INTRODUCTION

The neighbourhood sari- sari store is part of the daily practices

for average Filipino. Any essential household goods that may be
missing from one pantry- from basic food items like coffee to the
necessities like soap, shampoo and matches- is most conveniently
purchased from the sari- sari store nearby at affordably
portioned quantities, sometimes even on credit.

As years passed by, the endless needs and wants of people are
still growing. Most of them spend their money in buying goods of
products for the fulfilment of their daily needs. Apart from
this, sari- sari store is a constant feature of residential
neighbourhoods in the Philippines both in rural and urban areas,
rating even in the poorest squatter areas or communities.

BACKGROUND OF THE STUDY

The COVID-19 novelty has affected our lives in various

aspects and it has spread with alarming speed, infecting
millions, and bringing economic activities to a near standstill.
It is not just a health crisis, but it is also affecting
societies and economies at their core. Micro sale business tends
to be vulnerable during the economic crisis, in part because they
have fewer resources with which to adopt to a changing context.
Establishing your own venture and being a manager of your own
time and resources is such a wish of many especially those who
wanted full independence. The moment you have initiated your
entrepreneurial activity, growth and satisfactory performance is
your next priority. So that’s why Filipino builds their own
business like sari- sari store to earn more income even when
they’re working on their specific job.

As an ABM student in Lagonoy High School we are going to

conduct a study about the impact of COVID 19 on sari- sari store
owners in Lagonoy. The main reason why we choose this study
because some of sari- sari store exists in their business so that
we will find the answers why the business are being sustained and
maintained in terms of the growth of sari- sari store business.
Sari-sari store is a part of the Filipino daily life living and
build a business to earn more income even working on a specific
job. As you walk through in the Philippines especially in the
rural areas, you will often come across a “sari-sari store”.
Sari-sari in English means “variety of everything”. Those kind of
stores are not only a one stop shop providing locals with
everything from daily food necessities to cleaning supplies but
they are a colourful, cultural icon that brings together the
community. These stores are a big part of the Filipino community
and are often attached in front of their homes. A sari- sari
store is a small neighbourhood retail shop that caters to members
of the community. The range of the customers must be limited to
the immediate vicinity. The store usually carries basic goods
such as canned goods, coffee, soda and other things that
Filipinos get on a daily basis. Using an agent- based rational
choice approach, this paper attempts to explain why sari- sari
store persist and seem to defy profit maximization.

OBJECTIVES OF THE STUDY

The study aimed to assess the impact of COVID-19 Pandemic on

Sari-sari store owners in terms of financial risk, sales income,
effectiveness of sari- sari store in the community, supply and
demand of a product and customer satisfaction.

Specifically, it sought to answer the following questions:

1. What are the effects of COVID-19 Pandemic to Sari- sari

store owners in terms of:
a. Financial risk
b. Sales income
c. Effectiveness of sari-sari store in the community
d. Supply and demand of a product
e. Customer satisfaction

2. What adjustments are made by the Sari- sari store owners

amid the pandemic?

3. Did the store owners benefit from the adjustments they made?

STATEMENT OF THE PROBLEM

To determine the changes in business venture by the store owners.

SIGNIFICANCE OF THE STUDY

This study is to determine the impact of COVID- 19 pandemic

on sari- sari store owners in Lagonoy. And this was also
developed to know whether the business of sari-sari store is
really profitable.

This study will significantly affect the following:

SARI- SARI STORE OWNERS- This study will give information to the
owners of sari- sari store about the current status or happenings
of their business whether it is generating income or not

COMMUNITY- This study will give them insights about the nature of
this business. This will also give information to the community
that will enlighten their perceptions about the business. This
will help the community to those people living in the area who
plan to have a business like sari-sari store in order for them to
have a better preparation when starting the said business

GOVERNMENT- This study will be beneficial to the government for

it gives insights about the sari-sari store business as one of
the factors affecting the economic growth. They can regulate its
on- going increase and operations, and also the business will be
getting permits to have payments for it to be legal and with that
it will serve as taxes as well for the funds of the community.

FUTURE DEVELOPERS- This will become a source of information for

their research and serve as the basis in application to another
system which details information to further enhancement of the
study.

SCOPE AND DELIMITATION

This study mainly focused on the impact of COVID-19 on sari-

sari store owners that has a main concern on knowing the
marketing practices behind the success of sari-sari store owners,
factors affecting the income of a particular store and those
stores that are prone to bankruptcy. This study will be conducted
in Lagonoy whose respondents are those people living in the area
who were engaged in the said business, the sari- sari stores.
These involve determining of the owner’s personal information,
the history behind the business, and even their objectives for
doing this kind of business. This study limits its scope in the
other obligations and activities of some successful owners that
are being interviewed by the researchers wherein focuses randomly
on the selected owners of a sari-sari store.

DEFINITION OF TERMS:

 PANDEMIC-an outbreak of a disease that occurs over a wide

geographic area such as multiple countries or continents)
and typically affects a significant proportion of the
population and it causes a high degree of mortality (death).

 SARI- SARI STORE- small neighbourhood retail shop that

caters to members of that community.

 CUSTOMER SATISFACTION- defined as a measurement that

determines how happy customers are with a company’s product,
services and capabilities.

 FINANCIAL RISK- the possibility of losing money on an

investment or business venture.
  SALES INCOME- the income received by a company from its
sales of goods or the provision of services.
 SUPPLY AND DEMAND OF A PRODUCT- the amount of goods and
services that are available for people to buy compared to
the amount of goods and services that people want to buy.

 CAPITAL- is a large sum of money, property and machinery

that was used to start a business, or which you invest in
order to make more money.

 INVENTORY- refers to all the items, goods, merchandise and

materials held by a business for selling in the market to
earn a profit.

CHAPTER 2
REVIEW OF RELATED LITERATURE

This chapter presents the reviewed literature and studies

that significantly helped the researchers formulating the
problems for the research study and eventually to the
interpretation of the data to be gathered. The discussion in this
chapter includes the findings of several studies about the
Philippine version of retailing through sari- sari stores. This
serves as a strong basis and a foundation for the
conceptualization of the study.

FOREIGN LITERATURE

COVID-19 disruptions do not affect all businesses equally.

Some are deemed essential and remain open, while others have been
forcibly shut. For a variety of reasons related to both the
underlying nature of the business and management capacity, COVID-
19 poses an existential threat to some and not others.
Kuckertz et al. (2020) argue that adequate entrepreneurial
responsiveness cannot be addressed by short-term measures and
needs consistent policies. This highlights the importance of
considering the temporal perspective of the crisis. Crisis can be
highly damaging for business as they erode trust , destroy
company value, threaten business goals, exert pressure on
management by providing limited time for management to respond,
and may even lead to business failure. These results build on
findings from a few previous studies of the early effects of the
coronavirus on small businesses (Wilmoth 2020). The incapability
to satisfy the goals of certain ventures points the failure of
the business. If the expenses are bigger than the revenues, the
business can go bankrupt and will eventually lead to business
shutdown. (Gitman, 2009). According to (Wu,2006) and (Sheppard,
1995), the business will ultimately not be successful if it fails
to earn profit through the variation of resources. The ability to
cultivate and ensure resources and opportunities is the key to
survival. Small business should try harder to mix their resources
and opportunities to decrease failure rates.

LOCAL LITERATURE

There are already a lot of researches about the micro

enterprises across different countries. Some of these focused on
the sari- sari store business here in the Philippines. According
to Silverio and Bonnin who conducted researches in urban areas,
it is observable that there is a great number of sari- sari
stores in just one place and the distance between these stores is
very minimal. However the popularity of sari sari stores is not
exclusive to urban areas. But one cannot expect the same day
since rural areas are also reported to have an increasing number
of these stores. Bonnin also observed that these stores offer the
same goods to their buyers and thus creating numerous competitors
operating in the same neighbourhood. Other researchers also
concluded that these stores appear mostly in poorer
neighbourhoods ( Chen, 1997; Silverio, 1982; Bonnin, 2004 ),
where purchasing power of potential customers are low ,and
therefore, the potential market for goods as whole is likely to
be small. On the other hand, in higher income communities with
alternative investment opportunities, low profits will induce
exit remaining stores are expected to be reasonably profitable in
the traditional sense (Malapit, 2007). Monalisa is the
breadwinner in her family. It is a role that keeps her committed
to maintaining her sari-sari store during the lockdown period.
She lives with her brother,s ister-in-law, and their two kids.
The family of five depends on local government assistance since
the community quarantine that started on March 16, 2020, “We have
received relief goods four times since the lockdown started. The
local government unit of Kalamansig provided five kilograms of
rice, two cans of sardines, three packs of instant noodles, 250
grams of sugar, and one pack of instant coffee.” These rations
are essential as Monalia’s revenue has been cut in half since the
lockdown, “We would invest P8,000 to P10,000 every week for a
profit of P1,000 to P1,500. We are only able to buy up to P5,000
of supplies for the store and our profits do not reach more than
P500 weekly.” Her profits barely cover the P2,500 to P3,000 for
household expenses. In the Philippines, Manila’s first lockdown
is at March 2020 where mass gatherings are banned, curfews where
implemented, and there's the suspension of land, sea, and air
travel. Filipinos had their lives similarly shaken up as many had
to adopt new ways of working from home. Restrictions placed on
citizens caused a decrease in household spending by a whopping
US$45.72 million, leading to a 9.5% shrinkage in gross domestic
product–the most it has ever shrunk since 1947.(Kimberly
Garcia,2021).

The economic impact of COVID-19 is particularly worrisome.

Following significant job and income losses, communities are at
risk of further increases in poverty (Ditte Fallesen, 2021).
Microsellers like sari-sari stores that make up a massive portion
of businesses in the Philippines, were also affected by the
pandemic. In a study by Asian Preparedness Partnership (2021), it
shows that in the Philippines, 80% of enterprises are family-
owned or family-controlled. Microenterprises are the most
intimate and the most common businesses. Nine out of 10 all
micro, small, and medium-sized enterprises (MSMEs) in the
Philippines are microenterprises. Some were forced to shut their
businesses, others looked into alternative venues for selling
like online marketplaces, which give microsellers a platform to
reach wider audiences at affordable rates.  Because of the
pandemic, e-commerce emerged as the best solution. (Kimberly
Garcia, 2021). Because of the lockdown, employment levels dropped
precipitously with estimates indicating that up to one million
individuals lost their jobs due to the shutdown. Lockdowns
enforced by the authorities throughout the country have harmed
people’s livelihoods (Statistica, 2021).

RELATED STUDIES

LOCAL STUDIES

The Philippine economy shrank much more than expected in the

second quarter, plunging into recession for the first time in 29
years, as the country was hit by one of the world’s longest and
strictest coronavirus lockdowns, causing financial hardship for
every Filipino household and posing an existential threat to
small businesses. By reducing government constraints, involving
local government units, and expediting the distribution of
benefits and incentives, the BMBEs are meant to act as seedbeds
for Filipino entrepreneurs, inspiring the informal sector to join
in the mainstream economy (Figueora,2018).To the economic crisis
brought on by the new coronavirus disease (COVID-19) pandemic,
also see huge potential in a humble establishment that can be
found on almost any street in the country. According to Asia
Brewery Incorporated, 2019, one way to ease the transition from
an enhanced community quarantine to a barangay- level quarantine
would be to bring essential goods closer to people. And the best
way to do that is what we called sari-sari store. A sari-sari
shop is one of the tiniest MSME (micro, small, and medium
enterprise) businesses in the country. Because of its restricted
capacity, it will only carry fast moving items that are required
in the barangay; residents will not be required to visit the wet
market or the grocery store in case they need it. Although
government initiatives such as monetary assistance, relief
commodities distribution, and rolling marketplaces have been
beneficial, the sari-sari store remains the most efficient
business unit for getting people to limit their mobility when
purchasing the necessities they require.

FOREIGN STUDIES

According to Case of Ethopia 2020, demonstrates small business

and their challenges during coronavirus pandemic in developing
countries. By using different empirical reviews, WHO and other
organizations reports/assessment magazines, small business
experiences and other related secondary data analysis, the
researcher need tried to interpret, analyse and make reasonable
conclusions about each small business challenges in the current
crisis time. This study finds that doing business in this COVID-
19 pandemic time is very challenging and ha dangerous impact on
small businesses, workers life as well as the country’s overall
economy. Understanding these challenges of re- opening is
essential for designing appropriate policies to help Small
enterprises in finding solutions to the issues that hamper them
and navigate this rough time.

THEORETICAL FRAMEWORK

This study is viewed in the perspective of the Resource- based

view (RBV) theory by Werner felt (1984). The theory asserts that
tangible and intangible resources are the key for the excellent
performance of the enterprise. This theory further suggests that
it is more practical to utilize internal opportunities rather
than acquiring new skills from outside opportunities. Sufficient
time is necessary to develop the uniqueness through nurturing the
core competency of the firm. In addition, the issue on
insufficient resources can force the enterprise to concentrate on
short-term instead on long term objectives, and prevent them to
explore the lucrative opportunities in their economic
environment.

CONCEPTUAL FRAMEWORK

The conceptual model that used in this study is the input-

process- output model. The input consists of the personal
profiles of the respondents- age, name of the store, sex and
respected barangay of the sari-sari store owners. It also
includes their business profile in terms of sales income, daily
sales and their starting capital. Complications brought by the
pandemic to sari-sari stores in Lagonoy in terms of income, ,
supply and demand, price elasticity and supply and demand of a
product. On the other hand, the process includes the distribution
of survey questionnaire, then the data will analyse and
interpret.

INPUT PROCESS OUTPUT

PROFILE OF THE  Survey  Impact of COVID-19

RESPONDENTS questionnaire on sari- sari store
 Age  Online/ Face to owners in terms of
 Gender face interview financial risk,
 Location  Statistical sales income,
Analysis effectiveness of
( graph) sari- sari store in
the community,
supply and demand of
a product and
customer
satisfaction.

METHODS AND DATA

 QUANTITATIVE RESEARCH
 Survey Research- survey allows us to ask pointed questions
to either discover our target audience or get a detailed
answer of their opinions. In this research, we asked
multiple questions from the store owners then analyzed it to
produce a numerical data.

NO. OF RESPONDENTS

YES NO
NO.
18%OF RESPONDENTS
YES NO

5%

82%

95%

NO. OF RESPONDENTS

YES NO
14%

86%

NO.OF RESPONDENTS

YES NO
15%
 85%

NO. OF RESPONDENTS

YES NO

42%

58%

GENDER YES NO TOTAL

MALE 14 2 16
FEMALE 68 16 84
100

NO.2 QUESTION RESULTS:

GENDER YES NO TOTAL

MALE 16 0 16
FEMALE 79 5 84
100

NO. 3 QUESTION RESULTS:

GENDER YES NO TOTAL

MALE 13 3 16
FEMALE 73 11 84
100
NO. 4 QUESTION RESULTS:

GENDER YES NO TOTAL

MALE 9 7 16
FEMALE 49 35 84
100
NO. 5 QUESTION RESULTS:

GENDER YES NO TOTAL

MALE 14 2 16
FEMALE 71 13 84
100

SURVEY QUESTIONS:

1. Do pandemic affect the daily income of your sari- sari

store?
2. Are customers satisfied with your service?
3. Does your business give significant contributions to the
community?
4. Are you satisfied with your current sales numbers?
5. Are you allocating your resources properly?

CONCLUSION

With the preceding findings noted by the researchers the

following conclusion were drawn.

 The COVID-19 had both favorable and negative impacts on the

proprietors of sari-sari stores in Lagonoy, Camarines Sur.
The store owners were challenged by the rapid phase
transitions , which had a tremendous influence on theirs
sales figures. Indeed, venturing into business maximizes the
innate talents among entrepreneurs, explore market
opportunities, as well as provide the necessities for the
family. There may be stories of failure and crisis in their
entrepreneurial journey but stories of success and special
privileges that they have enjoyed outweighed them all. Based
on their stories, failure framed them to have more faith in
God, become diligent and clever, and difficulties, they
stand still and looked at their entrepreneurial journey in a
brighter perspective. For years, they have developed the
traits and attributes that cannot be bought by a tile of
gold nor a kilo of silver. This is a product of an
incredible and laudable strength of entrepreneurs whom were
once considered as weak individuals. Finally, venturing in
business is more than just earning money. It also means
earning confidence to move forward, making a desirable
amount of strong willpower, and establishing a long-lasting
relationship with customers and buyers. That’s why micro-
entrepreneurs recognize the value of creating a strong
foundation of business success- real and warmth connection
between the seller and the buyer.
 LAGONOY HIGH SCHOOL
LAGONOY CAMARINES SUR
S/Y 2021-2022

PRACTICAL RESEARCH 2

“ The Impact of COVID-19 Pandemic

on Sari- sari Store Owners in
Lagonoy, Camarines Sur, Year 2021-
2022”
 RESEARCHERS:

Hazel Marie B. Savilla

Grachiella Marie H. Villete
Janine Mae P. Balcueva
Glaiza I. Evarly
Charmaine M. Nebran
John Michael O. Monserate
Julie Ann B. Peteza
Clarissa Rivero

12-ABM

Sir Jorge Bejamen R. Favenir

RESEARCH INSTRUCTOR