FACTORS AFFECTING THE GROWTH OF SMALL BUSINESSES IN THE

MIDST OF PANDEMIC IN INDANG, CAVITE

Submitted to the Faculty of

Indang Christian Academy
Alulod, Indang, Cavite

In partial fulfilment
of the requirements in Research Project for the Academic Track
(Accountancy and Business Management Strand)

JILIANE RIDGE MOJICA

KRISSELYN REIGNE MORALES
DAN RAINIEL PELLOS
April 22, 2022
 INTRODUCTION

Background of the Study

Small businesses are the engine that drives the economy. It generates jobs and is a

valuable asset to the local community. A striving and successful small business equate to a

higher local tax collection, and it also makes the best use of local commodities (“The

Importance of Small Businesses to Local Economies”, n.d.). Furthermore, small enterprises

are likely to be the first rung on a businessman's ladder before ascending to a much higher

level of the business realm. Nike, Microsoft, Jollibee Corporation, Adidas, and many other

well-known successful corporations began as small businesses. Having that said, it can be

concluded that entering a small business is the start of a great story. However, because of the

COVID-19 pandemic, a lot of small business has shut down. They were not given the chance

to improve and be molded to grow. The pandemic has taken away their opportunity to rise

and reach the peak of their success. Unfortunately, they ended at the start of their great story.

According to De Jesus (2020), people are more adventurous and love to try new tastes

and experiment with new flavors. They love refreshing, new, exciting, and cool flavors. This

is why people have openly embraced and welcomed the milk tea beverage that is undeniably a

craze today. It has undoubtedly captured the hearts of people around the world because of its

health benefits, store ambiance, and low price offers. With the increasing demand for milk

tea, lots of entrepreneurs have put up tea houses everywhere. The number of milk tea

establishments has grown all around the world. Having stated that, it is not surprising that the

burgeoning milk tea business has faced a major challenge as the COVID-19 strikes and puts

every country's economy at risk. As it is a growing craze all over the world, every country

with a teahouse enterprise has faced this challenge. Unfortunately, milk tea shops have

suffered a lot to the extent that some have chosen to cease operating and just closed down.
 The milk tea industry is in a bad state all over the world. The government has no

choice except to impose social distancing for everyone, even milk tea shops, due to the

COVID-19 pandemic. Transportation delays occurred as a result of insufficient personnel and

reduced customer visits to milk tea shops during the lockdown, hurting the supply and

demand of various milk tea stores. Although the Philippines was the second-most populous

country in Southeast Asia in terms of bubble tea drinkers, it is not impervious to the problems

that milk tea shops have faced. There has been news of milk tea stores closing because of the

pandemic, such as the Chemistea QC branch. However, due to the Filipino people's natural

resilience and resourcefulness, many milk tea establishments continued to operate. For

instance, Hello KitTea Garden, a small milk tea establishment in the Philippines, is utilizing

all available resources to guarantee that the business survives the current crisis. Not only did

Hello KitTea Garden milk tea shop survive the crisis due to its tenacity, but numerous milk

tea shops in the Philippines continued to prosper and serve their clients despite the crisis.

As milk tea customers who have witnessed how milk tea shops struggle right in front

of their eyes, the researchers are curious about what distinguishes striving milk tea shops that

have continued serving their customers despite the difficulties they have faced from those that

have closed down after being faced with a crisis. They are curious and eager to learn about

the factors influencing small business growth in the midst of the COVID-19 pandemic.

Furthermore, as an Accountancy and Business Management student who yearns to work in

the business world, the researchers are optimistic that the findings of the study will help them

succeed when they become owners of their own businesses in the future. They want to learn

the secrets of how to build a strong business that will not budge even when faced with a

challenge.

Statement of the Problem

This study will generally aim to determine the Factors Affecting the Growth of Small
Businesses in the midst of the COVID-19 Pandemic.

Specifically, it will seek to answer the following questions:

 1. What is the socio-demographic profile of the responding small business owners in
terms of:
1.1 age;

1.2 gender; and

1.3 monthly income.

2. What are the factors that affect the growth of small businesses in the midst of
COVID-19 pandemic?
3. What are the effects of these factors in terms of:
3.1 income;

3.2 demand;

3.3 consumers;

3.4 employees; and

3.5 competition?

4. Is there a significant relationship between the factors that affect the growth of small
businesses in the midst of COVID-19 pandemic and the effect in small businesses in
terms of:
4.1 income;

4.2 demand;

4.3 consumers;

4.4 employees; and

4.5 competition?

Objectives of the Study

Generally, this study will aim to identify the Factors Affecting the Growth of Small
Businesses in the midst of the COVID-19 Pandemic.

Specifically, this study will aim to:

1. To identify the corresponding socio demographic profile of the responding small

business owners in terms of:
1.1 age;

1.2 gender; and

 1.3 monthly income.

2. To determine the factors that affect the growth of small businesses in the midst of
COVID-19 pandemic.
3. To determine the effects of these factors in terms of:
3.1 income;

3.2 demand;

3.3 consumers;

3.4 employees; and

3.5 competition.

4. To determine the significant relationship between the factors that affect the growth of
small businesses in the midst of COVID-19 pandemic and the effect in small
businesses in terms of:
4.1 income;

4.2 demand;

4.3 consumers;

4.4 employees; and

4.5 competition.

Hypotheses

In the line with the information presented, the researchers will come up with the null

hypothesis:

Ho There are no significant relationship between the factors that affect

the growth of small businesses in the midst of COVID-19 pandemic

and the effect in small businesses in terms of income, demand,

consumers, employees, and competition.

Conceptual Framework of the Study

This section will show the conceptual paradigm to present the figure of the study:
 Effect in small
businesses in
Factors
terms of:
Affecting the Growth of
Growth of small
income
Small businesses in
demand
Businesses in the midst of
employee
the Midst of pandemic
competition
Pandemic
consumers

Figure 1. Conceptual Framework of the Study

Figure 1 emphasizes the concept of this research entitles “Factors Affecting the
Growth of Small Businesses in the Midst of Pandemic”. The research paradigm consists of
the Independent Variable, Intervening Variable, and Dependent Variable. In this study, the
researchers will determine the relationship of factors affecting the growth of small businesses
in the midst of pandemic and the effects of the factors in small business’ income, demand,
employee, competition, and consumers. It will also establish whether the mentioned points
can assist small businesses in growing during the COVID-19 pandemic.

Significance of the Study

This study would be beneficial to the following individuals:

Business Owners. The result of this study will help them to know more
about the growth and the stand of a business in the midst of the pandemic and
other circumstances that will give them some glimpse about the strategies and
decisions they will make.

Future Business Owners. The result of this study will serve as a basis and
will help future business owners to know more about the different factors that
may affect the milk tea shops. They can use it to gather further information
for their entire work. The outcome of this study will help them to formulate
ideas that can be used in constructing a business.
 Entrepreneurs with Failed Business. The outcomes of this study will allow
business owners who have lost their business to learn from businesses that
have thrived in the face of overwhelming odds. It will teach them how to
prevent going out of business if they chose to be in business realm again.

Future Researchers. The findings of this study will be used as a guide for
researchers who want to continue the research. They can utilize it to acquire
additional data for their entire project. The findings of this study will assist
them in formulating concepts that can be used in research articles.

ABM Students. The findings of this study will provide ABM students with
an understanding of how businesses work, as well as insights into the issues
that businesses confront, such as the COVID-19 pandemic, and how to solve
them. It will provide them with information on factors that can help
businesses flourish even during a crisis, so that if the ABM students decide to
pursue a career in business, they will not be confused or bewildered.

Teachers. The results of this study will serve as a foundation for teaching
Accountancy and Business Management (ABM) students and future business
owners how to identify the best strategies when formulating a business.

Scope and Limitation of the Study

This study basically concentrated on the factors affecting the growth of small

businesses in the midst of COVID-19 pandemic. The study will be conducted in the second

semester of the school year 2021-2022 at Indang Christian Academy. The entire study will

mainly focus on identifying the factors affecting the growth of small businesses in the midst

of COVID-19 pandemic and determining how the identified factors affect the income,

demand, consumers, employees, and competitions of small enterprises during pandemic.

There may be other aspects in a business that are affected by the factors affecting the growth

of small businesses in the midst of COVID-19 pandemic that are not included in this study.

When it comes to small businesses, there are many different types. This study, however, will

not be extended to other types of small enterprises other than milk tea shops.
 The study will only be limited to the Business owners in Indang, Cavite because it is

the most feasible locale for the researches. The study will focus on a group of milk tea shop

owners in Indang, Cavite, whose business has been thriving and growing even before the

COVID-19 pandemic outbreak until now.

Definition of Terms

Business Owners. Refers to the person in charge of the business’ operations. They

are small-business owners who run milk tea shops during the COVID-19 pandemic.

Competition. A contest, match, or rivalry between two or more milk tea

establishments.

Consumer. A person who purchases or consumes milk tea from a milk tea shop.

Covid-19 Pandemic. Refers to the most recently discovered coronavirus-caused

infectious disease. It is a crisis that affects a wide range of people in businesses such

as milk tea establishments.

Demand. The number of consumers willing and able to purchase products at various

prices during a given time period.

Economy. An area of the production, distribution and trade, as well as consumption

of goods and services by different agents.

Employees. They are the tea sommelier, tea brewer, server, cook, or any other

worker who aids in the operation of milk tea shops. They are people who work for a

wage or a salary.

Income. A sum of money received on a regular basis for work or investment.

Local Economy. A peer-reviewed journal operating as an interdisciplinary forum for

the critical review of policy developments in the broad area of local economic

development and urban regeneration

Milk Tea Shops. It is a collection of teas and tea-based drinks from Indang, Cavite.

Small Business. Milk tea shops with a small number of employees and/or a low

annual revenue.