CHAPTER III

METHODS

Research Design
This study used a quantitative descriptive research design which follows a
structured approach in collecting data. A survey questionnaire was utilized to gather
quantitative information from a target population in a specific time frame. The
descriptive design seeks to provide an overall summary of the variables in the study
and to describe the phenomenon of the various effects of the COVID-19 Pandemic in
the country. The administered survey questionnaire aided the researchers to get
relevant and reliable information about the financial and economic effects of COVID-
19 among SMEs, and their adaptive measures against the pandemic. The gathered
data from the respondents was analyzed through statistical treatment and the
computation of Cronbach’s Alpha which provided an assurance of internal
consistency and scale reliability.

Participants of the Study

In the conduct of this study, the respondents were the business owners or
managers of Small and Medium Enterprises who are still operating in the midst of
the COVID-19 Pandemic.

The total population of respondents is 229 out of 1,320 SMEs located in

Manila. However, due to the uncertainty in the gathered total population, this amount
is an estimate of the exact 2019 population of SMEs in the National Capital Region
stated on the data given by the Department of Trade and Industry (DTI).
 The graph presented above is used to determine the estimated total
population of SMEs. This population will now then be multiplied with the percentage
population of SMEs in NCR which is 20.2% and will be divided into 16, the number of
cities in NCR, to get the estimated total population of SMEs in Manila.

Below shows the computation of the estimated total population of SMEs located in
Manila:

1,000,506−4,761=995,745Total MSMEs

995,745 x 10.5 %=104,553 Total SMEs

104,553 Total SMEs x 20.2 % population of NCR=21,120 SMEs∈NCR /16 cities

¿ 1,320 SMEs ∈Manila

To get the sample size or the number of respondents, it was computed using
the scientific method with a 1% margin of error. Although the number of respondents
(229) was above the minimum target respondents of 100, the researchers decided to
continue with the computed sample size for better accuracy of data. 

The formula used for Scientific Method:

Ss =NV +¿¿ ¿

Where:
 Ss =¿ Sample ¿¿¿

N = Total Number of Population

V = The standard value (2.58) of 1% level of probability with 0.99 reliability

(constant).

Se = Sampling Error

p = Largest Possible Proportion (0.50)

Computation:

S (1,320)(2.58)+[ 0.012 (1−0.50 )]

s=
(1,320)(0.01)+2.582 x0.50 (1−0.50 )

S 3,405.6+ 0.00005
s=
13.2 +6.6564 x 0.25

S 3,405.60005
s=
14.8641

Ss =230

Sampling Technique

Research Venue

The study was conducted online through the use of Google Forms as it would
be impossible for the researchers to conduct in certain parts of Manila due to the
government restrictions caused by the occurring pandemic. Different online platforms
such as Google Forms have been timely and relevant during this crisis as it serves
the virtual connection between the respondents and the researchers. 

Research Instrument

To collect data regarding the effects of COVID-19 on SMEs in terms of

financial and economic aspects, the researchers use a self-made questionnaire
which is divided into three parts. The first part consists of the profile of SMEs mainly
their business industry and years of existence. The second part includes Likert-type
statements relating to the financial and economic effect of the pandemic in which the
respondents may answer between 1-4 (see interpretation in table 1) depending on
their level of agreement. Lastly, the third part is in checklist format comprised of the
possible measures adopted by SMEs to continue their operation despite the
pandemic. 

Table 1. Range of Likert Scale

Rating Weighted Mean Scale Interpretation

4 3.25-4.00 Strongly Agree

3 2.50-3.24 Agree

2 1.75-2.49 Disagree

1 1.00-1.74 Strongly Disagree

           The contents of the survey questionnaire formed by the researchers were

based on the related literature and studies consistent with the statement of the
problems. To test the validity of the questionnaire, the researchers seek assistance
from professors and other professionals and thereafter, made a necessary revision. 
And to measure the reliability of the instrument, a pilot test participated by 20
respondents was conducted along with the computation of Cronbach’s Alpha with a
resulting score of 0.91 interpreted as “very reliable.”

Table 2. Overall Computation of Cronbach’s Alpha

No. of Items (K) 30

Sum of the item variances 19.11

Variance of Total Scores 163.23

Cronbach’s Alpha 0.91

Data Gathering
 The researchers used survey questionnaires through Google Forms to
accumulate all the data needed. The questionnaires also determined the financial
and economic effects of COVID-10 Pandemic to SMEs, to measure the effectiveness
of the adaptive measures and strategies of SMEs to the new normal and to ascertain
if there is significant relationship between the profile of the respondents and the
measures undertaken by the SMEs.

Statistical Treatment

 Ranking – It is the method of classifying or sorting data in an order to show

relationship in terms of which value is higher than, lower than or equal to.

 Weighted Mean – It is used to assign weights in individual values to determine

comparative importance in the observation. The following formula is used for
computing Weighted Mean:

xw
x̅ =
N

Where:

x̅ = Weighted Mean

x = Frequency of response per weight

w = Weight

N = Total number of respondents

 Percentage Frequency Distribution – It is used to show relative frequency of

survey responses and other data. The following formula is used for computing
Percentage Frequency Distribution:

f
%= ×100
N

Where:

% = Percentage

f = Frequency
 N = Total number of respondents

 Pearson’s Correlation Coefficient – It is used to measure the degree of

relationship or association between two variables. The following formula is used
for computing Pearson’s Correlation Coefficient:

( xi −x̅ )( y i− ȳ )
r=
√ ∑( x −x̅ )2 ∑ ( y− ȳ )2
Where:

r = Correlation

xi / yi = values of each variable

x̅ / ȳ = mean of variables

 Linear Regression – It measures the association of two variables by predicting

the value of a dependent variable based on one or more independent variable.
The following formula is used for computing Linear Regression:

( Σy )( Σx )2− ( Σxy )
a= 2 2
n ( Σx ) −( Σx )

n ( Σxy )−( Σx ) ( Σy )
b=
n ( Σx )2−( Σx )2

y=a+bx

Where:

x = Independent variable

y = Dependent variable

a = y-intercept

b = Slope of the line