“FINANCIAL MANAGEMENT OF SMALL BUSINESS IN

CADIZ CITY DURING COVID-19 PANDEMIC.”

A Research Proposal Presented to

the Faculty of Dr. Vicente F. Gustilo

Memorial National High School

Adolfo, Rhea Mae

Amiscua, Kent

Parreno, Norklen Van

October, 2020
 INTRODUCTION

Background of the Study

Financial Management means planning, organizing, directing and controlling the financial activities such as

procurement and utilization of funds of the enterprise. It means applying general management principles to

financial resources of the enterprise (Prachi Juneja, 2015). It is one of the most important aspects in business. In

order to start up or even run a successful business, you will need excellent knowledge in financial management.

Financial management is one of the most important responsibilities of owners and business managers. They

must consider the potential consequences of their management decisions on profits, cash flow and on the

financial condition of the company. The activities of every aspect of a business have an impact on the

company's financial performance and must be evaluated and controlled by the business owner.

Small business is defined as a privately owned corporation, partnership, or sole proprietorship that has fewer

employees and less annual revenue than a corporation or regular-sized business (ASQ, 2021). It is an enterprise

that is comparatively small in size, operating in a geographically localized area except its marketing, employed

fewer than 100 employees. It is financed by one individual or a small group of individuals.

Covid-19 is a disease caused by a virus called SARS-CoV-2. Most people with Covid-19 have

mild symptoms, but some people can become severely ill. Although most people with Covid-19 get better

within weeks of illness, some people experience post-Covid conditions. Post-Covid conditions are a wide range

of new, returning, or on-going health problems people can experience more than four weeks after first being

infected with the virus that causes Covid-19. Older people and those who have certain underlying medical

conditions are more likely to get severely ill from Covid-19 (NCRID, 2021).

As the country continous to confront different issue brought about by the Coronavirus Disease (Covid-19),

Covid-19 cases continue to mount in many economies; even months into the pandemic, lockdowns across the

Asia-Pacific are being retained, revisited, or even reinstated. Any return to normalcy in terms of economic

activity and movement will likely be pushed back (Emmanuel A. San Andres & Andre Wirjo, 2020).
 The Covid-19 pandemic outbreak has forced many businesses to close, leading to an unprecedented

disruption of commerce in most industry sectors. Retailers and brands face many short-term challenges, such as

those related to health and safety, the supply chain, the workforce, cash flow, consumer demand, sales, and

marketing. However, successfully navigating these challenges will not guarantee a promising future or any

future at all. This is because once we get through this pandemic; we will emerge in a very different world

compared to the one before the outbreak. Many markets, especially in the fields of tourism and hospitality, no

longer exist. All organizational functions are intended to prioritize and optimize spending or postpone tasks that

will not bring value in the current environment. Companies, especially start-ups, have implemented an indefinite

hiring freeze. At the same time, online communication, online entertainment, and online shopping are seeing

unprecedented growth (Naveen Donthu, 2020).

Most major industries faced large drops in the number of business owners with the only exception being

agriculture. Construction, restaurants, hotels and transportation all faced large declines in the number of

business owners due to Covid-19. Simulations reveal that the concentrations of female, black, Latin and Asian

businesses in industries hit hard by the pandemic contributed to why losses were higher for these groups than

the national average loss. Overall, these first estimates of impacts of Covid-19 on small businesses from the

April 2020 CPS indicate that losses were spread across demographic groups and types of business – no group

was immune to negative impacts of social distancing policy mandates and demand shifts.

Millions of small-business owners across the country faced a similar challenge as the coronavirus shut down

much of the Philippines economy and consumers stayed home to slow the spread of the virus. To stay afloat,

owners adapted on the fly and found creative ways to change their operating models (SHRM, 2021). The

widespread closing of stores and businesses in the United States and around the world due to the coronavirus is

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

demand shifts.
 Small and mid-sized businesses are optimistic despite the challenges they’ve faced as a result of the Covid-

19 pandemic. It is a challenging time, and small business owner is struggling to look for ways to cope with the

new normal. However, this is also the time where business strategies are created and developed to adapt.

Despite of the strategies created the researcher found out that not all of this is effective to gain a higher income

during this new normal. The impact on small businesses around the world is likely to be severe. Thus, this study

is conducted to determine the financial management of sari-sari stores in Cadiz City during Covid-19 Pandemic.

Statement of the Problem

This proposed study aims to determine the significant relationship between the income of sari-sari store

owner and financial management.

Specifically, this will seek to answer the following question;

1. What is the profile of the small business according to:

 Income

2. What is the level of financial management on the small businesses?

3. Is there a significant relationship between the income of sari-sari store owner and financial

management?

Hypothesis

There is no significant relationship between the income of sari-sari store owner and financial management.