Group 3 Farrah

IMPACT OF COVID-19 ON ONE TOWN ONE PRODUCT (OTOP)
ENTREPRENEURS IN THE PROVINCE OF QUIRINO
IMPACT OF COVID-19 ON ONE TOWN ONE

PRODUCT (OTOP) ENTREPRENEURS
IN THE PROVINCE OF QUIRINO
Presented to:
ARIEL ANDUS LAGUNILLA, MBA

Quirino State University,
Cabarroguis Campus
In Partial Fulfillment of the

Requirements on the subject
MARKETTING RESEARCH
Of Bachelor of Science in Business Administration
Major in Marketing Management
Presented by:
PIMENTEL, MAY ANN G.

SANTILLAN, PRECIOUS MAY B.
SUGOT, FARRAH MAE A.
TIHUK, EMMA P.
BSBA III
Second Semester
A.Y.2021-2022
Approval Sheet
The research entitled “IMPACT OF COVID-19 ON ONE TOWN ONE PRODUCT

(OTOP) ENTREPRENEURS IN THE PROVINCE OF QUIRINO” prepared and
submitted by May Ann Pimentel, Precious May Santillan, Farrah Mae Sugot and
Emma Tihuk in partial fulfillment of the requirement for the subject Marketting
Research for the degree Bachelor of Science in Business Administration Major in
Marketing Management has been examined and hereby recommended for approval
and acceptance.
ARIEL ANDUS LAGUNILLA

Subject Instructor
Approved by the committee on ORAL EXAMINATION and PRESENTATION

with the degree of _____________.
Technical Editor English Editor
Statistician
Accepted and approved in partial fulfilment of the requirements for the subject
Marketting Research on the degree of BACHELOR OF SCIENCE IN BUSINESS
ADMINISTRATION major in Marketing Management.
Research Contribution No.: _____
ARIEL ANDUS LAGUNILLA

Program Research Coordinator
Acknowledgement
Every study must be exerted with effort, collection of sacrifices, money

and time. The researchers would like to express their deep and sincere
gratitude to all persons that have become a big part of this study.
First and foremost, praises and thanks to the God, the Almighty, for His
showers of blessings throughout our research work to complete the research
successfully.
To our family, especially to our parents, brothers and sisters for their
moral and financial support in order to finish this study;
To all our friends and classmates, especially to our Instructors, Mrs.
Myrna Fontanilla and Mr. Ariel Andus Lagunilla who had helped us to do
this study presentable, for guiding, and helping us in order to make the study a
well done achievement.
To Quirino State University- Cabarroguis Campus for helping every
student to be able to become responsible in the future.
And lastly to all respondents for all their full cooperation that made them
a big part of this study.
THE RESEARCHERS
Abstract
One Town One Product (OTOP) is a program that aids small business and
entrepreneurs in marketing local products. It was adopted by Quirino Province and
start to make use of the numerous resources present in the community.
Anent to, this quantitative study works on the bearings of Covid -19 on
registered OTOP entrepreneurs in the province of Quirino. Descriptive research
design was adopted to systematically determine the Covid-19 impact among the
OTOP business which was determined through purposive sampling.
The findings of this studies suggest that: there is (1) a drastic decrease on
sales, while the prices of OTOP product increases resulted to uneough net income to
cover expenses and to supplement employees’ gift, reward and commission, and (2)
lesser business productivity level of the OTOP stores due lesser walk-in customers,
reduction of products raw materials used, and lesser business partners that leads to
no surplus during the pandemic. Also, the (3) low returns of investment (ROI) lead
them to seek for financial assistance from the government during this pandemic, and
(4) low-slung employees’ performance resulting to a decrease of employee salaries,
employee termination and lesser training and seminars. From these, a proposed
development plan was made.
Keywords: OTOP, OVOP, Sustainable Local Business, Quirino Province

TABLE OF CONTENTS
Preliminaries
Title Page
Approval Sheet
Acknowledgement and Dedication
Abstract and Keywords
Chapter 1: Introduction
Rationale
Literature Review
Theoretical Framework
Conceptual Framework
Statement of the Problem
Definition of Keywords
Chapter 2: Methodology
Research Design
Research Locale and Sampling Procedures
Scope and Delimitation
Research Instrument
Data Gathering Procedures
Data Analysis
Chapter 3: Results and Discussion
Presentation, Analysis and Interpretation of Data
Conclusions
Recommendation
Bibliography
Curriculum Vitae
CHAPTER I
INTRODUCTION
RATIONALE
One Town One Product (OTOP), a program that aids small business and
entrepreneurs in marketing local products, was originated in One Village One
Product (OVOP) project of Oita Prefecture, Japan year 1979 with the leadership of
Governor Morihiro Hiramatsu. The success of the program urged the other countries
such as Thailand, Vietnam, Malawi, Cambodia, Pakistan, India, Bangladesh, and
Indonesia to adopt the concept and make their own innovations to address the
poverty issues in their respective countries. Eventually, in the presidency of Gloria
Macapagal-Arroyo in the Philippines, she prioritized the establishment of OTOP in
the country to promote entrepreneurship and create jobs in the country.
This initiative was adopted by Quirino Province and start to make use of the
numerous resources present in the community. The province entrepreneurs
manufacture and sell various products and most of them are now the members of
OTOP - Quirino Province. OTOP products varies from handicrafts, woodworks, food,
ecological and cultural tourism, which represents the diverse community of the
province.
The progress of the OTOP in Quirino has been continually growing. However,
when the pandemic rises there is an abrupt decrease of the number of OTOP
entrepreneurs. According to Department of Trade and Industry (DTI), the initial
number of OTOP entrepreneurs in the province before pandemic is almost 40 which
is reduced to almost 30 upon pandemic hits the province.

Almost two years upon the birth of COVID-19 and few programs have been
established in the province to adapt socio-economic changes. With this study titled,
“Impact of COVID-19 on One Town One Product (OTOP) Entrepreneurs in the
Province of Quirino”, the researchers aim to determine how the pandemic affects the
entrepreneurs and their respective businesses through scholastic means. Also, how
the local small enterprises respond to the rapid change in today’s fast pace and
extremely competitive environment and at the same time sustain economic growth in
the global era. It is on foregoing that this research is steered.

Literature Review
Currently, several studies and articles, published and non, that involve the
impact of corona virus 2019 in various fields. One of these is the impact of Covid-
19 on the One Town One Product (OTOP) of the country. Studies and articles from
local and international will be stated to probe the impact of covid-19 in OTOP.
Covid-19 Impact on the Business World
According to the study entitled “A Study on the Impact of COVID-19 on
Investor Behavior of Individuals in a Small Town in the State of Madhya Pradesh,
India” (Gurbaxani, A. & Gupte, R. 2021), the COVID-19 outbreak impacted the
socioeconomic of the country which directly affected the savings and investment
behavior of businesses.
Furthermore, the study also stated that these effects make micro-level
businesses, both financial institutions and individuals, have better handling of such
situations in the future. As we all know, small and medium scale enterprises
institutions and individuals, have better handling of such situations in the future. As
we all know, small and medium scale enterprises play a significant role in terms of
growth and development of an economy (Bello, A., 2018). It
is because the development of the industrial sector of an underdeveloped economy
is dependent on the fact that the creation, sustenance, and growth of SMEs is its key
ingredient.
The current outbreak has had severe economic consequences across the
globe, and it does not look like any country will be unaffected. This not only has
consequences for the economy; all of society is affected, which has led to dramatic
changes in how businesses act, and consumers behave. This special issue is a

global effort to address some of the pandemic-related issues affecting society. In
total, there are 13 papers that cover different industry sectors (e.g., tourism, retail,
higher education), changes in consumer behavior and businesses, ethical issues,
and aspects related to employees and leadership (Donthu, N., 2020).
Moreover, Malaysia also experienced an enormous impact of COVID-19 on
their small business sector (Fabeil, N.F. et al., 2020). In fact, the impact is more
significant among micro-enterprises than its larger counterparts. Entrepreneurs
experience business cancellation or closure and reduced income due to the closure
of several supporting sectors such as retail and transportation. In the analysis,
"Operating SMEs in the Face of the COVID-19 Pandemic in Calabar”, its results
revealed that 88.6 percent of the SMEs reported being negatively affected by the
pandemic, 71.3 percent reported laying off employees during this period. Also result
from the correlation analysis revealed that there is a significant relationship between
COVID-19 pandemic and the operations of SMEs in Calabar, Cross River State,
Nigeria. Based on these findings, there is a need for policy adjustment toward SMEs
operations in Calabar. From these statements, in can be concluded that there are big
effects on business, especially those small enterprises, due to the pandemic.
Despite on the various articles stating how the pandemic impacted the
business world, an article of He, H & Harris, L. (2020), stated that they undergone an
initial examination on how COVID-19 can influence the developments of CSR and
marketing. They argue that COVID-19 pandemic offers a great opportunity for
businesses to shift towards more genuine and authentic CSR and contribute to
address urgent global social and environmental challenges.

OTOP Status
In Senegal, small and medium-sized business enterprises emerge as key
players of economic growth. They stand as a main driving force for poverty
alleviation, income generating activities and jobs creation (Sega, N.J.& Kanichiro, S.
2018). Bowale, K.E., & Ilesanmi, A.O., (2014) also revealed that business
registration, size of business, quality of business, source of finance are the key
factors that determined the ability for SMEs to generate income and
jobs. Bughao A., (2017) shows that the OTOP program has a high economic impact
in the external environment due to a significant contribution to the economic situation
in different areas because it provides employment and generates income for people
in the region, while marketing in the international environment has a high rank
because it provides training for each entrepreneur, supports the design of their
goods and product promotion. Moreover, Hirohata, N. (2013) The successful case of
rural development is the ‘One Village One Product’ movement in Oita Prefecture,
Japan. Villagers have produced numerous new agricultural products on their own,
and rural growth has accomplished through movement.
The OTOP-Philippines program, despite its limitations, offers opportunities to
thousands of rural enterprises to become viable and competitive (Tabisola,
2021). Many small businesses are financially fragile (Bartik, A.W., 2020) and
simulations indicate that industry compositions partly placed these groups at a higher
risk of losses (Fairlie, R.W., 2020). It is ascertained that there is a need for
technical assistance and sourcing of finance in their operations since farming
activities are restricted and return on investment is not immediate (Ellson, A. et al.

2011). The OTOP owners in Ilocos Norte was found out to have employment as the
biggest factor that is affecting their performance (Parilla, E.S., 2013).
Not only in Senegal and Philippines but also Thailand is having issues with
their One Tambon One Product due to pandemic. It is stated in the paper entitled,
“Management System Models to Support Decision-making for Micro and Small
Business of Rural Enterprise in Thailand” that network cluster models considered
are comprised of six-stage: suppliers, manufacturers, warehouses, wholesalers,
retailers, and the customer. In our instance, we evaluate supply chain production and
the impact of lead time reductions. The result also shows that financial resources are
the most crucial factor in the success of business perceived by small and medium
enterprises. The success of small and medium enterprises can contribute
significantly to the development of the country (Jasra, J. et al., 2012).
Impact on OTOP Sales/Profit
Studies on how the pandemic affected the profit and sales of the businesses
are also conducted by various scholars. Some of it stated that the entrepreneur,
enterprise, and business environment have relation to employment generation, as
does the enterprise with sales (Soriano, D.J., 2019) and LME economies were more
responsive toward the impact of the disease outbreaks as compared to
the CME economies wherein the impact of the disease was moderated by the
government involvement (Shang, Y., et al. 2021).
A study of Tabisola, CT. F (2021) also revealed that the OTOP
Entrepreneurial Program in the Region 1 have been earning minimal profit, with few
numbers of workers while Akintola, A.I. et al., (2021) study stated that entrepreneurs

(businesses) (99.21 per cent), are affected by the pandemic. 98.18 per cent of the
business survey revealed that there has been a reduction in sales.
Impact on OTOP Production
OTOP production is also affected by the pandemic, and it is proven by the
studies such as, “The Impact Of COVID-19 on Productivity” (Bloom, N., et al. 2020)
which states that the pandemic reduced TFP in the private sector by up to 5% in
2020 Q4 in United Kingdom, “Rural Economic Empowerment Based on One Village
One Product” (Sutawa E.M.H) which states that it is very possible to develop into
superior village products, and “COVID-19 Pandemic and Entrepreneurship
Enterprise” (Akintola, A.I. et al., 2021) which states that in Calabar, Cross River
State, Nigeria, 93.49 percent of the businesses revealed that they have reduced
production because of the pandemic.
Also, the conventional wisdom on firm dynamics, productivity growth, and job
creation in developing countries is based on data that, by design, excludes a vast
number of micro- and small enterprises, many of which are informal (Li, Y. & Rama,
M. 2015) and a greater share of firms reports significant or severe disruption to sales
activity than to supply chains (Meyer, B.H., et al. 2020).
Impact on OTOP Employment
Another factor of significance that is greatly affected by the pandemic
is employment. It is said that innovativeness and risk taking have a direct influence
on employment generation (Soriano, D.J., 2019). It is supported by the statement of
Meyer, B.H., et al. (2020) that engaging in wage cuts and expect to trim wages
further before the end of 2020 and by the analysis of Seetharaman (2020) that
most countries of the world have imposed restrictions on social congregations or

even people working near each other. Industries that produce and deliver information
products and services, therefore, have continued to function while those that
manufacture physical products, especially labor-intensive firms, were forced to
minimize operations or temporarily shut down. However, in most countries, physical
products which were essential in nature were reluctantly permitted to be
manufactured given the need for them in people’s everyday life.
Impact on OTOP Investment
Other than profit, sales, production, and employment, the OTOP investment is
also affected by the appearance of the pandemic. Innovativeness, being proactive,
risk taking, and competitive aggressiveness have a positive impact on average sales
and investment (Soriano, D.J., 2019). In the Chinese study by Jie, J. et al., (2021)
entitled, “COVID-19 Impact on Firm Investment Evidence from Chinese Publicly
Listed Firms” wherein it states that there is negative relationship was more
pronounced in the large, eastern Chinese state-owned firms.
Also, according to Oyewo, M. 2014, there is a significant difference in the
Capital Structure of Nigerian MSMEs; there is no statistically significant difference
between the Capital Structure of Nigerian MSMEs at startup and the Capital
Structure at continuation; and the factors influencing the patronage of bank and non-
bank finance providers among MSMEs do not significantly differ.

Theoretical Framework
The concept of this study was based on the theory that the OTOP Program
has an extent and impact to OTOP Entrepreneurs thus contributing to economic
growth of the locality.
In accordance to the study of Bartik, Bertrand, Cullen, Glaeser, Luca,
and Stanton (2020) where they stated “to provides insight into the economic impact
of coronavirus 2019 (COVID-19) on small businesses and to determine
the significant impact COVID-19 had on these businesses in the weeks after the
COVID-19–related disruptions began.” They believed that the pandemic restrictions
and continues lock downs and quarantines had affected the 43% of businesses that
had temporarily closed, and nearly all of these closures were due to COVID-19.
Small restaurants and even multinational corporations have been forced to
change how they do work amid a series of shutdown orders to help stem the tide of
the virus. Also, it is believed that the recent virus outbreak Covid-19 shows that
infectious diseases spread easily due to open economies and easily threaten
nations' economic stability (Gozgor, 2020). Further, it contributed to the massive
organizational changes in just a matter of weeks to attempt to stay afloat -- with
many companies shifting to full-scale working from home plans and others going all
in on delivery (Thorbecke, 2020).
As a result, the author asserted that COVID 19 has a significant impact on
entrepreneurs participating in the OTOP Program. The study focuses on the idea
that COVID 19 restricts local business movement even if it is part of the OTOP
Program, but has a positive impact in other areas.
Conceptual Framework
This study adopted the Input-Process-Output model. It is a tool that gauges
the effectiveness of the involved personnel and institution in the performance of the
tasks to attain the desired output is of equal importance to the outcome itself. Hence,
the deliberate and systematic process used in this study is as shown below.
INPUT PROCESS OUTPUT
- Organizational Profile - Data gathered Enhanced OTOP

- Extent of OTOP through google forms. program
Program assistance - Interpretation of data. implementation
- Impact through training
packages on
-Problems
entrepreneurship and
Encountered business management
for OTOP
Entrepreneurs.
IMPACT OF COVID 19 ON OTOP
Fig. 1. Conceptual framework of the study

Statement of the Problem
This study aims to assess the impact of Covid-19 on OTOP Entrepreneurs’
life in the Province of Quirino. Specifically, it sought to provide answers to the
following:
1. Profile of the enterprise under OTOP program in terms of:
1.1 Type of Business
1.2 Business Form
1.3 Products
1.4 Source of Capital
1.5 Initial Capital
1.6 Average Monthly Sales (Before COVID)
1.7 Present Monthly Sales
1.8 Number of employees
1.9 Time period of being an OTOP entrepreneur
2. Impact of this pandemic on OTOP entrepreneurs in terms of:
2.1 Sales/Profit
2.2 Productivity
2.3 Investment
2.4 Employment
3. Propose a sustainable developmental plan.

Definition of Keywords
The following terms are defined to help readers acquire better understanding
of terms used in the study. It is defined based its functional used to this study.
Department of Trade and Industry (DTI). It refers to an executive department
of the Philippine government that helps innovate products and provides business
counselling for entrepreneurs.
Employment. Employment refers to being employed or having a paid job.
Investment - putting money into something in order to make a profit or gain
materially.
Micro, Small and Medium enterprises (MSMEs). It is defined as any industry,
agribusiness, or service-related business activity or enterprise.
One Town One Product (OTOP). OTOP refers to a program of the
Department of Trade and Industry that promotes and helps entrepreneurs innovate
and market their products.
One Village One Product (OVOP). It is a movement from a Japanese regional
development program.
Profit/Sales. It refers financial benefit is realized when revenue is generated
from a business activity. Profit is calculated as total revenue less total expenses.
Productivity. It refers to the efficiency of the production of goods or services,
by some measure.
CHAPTER II
METHODOLOGY
This chapter contains the instruments and design for data collection and
analysis. It also contains the appropriate methods of data analysis used in the study:
research design, research locale and sampling procedure, scope and delimitation,
research instrument, data gathering procedures and data analysis.
Research Design
The data are gathered through the utilization of Google Forms to facilitate the
gathering of important details to the selected respondents to study and analyze the
impact of COVID-19 to OTOP entrepreneurs in the province of Quirino. The data
was interpreted through descriptive-inferential statistics.
Descriptive statistics is an approach that facilitates the exploration of a
phenomenon within its context using a variety of data sources. It ensures that the
issue is not explored through one lens but rather a variety of lenses which allows for
multiple facets of the phenomenon to be revealed and understood (Baxter & Jack,
2018, p. 544). The data that was generated was subjected to statistical analysis.
Research Locale and Sampling Procedures
The province of Quirino, with an aggregate land area of 305,718 hectares, is
where the 30 respondents came from. The six municipalities comprise the province
of Quirino. Cabarroguis, Diffun, Aglipay, Maddela, Nagtipunan and Saguday.
Cabarroguis is the capital town, while Diffun is the gateway of the province. Quirino
is a landlocked province in the Philippines located in the Cagayan Valley Region II in
Luzon.
These 30 respondents from OTOP entrepreneurs are registered OTOP
business as enlisted on DTI system. The information gathered was from active
members of OTOP programs registered under DTI with businesses facing the
COVID-19 pandemic; respondents were from various municipalities of Quirino
Province.
Scope and Delimitation
The aim of this study is to gather information about the impact of COVID-19
on the OTOP Entrepreneurs, status, strategies and on what programs did OTOP
implemented in this time of pandemic. It aims to collect data on the extended
assistance of OTOP to the enterprises and the problems encountered by the OTOP
Entrepreneurs and to find out whether OTOP Programs helped its entrepreneurs in
this time of pandemic. Thus, it is delimited on the accredited and active OTOP
Enterprises in Quirino Province under OTOP programs.
The respondents were selected through purposive sampling from
Cabarroguis, Diffun, Maddela, Saguday, Aglipay, Nagtipunan.
Research Instrument
To choose the participants, purposive sampling specifically deviant case
sampling was used. Through this method, the researcher randomly selects the
respondents to understand the main concern (Creswell, 2018). Moreover, it is used
to identify outliers that diverge from the norm as regards a particular phenomenon,
issue, or trend. By studying the deviant cases, researchers can gain a better
understanding of the more regular patterns of the behavior and practices which have
salient information on the product developed.
The researchers used survey questionnaires in gathering the data needed in
this study. The questions are adopted from the study entitled, Socio economic
impact of One-Town-One-Product (OTOP) Entrepreneurial program in Region 1
Philippines by Tabisola (2021) and modified to attain the desired outcome. The
modified questions were composed of three parts: (1) the business profile of the
respondents, and (2) business performance during pandemic.
Scoring of the Questionnaire. Using the 6-point Likert Scale as reflected in
the different legends as shown below, the data gathered were treated with (Ama
Nyame- Mensah, 2016). This is adopted for the profile of the respondents.
Mean Range Quantitative Value Qualitative Description

3.26 – 4.00 4 Strongly Agree (SA)

2.51 – 3.25 3 Agree (A)
1.76 – 2.50 2 Disagree (D)
1.00 – 1.75 1 Strongly Disagree (SD)
Data Gathering Procedures
The researchers devised a way on how to deliver the request letter to the
Provincial Director of D.T.I, Ma’am Ma. Sofia G. Narag. The researchers gathered
information from the DTI and requested an official list of OTOP Entrepreneurs in
order to determine the respondents’ details and in order to communicate with them
via social media for them to complete the survey in a timely manner.
Data were gathered online through checklist questionnaires. Furthermore, all
the discussions from the respondents are detailed, recorded and compiled for better
understanding and for documentary purposes.
Also, the top priority is the confidentiality & secrecy of respondents. According
to the research handbook, in any part of the study, it is vital to use the
Harvard/APA/Vancouver referencing system to acknowledge the works of other
authors, analyses throughout the research, keeping of the outmost level of objectivity
in deliberations and adherence to Republic Act 10173 – Data Privacy Act of 2012.
Data Analysis
The researchers used quantitative analysis in the study. There are two parts
of the questionnaire. Where part 1 is the business information of respondents and
part 2 is with four-point Likert scale questionnaire about the impact of Covid-19 to the
OTOP entrepreneurs in Quirino. The respondents were required to choose one
answer from (1) “strongly disagree” to (4) “strongly agree” and consists of 10 items
each part. The numerical data is statistically analyzed manually.
Specifically, statistical tools used is:
1. Frequency counts, and Percentage. This is used on analyzing the profile of the
respondents. In computing for the percentage, the formula used was:
Wherein:
= representing the percentage

= representing the frequency
= representing the total number of respondents
2. Weighted Mean. This was used to compute the level of sensory acceptability of
the Squash with Malunggay ice cream and sensorial evaluation of squash with
malunggay ice cream by children, teenagers, and adults. The formula of the
weighted mean is:
Wherein:
= Frequency
= Weight
CHAPTER III
RESULTS AND DISCUSSION
This chapter presents the analysis and interpretation of the data gathered
from the respondents through the questionnaires given to them. They are presented
in textual and tabular form to give a vivid view to the problems that the study seeks
to answer.
Presentation, Analysis and Interpretation of Data
Table 1 displays the business profile of the respondents while table
presents the impacts of COVID-19 among OTOP business in terms of profit/sales,
productivity, investment and employment.
From these, a sustainability development plan was proposed and presented
on table 3.
Business Profile of the Respondents
The succeeding table shows the summary of the frequency and percent
distribution of the respondents according to business profile.
Table 1.1 Business profile of respondents as to the location of business

Profile Variables Frequency Percentage
Aglipay 7 23
Cabarroguis 6 20
Diffun 6 20
Maddela 2 7
Nagtipunan 4 14
Saguday 5 16
Total 30 100
Table 1.1 shows the frequency and percentage distribution of respondents
according to location of business. As revealed in the table, out of 30 respondents, 7
(23.3%) are currently operating at Aglipay, 6 (20%) are at Cabarroguis, another 6
(20%) are at Diffun, 2 (6.7%) at Maddela, 4 (13.3&) at Nagtipunan and 5 (16%) at
Saguday.
Hence, the data indicates that the female respondents outnumbered the
males.
Table 1.2 Business profile of respondents as to the form of business

Sole Proprietorship 23 77
Cooperative 6 20
Partnership 1 3
Total 30 100
Table 1.2 indicates the frequency and percentage distribution of respondents
by form of business. Majority of the respondents with a total of 23 (76%) run their
business in a sole proprietorship form, 6 (20%) in a cooperative form and the
remaining 1 (3.3%) run their business in partnership form.
Table 1.3 Business profile of respondents as to the type of business

Merchandising 02 07
Manufacturing 28 93
Total 30 100

by type of business. Majority of the respondents with a total of 28 (93.3%) were
engaged in the manufacturing of their own product, 2 (6.7%) of the respondents

were engaged in merchandising.
Table 1.4 Business profile of respondents as to their initial capital

5,000 or less 4 13
5,001 - 53,750 13 44
53,751 - 102,500 4 13
102,501 - 151,250 3 10
151,251 - 200,000 0 0
200,000 or more 6 20
Total 30 100
by the initial capital. Majority of the respondents with 13 (43.4%) start-up capital were
PhP 5,001 to PhP 53,750, 6 (20%) of the respondents’ start-up capital were PhP
200,000 or more, 4 (13.3%) of the respondents’ start-up capital were ranging from
PhP 5,000 or less and another 4 (13.3%) of respondents’ start-up capital were
ranging from PhP 53,751 to PhP 102,500. there are also 3 (10%) respondents
whose start-up capital is Php 102,501 - PhP 151,250. table also shows that there are
no respondents whose startup capital is ranging from PhP 151,251 - PhP 200,000.
Table 1.5 Business profile of respondents as to their source of capital

Bank Loan 11 36.7
Savings 15 50
Sponsored 1 3.3
Borrowed from others 3 10
Total 30 100
by the source of capital. Majority of the respondents with a total of 28 (93.3%) were
engaged in the manufacturing of their own product, 2 (6.7%) of the respondents
were engaged in merchandising. And there is no one in the respondents with a
service type of business.

Table 1.6 Business profile of respondents as to their average monthly sales

5,000 or less 2 7
5,001 - 36,667 8 27
36,668 - 68,334 12 40
68,335 - 100,000 5 16
100,001 or more 3 10
Total 30 100
by the average monthly sales. Majority of the respondents with a total of 12 (40%)
has an average monthly sale of PhP. 36,668 to Php. 68,334, 8 (26.7%) has an
average of PhP 5,001 to PhP 36, 667, 5 (16.6%) has average of PhP 68,335 to PhP
100,000, and a 2 (6.7%) whose average sales were ranging from a PhP 100,000 and
above.
Table 1.7 Business profile of respondents as to their monthly sales during Covid
5,000 or less 10 33.3
5,001 - 36,667 13 43.3
36,668 - 68,334 7 23.3
68,335 - 100,000 0 0
100,001 or more 0 0
Total 30 100
by the present monthly sales. Majority of the respondents with a total of 13 ( 43.4%)
has a present monthly sale of PhP. 5,001 to Php. 36, 667, 10 (33.3%) has an
average of PhP 5,000 or less, 7 (23.3%) has average of PhP 36,668 to PhP 68,334.
No respondents chose neither PhP 68, 335 to PhP 100,000 and above.
Table 1.8 Business profile of respondents as to their number of employees

1-5 22 74
6-10 7 23
11-15 1 03
Total 30 100

by the number of employees. Majority of the respondents with a total of 22 (73.4%)
has a number of employees ranging from 1 to 5, 7 (23.3%) has a number of
employees ranging from 6 to 10 and 1(3.3%) respondent has a number of
employees ranging from 11 to 15.
Table 1.9 Business profile of respondents as to their time period of being an OTOP
entrepreneur
Less than 1 year 1 3.3
1 - 5 years 24 80
6 - 10 years 5 16.7
Total 30 100
by the time period of being an OTOP Entrepreneur. Majority of the respondents with
a total of 24 (80%) has been an OTOP Entrepreneur for 1 to 5 years, 5 (16.7%) for 6
to 10 years and 1 respondent with less than a year being an OTOP entrepreneur.
Business Performance
Table 2.1 Business performance of the respondent as to profit/ sales
Indicators Mean Description
1. There are no unexpected changes in sales and
profit during the pandemic. 1.93 Disagree
2. There is an increase of demand from customers. 2.03 Disagree
3. The business consistently met the business’ sales
goals. 2.23 Disagree
4. There are higher sales during pandemic than
before the pandemic. 1.93 Disagree
5. The business is still gaining profit despite the
pandemic. 2.63 Agree
6. The business’ profit increased during the
pandemic. 1.83 Disagree
7. The profit is enough to meet the other expenses of
the business. 2.47 Disagree
8. The profit is enough to give employees gifts, 2.10 Disagree
rewards, and commissions.

9. There are no changes in prices of
products/services during pandemic. 2.10 Disagree
10. The same price of products before pandemic is still
enough to meet the business’ aimed amount of
profit. 1.93 Disagree
Table 2.1 indicates the business performance of the respondent as to profit.
Gleaned thereof that majority of the respondents with a total of 66.7% disagree that
there are no unexpected changes in their sales and profit during the pandemic. Also,
it is shown that majority of the respondents with a total of 53.3% disagree that t here
is an increased demand of customers during the pandemic, majority of the
respondents with a total of 53.3% disagree that their business consistently met the
business’ sales goals, majority of the respondents with a total of 56.7% disagree that
there are higher sales during pandemic than before the pandemic, and majority of
the respondents with a total of 70% agrees that the business is still gaining profit
despite the pandemic.
The table also indicates that majority of the respondents with a total of.70%
disagree that the business’ profit increased during the pandemic, majority of the
respondents with a total of 50% disagree that the profit is enough to meet the other
expenses of the business, majority of the respondents with a total of 63.3% disagree
that the profit is enough to give employees gifts, rewards, and commissions, majority
of the respondents with a total of 56.7% disagree that there are no changes in prices
of products/services during pandemic, and majority of the respondents with a total of
53.3% disagree that the same price of products before pandemic is still enough to
meet the business’ aimed amount of profit.

Table 2.2 Business performance of the respondents as to productivity

Mea
Indicators n Description
1. There are no unexpected changes in business’
productivity during the pandemic. 2.03 Disagree
2. The availability of materials is better during the
3. The quality of materials being used by the business
are good. 3.20 Agree
4. The cost of materials that the business uses
decreased during pandemic. 1.93 Disagree
5. There is no surplus during the pandemic. 2.17 Disagree
6. There are more customers during pandemic than
before pandemic. 1.87 Disagree
7. The business has better supply of products during
the pandemic. 1.80 Disagree
8. There are more orders from business partners than
before pandemic. 1.97 Disagree
9. There are no changes in mode of delivery during the
10. There is no additional expense in delivering
customer orders. 1.83 Disagree
Table 2.2 indicates the business performance of the respondents as to
productivity. Gleaned thereof that majority of the respondents with a total of 60%
disagree that there are no unexpected changes in business’ productivity during the
pandemic. Also, majority of the respondents with a total of 66.7% disagree that the
availability of materials is better during the pandemic, majority of the respondents
with a total of 46.7% agrees that the quality of materials being used by the business,
majority of the respondents with a total of 50% disagree that the cost of materials
that the business uses decreased during pandemic, and majority of the respondents
with a total of 70% disagree that there is no surplus during the pandemic.
Further, it is also indicated that majority of the respondents with a total of
66.7% disagree that there are more costumers during pandemic than before
pandemic, majority of the respondents with a total of 66.7% disagree that the
business has better supply of products during the pandemic, majority of the
respondents with a total of 63.3% disagree that there are more orders from business
partners than before pandemic, majority of the respondents with a total of 50%
disagree that there are no changes in mode of delivery during the pandemic, and
majority of the respondents with a total of 40% strongly disagree and 40% disagree
that there is no additional expense in delivering costumer orders.
Table 2.3 Business performance of the respondent as to investment

Indicators Mean Description
1. There are no big/alarming changes to the
investment of the business. 1.90 Disagree
2. There is an increase of number investments during
3. The is a positive return of investment. 2.20 Disagree
4. The investment is enough to run the business. 2.53 Agree
5. The investment is enough to stay competitive in the
market. 2.53 Agree
6. The business doesn’t need financial assistance to Strongly
run during COVID-19. 1.63 Disagree
7. The government offers financial support to the
business during pandemic. 2.97 Agree
8. There is an easy access for available investments. 2.03 Disagree
9. There is no increased of interests on bank loans for
the investment. 2.60 Agree
10. There are no increased number of risks in having
investments during the pandemic 1.87 Disagree
Table 2.3 indicates the business performance of the business as to their sales/
profit. Gleaned thereof that majority of the respondents with a total of 70% disagree
that there are no big/alarming changes to the investment of the business, majority of
the respondents with a total of 63.3% disagree that there is an increased of number
investments during pandemic, majority of the respondents with a total of 40%
strongly disagree and 40% disagree that there is a positive return of investment,
majority of the respondents with a total of 53.3% agrees that the investment is
enough to run the business, and majority of the respondents with a total of 56.7%
agrees that the investment is enough to stay competitive in the market.
Also, it shows that majority of the respondents with a total of 46.7% disagree
and 46.7% strongly disagree that the business doesn’t need financial assistance to
run during covid-19, majority of the respondents with a total of 40% agrees that the
government offers financial support to the business during pandemic, majority of the
respondents with a total of 60% disagree that there is an easy access for available
investments, majority of the respondents with a total of 36.7 % disagree and 36.7%
agrees that there is no increased of interests on bank loans for the investments, and
majority of the respondents with a total of 73.3% disagree that there are no
increased number of risks in having investments during the pandemic.
Table 2.4 Business performance of the respondent as to investment

Mea
Indicators n Description
1. There are no changes in the employees’ performance
during pandemic. 2.13 Disagree
2. There is no shortage of employees. 2.63 Agree
3. It is easy to feel up vacancies during pandemic. 2.63 Agree
4. There is no employee reduction. 2.37 Disagree
5. There are no changes in salaries of the employees. 2.63 Agree
6. There is no tardiness among the employees. 2.33 Disagree
7. The employees are mostly full-time workers. 2.63 Agree

8. All employees meet the qualifications of their position
in the business. 2.97 Agree
9. There are enough trainings and seminars offered to
the employees. 2.53 Agree
10. There are no increased working hours to the
employees during pandemic. 2.97 Agree
Table 2.4 indicates the business performance of the respondents as to their
investment. Gleaned thereof that the majority of the respondents with a total of
63.3% disagree that there are no changes in the employees’ performance during
pandemic, majority of the respondents with a total of 56.7% agrees that there is no
shortage of employees, majority of the respondents with a total of 40% agrees that it
is easy to fill up vacancies during pandemic, majority of the respondents with a total
of 50% agrees that there is no employee reduction, and majority of the respondents
with a total of 46.7% disagree that there are no changes in salaries of the
employees.
Also, it shows that majority of the respondents with a total of 36.7% disagree
that there is no tardiness among the employees, majority of the respondents with a
total of 46.7% disagree that the employees are mostly full-time workers, majority of
the respondents with a total of 63.3% agrees that all employees meet the
qualifications of their position in the business, majority of the respondents with a total
of 43.3% disagrees that there are enough trainings and seminars offered to the
employees, and majority of the respondents with a total of 46.7% agrees that there
are no increased working hours to the employees during pandemic.

CONCLUSION
The above implications drove the researcher to the various related
conclusions. It can be concluded that from OTOP stores, mostly sole proprietor
which engages on manufacturing products, female entrepreneurs outnumbered the
males.
Further, this Covid -19 among local OTOP business have a direct impact on
profit/sales, productivity, investment and employment (Tabisola, 2021). The findings
of this studies suggest that: there is (1) a drastic decrease on sales, while the prices
of OTOP product increases resulted to uneough net income to cover expenses and
to supplement employees’ gift, reward and commission, and (2) lesser business
productivity level of the OTOP stores due lesser walk-in customers, reduction of
products raw materials used, and lesser business partners that leads to no surplus
during the pandemic. Also, the (3) low returns of investment (ROI) lead them to seek
for financial assistance from the government during this pandemic, and (4) low-slung
employees’ performance resulting to a decrease of employee salaries, employee
termination and lesser training and seminars.
Thus, it can be concluded that this Covid-19 affects the OTOP businesses in
terms of profit/ sales, productivity, investment and employment.
RECOMMENDATIONS
From the above conclusions, the results of the study support that profit/ sales,
productivity, investment and employment are affected. Hence, the following
developmental plan is suggested.
KRA SMART Plan OUTCOMES

Manufacturing additional necessity local To increase net
OTOP products such as technological income to be able
accessories can be an option. Adding a touch to cover expenses
Profit of culture on OTOP products like giving simple and sustain
facts or in any creative means may be an operation of
innovative move. The emphasis on cultural OTOP businesses
heritage can be done by means of the tour amidst of Covid-
guides to tell something about the place as it 19.
relates to the culture in that certain locality.
Also, opting to the nearest local supplier of
raw materials needed on manufacturing of
products is suggested.
As part of the development plan, a master
plan as well as budget plan may be

considered by the local OTOP entrepreneurs
thus allocating budget in the next years.
Walk ins are expected to be lesser amidst of Productive
this COVID -19. Hence, extending OTOP business
Productivity
products available to the customers through transactions
deliveries and the use of wholesale-retail
system may be a possible. Coordinating with
mom’s and pop’s stores and public stores like
P-mart may increase the business level of
productivity.
A marketing plan and more programs To increase return

promoting the cultural heritage of local on investment
communities within the sites should be (ROI) of OTOP
Investment initiated by the local OTOP entrepreneurs. businesses.
The initiative and the availability of the social
media can be an avenue to promote or market
OTOP products.
Hence, the marketing strategies can be done
either via Vlog, Facebook Post, Tarpaulins,
and other means of social media platforms
focusing on what the tourist spots can offer,
how can they reach the place, how long will it
take for them to travel and among others.
Training programs should be continuously To sustain loyal
undergone by the employees/ business employees
Employment
owner. Free webinars that provide new skill
and increase creativity and innovativeness of
the entrepreneurs can be an option.
Coordinating with the appropriate government
agencies may be of help also to avoid
termination of employee thereof.
Figure 3. Proposed Sustainable Development Plan
Moreover, the data collected suggests that even if you are a member of a
certain program, you still need to seek for a possible and better strategies to help
your business survive in the long run. Data also suggests that DTI should continue to
provide seminars/webinars and training because it serves as a great help and
opportunity because DTI plays a major role in promoting local business.
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IMPACT OF COVID-19 ON ONE TOWN ONE PRODUCT (OTOP)

ENTREPRENEURS IN THE PROVINCE OF QUIRINO

IMPACT OF COVID-19 ON ONE TOWN ONE

ARIEL ANDUS LAGUNILLA, MBA

In Partial Fulfillment of the

PIMENTEL, MAY ANN G.

The research entitled “IMPACT OF COVID-19 ON ONE TOWN ONE PRODUCT

ARIEL ANDUS LAGUNILLA

Approved by the committee on ORAL EXAMINATION and PRESENTATION

Technical Editor English Editor

Research Contribution No.: _____

ARIEL ANDUS LAGUNILLA

Every study must be exerted with effort, collection of sacrifices, money

entrepreneurs in marketing local products. It was adopted by Quirino Province and

start to make use of the numerous resources present in the community.

registered OTOP entrepreneurs in the province of Quirino. Descriptive research

OTOP business which was determined through purposive sampling.

(4) low-slung employees’ performance resulting to a decrease of employee salaries,

development plan was made.

Keywords: OTOP, OVOP, Sustainable Local Business, Quirino Province

entrepreneurs in marketing local products, was originated in One Village One

such as Thailand, Vietnam, Malawi, Cambodia, Pakistan, India, Bangladesh, and

poverty issues in their respective countries. Eventually, in the presidency of Gloria

Macapagal-Arroyo in the Philippines, she prioritized the establishment of OTOP in

the country to promote entrepreneurship and create jobs in the country.

numerous resources present in the community. The province entrepreneurs

entrepreneurs. According to Department of Trade and Industry (DTI), the initial

number of OTOP entrepreneurs in the province before pandemic is almost 40 which

is reduced to almost 30 upon pandemic hits the province.

“Impact of COVID-19 on One Town One Product (OTOP) Entrepreneurs in the

the global era. It is on foregoing that this research is steered.

Covid-19 Impact on the Business World

According to the study entitled “A Study on the Impact of COVID-19 on

Investor Behavior of Individuals in a Small Town in the State of Madhya Pradesh,

India” (Gurbaxani, A. & Gupte, R. 2021), the COVID-19 outbreak impacted the

Furthermore, the study also stated that these effects make micro-level

businesses, both financial institutions and individuals, have better handling of such

situations in the future. As we all know, small and medium scale enterprises

institutions and individuals, have better handling of such situations in the future. As

we all know, small and medium scale enterprises play a significant role in terms of

growth and development of an economy (Bello, A., 2018). It

is because the development of the industrial sector of an underdeveloped economy

is dependent on the fact that the creation, sustenance, and growth of SMEs is its key

changes in how businesses act, and consumers behave. This special issue is a

global effort to address some of the pandemic-related issues affecting society. In

higher education), changes in consumer behavior and businesses, ethical issues,

and aspects related to employees and leadership (Donthu, N., 2020).

Moreover, Malaysia also experienced an enormous impact of COVID-19 on

significant among micro-enterprises than its larger counterparts. Entrepreneurs

of several supporting sectors such as retail and transportation. In the analysis,

"Operating SMEs in the Face of the COVID-19 Pandemic in Calabar”, its results

effects on business, especially those small enterprises, due to the pandemic.

Despite on the various articles stating how the pandemic impacted the

business world, an article of He, H & Harris, L. (2020), stated that they undergone an

initial examination on how COVID-19 can influence the developments of CSR and

marketing. They argue that COVID-19 pandemic offers a great opportunity for

address urgent global social and environmental challenges.

In Senegal, small and medium-sized business enterprises emerge as key

alleviation, income generating activities and jobs creation (Sega, N.J.& Kanichiro, S.

2018). Bowale, K.E., & Ilesanmi, A.O., (2014) also revealed that business

registration, size of business, quality of business, source of finance are the key

factors that determined the ability for SMEs to generate income and

jobs. Bughao A., (2017) shows that the OTOP program has a high economic impact