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Effects of Covid-19 Pandemic on

Selected Micro-Enterprises in Lucena City

A Thesis Proposal Presented to

The Faculty of Manuel S. Enverga

College of Business and Accountancy

In partial fulfillment of the requirements in

Thesis/Feasibility Study (BAC106)

By:

PIOLO MANUEL P. PELAEZ

Researcher

KRISTOFFERSON MARIE D. PALIMA

Researcher

April 2021
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APPROVAL SHEET

This Research entitled:

Effects of Covid19 Pandemic on

Selected Micro-Enterprises in Lucena City

Written and Submitted by KRISTOFFERSON MARIE D. PALIMA and PIOLO

MANUEL P. PELAEZ in partial fulfillment of the requirements for the subject

research in Thesis/Feasibility Study (BAC106) is hereby approved and accepted.

Approved by:

Review Committee

Mandy Baldovino
Adviser

ACKNOWLEDGMENT
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Words cannot express how thankful the researcher is to those people who

really devoted their time and effort to help the researcher come up with the

study. The researcher would like to extend our deepest gratitude to all those

people who made this research in one way or another.

Dr. Mandy Baldovino, thesis adviser, for the encouragement and

guidance, for sharing his professional expertise, and constructive criticisms in the

making of this study;

Rafael C. Ramos Jr. MEM for his never ending support and

encouragement to pursue this study and for being on our side through our

journey.

Sara Jane Elaine P. Pelaez MEM for her never ending support and

encouragement to pursue this study and for being on our side through our

journey.

The greatest appreciation and sharing of this milestone goes to our family.

Without their encouragement and support this would not have been possible.

There are many other friends and colleagues to be thanked for. So just know that

we appreciate each and every one of you.

Above all, to Almighty God

Thank you so much.

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TABLE OF CONTENTS

PRELIMINARIES

TITLE PAGE……………………………………………………………………….……...
APPROVAL SHEET………………………………………………………………….…..
ACKNOWLEDGEMENT…………………………………………………………….…...
TABLE OF CONTENTS………………………………………………………………….
LIST OF FIGURES AND TABLES……………………………………………………...

CONTENTS
1. Abstract...…………………………………………………………………………………………………………………..6
2. Background ……………………………………………………………………………………………………………....7
2.1 Rationale of Research....……………………………………………………………………………………….7
2.2 Purpose of the Research …...……………………………………………………………………………….11
2.3 Theoretical Framework …….………………………………………………………………………………..12
2.4 Literature Review ……………………………………………………………………………………………....14
2.5 Significance of the Study…………………………………………………………………………………....16
2.6 Definition of Terms …………………………………………………………………………………………….17
2.7 Scope and Limitation of the Study …………………………………………………………………….18
3. Description of Method or Approach …………………………………………………………………..….18
3.1 Research Design/Research Instrument/Data Gathering Procedures
…………………...18
3.2 Statistical Treatment of Data……………………………………………………………………………...20
3.3 Respondents/Units of Analysis/Subjects of the Study………………………………………...22
3.4 Sampling Design and Procedure ………………………………………………………………………...22
3.5 Assumption or Hypotheses………………………………………………………………………………...22
3.6 Data Analysis Plan ……………………………………………………………………………………………...23
3.7 Research Paradigm / Conceptual Framework…………..………………………………………...24
4. Results and Discussion …………………………………………………………………………………………..25
4.1 Profile of the Respondents ………………………………………………………………………………...25
5. Conclusion ……………………………………………………………………………………………………………….31
6. Recommendations …………………………………………………………………………………………………..31
7. References ……………………………………………………………………………………………………………….31
(yung mga page number ayusin mo nalang after matapos lahat and edit mo nalang sa table of contents)
APPENDICES
A. Curriculum Vitae of the Researcher
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B. Research Instruments

List of Figures and Tables

FIGURES

Figure 1 The Conceptual Framework Showing the Input - Process -

Output…………………………………………………………………………………..22

TABLES

Table 1 ………………………………………………………………………………….24

Table 2 ………………………………………………………………………………….25

Table 3 ………………………………………………………………………………….25

Table 4 ………………………………………………………………………………….26

Table 5 Effects of Covid19 Pandemic on Selected Micro-Enterprises with respect

to – Generation of Funds ……………….…………………………………………….27

Table 6 Effects of Covid19 Pandemic on Selected Micro-Enterprises with respect

to – Revenues ……………….………………………………………………………...27

Table 7 Effects of Covid19 Pandemic on Selected Micro-Enterprises respect to –

Budgeting…………………….…………………………………………………………27

Table 8 Effects of Covid19 Pandemic on Selected Micro-Enterprises with respect

to – Investments ………….……………………………………………………………28
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1. Abstract (isuggest na iremove nalang lahat ng

number ng mga header 1)

The study was focused on analyzing the effects of Covid19 pandemic of

selected micro-enterprises in Lucena City. The results shed light on both the

financial sustainability of many micro enterprises, and the significant impact

COVID-19 had on these businesses in the weeks after the COVID-19–related

disruptions began. The respondents from selected companies provided the best

information pertinent to the study. Factors were their knowledge and experience

of all the aspects related to their operations. The design of the study is

quantitative research whilst the data collection was based on the online surveys

distributed to the respondents and served as the primary instrument. There were

a total of 20 respondents from different enterprises, subjects of this research are

Micro, Small, and Medium Enterprises (MSME) in Lucena City. The data

gathered from the respondents were analyzed to answer the research questions.

This study looked into the effects of pandemic on the financial sustainability with

respect to -generation of funds, revenues, budgeting, investment and it was

concluded that, there is no significant difference on the effect of pandemic on the

financial sustainability when respondents are grouped according to profile.

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INTRODUCTION

2. Background

2.1 Rationale of Research

The COVID-19 pandemic is an unprecedented global crisis, affecting human

health and economic welfare across the globe. It is first and foremost a health

crisis, with governments around the world taking measures to prevent the spread

of the virus. Yet the pandemic has also resulted in a planet-wide economic

slowdown, affecting trade, investment, growth and employment. Small and

medium enterprise sales shrink by more and their cash drains faster than large

firms in the same sector and country. Among them, faster growing firms

experience the demand shock somewhat less severely, but they are more

exposed to international trade disruption, supply, and finance shocks. Yet, a

range of firm responses to the downturn seem to be out of reach. Fewer small

and medium-size enterprises, for example, start remote work, leaving their

workers exposed to health risks. To make it through the pandemic, the majority

of smaller firms do not turn to banks for loans; they need grants. Although

development finance is not enough to fill the financing gap, development finance

institutions are relevant -- in investment mobilization, demonstration, and know-

how as economies move toward recovery and rebuilding. Delivering these

requires rapid efforts to build partnerships and gather information in places where

development finance has been limited in the past.

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The World Trade Organization estimates that world merchandise trade in

2020 could fall sharply, between 13% and 32%. Estimated global losses in GDP

growth currently hover around 5 percentage points. Although the pandemic has

affected every corner of the world, the economic earthquake unleashed by

COVID-19 does not affect everyone in the same way. With fewer resources to

ride out the storm, MSMEs have been particularly vulnerable to the

repercussions of the crisis. Small businesses active in trade tend to be more

competitive and resilient. Yet many of them have been shaken by serious

disruptions in international supply chains.

The outbreak of Corona Virus disease-2019 (COVID-19) has severely

affected national and global economies. Various enterprises are facing different

issues with a certain degree of losses. COVID-19 had a major impact on the

economy. One of those major victims of COVID-19 outbreak are the micro, small

& medium-sized enterprises (MSMEs) because in comparison to large

enterprises, usually do not possess sufficient resources, especially financial and

managerial, and are not prepared for such disruptions likely to go longer than

expected (Bartik et al., 2020). MSMEs are the backbone of many economies

worldwide that provide income and employment generation to a large number of

people around the globe. Hence, many MSMEs are running out of stock, some

hardly continue to operate, and some will be running out of stock soon.

There’s no doubt that the COVID-19 pandemic has added to small business

challenges around the world, regardless of size, location, or funding. According

to Facebook’s new report on the State of Small Business surveyed 86,000

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owners, managers, and workers in companies across the US with fewer than 500

employees. It paints a clear picture of the many challenges that small businesses

are facing as a result of COVID-19. 

The economic effects of health crises and lockdowns at home and abroad

have been devastating. For every bankruptcy, closed store, unpicked crop or

drop in online orders, people will lose jobs and families will, in many cases, lose

their only income.

According to United Nations Philippines (2021, MSMEs comprise 99.5% of

business establishments in the Philippines and are employing approximately

63% of the country's workforce. In the past years, MSMEs were responsible for

40% of the country’s Gross Domestic Product (GDP). During the second quarter

of 2020 and almost four months since the community quarantine was put in

place, the country’s GDP sank to 16.5% as the Philippines experienced

recession due to the COVID-19 pandemic.

In the first MSME online forum organized by the Philippine Disaster

Resilience Foundation (PDRF) and UNDP Philippines through SIKAP

(Synergizing Recovery Initiatives, Knowledge, and Adaptation Practices for

MSMEs), the results of the survey were presented to more than 170 MSME

owners and development organizations. The survey also showed that out of the

285 respondents, 81% reported experiencing low consumer demand. This low

demand alongside shortages related to transportation and logistics, and lack of

financing capacity were cited as the primary challenges of MSME owners in

resuming their operations.

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Since the implementation of community lockdowns, MSMEs continued to

suffer from disrupted cash flow and continuing expenses, which led to income

losses. Close to 80% of the respondents reported a reduction in their average

monthly income from April to June compared to their average monthly income

prior to the pandemic. While 20% of the respondents tried to retain employees

with full pay despite income losses, their cash flow was so severely affected that

25% of them began to lay off employees. MSMEs started implementing adaptive

business measures. Among which are digitalization or the use of online platforms

for their business transactions, cost reduction, diversification of products and

services, utilization of non-cash payment options, and allowing employees to

work from home.

Among these recommendations were the integration of MSMEs in public

sector procurement, a balanced and complementing mix of monetary and fiscal

policies including wide-reaching government guarantees for MSME lending that

will support overall spending, and mechanisms to increase household

consumption in the country.  Other recommendations included addressing the

challenges in public transportation to ensure safe and efficient mobility of people,

products, and services, and the strengthening of supply chain management by

integrating more local suppliers.

This research was conducted to know the impact of Covid-19 Pandemic in

financial sustainability of selected micro enterprises in Lucena City. Solutions are

needed to give them the support they need to survive and continue to contribute

to the global economy. To raise public awareness of their contribution to

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sustainable development and the global economy, we focus on their needs and

how to support all micro business enterprises who experience this kind of

problem because of Covid-19 pandemic.

2.2 Purpose of the Research

The purpose of this research is to analyze the effects of Covid19 Pandemic on

selected micro-enterprises in Lucena City. Especially, the study will answer the

following questions:

1. What is the demographic profile of the respondents in terms of -

a) Age

b) Sex

c) Education

d) Years in operation

2. What is the Effects of Covid19 Pandemic on Selected Micro-Enterprises

with respect to -

a) Generation of Funds

b) Revenue

c) Budgeting

d) Investments

3. Is there a significant difference on the impact of pandemic on the financial

sustainability when respondents are grouped according to profile?

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2.3 Theoretical Framework

Due to the novelty of this pandemic and its effects, there seems to be limited

theoretical backing for businesses during such uncertainties. Craighead et. al.,

(2020), proposes that pandemics are qualitatively very different from

stereotypical business interferences; thus, intellectuals must sharpen their

theoretical tools in line with the new theoretical demands made of them and the

survival of MSMEs. The theoretical underpinnings of this study, though limited

because of the pandemic’s impact, are Resource Dependency theory and Real

Options theory.

Resource dependence theory (RDT) argues that businesses depend on

others within their environment for access to critical inputs such as materials,

labor, and cash (Pfeffer & Salancik, 1978). This theory is based on the principle

that an organization, such as a business firm, must engage in transactions with

other actors and organizations in its environment to acquire resources.

Enterprises react by putting in place strategies and structures that may decrease

or eliminate their dependence on external parties. While the strategies may have

proved workable for normal modes of operation and typical interferences, both

the structures and strategies may not handle the speed and nature of pandemics.

Dependence, therefore, generates uncertainty as the external parties may fail the

firm for various reasons.

Furthermore, while structures in place may be successful within typical

short-term disruptions, they may not have any advantage during pandemics that
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come with dynamic dependencies, (Craighead et. al., 2020). The extreme shifts

in supply and demand that characterized the COVID-19 pandemic were enough

to revise all equations; more so for the MSMEs.

Real options theory (Myers, 1977), has a focal point on how managers can

make better decisions when faced with unreliability; by creating a real option for

themselves in which they have an opportunity rather than a responsibility to take

daring decisions. Assuredly, pandemics such as COVID-19 have created the

highest level of uncertainty in modern history, therefore leaving the entrepreneurs

in dubious situations.

Some managers quickly utilized the opportunity by swiftly changing their

modes of operations, e.g., restaurants started offering to take away services

only, supermarkets started offering deliveries at no cost upon customers placing

online orders – hence the flexible businesses adopted a new normal which is

likely to progress beyond the pandemic. Some enterprises and economies have

exploited the situation to gain a competitive advantage; such as China that has

seized the opportunity to acquire European-based foundations as well as

technology (Rapoza, 2020). However, most small businesses make very minimal

profit margins and could not furnish this kind of incentive, pushing them further

into unfair competition as the more substantial companies took their market

share.
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2.4 Literature Review

The widespread closing of stores and businesses in the Philippines and

around the world due to the corona virus is unprecedented. Stores, factories and

many other businesses have closed by policy mandate or downward demand

shifts. Many of these closures may be permanent because of the inability to pay

ongoing expenses and survive the shutdown. The impact on small businesses

around the world is likely to be severe.

Most major industries faced large drops in the number of business owners

with the only exception being agriculture. Construction, restaurants, hotels and

transportation all faced large declines in the number of business owners due to

COVID-19. Simulations reveal that the concentrations of female, black, Latinx

and Asian businesses in industries hit hard by the pandemic contributed to why

losses were higher for these groups than the national average loss. Overall,

these first estimates of impacts of COVID-19 on small businesses from the April

2020 CPS indicate that losses were spread across demographic groups and

types of business – no group was immune to negative impacts of social

distancing policy mandates and demand shifts. (Fairlie, 2020)

The loss of 3.3 million business owners (or 22 percent) from February to April

2020 was the largest drop on record. When conditioning on working roughly two

days per week, the losses are even larger. There were 13.6 million business
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owners working 15+ hours in February 2020 and only 9.8 million in April 2020.

The drop of 3.8 million business owners or 28 percent was unprecedented.

Conditioning on 30 or more hours worked results in losses of 3.4 million or 31

percent. (Fairlie, 2020)

According to the Microfinance NGO Inc. (2020), Government banks should

provide additional loan funds to financial institutions that cater to MSMEs. Such

banks should also offer loan restructuring facilities to financial institutions that

have seen declining loan portfolio quality due to the impact of COVID-19 on

underlying businesses that are funded by such financial service providers.

Furthermore, it will extend the emergency cash benefit transfer to informal

micro enterprises for at least three months. The volume of cash benefits should

be sufficient to take care of sustenance expenses of micro enterprises that lie in

the bottom 30% of the population in terms of household income. This is also an

opportunity to formalize MSMEs to allow them to access future support when

other natural or man-made disasters occur. Accredit community stores so that

they can act as service providers in the government’s food distribution program.

This will boost their revenues and can also potentially avoid unintended

competition, hoarding, and profiteering by these stores. (Aakash Mehrotra, 2020)

The study provides the first estimates of the early-stage effects of COVID-19

on small business owners from April 2020 CPS microdata. The number of
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working business owners plummeted from 15.0 million in February 2020 to 11.7

million in April 2020 because of COVID-19 mandates and demand shifts. The

loss of 3.3 million business owners (or 22 percent) was the largest drop on

record. When conditioning on working roughly two days per week or four days a

week, the losses are even larger (28 percent and 31 percent, respectively).

Although incorporated businesses are more growth-oriented and stable, they

experienced a drop of 20 percent from February to April 2020.

According to the Department of Trade and Industry (DTI) they will help

MSMEs devise business continuity and risk management plans by promoting

relevant business practices, such as risk reserves and business interruption

solutions.

This study focuses on the Impact of the Covid19 Pandemic on the Financial

Sustainability of Selected Micro-Enterprises in Lucena City. It will thus determine

the problem and solution on the Financial Sustainability of small businesses in

Lucena City. The study will be limited only to the selected barangays of Lucena

City that have small businesses and the owners will be the respondents. The

total of respondents is 20. And the selected Baranggay are Isabang ang ibabang

iyam.
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2.5 Significance of the Study

This research provides insight into the economic impact of Corona Virus

2019 (COVID-19) in terms of financial sustainability on micro enterprises

businesses. The results shed light on both the financial sustainability of many

micro enterprises, and the significant impact COVID-19 had on these businesses

in the weeks after the COVID-19–related disruptions began. The results also

provide evidence on businesses’ expectations about the longer-term impact of

COVID-19, as well as their perceptions of relief programs offered by the

government. Thus, the results of this study aim to contribute on the following:

Micro Enterprises - this can help as a basis on how they provide a solution

to the problem caused by Covid-19 pandemic.

Government - this can serve as an information on how the government

responds to this global pandemic.

Financial Institution - it’s given to them the opportunity to help MSMEs to

support financially. (magsearch ka sa google tapos lagay mo “we the researchers

blahbla” tapos lagay mo din regarding sa mga future researchers.)

2.6 Definition of Terms

The following terms are operationally and conceptually defined by the

researcher for better understanding of the study.

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● Covid-19 Pandemic. Is an infectious disease caused by a newly

discovered Corona Virus. Most people infected with the COVID-19 virus will

experience mild to moderate respiratory illness and recover without requiring

special treatment.

● Financial Sustainability. As the ability of public administrations to continue now

and in the future current policies without causing the debt to rise continuously.

● Impact. Is a marked effect or influence.

● Micro Enterprises. Also known as a microbusiness, refers to a small

business that employs few people. A microenterprise usually operates with

fewer than 10 people and is started with a small amount of capital advanced

from a bank or other organization.

● Health Crisis. Health crisis or public health crisis is a difficult situation or

complex health system that affects humans in one or more geographic areas,

from a particular locality to encompass the entire planet.

● Economic effects. Economic effect means the eco- nomic impact on affected

businesses by and the costs of compliance, if any, with a rule for businesses,

including but not limited to the costs of equipment, supplies, labor and

administration.

● Generation of Funds. Money produced by a company after all its costs have

been paid: Their results were notable for increased margins and strong cash

generation.

● Revenue. Is the total amount of income generated by the sale of goods or

services related to the company's primary operations.

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● Budgeting. Is the process of creating a plan to spend your money. This

spending plan is called a budget. Creating this spending plan allows you to

determine in advance whether you will have enough money to do the things

you need to do or would like to do.

● Investments. The action or process of investing money for profit or material

results.

● Dubious. Unsure or uncertain: feeling doubt about something.: causing doubt,

uncertainty, or suspicion: likely to be bad or wrong.

● Outbreak. The sudden or violent start of something unwelcome, such as war,

disease, etc.

2.7 Scope and Limitation of the study

This study focuses on the Impact of the Covid19 Pandemic on the Financial

Sustainability of Selected Micro-Enterprises In Lucena City. It will thus determine

the problem and solution on the financial sustainability of small businesses in

Lucena City. The study will be limited only to the selected barangay of Lucena

City that have small businesses and the owners will serve as the respondents.

The total number of respondents are twenty (20) from selected Barangays of

Isabang and Ibabang Iyam, Lucena City.

3. Description of Method or Approach

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3.1 Research Design/Research Instrument/Data Gathering

Procedures

The design of the study is quantitative research. We adopted an exploratory

methodology with extensively reviewing the available literature, including policy

documents, research papers, and reports in the relevant field. Further, to add

empirical evidence, we employed the use of online surveys through the internet

as the research instrument considering the circumstances we are in today. The

data collection was based on the online surveys distributed to the respondents

and served as the primary instrument. The data gathered from the respondents

were analyzed to answer the research questions.

The instrument used in the study is a set of survey questionnaires whose

aim is to gather complete information on the problem. It was composed of

statements presented to the respondents. The researcher constructed a two-part

survey questionnaire. Part I includes the respondents background information

which consider: age, sex, educational attainment and years of operation. The

second part of the questionnaire was incorporated with statement items of the

impact of pandemic in financial sustainability. It includes the twenty (20) item

statements that deal with generation of funds, revenue, budgeting, and

investment.

The constructed survey questionnaire will be submitted to the researcher

adviser for the approval considering suggestions and recommendations in order

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to improve the congruence of the items to the researchers’ study. The content of

the instrument presented to the experts for validation of its reliability and validity.

The research instrument will utilize the five-point Likert Scale.

Weighted Point Range Interval Qualitative Description

5 4.20 – 5.00 Strongly Agree (SA)

4 3.40 – 4.19 Agree (A)

3 2.60 –3.39 Moderately Agree (FA)

2 1.80 – 2.59 Disagree (D)

1 1.00 – 1.79 Strongly Disagree (SD)

Validity is a degree to which an instrument or test measures what it

needs to measure can be classified as content, criterion, logical or construct

validity. Myers (2009) has mentioned that validity of measurement denotes the

degree to which the scores from the test or instrument measures what it is

supposed to measure.

3.2 Statistical Treatment of Data

For the purpose of analysis and interpretation, the data gathered were

tallied and tabulated subjected to the following statistical treatment:

1. Frequency and Percentage

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The frequency and distributions were used to categorize the respondents

according to their personal background variables such as gender, age, civil

status, highest educational attainment, length of service and school position. The

researcher used the formula below to determine the proportion of the

respondents who answered in the second part of the questionnaire:

P= f/n x 100%

Where: P is the percentage

f is the frequency of the respondents, and

n is the total number of respondents

2. Weighted Mean

Another technique used by the researcher in the study was the weighted

mean. This was used in order to determine the average responses of the

different statements in the second part of the questionnaire to analyze the data to

the respondents’ degree of agreement.

Formula:

WM = Σfx
n
Where:

WM = Weighted Mean

Σfx = the sum of all products of f and x, f being frequency of each weight and

x as the weight of each operation.

n = total number of respondents

3.3 Respondents/Units of Analysis/Subjects of the Study

Subjects of this research are Micro, Small, and Medium Enterprises (MSME) in

Lucena City. There were a total of 20 respondents from different enterprises. The

researchers chose the owner, manager, or employee that can provide the best

information pertinent to the study. Factors were their knowledge and experience of all

the aspects related to their operations.

3.4 Sampling Design and Procedure

This research used quota and purposive sampling as it is the most appropriate

sampling method the researchers have perceived in this study. The application of the

quota sampling approach will represent the total population of the MSME through 20

enterprises in Lucena City with its owners, managers, and employees that are most

knowledgeable about the operations of their businesses. While in purposive sampling,

owners, managers, and employees were selected based on the judgment of the

researchers as to who would furnish the best feedback. The people that were selected

should be knowledgeable and well experienced in all features related to their

operations.

3.5 Assumption or Hypotheses

This study wants to prove the effects of Covid19 Pandemic on selected micro-

enterprises in Lucena City. Thus, the following null hypothesis were drawn from the

problems:
a. There is no significant difference on the financial sustainability with respect to

generation of funds.

b. There is no significant difference on the financial sustainability with respect to

revenue.

c. There is no significant difference on the financial sustainability with respect to

budgeting.

d. There is no significant difference on the financial sustainability with respect to

investment.

3.6 Data Analysis Plan (Yung chart neto paayos hehe i suggest na gawin mo
muna sa paint then gawin mong jpeg para di na ddisarrange yung chart neto or graph)

Data must be collected thru ….

- Questionnaire

Research Questions
What is the effect of Covid19 pandemic on selected micro
enterprises with respect to-
Generation of Funds
Revenue
Budgeting

Investments

Statistical Tools
- Mean - Frequency
- Percentage

Output and Interpretation

- Based on the statistical result, we give the
proper interpretation and conclusion.
 3.7 Research Paradigm

Conceptual Framework

Figure 1

Figure 1 The Conceptual Framework Showing the Input - Process - Output

INPUT PROCESS OUTPUT

Demographic Profile in The data gathering

terms of: procedure used survey Recommendations
* Sex questionnaire as a tool based on the results and
* Age in evaluating. findings on the effect of
* Educational covid-19 pandemic on
Attainment Analysis and selected micro
* Years in Operation interpretation of enterprises.
statistical data using
mean, frequency and
percentage.

Feedback

The illustration used by the researchers showed and identified the impact of

pandemic on financial sustainability on micro enterprises.

The paradigm of this study begins with input wherein the researchers would be

involved in utilizing the distribution of questionnaires to the respondents’ demographic

profile.
 The data gathering procedure used a survey questionnaire as a tool in evaluating

while the analysis and interpretation of statistical data measure using mean, frequency

and percentage.

For the product or the output of the study, it would be beneficial to suggest a

strategy as recommendation to address the impact of pandemic on financial

sustainability in micro enterprises.

4. Results and Discussion

4.1 Profile of the Respondents

This part aimed to determine the demographic profile of the respondents in terms

of age, sex, educational attainment, years in operation and the effects of Covid19

pandemic on selected micro-enterprises.

Table 1
Frequency and Percentage Distribution of the Respondents in terms of Age

Age Frequency Percentage

25 and below 2 10%
26-35 years old 2 10%
36-45 years old 9 45%
46-49 years old 7 35%
50 years and above 0 0%
Total 20 100%
(Yung chart neto paayos hehe)

Table 1 shows the distribution of the respondent’s profile in terms of age. It can

be gleaned that a greater proportion of the respondents (9 or 45%) were in the 36-45
years age bracket. The next larger portion belonged to the 46-49 years age bracket with

7 or 35%. Both two or 10% belonged to 26-35 and 25 years and below age bracket.

Age is an important characteristic in identifying the bracket of small business owners,

and in this study the majority of the respondents represented active and productive

skilled individuals in their business. In this regard, the population included in the study

was believed to have some inputs to make in the realization and support on the

productivity of enterprises.

Table 2
Frequency and Percentage Distribution of the Respondents in terms of Sex

Sex Frequency Percentage

Male 4 20%
Female 16 80%
Total 20 100.00
(Yung chart neto paayos hehe)

Table 2 showed the frequency distribution of the respondent’s profile in terms of

sex. It confirmed that most of the respondents are female with the percentage of 80%,

compared to male which is only 4 or 20%. This revealed that women really dominate the

field of business enterprises.

Table 3
Frequency and Percentage Distribution of the Respondents
in terms of Educational Attainment

Highest Educational Attainment Frequency Percentage

Elementary Graduate
9 45%
High School Graduate
9 45%
College Graduate
2 10%
 Vocational
0 0%

Total 20 100.00
(Yung chart neto paayos hehe)

In terms of highest educational attainment, both 9 respondents or 45% are

Elementary and Secondary Graduate. This is followed by those who are College

Graduates composed of 2 or 10% none of them has a Vocational Degree.

The above findings indicate that the respondents are all educationally eligible

which means that the respondents are pursuing their business with the expertise and

capability they have.

Table 4
Frequency and Percentage Distribution of the Respondents
in terms of Years in Operation

Length of Service Frequency Percentage

5 years and below 7 35%
6 to 10 years 7 35%
11 to 15 years 6 30%
16 to 25 years 0 0%
26 years and above 0 0%
Total 20 100.00

From the table shown above it can be seen that the majority of the respondents

have been operating for about 5 years and also 6 to 10 years with the same percentage

of 35. The next larger portion of respondents is from 11 to 15 years with 30% and none

of them belonged to the remaining years in operation. This means that most of the

owners had just started operating their business for about a year, this depicts that they

have the evidence of productive and income generating business.

 Generation of Funds Mean Verbal Interpretation
1.Applied for loans from banks of working capital. 4.30 Strongly Agree
2.Borrowing from family, relatives and friends. 3.30 Moderately Agree
3.Using own funds/retained profit to maintain Agree
3.40
business.
4.Received funding support from government. 2.40 Disagree
5.Borrowing from informal money lenders. 2.70 Moderately Agree
Grand Mean 3.22 Moderately Agree

Table 5
Effects of Covid19 Pandemic on Selected Micro-Enterprises with respect to –
Generation of funds

Revenues Mean Verbal Interpretation

1.Manufacturing or delivery problems result in Disagree

2.40
reduced product availability.
2.Lockdown and restrictions force consumers to Moderately Agree
3.30
spend less on discretionary purchases.
3.Reduced volume of goods for sale. 3.30 Moderately Agree
4.Lack of operational cash flow. 2.90 Moderately Agree
5. Decline in workers productivity from working Moderately Agree
at home. 2.85
Grand Mean 2.95 Moderately Agree

This chart shows the weighted mean in every question for the generation of funds on

how they impacted the enterprises’ financial sustainability due to pandemic concerning each

question. In the first question (A1), it shows that the respondents have strongly agreed that

they apply for loans from banks for their working capital, in A2 and A5, they moderately

agreed that they borrow from family, relatives, friends, and informal money lenders. In A3,
respondents agree in using funds/retained profit to maintain business, and lastly, in A4, the

interviewees disagreed in receiving fund support from the government.

Table 6
Effects of Covid19 Pandemic on Selected Micro-Enterprises with respect to –
Revenues

This chart shows the weighted mean in every question in revenues. From B2 to B5, the

respondents moderately agreed that lock downs and restrictions force customers to spend

less on discretionary purchases, reduced volume of goods for sale, lack of operational cash

flow, and decline in workers productivity from working at home impacts the financial

sustainability of an enterprise this pandemic. In B1, they disagreed that manufacturing or

delivery problems resulting in reduced product availability impact financial autonomy of a

business this pandemic.

Table 7
Effects of Covid19 Pandemic on Selected Micro-Enterprises with respect to –
Budgeting

Budgeting Mean Verbal Interpretation

Cancel contracts with suppliers. 2.75 Moderately Agree
Reduce employee’s wage/salary. 3.15 Moderately Agree
Ask financial institutions of the delayed repayment Moderately Agree
3.05
of loans.
Request the government on the delayed payment Moderately Agree
2.80
on tax.
Reduce staffs (layoffs) 3.15 Moderately Agree
Grand Mean 2.98 Moderately Agree
 This chart shows the weighted mean in every question for the budgeting of the

enterprises this pandemic. The respondents moderately agreed to all of the questions:

Cancel contracts with suppliers. Reduce employee’s wage/salary. Ask financial institutions

of the delayed repayment of loans. Request the government on the delayed payment on

tax and, Reduce staffs (layoffs). They somewhat agreed that these factors have been

impacted in terms of financial sustainability this pandemic.

Investments Mean Verbal Interpretation

Reduction of opportunities to meet new Strongly Agree
4.40
customers.
Issues with changing business strategies and Agree
4.15
offering alternative products and services.
Drop in demand for products/services. 3.90 Agree
Drop in demand for production. 3.65 Agree
Difficulties in obtaining supply of raw materials Agree
essential for production. 3.60
Grand Mean 3.94 Agree

Table 8
Effects of Covid19 Pandemic on Selected Micro-Enterprises with respect to –
Investments

This chart shows the weighted mean in every question for the investment on how

they impacted the enterprises’ financial sustainability due to pandemic concerning each

question. The respondents strongly agreed that reduction of opportunities to meet new

customers hits their financial sustainability. From question 2 to 5 they agreed that this given

phrase impacts the financial structure of a company this pandemic: Issues with changing

business strategies and offering alternative products and services, drop in demand for
products/services, drop in demand for production, Difficulties in obtaining supply of raw

materials essential for production.

5. Conclusion
On the bases of the major findings of the study, the following conclusions were
drawn:

1. As a result of the study, it revealed that the majority of the respondents are female,

belonging to the age bracket of thirty-six to forty years. It showed that most of the

respondents are elementary and secondary graduates and have been operating their

business for about 5 years including the bracket of 6-10 years.

2. This study looked into the effects of Covid-19 pandemic on selected micro-

enterprises with respect to -generation of funds, revenues, budgeting, and investment. It

represented that under the generation of funds, the respondents preferred to apply for

loans from banks for their working capital. The second one is that they moderately agreed

that they borrow from family, relatives, friends, and informal money lenders, the third one

using funds/retained profit to maintain business, and lastly, the interviewees disagreed in

receiving fund support from the government.

3. When it comes to revenues, respondents consider to agreed that lock downs and

restrictions force customers to spend less on discretionary purchases, reduced volume of

goods for sale, lack of operational cash flow, and decline in workers productivity from

working at home impacts the financial sustainability of an enterprise this pandemic and
they disagreed that manufacturing or delivery problems result in reduced product

availability impact financial autonomy of a business this pandemic.

Interestingly enough to assess budgeting wherein, the respondents moderately agreed

to all of the questions: Cancel contracts with suppliers. Reduce employee’s wage/salary.

Ask financial institutions of the delayed repayment of loans. Request the government on

the delayed payment on tax and, Reduce staffs (layoffs). They somewhat agreed that these

factors have been effects of Covid19 pandemic.

With the investments, the respondents strongly agreed that reduction of opportunities

to meet new customers hits their financial sustainability. From question 2 to 5. They agreed

that this given phrase impacts the financial structure of a company in this pandemic: Issues

with changing business strategies and offering alternative products and services, drop in

demand for products/services, drop in demand for production, Difficulties in obtaining

supply of raw materials essential for production.

4. As a result of the study, it revealed that there is no significant difference on the

effects of Covid19 pandemic on selected micro-enterprises when respondents are grouped

according to profile.
6. Recommendations

Based on the foregoing findings and conclusions, the researchers would

recommend the following:

1. The micro enterprises should create and provide a solution to the problem caused

by Covid-19 pandemic. Think of ways to improve and widen the scope of their business in

terms of financial sustainability.

2. It is recommended for local government officials to support the micro enterprises by

allocating enough budget that will help them grow their business. Coordination among

others will strengthen the productivity of the business industry beneficial for the customer

and respond to this global pandemic addressing the needs of the micro enterprises.

3. The financial institution provides assistance for those enterprises with an opportunity

to help MSMEs to support financially for the fast-growing improvement of our products.
7. References

Chacon (2020) 6 Small Business Challenges During COVID-19 (+ How to Overcome

Them) June 19, 2020

https://later.com/blog/small-businesses-challenges/

Fairlie (2020) The Impact of Covid-19 on Small Business Owners: Evidence of Early-Stage

Losses from the April 2020 Current Population Survey by Robert W. Fairlie June 2020

https://www.nber.org/papers/w27309?fbclid=IwAR3mwGn-

FEiqb7UN3iaA8PX2xoWKMgPk9TTDbQYTWjfGiEDWI4eMEOWZx9Y

Mehrotra, G. (2020). Impact of COVID-19 pandemic on micro , small , and medium

enterprises ( MSMEs ) The Philippines. Microsave Consulting.

https://www.microsave.net/author/aakash-mehrotra/

United Nations of the Philippines (2020). MSME Sector is key to COVID-19 inclusive

recovery for PH October 2, 2020 Retrieved from https://philippines.un.org/en/93680-msme-

sector-key-covid-19-inclusive-recovery-pH

Robert Fairlie (2020) The Impact of COVID-19 on Small Business Owners: Evidence of

Early-Stage Losses from the April 2020 Current Population Survey.

http://ftp.iza.org/dp13311.pdf
APPENDICES

Curriculum Vitae of the Researcher (PROFILE NIYONG DALAWA NAME AGE

BLAHBLAH PICTURES)

Research Instruments (MGA GINAMIT NIYO SA PAG GAWA AND CONDUCT

NETONG RESEARCH NIYO)
(insert your school’s name)
________________________________________________________________

February 27, 2021

Dear Respondent:

Greetings of Peace!

We are currently conducting a study entitled EFFECTS OF COVID-19 PANDEMIC ON

SELECTED MICRO-ENTERPRISES IN LUCENA CITY as a requirement for our research subject.

In this regard, we respectfully request you as one of our respondents. Rest assured that all
information you will share will be used only for the purposes of the study.

We are looking forward to your most favorable response regarding this matter.

Thank you very much.

Respectfully yours,

PIOLO MANUEL P. PELAEZ

Researcher

KRISTOFFERSON MARIE D. PALIMA

Researcher

Noted:

DR. MANDY BALDOVINO

Research Adviser
 Effects of Covid19 Pandemic on
Selected Micro-Enterprises in Lucena City

Name of Respondent: (Optional)________________________________________

Name of Micro-Enterprise: _____________________________________________

Dear Respondent:

Greetings of Peace!

This study is conducted to evaluate the effects of Covid19 Pandemic on

selected micro-enterprises in Lucena City.
Directions: Please provide the appropriate answers on the sheet below with an honest response.
Kindly check (/) the spaces that best corresponds to your answer using the five-point Likert scale
where:

5 (Strongly Agree), 4 (Agree), 3 (Moderately Agree), 2 (Disagree) and 1 (Strongly Disagree).

Part I. Profile of the Respondent

A. Age
_______ 25 and below
_______ 26-35 years old
_______ 36-40 years old
_______ 46 years old
_______ 50 years and above

B. Sex
_______ Male
_______ Female

C. Education
_______ Elementary Graduate
_______ High School Graduate
_______ College Graduate
_______ Vocational

D. Years in Operation

_______ 5 years and below

_______ 6-10 years
_______11-15 years
_______16-25 years
_______ 26 years and above
Part II- Effects of Covid19 pandemic on selected micro-enterprises with respect to:
5 4 3 2 1
A. GENERATION OF FUNDS
SA A MA D SD
1.Applied for loans from banks of working capital.
2. Borrowing from family, relatives and friends.
3. Using own fund/retained profit to maintain business.
4. Received funding support from government.
5. Borrowing from informal money lenders.
5 4 3 2 1
B. REVENUE
SA A MA D SD
1. Manufacturing or delivery problems result in reduced product
availability.
2. Lockdown and restrictions force consumers to spend less on
discretionary purchases.
3. Reduced volume of goods for sale.
4. Lack of operational cash flow.
6. Decline in workers productivity from working at home.

5 4 3 2 1
C. BUDGETING
SA A MA D SD
1. Cancel contracts with suppliers.
2. Reduce employee’s wage/salary.
3. Ask financial institutions of the delayed repayment of loans.
4. Request the government on the delayed payment on tax.
5. Reduce staffs (layoffs)

D. INVESTMENT 5 4 3 2 1
SA A MA D SD
1. Reduction of opportunities to meet new customers.
2. Issues with changing business strategies and offering
alternative products and services.
3. Drop in demand for products/services.
4. Drop in demand for production.
5. Difficulties in obtaining supply of raw materials essential for
production.