Professional Documents
Culture Documents
in Tarlac City
Professor
Prepared by:
Cadiang, Veronica Mae
Calces, Vynnalyn Rose
Castillo. Kaycie
Tiqui, Kim
Suba, Angelica
2021
Chapter 1
Introduction
Year 2020 is known to be one of the toughest year we encounter because of the
pandemic. This pandemic is caused by the Novel Coronavirus and the outbreak started
from Wuhan, China in the late 2019. As a safety precaution, quarantine was facilitated all
over the world because the virus is said to be air-borne. As the number of cases begin to
bloom each day, businesses, most especially the small ones, start to face challenges
within the now complex environment. Their financial performance was really affected
because of what happens, no one denies how their company performs. The Coronavirus
outbreak gave the most economic shock since the World War I.
School of Law large companies or mega corporations may be the only ones profiting in
the pandemic. Large businesses have been taking market shares from small businesses,
leaving small businesses the most affected amidst the pandemic. The pandemic came in
unexpectedly, and most businesses were not ready for the sudden business shutdown, not
having their business strategies thoroughly planned by the time the crisis hit. An effective
business resiliency plan will ease the economic damage of the lockdown, this will help a
business recover from potential threats. Businesses were shut down for two consecutive
months in the Philippines. The lock down occurred from March to May of 2020. Because
of this sudden lockdown, lesser people were allowed outside, thus creating an
unfavorable consumer rate for businesses. According to the Department of Trade and
Industry, about 90,000 small businesses were shut down due to the pandemic. An
estimate of 4.6 million Filipinos were unemployed by July of the year 2020.
A World Bank’s (2020) digital economic report this 2020, Philippines as a third-
world country is greatly affected in the global pandemic outbreak especially in its
economy. Businesses heavily relied on digital selling due to the mass lockdowns, but
micro-businesses or also known as low budget businesses faced the most consequences.
Micro-businesses are usually owned by low to mid class people that are mostly incapable
of providing the best internet speed and lack digitalization skills to sell their products.
Due to this crisis, most micro-businesses didn’t make it to the survival of the fittest
Foreign Abuselidze (2020), enunciated that the pandemic replaced the traditional
existing flow of economy that is now called pandeconomic (pandemic + economy), that
reduces the health risk of every business’ (micro & macro) owners and employees.
Though most of Europe are capable of using the digital method of businesses, there are
still massive closures of small scale businesses due the low demands of their products.
Businesses have been exposed to various challenges during the global pandemic, and
their response to this disruption has impacted their resilience as well as their chances to
overcome this crisis. Small and medium-sized enterprises (SMEs) are changing their
have been hit particularly hard. This research investigates how SMEs operating in service
industries have been coping with the disruptions caused by the COVID-19 pandemic
The COVID-19 imposed a massive threat in the entire economic industry, both
local and international. Some countries suspended trades with other countries, proposed
travel bans, limited all transactions and interactions with other businesses, most
especially those which are non-essential (e.g. anything except for food, medicine, water,
and other necessities.) One of the greatest consequences of the lock down is a huge 7 per
cent decline in the Philippines’ Gross Domestic Product – the worst rate to occur within
the past 36 years. (de Vera, 2020) The Philippines’ debt also ballooned to Php 9.615
trillion as of end-August 2020, which is 24.4% greater than that of December 2019, no
Businesses were shut down for two consecutive months in the Philippines. The
lock down occurred from March to May of 2020. Because of this sudden lockdown,
lesser people were allowed outside, thus creating an unfavorable consumer rate for
businesses. According to the Department of Trade and Industry, about 90,000 small
businesses were shut down due to the pandemic. An estimate of 4.6 million Filipinos
were unemployed by July of the year 2020. Lack of monetary support also has a big
bankrupt since the online learning modality was facilitated. In hopes to save the business,
they filed for a loan from the Department of Trade and Industry, however, it got rejected
Tarlac City due to the coronavirus is unprecedented. Stores, factories, and many other
businesses have closed by policy mandate, downward demand shifts, health concerns, or
other factors. Many of these closures may be permanent because of the inability of
owners to pay ongoing expenses and survive the shutdown. The impact on small
businesses around the world is likely to be severe. The early effects of COVID‐19 on
small business and entrepreneurs are not well known because of the lack of timely
business‐level data released by the government. This paper addresses this limitation by
creating estimates of the number of business owners from Tarlac City. Using these timely
data, I examine how COVID‐19 impacted small business owners in mid‐April 2020 the
first month to capture the widespread shelter‐in‐place restrictions. I then expand the
analysis to include until 2021 of January as many barangays that had restrictions started
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
search for product–market fit and the hunt for new business models capable of surviving
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
City they are the one who are really affected to the pandemic especially on their financial
performance. There are small businesses that closes and there are still coping on. It is a
mere fact that these small businesses continues to grow bigger to provide everyone a
good quality products and services and a possibility, vice versa. Therefore, the
researchers would like to seek information regarding the Financial performance of small
1.2 Location
2.1 Capitalization
4. What is the implication of this study to other type of small business industries?
broader knowledge of small business financial efficiency. They would also be able to get
To the Small business industries. This research will help them understand what are the factors
To the Government. This research will help them understand the challenges of small business
To the Present. Especially those who are aiming to build a business who would benefit most, it
will serve as a model to them in managing their budget and survive the new normal
To the Future Researcher. The ideas presented can be used in new researchers' conduct or in
checking the validity of other similar results as reference data. This research will also act as a
The focus of this study is to determine the financial performance of small business
industries during Covid 19 pandemic in Tarlac City. The researcher aims to identify the business
industries affected, setting and the length of their operation in the market. The study also
concentrates on how may the financial performance be describe inline with capitalization,
income, losses and expenses. This study aims to include the implication to the other type of small
business industries in Tarlac City. 30 out of hundreds of small business industries were used to
be respondents in conducting the research. The study limits its coverage in first 30 small industry
found in Tarlac City. Each of the business will be given the same likert scale questionnaire just
This section contains the conceptual definition of the terms use in the study. The
operational definition of some terms use within the context of the study is also presented in here.
Asset- property owned by a person or company, regarded as having value and available to meet
Capitalization- the provision of capital for a company, or the conversion of income or assets
into capital.
Financial Performance- is a subjective measure of how well a firm can use assets from its
Income- the consumption and saving opportunity gained by an entity within a specified
proprietorships that have fewer employees and/or less annual revenue than a regular-sized
business or corporation.