RESEARCH IN DAILY LIFE

(TEAM DOS)

CHALLENGES ENCOUNTERED
IN STARTING A BUSINESS DURING
PANDEMIC

LEADER:
 SALINGAY, RISHA MAE
MEMBERS:
 DEGOMA , BIEN JOSAPHAT
 BONJE , ERLYN
 GONZAGA , RENILYN
 GUIRITAN , MAXINE LOIZE
 VILLANUEVA , RONALYN
 CHAPTER 1

CHALLENGES ENCOUNTERED

IN STARTING A BUSINESS DURING PANDEMIC

Rationale

A business is delineated as an organization or enterprising entity engaged

in commercial, industrial or professional activities. Business can be for profit-

entities or they can be non-profit organization that operate to fulfill a charitable

mission or further a social cause. These are the efforts and activities of

individuals to produce or sell goods and services for profit.

Businesses is earthshakingly important to a country's economy because

this provides both goods and services and jobs. Businesses do these things

much more efficiently than individuals could on their own. Business studies helps

you to make more informed decisions in the everyday business of living. It gives

you better understanding of the world of work. It encourage you to think about

how and why people start up in business and why you too might also consider

starting a business. Business ownership provides them with a sense of stability

for their features and future of their families and some created businesses to help

secure their retirements or legacies to their children. They take tremendous pride

in the businesses they have created and are in it for the long haul.
 Starting a business might be extremely difficult when facing all the

challenges or struggles. Nobody who starts their first business has experience in

starting a business. Starting a business is hard work, requires a lot of

determination and learning, and only pays off in the long term. Customers may

"like" a product, but will generally only pay for things they "need," physically or

emotionally. The hardest part of growing any business is getting people to know

that you exist. Historically, you can find that many of the most successful

companies today are started by inexperienced entrepreneurs. Starting a

business can be very exciting. But it is merely important to do your homework,

and take measured meticulous steps. Start small and take incremental steps at a

time.

The rapidly evolving threat around the COVID-19 virus, commonly referred

to as coronavirus, is impacting the business and investor community across the

world. The global and interconnected nature of today’s business environment

poses serious risk of disruption of global supply chains that can result in

significant loss of revenue and adversely impact global economies.

The COVID-19 outbreak is a sharp reminder that pandemics, like other

rarely occurring catastrophes, have happened in the past and will continue to

happen in the future. Even if we cannot prevent dangerous viruses from

emerging, we should prepare to dampen their effects on society. 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.

None of previous researches has examined the disadvantages in starting

a business in the pandemic. Researchers are supremely interested to know and

determine the challenges among people starting businesses in the pandemic just

to sustain their necessities. It is preemptory to conduct this research considering

the respondents' experiences not just to be knowledgeable about it but also to

help businesses and let them inspire people like them who are starting a

business to not give up or hideaway on the challenges that may come through

their journey. This study would like to identify the challenges and struggles

encountered by business owners during this time of pandemic. It will also search

for the strategies and techniques that can help keep and sustain the business.

Review of Related Literature

Business is defined as an organization or enterprising entity engaged in

commercial, industrial, or professional activities. Businesses can be for-profit

entities or they can be non-profit organizations that operate to fulfill a charitable

mission or further a social cause.

The term "business" also refers to the organized efforts and activities of

individuals to produce and sell goods and services for profit. Businesses range in

scale from a sole proprietorship to an international corporation. Several lines of

theory are engaged with understanding business administration including

organizational behavior, organization theory, and strategic management. A

business is defined as an organization or enterprising entity engaged in

commercial, industrial, or professional activities. Businesses can be for-profit

entities or non-profit organizations. There are various forms of a business, such

as a limited liability company (LLC), a sole proprietorship, a corporation, and a

partnership. Businesses can range from small operations operating in one

industry to large operations operating in many industries around the world.

Business

Generally, a business begins with a business concept (the idea) and a

name. Depending on the nature of the business, extensive market research may

be necessary to determine whether turning the idea into a business is feasible

and if the business can deliver value to consumers. The business name can be

one of the most valuable assets of a firm; careful consideration should thus be

given when choosing it. Businesses operating under fictitious names must be

registered with the state.

Businesses most often form after the development of a business plan,

which is a formal document detailing a business's goals and objectives, and its

strategies of how it will achieve the goals and objectives. Business plans are

almost essential when borrowing capital to begin operations. It is also important

to determine the legal structure of the business. Depending on the type of

business, it may need to secure permits, adhere to registration requirements, and

obtain licenses to legally operate. In many countries, corporations are considered

to be juridical persons, meaning that the business can own property, take on

debt, and be sued in court.

Business Structures

Many businesses organize themselves around some sort of hierarchy or

bureaucracy, where positions in a company have established roles and

responsibilities. The most common structures include sole proprietorships,

partnerships, corporations, and limited liability companies (LLC), with sole

proprietorships being the most prevalent.

A sole proprietorship, as its name suggests, is a business owned and

operated by a single natural person. There is no legal separation between the

business and the owner; the tax and legal liabilities of the business are thus that

of the owner. A partnership is a business relationship between two or more

people who join to conduct business. Each partner contributes resources and

money to the business and shares in the profits and losses of the business. The

shared profits and losses are recorded on each partner's tax return. A

corporation is a business in which a group of people acts together as a single

entity; most commonly, owners of a corporation are shareholders who exchange

consideration for the corporation's common stock. Incorporating a business

releases owners of the financial liability of business obligations; however, a

corporation has unfavorable taxation rules for the owners of the business.

For this reason, a relatively new (first available in Wyoming in 1977 and

other states in the 1990s) business structure, a limited liability company (LLC), is

available; this structure combines the pass-through taxation benefits of a

partnership with the limited-liability benefits of a corporation.

Advantages

As a business owner, you’re your own boss. You can’t get fired. More

importantly, you have the freedom to make the decisions that are crucial to your

own business success. Owning a small business gives you certain lifestyle

advantages. Because you’re in charge, you decide when and where you want to

work. If you want to spend more time on non-work activities or with your family,

you don’t have to ask for the time off. If it’s important that you be with your family

all day, you might decide to run your business from your home. Given today’s

technology, it’s relatively easy to do. Moreover, it eliminates commuting time. In

spite of high financial risk, running your own business gives you a chance to

make more money than if you were employed by someone else. You benefit from

your own hard work.

As a business owner, you’ll be involved in all aspects of your business.

This situation creates numerous opportunities to gain a thorough understanding

of the various business functions. As a business owner, you’ll be able to work in

a field that you really enjoy. You’ll be able to put your skills and knowledge to

use, and you’ll gain personal satisfaction from implementing your ideas, working

directly with customers, and watching your business succeed.

Purposes

Business as a field of study is very practical, it is the study of applying

ideas to create or add value to a product or service in order to generate a profit.

Business majors learn how to research information using quantitative skills, and
then develop ideas based on that information to solve problems. Business also

involves people, customers and employees so communication and interpersonal

skills are vitally important as well.

Review of Related Studies

Kuckertz et al (2020) conducted a study about, Startups in Times of Crisis

– A Rapid Response to the COVID-19 Pandemic via video platform Zoom during

the pandemic with German Intreprenuerial Ecosystem workers. The purpose of

the study was to determine the forms of adversity facing innovative startups in

light of an immediate lockdown). To understand what coping strategies startups

employ in the course of crisis management. To identify specific policy measures

designed to protect startups during the COVID-19 crisis, be they called for or

actioned. The lockdown measures as a response to the spread of the new

coronavirus threaten the existence of many innovative startups. A rapid response

research where they revealed the challenges entrepreneurs face as a

consequence of the crisis. How entrepreneurs are dealing with the effects of the

crisis and what they are doing to protect their ventures. Finally, they present

measures that could be utilized by policymakers to assist entrepreneurs facing

challenges. The research conducted suggests that while startups are

successfully leveraging their available resources as a first response to the crisis,

their growth and innovation potential are at risk. Therefore, policy measures

should not only provide first aid to startups by alleviating the pressure caused by

constrained cash flow, but also involve long-term measures embedded in and
supported by the wider entrepreneurial ecosystem to ensure rapid recovery and

growth.

Lui et al (2020) studied, The Challenges and Opportunities of a Global

Health Crisis: The Management and Business Implications of COVID-19 from an

Asian Perspective globally during the pandemic on March 11, 2020. The purpose

of this research is to effectively deal with a crisis, we need resilience. To

effectively capitalize on the opportunities it presents, we need appropriate (and

often new) organizational capabilities, innovation, and entrepreneurship. In this

reseach, they first articulate the importance of resilience, strategic agility, and

entrepreneurship in the context of the fight against COVID-19. Then, with the

focus on China, South Korea, and Singapore, we discuss the impact COVID-19

is having on economies and businesses, governmental support for businesses

and societies, and implications for global supply chain disruptions. They hope

that the global health system will recover quickly, and that the world economy will

be revitalized with the contributions and collaboration of science (including social

science), industry, and governments. This research revealed the impact of the

pandemic on economic and businesses, the resilience, strategic agility, and

entrepreneurship in combating a global health crisis. To conclude, they’ve

discussed two trends for the future due to COVID-19: the decoupling from

China’s supply chains and the relocation of strategic manufacturing operations

out of China, and its implications for business and society.

 Turner and Akinremi (2020) had conducted a study about, The Business

Effects of Pandemics –A Rapid Literature Review during the pandemic on

February 2020. The purpose of this research is the importance of understanding

the effects of the COVID-19 pandemic on SMEs specifically stems from three

main factors. First, larger firms with more significant financial resources may be

better able to survive shocks than SMEs, which are often characterised as

having limited resources and structural features that expose them to risks that

may be detrimental to their business (Verbano and Venturini, 2013). Second,

operating across a wide range of sectors, failures among SMEs have the

potential to impact upon the normal functioning of daily life, be it through the

disruption of service provision, or through the many supply-chain networks which

exist (Sullivan-Taylor and Branicki, 2011). Third, SMEs have disproportionately

driven job creation since 2010 (Nesta, 2017), and the dynamism of the SME

sector will be critical to re-building growth post-crisis. This research had revealed

that the number of hours worked falls sharply due to illness and fear of infection,

reducing aggregate supply. Lockdowns lead to lower retail sales and drastically

reduced leisure activities (visits to sporting events, restaurants, theatres etc.).

Government intervention to halt the spread of a virus affects supply chains, which

in turn impacts upon international trade. Firms experiencing falling sales and

production experience falling profits due to fixed short-term costs and falls in

revenue. Labour shortage was a challenge for both upstream and downstream

supply chain links. They had concluded that mortalities reduced the supply of

labour, increasing the marginal product of labour and capital per worker, in turn
increasing real wages. It is investigated that decreasing output will result in

slower global growth, and financial capital will move from the most affected

economies to the less affected ones.