Chapter II

LOCAL STUDY

According to Joseph Anthony Lim from The Philippine economy during the COVID Pandemic. The

impact of the COVID epidemic and the ensuing severe and minor lockdowns on the Philippine economy

at various points between March 2020 and early September 2020 is discussed and analyzed in this

article. The COVID pandemic's tight lockdown (Enhanced Community Quarantine), which lasted from

March 17, 2020, to May 31, 2020, caused the largest unemployment and greatest decline in Philippine

GDP in recorded history. In the second quarter of 2020, something happened. The report demonstrates

that this strict lockdown had an impact on 90% of the labor force. The Bayanihan Acts 1 and 2 represent

the largest Social Amelioration Program (SAP) that the Philippine government has ever enacted and

carried out. A bill is needed, according to the article, to prevent the threat of widespread loan defaults,

bankruptcies, and possible financial disaster brought on by the severe recession. The dispute between

more traditional economic managers and lawmakers and NGOs that favor a more robust and all-

encompassing fiscal stimulus for the struggling economy is further covered in the study. It concludes

with a discussion of how to pay for the budget deficits that the epidemic and the stimulus measures will

cause.

Because of the COVID Pandemic the employment and the businesses in our Society comes down, many

of people lost their jobs because the government Implement lockdown for our Country. This

circumstances result to changes to our economic growth and to standard of living of every Individual. A

lot of businesses in our economy forced to closed because theirs no consumers that patronized to their

products and businesses, So this problem cause a lot of changes in our society specially in our economy.

According Lara Gianina Reyes a five-year average GDP growth of 6.5 percent, the Philippines had one

of the fastest-growing economies. Although the COVID-19 crisis resulted in the declaration of a

statewide lockdown and significant economic disruptions for the Philippines, including a decline in

growth, employment, and overall productivity. As a result of the pandemic's numerous business

closures, disruptions in the supply chain, and significant employment losses, the private sector was

compelled to deal with its issues, particularly thth threat it posed to corporate continuity and survival.
The impact of the pandemic on the Philippine economy, the national pandemic response, and the scope

of public-private partnerships in COVID-19 response are all discussed in this article from the

perspective of the business sector. After the insights this article also examines pivots in corporate

strategy combined with a significant movement in corporate attitude toward new ways of doing business

and performing their obligations in society, as well as experiences shared by industry leaders and other

corporate executives.

According to Delfmann H. et al., Business creation is viewed as a way to secure (future) job prospects,

particularly in deteriorating regions. However, it is not immediately clear how new firm formation

affects employment. Do new businesses in these areas have the same an impact on employment as they

do in growing regions? Between 1996 and 2010, we separate the long- and short-term employment

effects of new firm creation in Dutch towns. We come to the conclusion that the regional context has a

significant impact on how new firm creation affects local employment. Additionally, it has been

demonstrated that new firms continue to be a significant source of employment possibilities in areas

with a mild population loss. Because of Job creation in different region, Its give a lot of opportunity for

those individual who doesn’t have a job or work. Job creation helps our economy to decrease the rate of

people who are unemployed and also job creation help us to lessen the problems that our country

encountering today such as poverty, hunger and the down fall of our economy. According to Alexander

S. Kritikos from his study entitled “Entrepreneurs and their impact on jobs and economic growth”.

Entrepreneurship is crucial to the growth of the economy. In economies where entrepreneurs can work

flexibly, develop their ideas, and profit, the benefits to society will be greater. When faced with

significant regulatory barriers, entrepreneurs either relocate to nations that encourage innovation or

switch from wealth-generating to non-wealth-generating industries. Governments need to reduce red

tape, simplify laws, and be ready for the negative effects of layoffs in incumbent enterprises that fail due

to the increased competition in order to recruit productive entrepreneurs. When new businesses enter the

market, they create new jobs, which helps to boost employment growth. After separating all the possible

effects, research has demonstrated that there is a more intricate, S-shaped effect over time in addition to

this initial effect. The new jobs that are generated by new enterprises have a direct impact on
employment. After this early stage, there is typically a period of stagnation or even a downturn as new

businesses take market share from older companies that are unable to compete and as some new entrants

fail. The enhanced competitiveness of suppliers results in positive increases in employment after this

intermediate phase of potential failure and displacement of existing businesses. The effect of new firm

formation on employment has ultimately subsided about ten years after start-up. The US, a number of

European nations, as well as a sample of 23 Organization for Economic Co-operation and Development

(OECD) nations, have all shown this type of wave pattern. In this study shows the good effect of

generating and creating new jobs in our economic growth. Because of new businesses that emerging in

our society it’s give a lot of opportunities to help our economy on increasing employment rate in our

community. Enterprises that creating more jobs have a direct impact on our economy because they

lessen the people who doesn’t have a work and they decrease the curve of unemployment rate here in

our Society. Furthermore according to Rotar L. et al., From their study “Contributions of small and

medium enterprises to employment in the European Union Countries. ” The primary goal of the study is

to determine whether employment in small and medium-sized businesses (SMEs) has an impact on

employment across the European Union (EU-28) from 2005 to 2016. The panel econometric results

show a substantial relationship between SMEs' employment in the service sector and employment across

the board, while the impact of SMEs' employment in industry sectors was determined to be

inconsequential. The results are solid despite the fact that the EU-28 countries went through an

economic crisis during the study period, highlighting the significant role that SMEs can play in

increasing employment and lowering unemployment even in situations where the macroeconomic

enabling environment may not be as favorable. This study uses panel data models to examine if SME

employment has an impact on overall employment in the EU. We have further divided SME

employment into SME service sector employment and SME industry sector employment to give insight

into which SME sector employment contributes more to overall EU employment. The findings of the

applied advanced panel data modeling approach used to examine the employment contributions of

SMEs in the EU-28 nations are relevant in terms of both practice and policy. Enhancing SME

employment potential improves society and human well-being as well as the economy as a whole by

reducing demand on social transfers (OECD, 2017). Simplifying the regulatory and policy environment
for SMEs and removing any residual obstacles to their development are key to increasing the

employment potential of SMEs. This study is crucial for addressing targeted and structural policies that

help SMEs take advantage of new opportunities in a globalized, digital economy that has an impact on

employment, investment, and growth. SME contributions to employment, innovative activity, and

economic growth have been the subject of several studies. SMEs have been identified as the

predominant business structure and the main source of employment (OECD, 2017). Using longitudinal

data for Swedish regions, Andersson and Noseleit (2011) investigate the impact of start-ups on job

growth. They claim that the industry in which start-ups operate is significant and that the industry in

which start-ups operate is where the start-ups' beneficial impact on employment change is most obvious.

When cross-sector comparisons are taken into account, the employment effect is either positive or

negative.

Foreign Study

According to Cumberland Area Economic Development Corporation, The effects of small and local

companies on the community go beyond the once-a-year Small Business Saturday awareness programs.

Many huge firms are unable to communicate with their neighbors on both a corporate and personal level

and reflect the character of the town. Celebrating a small business means more than just praising its

quirky or hipster clientele; it also means appreciating the positive influence it has on your neighborhood

and local government, as well as all of the independent and distinctive goods and services it offers that

can't be found with larger corporations. There are more local jobs accessible as there are more small

enterprises in the area. Local employment is excellent since it minimizes the distance that employees

must commute or travel to get to work. By creating local jobs, you may help your community's

unemployment rate go down, which will boost your economy. You can boost work prospects at other

neighboring small businesses in addition to creating more local jobs within the existing small

businesses. Townspeople are more likely to shop around from business to business when there is a lively

community with small companies spread out rather than shopping for all their needs at one department

store. Small businesses require more labor to be productive the more attention they attract. In this study

they shows the Importance of every enterprises even it’s a small businesses it can also affect and help
the economy in growing. Small businesses also providing opportunities and work for all individuals in

their community, its also help us to easily find jobs because it’s not far from us, so because of that it can

really help us to curve the rate of unemployment rate and to help us to boost our economic growth.

According to Irma Tkemaladze from her study entitled “ Employment as an important factor for

Increasing Inclusive economic growth and living standards” The function and significance of effective

employment in raising population living standards and inclusive economic growth are discussed in the

article. Georgia's employment issues and difficulties are examined. In particular, the emergence of

creative employment structures and the causes preventing their formation are investigated, along with

the elements that contribute to effective employment. The paper presents evidence to support the claim

that employment, and particularly effective employment, is the primary driver of inclusive economic

growth, which should significantly reduce poverty and inequality, guarantee the welfare of the populace,

and encourage their full participation in activities beneficial to society. Therefore, the implementation of

an active employment-related state policy—which primarily refers to the development of labor market

infrastructure, the reduction of chronic unemployment, the achievement of a balance between the

demand and supply of labor—will be crucial to the country's economic development, the creation of

jobs, and the eradication of poverty. This study tackles the importance of employment in our society,

Employment is one of the factor that can affect our economy also our daily living. Employment can help

us to avoid some societal issues like Poverty and Inequality because if all of the citizens are employed

we can provide our personal and daily needs and also we can have a same rights with other people, we

can avoid Financial Inequality because we can provide money for our own and also for our Family.l

According to Donthu N. The COVID-19 outbreak serves as a stark reminder that pandemics, like other

incredibly uncommon tragedies, have occurred in the past and will continue to do so in the future. Even

if we are unable to stop the emergence of harmful viruses, we should be ready to mitigate their effects

on society. There have been serious economic repercussions from the current outbreak all around the

world, and it doesn't appear that any nation will be spared. In addition to having an impact on the

economy, this also has a negative impact on society as a whole, which has drastically altered how both

firms and customers behave. This special issue represents an international effort to deal with some of the
societal problems brought on by the pandemic. There are a total of 13 papers that discuss various

business sectors (such as tourism, retail, and higher education), alterations in customer behavior, ethical

concerns, and facets of employees and leadership.

According to Storey D. From his study entitled “The birth of new firms-does unemployment matter?”

The goal of this study is to review the most important current work identifying the factors that influence

the formation of new businesses and the part that unemployment plays in these factors. The paper does

this by drawing on two different streams of economics literature. The first body of literature comes from

the subject of industrial organization, where the structure-conduct-performance paradigm has been used

to investigate the role of entry. ye.commastmastmastmastmastmastmas, and The second body of

literature is more focused on the company as the unit of analysis and the effects of the macro-economic

environment, in contrast to the first method, which tends to use the industry as the unit of study and is

particularly interested in inter-industry comparisons. The most significant advancement for next study, it

has been determined, lies at the intersection of these two methodologies.

According to the study of Roy Thurik, Investigatiom is done into how the UK's industrial structure, and

more specifically, entrepreneurship, affects unemployment rates. The question is how much business

ownership, or entrepreneurship, can lower unemployment. We'll talk about the apparent distinctions

between the controlled economy and the entrepreneurial economy as well as the connections between

entrepreneurship and unemployment. Using a straightforward model of the correlation between

unemployment and the rate of business ownership, it will be concluded that the UK is a relative outlier.

The model is calibrated using recent data of some 23 OECD nations. It underestimates the decline in

unemployment in the UK in the decade 1982-1990. There are some justifications offered as to why this

would be the case.

REFERENCE

REFERENCE
Lim J. (2020) The Philippine Economy during the Covid pandemic.

https://scholar.google.com/scholar?

hl=en&as_sdt=0,5&q=creating+business+in+pandemic+in+philippines#d=gs_qabs&t=1673234580665

&u=%23p%3Duu4yv-EIE5sJ

Lara Gianina Reyes (2022) Philippine pribate sector response, strategies, and state business relations

toward economic recovery and growth post-Covid-19.

https://scholar.google.com/scholar?

hl=en&as_sdt=0,5&q=creating+business+in+pandemic+in+philippines#d=gs_qabs&t=1673234614535

&u=%23p%3D8LiKOGTAZ88J

Delfmann H. et al., (2016) The effect of new business creation on employment growth in regions facing

population decline.

https://link.springer.com/article/10.1007/s00168-015-0738-1

Alexander S.Kritikos(2020)Entrepreneurs and their impact on jobs and economic growth.

https://wol.iza.org/articles/entrepreneurs-and-their-impact-on-jobs-and-economic-growth/long

Rotar L. et al., (2019) “Contributions of small and medium enterprises to employment in the European

Union Countries.

https://www.tandfonline.com/doi/full/10.1080/1331677X.2019.1658532

Cumberland Area Economic Development Corporation (2022) "How small businesses Impact their

Communities."

https://cumberlandbusiness.com/news/how-small-businesses-impact-their-communities/

Tkemaladze I. (2017) “ Employment as an important factor for Increasing Inclusive economic growth

and living standards."

https://www.researchgate.net/publication/

333682076_Effective_Employment_as_an_Important_Factor_for_Increasing_Inclusive_Economic_Gro

wth_and_Living_Standards

Donthu N. (2020) "Effect of Covid 19 on Business and Research."

https://www.sciencedirect.com/science/article/pii/S0148296320303830