the study is 34,286.

To determine the number of respondents of the study, Slovin‟s formula as follows

was used:

Where: n = sample size

N = population size

e = margin of error

100

Thus, there were 100 respondents to the study.

Research Instrument

The researchers designed a structured questionnaire as the instrument for

collecting data. The structured questionnaire contains closed questions particularly,

recognition type questions and Likert scales. The content is generated based on the

statement of the problem to elicit brief and relevant information from the respondents.
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The questionnaire is divided into three sections. The first section focuses on identifying

the respondents' demographic profile, while the second section centers on the impact of

the pandemic on small businesses in terms of financial, promotional, and technological

aspects of the business. Furthermore, the third part focuses on assessing the performance

of the business in terms of employee and consumer engagement. The instrument was

validated with the approval of the research instructor before conducting the survey.

Data Gathering Procedure

In accomplishing this study, the following procedure or steps were considered and

followed:

The first step was writing a request letter to the principal of Maryhill College,

which was then given to the barangay chairman of Barangay Ibabang Dupay to ask for

permission to conduct this study on the selected small business owners of the barangay.

Upon approval, the researchers retrieved the letter and visited the barangay hall of

Ibabang Dupay. Immediately after permission is granted to conduct the study, the

researchers will administer the validated questionnaires regarding the perceived effects of

the pandemic on small business performance in Barangay Ibabang Dupay and ask the

respondents to answer them through Google forms. The researchers will wait until they

finish answering and soon after, all the completed questionnaires will be collected and

consolidated.
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Statistical Treatment of Data

In order to interpret the data, various statistical treatments will be applied as

follows:

For sub-problem 1, the researcher ought to determine the demographic profile of

the respondents. The Percentage Formula will be employed. The formula for calculating

the percentage is:

Where: P = percentage

f = frequency

N = refers to the total number of responses

100 = constant multiplier

For sub-problems 2 and 3, researchers must identify the impact of the pandemic

on small businesses' financial situation, marketing strategies, and use of technology, as

well as whether the company's performance in terms of sales, employees, clients, and

customers is satisfactory. The Weighted Arithmetic Mean will be used to accomplish this.

The weighted arithmetic mean can be calculated using the following formula:
 Maryhill College, Inc.
Where: WAM = weighted arithmetic mean

Σ =summation

f = frequency of responses

w = weight value of each option

n = the total number of responses per item

Below was the scale utilized to interpret the gathered data.

Weighted Point Weighted Arithmetic Mean Verbal Description

4 3.26-4.00 Strongly Agree

3 2.51-3.25 Agree

2 1.76-2.50 Disagree

1 1.00-1.75 Agree
 Maryhill College, Inc.
RESEARCH INSTRUMENT

Name: _____________________________ Date: ___________

I. Demographic Profile of the Business

Directions: Put a checkmark (✔) that corresponds to your answer.

a) Company‟s age (years)

 0-5 years

 6-10 years

 11-20 years

 20 years and above

b) Industrial sector

 Wholesale and Retail Trade

 Repair of Motor Vehicles and Motorcycles

 Accommodations and Food Service Activities

 Manufacturing

 Financial and Insurance Activities

 Others, please specify: _____________

c) Does your company provide goods or services?

 Goods

 Services

d) What is the average of your monthly earnings?

 Maryhill College, Inc.
 <10k

 10k-20k

 20k-30k

 30k-40k

 40k-50k

 50k and above

II. Impact of the pandemic on:

Directions: Put a checkmark (✔) on the column that corresponds to your answer.

Legend:

SA - Strongly Agree

A - Agree

D - Disagree

SD - Strongly Disagree

Impact of the pandemic on: SA A D SD

(4) (3) (2) (1)

a) Financial Situation

The business experienced a significant drop in

revenues resulting to losses.

The business experienced liquidity shortages that

threatened its survival.
 Maryhill College, Inc.
The pandemic caused a decrease in returns on
assets, receivable turnover, and leverage.

b) Marketing strategy

The pandemic limited businesses' ability to employ

marketing strategies.

There are big changes in the marketing approach

that forced the management to develop new
marketing strategies.

The pandemic helped in improving marketing

strategies.

c) Making use of technology

The pandemic introduced the use of technology

and online payment methods to businesses.

Technology has aided in the restoration of orderly

business conditions as well as in accounting and
financial management systems.

The business makes use of social media to market,

promote, and advertise.

III. Satisfactory of the company’s performance

Directions: Put a checkmark (✔) on the column that corresponds to your answer.

Legend:

SA - Strongly Agree

A - Agree
 Maryhill College, Inc.
D - Disagree

SD - Strongly Disagree

Satisfactory of the company’s performance in SA A D SD

terms of: (4) (3) (2) (1)

a) Sales

The expected sales are reached.

The monthly sales have consecutively dropped.

Online sales are higher than physical sales.

b) Employees

The business requires more employees to continue

operations.

Some of the company's employees were laid off.

The employees' salaries were deducted.

c) Clients and Customers

The business lost some of its clients and

customers.

The demand for the goods or services provided has

decreased.

The business is affected by the decline in

consumer spending.
 Maryhill College, Inc.
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