Republic of the Philippines

Department of Education
Region 3-Central Luzon
BONIFACIO LUZ NATIVIDAD EDUCATIONAL FOUNDATION INC.
Geronimo Street, St. John District, Guimba Nueva Ecija

In partial fulfillment of Practical Research 2

Impacts of Covid-19 on Small Business Owners

in Nampicuan, Nueva Ecija

12 ABM -France

Leader:

Roth Anne G. Sibulboro

Members:

Submitted to:

Regor R. Aguinaldo

Maja R. Gamis

Nikki Agnis

Mrs. Jobie Ann Pausal- Dela Cruz

Practical Research 2 Teacher

April 2022
 CHAPTER 1

The Problem and its Background

Introduction

The widespread closing of stores and businesses due to the coronavirus is

unprecedented. Stores, factories and many other businesses have closed by policy mandate or

downward demand shifts. Many of these closures may be permanent because of the inability

to pay ongoing expenses and survive the shutdown. The impact on small businesses around

the world is likely to be severe. Although, the effects of COVID-19 on the economy showed

up quickly in the stock market, the real estate market and unemployment claims, the effects

on small business are not well known because of the lack of timely business-level data

released by the government. Its addresses the limitation by creating estimates of the number

of business owners from monthly Current Population Survey (CPS) microdata files. Using

these timely data, it will examine how COVID-19 impacted small business owners in mid-

April 2020 – the first month to capture the wide-spread shelter-in-place restrictions. The CPS

data are used by the Bureau of Labor Statistics (BLS) to track unemployment rates, and have

been used in previous research to study determinants of business ownership. The data allow

for an analysis of recent trends in the number of business owners by business characteristics

such as corporation status and industry, and demographic characteristics such as gender, race,

and immigrant status. This study provides the first estimates of the early-stage effects of

COVID-19 on small business owner CPS microdata, the study found out that the number of

working business owners plummeted from 15.0 million in February 2020 to 11.7 million in

April 2020 because of COVID-19 mandates and demand shifts. The loss of 3.3 million

business owners (or 22 percent) was the largest drop on record. When conditioning on
working roughly two days per week or four days a week, the losses are even larger (28

percent and 31 percent, respectively). Although incorporated businesses are more growth-

oriented and stable, they experienced a drop of 20 percent from February to April 2020.

The impact of the epidemic on Philippine’s economy is significant. The pandemic

caused the Philippines’ economy to decline to its lowest level since World War II, with GDP

decreasing by 9.5% in 2020. It’s the worst drop since records began in 1947, and it’s also the

first time the economy has shrunk since 1998, when it contracted by 0.5%. When the tightest

lockdown was implemented in the second quarter of 2020, GDP fell as low as -16.9%.

As the basic unit of the national economy, the operation of firms is key to the

development of the national macro-economy. Therefore, it is necessary to understand the

status of firms, their coping strategies, and the need for government policies to respond to the

impact of the COVID-19 pandemic. Researchers have begun to analyze firms’ marketing

innovation strategies and strategic responses to the crisis during the pandemic. In addition,

some industries have also been analyzed in order to propose more targeted countermeasures

for the pandemic. Nampicuan Nueva Ecija is one of the municipalities in the province of

Nueva Ecija who suffered the impact of Covid-19 specially on small business owners.

Statement of the Problem

This study entitled “Impacts of Covid-19 on Small Business Owners in Nampicuan

Nueva Ecija” specifically it sought to answer the following questions.

1. How may the profile of the respondents be described in terms of their type of

business?
 2. How may the profile of the respondents be described in terms of the following:

stocks, supplies, price, income, commodity, capital, funds, and sustainability before

the pandemic?

3. How may the profile of the respondents be described in terms of the following:

stocks, supplies, price, income, commodity, capital, funds, and sustainability during

the pandemic?

4. How may the profile of the respondents be described in terms of their business health

scores before and during pandemic?

5. Is there any significant difference in the business health score before and during the

COVID-19 pandemic?

Significance of the Study

The significance of this study is to determine the Impacts of Covid-19 on Small

Business Owners in Nampicuan Nueva Ecija. The result of this study will provide an

empirical data for:

Small Business Owners. They will understand the impacts of COVID-19 on their small

businesses and be able to think alternative or supplemental ideas on how to recover your

business.

Costumers/Consumers. They will be able to determine what products are in demands and

what are the substitute products they usually buy.

Economists. They will be able have some ideas or reasons to study and improve the country's

economy.
Future Researchers. For them to have new ideas on the result of the study if they plan

to make a research related to the Impacts of Covid-19 on Small Business Owners in

Nampicuan Nueva Ecija.

Scope of the Study

This study investigated the Impacts of Covid-19 on Small Business Owners in

Nampicuan Nueva Ecija. It is only limited to 50 selected respondents distributed to small

business owners within Nampicuan Nueva Ecija and their business operates before the

pandemic.

Definition of Terms

As part of clarifications and better understanding of the study, the researchers operationally

defined the following terminologies.

Impact- the force of impression of one thing on another.

COVID-19-is a disease caused by a virus called SARS-CoV-2

Small business owners-An entrepreneur or a small business owner is generally defined as an

individual who creates, organizes, and manages an enterprise with considerable initiative

Evidence-the available body of facts or information indicating whether a belief or

proposition is true or valid.

Early-stage-used to describe something such as a company or product that is starting to be

developed or has only recently been developed

Losses-an amount of money lost by a business or organization.

Widespread- widely extended or spread out.

Unprecedented- unexampled, unfamiliar, unheard of.

Mandate- an authoritative command.

Inability- lack of sufficient power, resources, and capacity.

Shutdown- suspension of an operation or activity.

Economy- structure or conditions of economic life in a country, area, or period.

Unemployed-not engaged in a gainful occupation.

Demographic- statistical characteristics of human populations used specially to identify

markets.

Immigrant- a person who comes to a country to take up permanent residence.

Consumption- use of something, use by or exposure to a particular group or audience.

Infectious- producing or capable of producing infection.

Unexplained- not explained or accounted for.

 CHAPTER 2

Review of Related Literature

This chapter proffers the related literature and studies done by the researchers. The literature

and studies adduced in this chapter addresses the different ideas and generalizations to the

study.

Foreign Review

The Covid-19 pandemic devastated the United States in March 2020, causing massive

disease, death, and economic catastrophe. The consequences of the Covid-19 pandemic on

small businesses, a new issue brief from the Office of Advocacy (2021), explores the effects

of Covid-19 on small businesses to use the first sets of available economic statistics. (ILO &

WHO, 2020) stated that the corona virus pandemic triggered a global recession that, unlike

all the other crises in history, included both supply and demand shocks. As of August 2020,

more than twenty million people had been infected worldwide, where around 300 million

full-time employees had lost their jobs or had their hours and pay reduced due to lockdown

measures. (Dua, 2020) according to a McKinsey research of various small company surveys

in the United States, 1.4-2.1 million small enterprises could close irreversibly as a result

economic disruption from just the first four months of the Covid-19 pandemic if government

assistance is not provided.

 (Akpan, 2020)stated that due of the Coronavirus Disease 2019 its urgent seizure

impacted not only the China which is the epicenter of the pandemic but the global economy,

since the world are unaware and unprepared that caused havoc to the small business activities

that most seriously kill and leave an adverse effect on small businesses. (Leung, 2020)

explained that smaller businesses are much more likely to be harmed than larger businesses

because they are more diversified in industries that have been directly affected by the Covid-

19 management measures, such as retail and services, because they are typically more credit-

worthy.

(Humpries, 2020) stated that small businesses, after all, account for the majority of

businesses in the economy and employ a large percentage of the workforce. (Taques, 2020)

stated that previous research on small enterprises has also found a direct correlation between

innovation and business growth and profitability. (Ting, 2020)stated that to avoid a complete

closure of the global economy in the aftermath of this global health crisis and to avoid a

complete shutdown of economic activity, several technologies that were previously regarded

non-essential by small firms become critical.

(Harel, 2019) said that small businesses are seen as a significant growth driver in the

economy, and their potential benefits are expressed in flexibility, quick response, adaptability

to market changes, and quick decision-making. Despite the challenges small businesses face

in promoting innovation, a significant portion of small businesses in industry sectors are

actively engaged in various types of innovations, although many of these are

interdisciplinary.

According to the study of (Harel, 2019), small businesses that has used open technologies and

adopted processes for sharing and exploiting knowledge and method for establishing an
innovation culture process were more successful in encouraging innovation, according to a

study focused on fostering innovation in small enterprises in industry sectors.

Local Review

The COVID-19 pandemic leaves an impact on micro, small, and medium-sized

enterprises as a lot of businesses were mandated to stop due to the implementation of the

lockdown. This situation is seen to be the result of the strict pandemic control measures

because COVID cases have started to escalate. The Philippines' economy is suffering from an

economic depression in 2020 due to the pandemic. According to Pelayo, M. (2020), 193

small businesses in Metro Manila declared permanent closure due to the health crisis that the

Philippines is experiencing. On the other hand, 2, 135 small businesses surveyed temporary

closed their operations (Magkilat, B., 2020).

Their economic activity, such as international trade, was seen to fall by 16.3% by the

year 2020, and during 2021 the Philippine export sector remained weak, with an estimated

5.2% (Biswas, R., 2021). To support the economic breakdown of the Philippines' businesses

and other sectors that contribute to the economy, one of the most affected businesses is the

sudden stop of public transport, where jeepney operations in Manila are only 70 percent since

it was restricted to operating mass transportation. Public transportation, including small

online businesses such as Lalamove, food delivery services, and any other pivoted to

delivery, is seen to decrease their earnings as there are transport regulations (Alegado, S., &

Calonzo, A., 2020). Since the beginning of lockdown in the Philippines, they implemented

various stages of lockdown where parlors and barbershops also suffered as they were forced

to close. These businesses are seen to carry a degree of risk (Gutierrez, J., 2020).

Furthermore, restaurants, food and beverage industries, and several local businesses

struggle to open during the lockdown. In August 2021, Metro Manila had thousands of cafes
and restaurants closed and were struggling to recover the losses (Dela Pena, K., 2021), while

according to the Census of Philippine Business and Industry (2021), around 166, 146 pesos is

the estimated business loss per worker in restaurants. This report, results from a survey of

further approximately 5,800 small businesses, examines the economic impact of the corona

virus 2019 on small businesses. The findings revealed both the financial vulnerability of

many small firms and the significant impact Covid-19 had on these enterprises in the weeks

following the interruptions caused by Covid-19. The findings also show how businesses

perceive the government's assistance measures and their predictions about the pandemic's

long-term impact (Bartik et al., 2020).

 CHAPTER 3

Research Methodology

This chapter presents the important processes in gathering information leading to the

attainment of the objectives of this study: The Research Design, Sources of Data, Research

Environment, Research Respondents, Research Instrument, Sample Size, Sample Technique

Process, Data Gathering Procedure, and Statistical Tools.

Research Design

This research used a descriptive design to focus in particular characteristics of a

population that meets the objectives of our study. The gathered data were accurately analyzed

and interpreted to determine the “Impacts of Covid-19 on Small Business Owners in

Nampicuan Nueva Ecija”.

Sources of Data

This research used the survey method in gathering data from the respondents to our

study entitled “Impacts of Covid-19 to Small Business Owners in Nampicuan, Nueva Ecija”.

Research Environment

The study was conducted at Nampicuan, Nueva Ecija. Nampicuan Nueva Ecija was

selected due to its convenience to the researchers.

Research Respondents

The researchers chose respondents from Nampicuan, Nueva Ecija. The respondents

were composed of 50 small business owners and their businesses operates even before

pandemic.

Research Instrument

The mass instrument used in this study was the questionnaire. The researchers based

the questions contained in the survey questionnaires on their study entitled “Impacts of

Covid-19 on Small Business Owners in Nampicuan, Nueva Ecija”.

1.1 Description. The questionnaire for the respondents contains one set with 3 parts, were

the respondents may check the boxes indicated in each choice that serves as their

response in each question. The choices in each questions are;

Q1-4 Q5-6 Q7-12

3-below P1,000 3- 4x or more a month 3- always

2-P1,000-7,000 2- 2x or 3x a month 2-sometimes

1- P7,000 above 1- 1x a month 1- never

Sample Size

This study chose only 50 small business owners from the total population of

Nampicuan Nueva Ecija to participate on our study entitled “Impacts of Covid-19 to Small

Business Owners in Nampicuan, Nueva Ecija”.

Sample Technique Process

 The simple random sampling technique was used to get our respondents on this study.

It was based on the answers of our respondents to the questions provided on our

questionnaires.

Data Gathering Procedure

Asking for approval. The researchers asked for the approval from respective teachers and

panel who are in charge on the research to know whether the study will be accepted. They

checked if there were further corrections and revision to be made before the conducting of

research.

Making questionnaires. When the study was approved, the researchers started working on

our questionnaire.

Distribution. After the questionnaire has been accomplished, the researchers distributed the

questionnaires to small business owners and their business generates even before pandemic

around Nampicuan, Nueva Ecija.

The researchers collected the distributed questionnaires. Each questionnaire was

checked by the researchers to gather the data needed for our study.

Statistical Treatment

To determine the profile of the respondents, frequency and percentage were used to

determine the “Impacts of Covid-19 on Small Business Owners in Nampicuan, Nueva Ecija”.

The mean and interpretation were employed. There are three (3) choices given to the

respondents every question and the mode for the response is offered as follows:
Q1-4 Q5-6 Q7-12

3-below P1,000 3- 4x or more a month 3- always

2-P1,000-7,000 2- 2x or 3x a month 2-sometimes

1- P7,000 above 1- 1x a month 1- never

To determine the difference in the business health score between before and during

COVID-19 pandemic paired t-test was used.

 CHAPTER 4

Presentation, Analysis, and Interpretation of Data

This chapter presents the analysis and interpretation of data relative to “Impacts of

Covid 19 on Small Business Owners in Nampicuan, Nueva Ecija”.

TABLE 1

Respondents’ Type of Businesses

P=F/N x 100

TYPE OF BUSINESS FREQUENCY PERCENTAGE

Sari-sari store 36 72%

Online seller 3 6%

Welding shop 3 6%

Com. Shop/Print/Xerox 2 4%

Vulcanizing shop 2 4%

Food stall 2 4%

Jewelry store 1 2%
 Mini grocery 1 2%

TOTAL 50 100%

Table 1 presents the respondents’ type of businesses where 36 or 72% were sari-sari store,

online seller and welding shop 6%, computer shop/print/Xerox, vulcanizing shop and food

stall 4%: jewelry store and mini grocery 2%. Therefore, the majority of the respondents’ type

of businesses were sari-sari store.

TABLE 2

Estimated monthly income before the pandemic.

CHOICES FREQUENCY PERCENTAGE

Below P1,000 0 0

P1,000-7,000 20 40%

P7,000 and above 30 60%

Total 50 100%

Table 2 shows the result of question 1 where below ₱1,000 is 0%, ₱1,000-7,000 is 40%,

₱7,000 and above is 60%. Majority of the respondents earned ₱7,000 and above.

TABLE 3

Estimated monthly income during the pandemic.

 CHOICES FREQUENCY PERCENTAGE

Below P1,000 5 10%

P1,000-7,000 20 40%

P7,000 and above 25 50%

Total 50 100%

Table 3 shows the result of question 2 where below ₱1,000 is 10%, ₱1000-7000 is 40%, and

₱7,000 and above is 50%. Majority of the respondents earned ₱7,000 and above.

TABLE 4

Capital before the pandemic.

CHOICES FREQUENCY PERCENTAGE

Below P1,000 1 2%

P1,001-7,000 11 22%

P7,00o and above 38 76%

Total 50 100%

Table 4 shows the result of question 3 where below ₱1,000 is 2%, ₱1001-7000 is 22%, and

₱7,000 and above is 76%. Majority of the respondents earned ₱7,000 and above.

TABLE 5
Capital during the pandemic?

CHOICES FREQUENCY PERCENTAGE

Below P1,000 0 0

P1,001-7,000 19 38%

P7,000 and above 31 62%

Total 50 100%

Table 5 shows the result of question 4 where below ₱1,000 is 0%, ₱1001-7000 is 38% and

₱7,000 and above 62%. Majority of the respondents earned ₱7,000 and above.

TABLE 6

Restocking goods before pandemic.

CHOICES FREQUENCY PERCENTAGE

Once a month 0 0%

2x-3x a month 21 42%

4x-5x or more a month 29 58%

Total 50 100%

Table 6 shows the result of question 5 where once a month is 0%, 2x-3x a month is 42%, and

4x-5x a month or more is 58%. Majority of the respondents restock 4x-5x a month or more.
 TABLE 7

Restocking goods during pandemic?

CHOICES FREQUENCY PERCENTAGE

Once a month 7 14%

2x-3x a month 21 42%

4x- 5x a month or more 22 44%

Total 50 100%

Table 7 shows the result of question 6 where once a month is 14%, 2x-3x a month is 42%,

and 4x-5x a month or more is 44%. Majority of the respondent restock 4x-5x a month or

more.

TABLE 8

Are your funds for your business increasing before the pandemic?

CHOICES FREQUENCY PERCENTAGE

Always 43 86%

Sometimes 7 14%

Never 0 0%
 Total 50 100%

Table 8 shows the result of question 7 where always is 86%, sometimes is 14%, and never is

0%. Therefore, the majority is ‘always’.

TABLE 9

Are your funds for your business increasing during pandemic?

CHOICES FREQUENCY PERCENTAGE

Always 1 2%

Sometimes 48 96%

Never 1 2%

Total 50 100%

Table 9 shows the result of question 8 where always is 2%, sometimes is 96%, and never is

2%. Therefore, the majority is ‘sometimes’.

TABLE 10

Does the price of products affect your business before the pandemic?

CHOICES FREQUENCY PERCENTAGE

 Always 42 84%

Sometimes 8 16%

Never 0 0%

Total 50 100%

Table 10 shows the result of question 9 where always is 84%, sometimes is 16%, and never is

0%. Therefore, the majority is ‘always’.

TABLE 11

Does the price of products affect your business during the pandemic?

CHOICES FREQUENCY PERCENTAGE

Always 3 6%

Sometimes 46 92%

Never 1 2%

Total 50 100%

Table 11 shows the result of question 10 where always is 6%, sometimes is 92%, and never is

2%. Therefore, the majority is ‘sometimes’.

TABLE 12
Does commodity help you in earning higher profit before pandemic?

CHOICES FREQUENCY PERCENTAGE

Always 44 88%

Sometimes 6 12%

Never 0 0%

TOTAL 50 100%

Table 12 shows the result of question 11 where always is 88%, sometimes is 12%, and never

is 0%. Therefore, the majority is ‘always’.

TABLE 13

Does commodity help you in earning higher profit during pandemic?

CHOICES FREQUENCY PERCENTAGE

Always 3 6%

Sometimes 46 92%

Never 1 2%

TOTAL 50 100%

Table 13 shows the result of question 12 where always is 6%, sometimes is 92%, and never is

2%. Therefore, the majority is ‘sometimes’.

TABLE 14

Overall Business Health Scores

Before During

N 50

Mean 14.52 12.64

Difference -1.88

t-computed -9.740

Degree of Freedom 49

p-value 0.001

Table 14 shows the paired sample t-test results on the difference in the overall business health

score before and during Covid-19 pandemic. As can be seen, the mean of overall business

health score during the Covid-19 pandemic is 12.64. The t-test shows that there is a

significant difference in the overall business health score before and during the Covid-19

pandemic (t=9.740, df=49, p=0.001).

 Chapter 5

Summary of Findings, Conclusion, Recommendation

This chapter presents the summary of findings, conclusion arrived, and

recommendations offered on the study.

This study gained accurate findings towards the “Impacts of Covid-19 on Small

Business Owners in Nampicuan, Nueva Ecija”. Our study specifically aims to determine the

impact of Covid-19 on small business owners in Nampicuan, Nueva Ecija.

The participants of this study were composed of fifty (50) small business owners

around Nampicuan, Nueva Ecija. The instrument used in this study is questionnaire which is

floated to the respondents to gather the information needed on our study.

Summary of Findings

1. How may the profile of the respondents be described in terms of their type of

business?

Majority of the respondents’ type of businesses were sari-sari store which is 72%, online

seller and welding shop 6%, computer shop/print/Xerox, vulcanizing shop and food stall 4%:

jewelry store and mini grocery 2% for the total of the respondents.
 2. How may the profile of the respondents be described in terms of the following:

stocks, supplies, price, income, commodity, capital, funds, and sustainability before

the pandemic?

In terms of stocks and supplies, majority of the respondents (58%) said that they often restock

their goods 4-5x or more a month.

In terms of price, majority of the respondents (84%) said that the price of their

product ‘always’ affect their business.

In terms of income, majority of the respondents (60%) said that their income is

₱7,000 and above.

In terms of commodity, majority of the respondents (88%) said that commodity

‘always’ help them in earning higher profit.

In terms of capital, majority of the respondents (76%) said that their capital is P7,000

and above.

In terms of funds and sustainability, majority of the respondents (86%) said that their

funds ‘always’ increasing.

3. How may the profile of the respondents be described in terms of the following:

stocks, supplies, price, income, commodity, capital, funds, and sustainability during

the pandemic?

In terms of stocks and supplies, majority of the respondents (44%) said that they often

restock their goods 4-5x or more a month.

In terms of price, majority of the respondents (92%) said that the price of their product

‘sometimes’ affect their business.

 In terms of income, majority of the respondents (50%) said that their income is ₱7,000

and above.

In terms of commodity, majority of the respondents (92%) said that commodity

‘sometimes’ help them in earning higher profit.

In terms of capital, majority of the respondents (62%) said that their capital is P7,000 and

above.

In terms of funds and sustainability, majority of the respondents (96%) said that their

funds ‘sometimes’ increasing.

4. How may the profile of the respondents be described in terms of their business health

scores?

The total mean of the respondents’ overall business health scores before the Covid-19

pandemic is 14.52 described as High.

The total mean of the respondents’ overall business health score during the Covid-19

pandemic is 12.64 described as Medium.

5. Is their significant difference in the profile of the respondents before and during the

COVID-19 pandemic?

The t-test result showed that there is a significant difference between their business health

score before and during Covid-19 pandemic, the mean of overall business health scores

before pandemic is 14.52 while the mean of overall business health scores during the Covid-

19 pandemic is 12.64 indicating that the business health score is negatively affected during

Covid-19 pandemic.

Conclusion
 The results of the surveyed questionnaires are; there are 50 small business owners

around Nampicuan, Nueva Ecija who participated in our study. Majority of the respondents’

type of business is sari-sari store 72%, online seller 6%, welding shop 6%, computer

shop/print/Xerox 4%, vulcanizing shop 4%, food stall 4%, jewelry store 2%, and mini

grocery 2% on the total of the respondents. Our study brought us to this conclusion; the

business health scores of small business owners dropped from mean of 14.52 before

pandemic to 12.64 during pandemic, therefore the difference is -1.88. The t-test result

showed that there is a significant difference between their business health score before and

during Covid-19 pandemic, indicating that the business health score is negatively affected

during Covid-19 pandemic.

Recommendations

For the business owners. The researchers recommend this study to students to know the

impact of Covid 19 on small business owners. This study will help them to know the impact

of Covid-19 pandemic on small business owners.

For the consumers. The result of this study will let consumers know the impact of Covid 19

on small business owners, and to be able to understand their situation as you are both affected

by the increasing of prices of the products due to pandemic.

For aspiring business owners/ entrepreneurs. Aspiring entrepreneurs must be able to study

the advantages and/or disadvantages of engaging into different businesses amidst of the

pandemic.

For future researchers. The gathered data on this study can be used as a reference to the

future study or related study.