Level of Compliance of Small Businesses to IATF Guidelines

during a New Normal: A Quantitative Study

A Research Proposal Presented to the

Faculty of Senior High School of
DMMC Institute of Health Sciences

In Partial Fulfilment of the Requirements for the completion of Research 2

Pearl Riaene C. Borja

Aira Alyza M. Calderon
2021
 Chapter 1:
THE PROBLEM AND ITS BACKGROUND

This chapter contains the following parts: Introduction; Statement of the Problem;
Theoretical/Conceptual Framework; Hypothesis/Assumptions; Scope and Limitations of the
Study; Significance of the Study; and Definition of Terms.

INTRODUCTION
When the pandemic came to our country many lives, jobs, businesses were affected. That it
seemed in the blink of an eye, the living state of every person had become equal. One of the most
affected by the pandemic we face today is the entrepreneurs, especially those with small
businesses. Have you ever thought of questions like how can they survive? What ways did they
do so that even if there was a pandemic, they would still have an income? Can there be a change
in the way they sell? Do they already have the protocols followed? Are they having a harder time
earning now? Who and where do they look for supply for their goods? Those are just some of
the possibilities that they may be going through. The goal of this research was to find out and
discover what entrepreneurs faced and what they did to follow the guidelines provided by the
IATF. The reason why this research was conducted is to see the hardships and trajectories of
those affected by the pandemic that have small business, and how they can apply the new
policies administered by the Government.

STATEMENT OF THE PROBLEM

This study aimed to determine the experience they went through now with the pandemic and
how they were able to follow the implemented IATF guidelines. Specifically, the researchers
sought answer to the subsequent question:

1) What is the profile of the owner of the business/es in terms of:

3.1 ages;
3.2 type of business/es; and
3.3 locations
2) Does it matter that there are guidelines to be followed?
3) Is it important to follow the government's protocols?
4) What adjustments they made to comply with IATF guidelines?
5) What are the effects of following the IATF guidelines on the way owners operate their
small business/es?

THEORETICAL FRAMEWORK
 This study is anchored on small business research that has recognized the importance of a
crisis perspective (Herbane 2010). A recent review of literature on crisis and small- and medium-
enterprises (SMEs) finds that most of the publications focus on financial issues (51%), followed
by strategy (41%), and institutional environment (8%) (Eggers 2020). According to Eggers
(2020), most of the studies that focus on finance are concerned with the consequences of the
crisis on small firms, namely the lack of funding and financing sources. The strategy-oriented
studies indicate that successful firms adopt a strategy that is both market- and entrepreneurship-
oriented during a crisis.

A recent qualitative study about the effect of the COVID-19 pandemic on 16 startups in
Germany (Kuckertz et al. 2020) examines how innovative startups deal with the lockdown and
the most effective policies. They find that many startups deploy various responses associated
with resilience to turn crisis-induced adversity into opportunity. They propose that entrepreneurs
who demonstrate flexibility in their business models are likely to access broader emerging
opportunities. This finding points to the temporal aspects of the crisis that require further
investigation.

Moreover, based on research conducted after the 2004–2012 economic crisis about
entrepreneurial culture and the knowledge diversity of small firms in the United Kingdom
(Bishop 2019), 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.

The crisis development model

Bundy et al. (2017) propose a crisis development model that considers the roles of internal
and external stakeholders over three crisis stages: pre-crisis prevention, crisis management, and
post-crisis outcomes. Firstly, during the pre-crisis stage, the internal stakeholders understand
organizational preparedness, including reliability, culture, structure, and governance
mechanisms. At this stage, the organization analyses the external stakeholders’ relationships to
identify positive or negative relationships.

The second stage is described as crisis management. The internal perspective addresses
managers’ sense-making efforts to resolve the crisis, whereas the external viewpoint evaluates
the outsiders’ perception of the crisis. Organizations are usually concerned not only with
understanding the nature of the crisis and developing crisis response strategies but also
understanding stakeholders’ evaluations of the crisis, their identification with the organization,
their power and influence, and crisis spillovers. Finally, in the post-crisis stage, the internal
perspective is focused on the organization’s ability to learn. In contrast, the external perspective
is concerned with how society will evaluate the organization once the crisis is over.
 In summary, the crisis development model proposes a multi-level and -stage framework that
provides an integrative perspective of crisis. Given the pervasiveness of the COVID-19
pandemic, we argue that the crisis development model provides insights into the organization–
environment dynamics during a crisis. It also highlights the role of leaders but without a
sufficiently detailed explanation. To address this limitation, we propose the integration of sense-
making concepts with the crisis development model.

Boin and Hart (2007) propose that managing a crisis requires a socially constructed process
that addresses five critical challenges: sense-making, decision-making, meaning-making,
terminating, and learning. When positioning these five challenges in the crisis development
model (Bundy et al. 2017), notably, they occur at different stages of the crisis. Specifically, the
sense-making challenge occurs during the pre-crisis stage; the challenges of decision-making,
meaning-making, and terminating are faced during the crisis management stage; and the learning
challenge in the post-crisis stage. Organizations that develop sense-making are better prepared to
overcome crisis challenges (Weick 1993).

CONCEPTUAL FRAMEWORK

HYPOTHESIS/ ASSUMPTION
 The researcher hypothesized that when businesses follow the so -called IATF Guidelines,
they have the assurance that they are safe as well as the customers who will visit and go to their
store. The researcher also expects that when others, especially small business owners, learn about
the IATF guidelines, they will be able to prepare for what is needed and what should be done to
maintain the smooth running and status of their business even if it is new normal.

SCOPE AND DELIMITATIONS OF THE STUDY

The general purpose of this study is to show how small businesses are able to follow the
IATF guidelines in this new normal and what preparations they make to earn money even though
they are following some regulations from the authority. The primary subjects of this research
study will consist of people who have small businesses in the market and follow the
implemented IATF guidelines. The respondents will be limited to ten (10) people selling in the
market, ages 30-45. Moreover, the participants will be purposely selected depending on the
status of their business.

SIGNIFICANCE OF THE STUDY

The researcher believes that the results of this study will be great benefit to the following:

People that are planning to start their own business. The results of the study will help people
who are thinking of starting a small business so that they know what to follow and what is
required to be done, to keep their customers safe and secure as well as their own health.

To small business owners who have not yet complied with the IATF guidelines. In particular,
owners of small businesses will be informed that there are existing IATF guidelines that they
must follow especially now that it is new normal. They will know what to do and what needs to
be done to prevent each other's safety.

Future Researchers. The findings of this study can be their guide to conduct new research, so
that they can further expound it and be given many experiences that come from different people.

DEFINITION OF TERMS
Compliance- is the action or fact of complying with a wish or command.

IATF- Inter-Agency Task Force on Emerging Infectious Diseases

New Normal- is a state to which an economy, society, etc. settles following a crisis, when this
differs from the situation that prevailed prior to the start of the crisis.

Small Businesses- are privately owned corporations, partnerships, or sole proprietorships that
have fewer employees and/or less annual revenue than a regular-sized business or corporation.

Federal Resources- is a leading provider of quality products and mission‐critical solutions that
support the U.S. Military, Federal Government, State/Local Responders, and International
Markets.
 Chapter II

REVIEW OF RELATED LITERATURE

The upheaval caused by the spread of COVID-19 is having a devastating effect on small
businesses. A recent Goldman Sachs survey (2020) of 10,000 small business owners found that
96 percent have already been impacted by the coronavirus and 51 percent report their business
cannot survive 3 months of an economic shutdown. Exacerbating the problem, 67 percent report
difficulty accessing emergency funding and 53 percent acknowledge that their employees do not
have the ability to telecommute. These statistics are alarming and suggest the economic fallout
from COVID-19 will get worse for small businesses and their employees before it gets better.

While it is nearly impossible to plan for a disruptive event such as Covid-19, maintaining the
spirit of determination and fortitude that propels entrepreneurs is now more important than ever.
We certainly do not wish to minimize the financial and psychological effects of this upheaval;
rather, we would encourage small business owners to enhance collaboration efforts and engage
the innovative mindset that drove them into business in the first place. After all, “successful
entrepreneurs and small business owners are ruthless pragmatists, effectuators, and exploiters of
resources. They are nimble, quick to eliminate what does not add value, and are not afraid to
make bold decisions or even cut corners” (Pittz & Liguori, 2020, p. vii).

Perhaps the greatest determinant of success for entrepreneurs and small business owners is
maintaining a keen eye on the needs and desires of their customers. In times of drastic change,
this perspective is even more important, as existing business models will be destroyed and new
opportunities will be created. Understandably, it is incredibly difficult to focus on identifying
and exploring new opportunities while lamenting the loss of profits, customers, and possibly
even key employees. However, with the very survival of their small businesses at stake, it is vital
for owners to exercise their muscles of resilience and adopt a mindset of opportunity recognition.

If small business owners can take solace in anything, it is that the internet has democratized
the marketplace and created numerous possibilities for engaging with customers. Virtual
business channels provide a unique opportunity to reinvigorate the search for product–market fit
and the hunt for new business models capable of surviving and thriving in a COVID-19-
impacted world. While small business owners should certainly spend appropriate time assessing
the viability of government rescue programs to maintain their operations, the optimal means of
risk mitigation is the identification of new customers and new opportunities to pursue growth and
infuse some positive momentum back into the business. This pandemic will eventually pass and
small business owners who use this time to meaningfully connect with their customer base,
develop stronger community ties, improve their own skillsets, and innovate their business models
will emerge stronger than ever before.
 As full-time entrepreneurship educators, we are fortunate to work with lots of entrepreneurs
each year, ranging from new start-ups just hitting the market to more established ventures in
growth mode. We both also run our own ventures that, like yours, have been impacted by this
global pandemic. Thus, we not only see but also feel the uncertainty in the business world right
now, and yet we remain optimistic. In reflecting back on our cumulative 40+ years of experience
in-and-around small businesses it became clear that while this all feels new and different, many
small business owners already have much of the experience needed to navigate this crisis. Many
of you have navigated ups and downs before, have seen business models you thought were great
fail, have experienced resource scarcity firsthand, and know what it is like to go out and create
new ways to create value and find new customers. These things are the essence of
entrepreneurship—value creation, resource leveraging, passion and perseverance for long-term
goals—and they are things for small businesses to consider as they navigate an objectively grim
environment right now.

To help small businesses navigate the current COVID-19-impacted environment, we wanted

to share a few ways small business owners can work to successfully manage this pandemic. First,
it is important for small business owners to virtually keep their fingers on the pulse of the
changing market. Reviewing (or establishing) social media accounts and checking for drops or
shifts in traffic (via clicks and impressions) will usually signal that something is happening,
which will manifest in changing online conversations. It is only natural that search trends will
shift from topics that are no longer at the forefront of customers’ minds (for example, floral
arrangements or elective medical procedures), and opportunity can arise for small business
owners who are able to determine where the conversation has shifted. Numerous online analytics
tools let you see what search terms are trending, both on Google and Amazon, so take advantage
of these tools.

Second, maintaining current customer relationships is critical, and communicating effectively

with existing customers is key to building trust. Small business owners should leverage their
websites and social media channels to communicate any changes in business operations (for
example, changing store hours or major inventory shifts). For customers who are regulars, or
account for significant revenue, consider reaching out to them personally to check in and
maintain the relationship. While there is an economic reality needed to maintain sales and
revenue, do not be shortsighted—the current pandemic is an opportunity to help deepen these
customer connections, so be sure to help them address their human needs as much as their
business needed whenever possible.

Third, similar to connecting with and meeting the needs of customers, considering the needs
of your employees is also critical. The economic reality for many businesses right now is layoffs,
furloughs, and equally awful outcomes. If your business is in a position where shedding
workforce to preserve the venture is required, we empathize—it a miserable position in which to
be. However, in times like these it is more important than ever to be a strong leader—so be
transparent, accountable, and overcommunicate. Transparency means letting employees know
what is happening to the business from a revenue and business model perspective. While many
owners tend to keep this kind of information confidential, sharing more than normal and letting
employees understand the economic reality in the short term can help them understand your
business model, builds trust, and can create value for you in the long term. Accountability means
when layoffs need to be made, founders take responsibility for those decisions and shield
intermediaries (managers) from the blame. Henry Ward, chief executive officer of Catra,
discussed exactly how he took accountability in a recent post and it’s absolutely worth a read
(https://medium.com/@henrysward/cartas-covid-19-layoff-cbb80e3e8a5d). Overcommunicating
means exactly that—more communication to employees is better than less—and it is important
to remember that, while you as owners and entrepreneurs are accustomed to dealing with
uncertainty and ambiguity, most employees are not as comfortable or experienced under these
kinds of conditions. We are all in this together, so the human connection is perhaps more critical
than ever before to our cumulative success.

Last, it is important to stay connected to your entrepreneurial ecosystem. Research shows

that maintaining a positive culture within the entrepreneurship ecosystem stimulates higher
levels of creativity and innovation (cf., Liguori, Bendickson, Solomon, & McDowell, 2019;
Martins & Terblanche, 2003). Community and industry connections are vital and can be sources
of opportunity recognition (for example, what strategies have others found to diversify, expand,
or salvage revenue streams?), new ideas, critical financing, and reminders of inspiration and
resilience (Pittz, White, & Zoller, 2019). Entrepreneurs everywhere are feeling the pressure of
this pandemic and the more we can share best practices, empathize, and, to a limited healthy
extent, commiserate, the stronger our ventures will be. Fortunately, many of the entrepreneurial
support organizations in our communities are facilitating virtual connectivity opportunities. For
example, the Kauffman Foundation’s 1 Million Cups program, which operates in a few hundred
cities, has been running virtual community events each week; TechStars’ just facilitated a virtual
COVID-19-themed StartupWeekend event; and many municipalities around the globe have
continued their programming efforts in virtual environments.

In closing, at the outset of this pandemic, we published a book providing guidance for
managing the risks associated with decisions faced by small businesses. In it, we note that
“[b]ecoming a successful entrepreneur is impossible without accepting risk—the question has
always been about which risk to take and at what time” (Pittz & Liguori, 2020, p. viii). This type
of practical, no nonsense advice for making marketing and financing decisions, bringing on
partners and employees, networking with key connectors, and managing disruption as
inexpensively and aggressively as possible is highly apropos for these times. The book is
designed to help entrepreneurs move quickly, rapidly iterate their business models based on
marketplace feedback, and provide guideposts for managing the risks inherent in all start-up
ventures. These ideas are even more important now as COVID-19 has dramatically changed the
business landscape and left most businesses in a state of damage control. Entrepreneurship is
always full of challenges and COVID-19 is already proving to be perhaps the greatest challenge
that most small businesses will ever face. Undoubtedly, markets (and life) will be altered for the
foreseeable future and the small businesses who best adapt to these changing conditions will be
those that thrive. ( https://fbr.springeropen.com/articles/10.1186/s11782-020-00094-2?
fbclid=IwAR2SIl1GZTSPyJ7MUMhNs1pTlUS_iQx-ESjp6wtbUripUGnGdKCTq47s9eo )
 Chapter III

METHODOLOGY

RESEARCH DESIGN/ APPROACH

This is a Quantitative research about the Level of Compliances of Small Businesses to the
IATF Guidelines during New Normal using especially the phenomenological approach. The total
of 10 participants will be randomly selected and by the answers or opinion of the participants can
apply it in our conclusion as they are taught by this. These 10 participants have demographic
characteristics of both male and female who are owner of Small Businesses. Also, the ethnicity
this are all Filipinos.

SAMPLING METHOD

Random sampling was the method we used in this research. It is analogous to putting
everyone's name into a hat and drawing out several names. Each element in the population has an
equal chance of occurring. We will choose 10 out of all people who own small businesses. We
will conduct it in Tanauan City, Batangas. We will determine the experience they went through
now with the pandemic and how they were able to follow the implemented IATF guidelines.

DATA COLLECTION METHOD

For the purposes of this research, Surveys and Questionnaires were used. Each query is
customizer to the nature and scope of the Study. A paper questionnaire is we used because it is a
data collection tool consisting of a series of questions and/or prompts for the purpose of
gathering information from respondents.
 Figure 1 : Data Collection Method

Surveys and Questionnaires

1) What is the profile of the owner of the business/es in terms of:

3.1 ages;
3.2 type of business/es ; and
3.3 locations

Name: ________________________________
Age: _________________________________
Type of Businesses:
o Sole Proprietorship
o Partnership
Location: _____________________________

2) Does it matter that there are guidelines to be followed?

o Yes, it matters
o No, it doesn’t matter

3) Is it important to follow the government's protocols?

o Yes, it is
o No, it’s not

4) What adjustments you made to comply with IATF guidelines?

Ans.:
______________________________________________________
______________________________________________________
____________________________________
 5) What are the effects of following the IATF guidelines on the way owners operate
their small business/es?
Ans.:
______________________________________________________
______________________________________________________
____________________________________

DATA ANALYSIS METHOD

The preparation of a quantitative research approach to analyzing, interpreting, and presenting

data obtained from an online questionnaire is summarized in this presentation. The quantitative
data would be analyzed to assess their current experience with the pandemic and how well they
were able to meet the IATF guidelines.The rationale for using a descriptive statistical approach
to quantitative data analysis is discussed by demonstrating the power of leading social sciences
data processing tools used to analyze and present research findings, as well as evidence from
similar quantitative methods in the research literature.A conclusion synthesizes the different
methods used in successful quantitative data analysis preparation and shows how meticulous
planning can contribute to more accurate study results and outcomes.