Republic of the Philippines

St. Louise de Marillac College of Bogo, Cebu, Inc.

Sor Dorotea Rubio Street, Bogo City

FINANCIAL CRISIS MANAGEMENT

FOR SMALL BUSINESS DURING
THE COVID-19 OUTBREAK

An action to be submitted to the faculty of

the College Department of
ST. LOUISE DE MARILLAC COLLEGE OF BOGO

In partial fulfilment of the requirements for

Research 12
Researchers:
Catarig, Rulyn
Ygot, Ajyd Shalini
Alburo, Angel
Migabon, Jann Kenneth
Dubria, Julieanne
Gomez, Zyra

A.Y 2021-2022
CHAPTER I

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 INTRODUCTION

During a pandemic, the health and welfare of the people are at stake and the country’s

economics. Many restrictions were implemented that could highly affect the financial incomes of

business owners, especially small businesses. In fact, last March 2020 the Government of City of

Bogo posted in their Facebook Page the following restrictions: the limited capacity of

establishments, curfew, minors and senior citizens were not allowed to go out, and the "No

Quarantine Pass, No Entry." A crisis refers to "a sudden and unexpected event that threatens to

disrupt an organization's operations and poses both a financial and a reputational threat"

(Coombs, 2007:163). Early work on crisis management indicates that a sudden and unexpected

event threatens business goals and exerts stress on management to take prompt action to respond

(Hermann 1963). That is why the researchers decided to conduct a study to see how small

business owners manage their financial crisis during this pandemic and find possible solutions

for the financial crisis.

A. Background of the study

The year 2020 had caused a big shift on how the world and its people functioned. The

COVID-19 pandemic brought numerous significant changes in people's daily lives, aside

from it being a threat to everyone’s health and a danger to everyone’s sources of living. The

people have been required to stay indoors, resulting in changes such as; having classes

indoors, resorting to home-based jobs and putting up an online business. One of the greatly

affected factors of COVID-19 is the income of the small business owners. Businesses have

been shutting down and halting their operations ever since the strike in the number of

COVID-19 cases around the country. According to the 2020 MSME Statistics, 10.25% of the

enterprises in the Philippines are composed of small businesses, showing that there are

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 98,126 small enterprises registered. This clearly means that 98,126 small enterprises are

greatly affected by the COVID-19 pandemic. With all the restrictions being implemented,

including curfews and lockdowns, small businesses were experiencing little to no income,

and some were even forced to shut down due to financial crises. This concern could be

alarming, especially if the small businesses were the only sources of income of the business

owners, for the sudden shutdown could result in unemployment and higher poverty rates. The

primary purpose of this study is to narrow down the possible solutions for businesses to

continue some of their operations.

This study examines how small businesses reacted to the COVID-19 crisis outbreak

and would evaluate how different business owners respond and cope with a financial crisis

during this pandemic. This study will be focusing on the small businesses in the City of Bogo

like small eateries, small bakeries, public fish and meat markets. The chosen small businesses

mentioned is to be the researchers’ respondents since the following are the typical small

businesses found in the locality, considering their tax return. Financial crises can be highly

damaging for business as they erode trust, destroy company value, threaten business goals,

exert pressure on management by providing limited time for management to respond, and

may even lead to business failure (Hermann, 1963; Penrose, 2000; Lerbinger, 2012). Small

businesses usually suffer from financial loss, reduced sales volume, incapability of meeting

contract terms, cash on difficulty, reduction in staff number, and even close down of the

business during or after crisis events. Finding possible solutions and knowing how the

different small business owners responded to the financial crisis during the COVID-19

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 pandemic is essential for this could help business owners, especially the small ones, to keep

their business going.

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 B. Statement of the Problem

This study aims to see how small business owners in the City of Bogo responded to

the financial crisis during the Covid-19 pandemic and to find solutions for their financial

crisis relating to their businesses.

Thus, the researchers sought to answer the following questions:

1. What type of small business/businesses is/are owned by the respondents?

2. What is the financial status of the small businesses in this time of pandemic?

3. What are the initiatives done by the owners of the small businesses to keep operating?

4. How to manage the financial crisis of a small business during a pandemic?

C. Research Objectives

The objective of this study is to find effective solutions for financial crises

encountered by different small business owners in the City of Bogo that they could use to

successfully manage their businesses during events that could lead to financial crises. Aside

from that, this study will also show the different strategic skills that the small business

owners did in keeping their business going.

a. To identify the strategic skills used by entrepreneurs in financial crisis management.

b. To help business owners manage a financial crisis during the pandemic.

c. To formulate the possible solutions for the financial crises in small businesses.
E. Significance of the Study

The study is deemed important to the following:

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 Aspiring Business Owners. It can help them prepare and cope when faced with

problems such as financial crises. This will also allow them to acquire skills and strategies

that may be of use for certain situations, specifically financial loss. It can also widen their

point of view about facing a financial crisis in the business.

Small Business Owners. Improves the understanding of credit markets and financial

institutions at national and international levels. This can be of help for them to still continue

the business operations of their current business. Through the possible solutions which will

be given, the business owners may use them in order to recover from financial loss caused by

different problems and complications.

Researchers. This will benefit the researchers for the information that they acquire

may be used for future purposes or studies that involve the management of finances in a

business enterprise, and would make them knowledgeable when the topic is brought up in

future research.
F. Scope and Delimitation

This study will be focused on acquiring information from different businesses in the

vicinity of Bogo City, Cebu. Through the researchers’ determination, it is expected that they

will be able to gather the needed information from the 40 chosen respondents within the

given time frame, which will be decided upon by the researchers.

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 G. Definition of Terms

Entrepreneur. An individual who creates a new business, bearing most of the risks

and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a

source of new ideas, goods, services, and business/or procedures.

Business Crisis. An event, or a series of events, that causes major disturbance for a

business. A crisis typically occurs suddenly and poses intense difficulty or danger for the

business, usually in a situation where time is short and decisions have to be taken quickly.

Financial Loss. Loss of money or decrease in financial value, nonpayment, no

remittal. It can be a loss resulting from failure of a debt to be paid. Experiencing capital loss

which is the amount by which the purchase price of an asset exceeds the selling price; the

loss is realized when the asset is sold.

Small Businesses. A privately owned corporation, partnership, or sole proprietorship

that has fewer employees and less annual revenue than a corporation or regular-sized

business. These are businesses that will be the main target for the respondents of the

researchers, such as; local bakeries, public markets, small eateries, etc.

Financial Management. A practice of handling a company’s finances in a way that

allows it to be successful and compliant with regulations. This is a crucial part of the

research, for it is one of the researcher’s given purposes on why the study was conducted

which is to acquire information on how small business owners were able to manage their

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 finances amidst a crisis.

CHAPTER II
REVIEW OF RELATED LITERATURE

This chapter reviews the literature that describes how the small business reacted during the

financial crisis outbreak, which happens whenever there is a fluctuation of funds when a business

encounters problems that cause these types of crises. The body of literature was to explore the

crisis management strategies small business owners use to survive an unexpected operational

interruption.

A. Related Literature

This study examines how small businesses reacted in the crisis outbreak and the

researchers focus on the small business, namely; small eateries, public market meat and fish

shops, and local bakeries. According to the 2020 MSME Statistics, small firms account for

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 10.25 percent of all businesses in the Philippines, with 98,126 small businesses registered.

This clearly indicates that the COVID-19 outbreak has a significant impact on 98,126 small

businesses. The researchers identified studies that focus on dimensions of crisis situated

during the crisis. The researchers need to understand the impact of the crisis on learning,

social evaluations, and performance. Other research points to the critical role of leaders in

handling crisis and approaching crisis’ with a positive way (James, Wooten, & Dushek,

2011).

Financial crisis management is an important factor that business owners should be

prepared of. Being aware of the different financial crisis management plans is very essential

if business owners want to keep their businesses going despite the unexpected operational

interruptions. According to Anoop Sajjan (2021), financial management is an important

aspect for businesses to keep going in this rapidly growing world. It is considered as an

important aspect because it lays the right pathway in achieving the business’ goals and

objectives, making it more important for unexpected events that could slow down the

business’ market.
One example of unexpected events that could slow down a business’ market and

income is the COVID-19 pandemic. With all the restrictions implemented, only a few small

businesses could survive. Making financial crisis management an important factor if small

business owners want to keep their business going. This is because financial crisis

management is an essential part of all businesses in safeguarding financial stability and

protecting their business from the costly effects that a financial crisis can have (Dnr RG,

2018).

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 Anecdotal information exists in reports of the global economic crisis' influence on

Philippine poverty. The research evaluates the evidence and recent data in a systematic

manner. It takes an eclectic approach, using regression and decomposition techniques to track

the impact of the global economic crisis on gross domestic products and its major

components, panel data from nationally representative household surveys to track changes in

household welfare during the crisis, and combining national income accounts and household

survey data to simulate the differential effects of the crisis across population groups and

socioeconomic groups. Although the Philippine economy did not enter a major economic

downturn during the crisis, the impact on the economy and poverty across population groups

was severe, according to empirical research.

B. Related Studies

Local Study

According to the 2020 MSME Statistics, 10.25% of the enterprises in the

Philippines are composed of small businesses, showing that there are 98,126 small

enterprises registered. This clearly means that 98,126 small enterprises are greatly

affected by the Covid-19 pandemic. According to the Department of Trade and Industry,

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 the performance of businesses around the world differs in different factors and their

ability to go digital. These challenges were experienced by disrupted and struggling

businesses. However, disruption also bred innovation, as a host of new digital businesses

that were created to meet evolving needs and new market opportunities. As a result of the

Covid-19 pandemic, many owners of small businesses have struggled in keeping their

business going, leaving some of the owners no choice but to shut down. This arising

concern conveys the importance of having financial crisis management.

A published study conducted by Jose Marie M. Anoos, et. al. in International

Journal of Small Business and Entrepreneurship Research last January 2020 entitled

Financial Management of Micro, Small, and Medium Enterprises in Cebu, Philippines,

aimed to unveil how the MSMEs in Danao City, Philippines dealt with their financial

management practices and challenges. Identifying how business owners manage their

financial concerns is necessary since these are the critical aspects of the business

establishment since it involves the process of planning and monitoring the financial

resources of the said business. Kimunguyi et al. (2015) further argued that effective

financial budget management practices positively affects budgeting and executing

suggested improvement and usage of supportable strategies and guidelines for spending

the board.

Despite the presented importance of practicing financial management, the results

gathered by the researcher showed that the business owners and management of the

MSMEs in Danao City did not practice the accredited guidelines on the financial

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 management and control of their business, which poses some threats to its sustainability,

considering that their predominant size, the volume of assets and revenue earned is

relatively low or minimal.

Small businesses are likely to be severely affected, as they tend to be more

concentrated in sectors that have been directly affected by the COVID-19 response

measures (retail and services) and are typically more credit constrained than larger

businesses according to Cao & Leung, 2020; Kumar & Francisco, 2005). Importantly,

small businesses comprise the majority of companies in the economy and are responsible

for a substantial share of employment according to Humphries et al., 2020).

Due to pandemic on the revenues of small businesses operating in industrial

sectors and at the extent to which these businesses changed or adjusted their business

activity, or changed the extent to which they utilized open innovation tools and

implement innovation promotion processes. The findings show that, despite COVID-19’s

far-reaching impact in all areas of life, the revenues of most small businesses in industrial

sector were not adversely affected by the pandemic, and most of them did not change or

adjust their business activities or the extent to which they employed open innovation tools

and engage in innovation promotion processes.

Foreign Study

Crises can be highly damaging for business as they erode trust, destroy company

value, threaten business goals, exert pressure on management by providing limited time

for management to respond, and may even lead to business failure (Hermann, 1963;

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 Penrose, 2000; Lerbinger, 2012). Existing literature suggests that small businesses may

be more vulnerable to crisis events due to lower levels of preparedness, resource

constraints, relatively weak market positions, and higher dependence on government and

local agencies (Runyan, 2006; Herbane, 2013; Hong & Jeong, 2006). Small business

usually suffers from financial loss, reduced sales volume, incapability of meeting contract

terms, cash on difficulty, reduction in staff number, and even close down of the business

during or after crises events. Crisis events may also bring emotional and psychological

stress to victims and the managers of small businesses (Leung et al., 2005; Doern, 2016;

Ferris et al., 2007). According to Batik 2022, Small enterprises underline the financial

fragility of many small businesses, and how strongly they are affected by the current

crisis. He discovered that 43 percent of enterprises were temporarily closed and that

employment had plummeted by 40 percent in his sample, which is skewed toward the

retail sector. The findings reveal that many of these companies had enough budget at the

start of the pandemic, implying that they will have to significantly slash costs, take on

more debt, or declare bankruptcy. This demonstrates how the speed with which new

funds are made available can have an impact on long-term consequences. According to a

2021 Digitally Driven article, a survey conducted by the Connected Commerce Council

of more than 5016 European small and medium-sized businesses carried out in November

to December 2020, and found that practically all SMEs were affected, with an average of

20% decrease in sales and a 16% decrease in customer base. It was also stated that small

businesses were directly affected more than large businesses, both in Europe and the

USA. A survey conducted by NBER of more than 5800 small businesses in the USA

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 found that 43% of small firms were expected to be closed by December 2020 (Bartik et

al., 2020). Small firms in hospitality, retail, personal services, entertainment, and the arts

were most affected (Bartik et al., 2020).

According to Tobias Adrian and Fabio Natalucii (2020), the COVID-19 pandemic

has caused an unprecedented human and health crisis ; measures necessary to contain the

virus have triggered an economic downturn. At this point, there is great uncertainty about

its severity and length. In addition, the latest Global Financial Stability Report shows that

the financial system has already felt a dramatic impact, and a further intensification of the

crisis could affect global financial stability. Since the pandemic’s outbreak, prices of risk

assets have fallen sharply. At the worst point of the recent selloff, risk assets suffered half

or more of the declines they experienced in 2008 and 2009. For example, many equity

markets—in economies large and small—have endured declines of 30 percent or more at

the trough. According to another study by Seth, Ganaie, and Zafar (2020), the pandemic

has caused a significant economic shock. It was revealed that there were mass layoffs,

closure of businesses, and different beliefs about the likely duration of COVID-19 related

disruptions, which is causing many businesses to be financially on the brink. This

information was acquired through a survey led by Bartik, Bertrand, Cullen, Gbeser, Luca,

and Stanton (2020).

CHAPTER III
METHODOLOY

This chapter covers the research design and methodology, including sampling, population,

establishing rigor during and after data collection, ethical considerations and data analysis.

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 A. Research Design

In conducting this study, the researchers will use the descriptive research design to

identify entrepreneurs' possible solutions and skills when they experience financial crises in

their small businesses. The researchers use the descriptive method in this study. The method

of research that is used is to determine the characteristics of a population. It collects data that

is used to answer a wide range of what, when, and how questions pertaining to a particular

population or group. The researchers will be using standardized questionnaires which have

been formulated by the researchers that were derived from the Statement of the Problem, and

additional questions made through the analysis of the research. This shall be administered to

the respondents through a survey. The data gathered will be analyzed to address the financial

crisis brought about by the COVID-19 pandemic.

B. Subjects of the Study

With the continuing development of the City of Bogo, many small businesses arose;

but, when the COVID-19 pandemic came, they got affected as well. Some small businesses

earned less than their previous income average, and some were forced to shut down due to

the extreme financial crisis. That is why, the researchers decided to focus on the small

businesses in the City of Bogo, like small eateries, small bakeries, public market meat and

fish shops, to see how these small businesses responded to the financial crisis encountered

during the Covid-19 pandemic.

C. Sampling Technique

Small Businesses Respondents

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 Small Eatery 10

Small Bakeries 10

Public Market Fish Shop 10

Public Market Meat Shop 10

Total 40

In this study, the researchers have a population of interest of forty (40) total targets of

respondents of small businesses in the City of Bogo. The researchers have chosen four (4)

small businesses namely; small eateries, public market meat and fish shops. In each small

business, the researcher chose ten (10) respondents which resulted in forty (40) being the

total number of respondents. The researchers will be using the purposive sampling method in

data gathering since this method will give access to a particular subset of people that could

give the researchers precise data.

D. Research Instrument to be Used

The researchers will use a questionnaire to gather the data needed in this study.

Through the standardized questionnaires that will be administered to the respondents, this

will result in increased reliability and validity of the results, and the conclusion of data which

would be derived from the analysis of the information written in the questionnaires answered

by the respondents.

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 E. Procedure of Data Gathering

In collecting the needed data from the chosen respondents, the researchers will first

explain the purpose of the survey and the questionnaires to the respondents. When the

researchers are assured that the respondent fully understands the purpose of the survey, the

researchers will then ask for permission if the small business owners will agree to be part of

the research conducted. If the small business owner agrees, the researchers will hand the

questionnaires prepared. In answering the questionnaires, the respondent will only mark the

most accurate choice that would describe his/her own business. After collecting the different

responses from the respondents, the researchers will then interpret the data collected.

F. Statistical Treatment

As soon as the researchers gathered the acquired statistical data needed in interpreting

the collected responses, the researcher will use the responsive sampling technique. Purposive

sampling, also known as judgmental, selective, or subjective sampling, is a type of non-

probability sampling in which researchers choose people from the public to participate in

their surveys based on their own judgment. In this study, the researchers’ statistical tools

employed were the percentage and weighted mean.

Mean, refers to the percentage and weighted mean of the distribution.

Formula: %=FN×100
% - Is the percentage
F - is the Frequency
N - is the total number of respondents
100 - is a constant value

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 Formula: X = FxN
X - is the weighted mean F
- is the frequency x- is the
weight of each item N- is
the number of cases

G. Collection of Materials

In collecting the respondents needed for the study, the researchers will conduct an

initial survey. In conducting the initial survey, the researchers will be able to identify which

location is the ideal location to have their study conducted. By then, the researchers will

determine if the location has enough respondents needed for this study where validity and

reliability are observed.

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 CHAPTER IV

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents the findings, analysis and interpretation of data gathered from the study

conducted in finding out the level and the factors of different challenges encountered by small

business owners during the COVID-19 outbreak in Bogo, City.

Table 1

Data of Small Businesses in Bogo who Faced and Did Not Face Difficulties in their

Businesses During COVID-19 Outbreak

Factors Frequency Percentage Rank

Yes 39 97.5% 1

No 1 2.5% 2

Total 40 100%

The Table 1 above shows how many small business owners faced difficulties and did not

face any difficulties in running their businesses because of the COVID-19 outbreak. The table

shows that out of the 40 businesses the researchers chose to be part of their data gathering, 39

business owners experienced difficulties, while only one business did not experience any

difficulty in running their business despite the COVID-19 outbreak.

Table 2.1

Challenges Faced by Small Eatery Businesses Because of COVID-19

Factors Frequency Percentage Rank

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Decrease of profit 6 60% 2

Decrease of orders 8 80% 1

Decrease of workforce 2 20% 4

1 10% 5
Shortage of supply/input
materials
Input materials were 2 20% 4
becoming expensive
Customers/clients have been 5 50% 3
affected and demand is lower
than normal
In small eateries, the researchers chose 10 small eatery businesses to participate in the

data gathering. The researchers presented different choices for each question to justify and have

the accurate data in describing the different challenges encountered by small eatery business

owners during the COVID-19 outbreak. In Table 2.1, it is clearly shown that the number 1

concern faced by small eatery businesses is the decrease of orders; having 80% of the business

owners marked this option as one of the concerns they’ve experienced. The second concern

experienced by 60% of small eatery business owners is the decrease of profit. While 50% of the

business owners experienced lower demand than normal, 20% experienced both decrease of

workforce and input materials were becoming expensive, and 10% experienced shortage of

supply/input materials.
Table 2.2

Challenges Faced by Local Bakery Businesses Because of COVID-19

Factors Frequency Percentage Rank

Decrease of profit 5 50% 3

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Decrease of orders 6 60% 2

Decrease of workforce 5 50% 3

Production delay of suppliers 1 10% 6

1 10% 6
Shortage of supply/input
materials
Input materials were 4 40% 4
becoming expensive
Cash flow to maintain staff and 3 30% 5
business operations is inadequate
Customers/clients have been 7 70% 1
affected and demand is lower
than normal
In local bakeries, 70% of the chosen subjects were experiencing lower demand than

normal because of how their customers/clients were affected by COVID-19. The Table 2.2 also

shows that 60% of the local bakeries have experienced a decrease of orders, and 50% of them

experienced decrease of profit and workforce. While, 40% have experienced their input materials

are becoming expensive, and 30% experienced inadequate cash flow to maintain their staff and

business operations. And only one local bakery experienced production delay from their

suppliers and shortage of supply/input materials.

Table 2.3

Challenges Faced by Public Market Fish Shops Because of COVID-19

Factors Frequency Percentage Rank

Decrease of profit 10 100% 1

Decrease of orders 5 50% 2

Decrease of workforce 3 30% 3

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 2 20% 4
Shortage of supply/input
materials
Input materials were 1 10% 5
becoming expensive
Cash flow to maintain staff and 1 10% 5
business operations is inadequate
Customers/clients have been 5 50% 2
affected and demand is lower
than normal
The challenge faced by all fish shop business owners in the public market is the decrease

of profits. In Table 2.3, it shows that all the chosen respondents marked the “decrease of profit”

as one of the challenges they face; making it the number one challenge faced by the public

market fish shop owners in Bogo City. However, only 50% of the business owners experienced

decrease of orders and lower than normal demands, 30% experienced decrease of workforce, and

20% experienced shortage of supply/input materials. And out of 10 respondents, only one

experienced expensive input materials and inadequate cash flow to maintain their staff and

business operations.
Table 2.4

Challenges Faced by Public Market Meat Shops Because of COVID-19

Factors Frequency Percentage Rank

Decrease of profit 7 70% 2

Decrease of orders 8 80% 1

Decrease of workforce 3 30% 6

Shipping of finished goods 1 10% 8

Production delay of suppliers 3 30% 6

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 4 40% 5
Shortage of supply/input
materials
Input materials were 5 50% 4
becoming expensive
Cash flow to maintain staff and 2 20% 7
business operations is inadequate
Customers/clients have been 6 60% 3
affected and demand is lower
than normal
Most of the public market meat shops have experienced a decrease in orders, about 80%

of the respondents. While the least faced by public market meat shops are shortage of

supply/input materials (40%), decrease in workforce (30%), production delay of suppliers (30%),

and inadequate cash flow to maintain staff and business operations (20%).

Table 3

Data of the Business’ Continuity During the Crisis

Factors Frequency Percentage Rank

No, operations are still running 29 72.5% 1

5 12.5% 2
Yes, temporarily stopped because
of COVID-19 cases in our business
Yes, temporarily stopped because 2 5% 4
of reduced orders
Yes, temporarily stopped because 0 0%
of instructions by authorities
Yes, stopped operations previously 4 10% 3
but currently running again
Yes, permanently stopped 0 0%

Table 3 shows that 72.5% of the businesses continued to operate despite the crisis

experienced. However, despite the great number of businesses who continued to operate despite

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the crisis, there were also businesses who needed to stop their operation for some time. In fact,

the data above shows that 12.5% of the businesses needed to stop because of the COVID-19

cases, 10% stopped their operations and continued recently, and 5% stopped because of the

decreased number of orders.

Table 4

Data of the Small Businesses Shows that they are Currently Meeting their Bills and Credit

Commitments

Factors Frequency Percentage Rank

Fits very well 3 7.5% 4

Fits fairly well 10 25% 3

Fits neither well nor badly 15 37.5% 1

Does not fit well 11 27.5% 2

Does not fit at all 0 0

Table 6 shows that 37.5% of the business owners who were the respondents are not able

to guarantee that they can neither pay on time nor pay after the given due date, while 27.5% of

the respondents experience difficulties in paying their expenses on time. Based on the data

above, it shows that 25% of the respondents are able to pay just in time before their bills are due,

while the remaining 7.5% of the business owners are not having any difficulties when it comes to

their financial expenses and are also able to pay on time.

Table 5.1

Data of the Initiatives that the Small Eatery Businesses Did to Keep Their Business

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 Operating

Factors Frequency Percentage Rank

Negotiating with workers 6 60% 1

Displaying the goods online 1 10% 4

Reducing the working hours 3 30% 2

Delivering the goods for free 0 0%

3 30% 2
Peddling of goods house to house
Reducing production of goods 2 20% 3
or services
Reducing the number of 1 10% 4
temporary workers
Increasing production due to 3 30% 2
increased demand
Diversifying sales channels – online 1 10% 4
marketing, sales, delivery
Asking the workers to take unpaid 1 10% 4
leave Asking the workers to work
for reduced pay
Asking the workers to take paid leave 1 10% 4
Diversifying products to respond to
new demands (producing masks,
sanitizer etc.)

Most of the small eatery businesses did negotiate with workers as their initiative to keep

their business going despite the crisis. While, 30% of them reduced their working hours, peddled

their goods from house to house and increased their production due to the increase of demand,

and 20% reduced the production of goods or services. And only 10% displayed their goods

online, reduced the number of their temporary workers, diversified sales channels, asked their

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workers to take unpaid leave and asked them to work for reduced pay, and diversified products to

respond to new demands.

Table 5.2

Data of the Initiatives that the Local Bakery Businesses Did to Keep Their Business

Operating

Factors Frequency Percentage Rank

Negotiating with workers 5 50 1

Displaying the goods online 1 10 4

Reducing the working hours 3 30 3

Delivering the goods for free 1 10 4

1 10 4
Peddling of goods house to house
Reducing production of goods 4 40 2
or services
Reducing the number of 4 40 2
temporary workers
Increasing production due to 3 30 3
increased demand
Diversifying sales channels – online 1 10 4
marketing, sales, delivery
Asking the workers to take unpaid 1 10 4
leave Asking the workers to work
for reduced pay

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Asking the workers to take paid leave 1 10 4
Diversifying products to respond to
new demands (producing

masks, sanitizer etc.)

Just like the small eatery businesses, most of the local bakeries did negotiate with their

workers as an initiative. The least initiative performed by the local bakeries are displaying their

goods online, delivering the goods for free, using downtime to retain workers, asking workers to

take unpaid leave and work for reduced pay, and diversifying products to respond to new

demands. And some local bakeries did reduce their temporary workers (40%), increased their

production because of the demands (40%), reduced their working hours (30%), and negotiated

the payment terms with the banks and suppliers (30%).

Table 5.3

Operating

Factors Frequency Percentage Rank

Negotiating with workers 4 40% 2

Displaying the goods online 3 30% 3

Delivering the goods for free 6 60% 1

1 10% 5
Peddling of goods house to
house
Taking advantage of peak 2 20% 4
selling times
Reducing production of goods 3 30% 3
or services

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Reducing the number of 1 10% 5 Data
temporary workers of the
Increasing production due to 3 30% 3 Initiati
increased demand

ves that the Public Market Fish Shops Did to Keep Their Business

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Negotiating payment terms 3 30% 3
with banks and suppliers

For the fish shops in the public market, 60% of them delivered the goods for free as an

initiative to keep their business going during the COVID-19 outbreak. The other initiatives done

by the business owners of the fish shops in the public market are negotiating with the workers

(40%), displaying their goods online (30%), reducing the production of goods or services (30%),

increasing production due to increased demands (30%), negotiating payment terms with banks

and suppliers (30%), taking advantage of peak selling times (20%), peddling of goods from

house to house (10%), and reducing the numbers of their temporary workers (10%).

Table 5.4

Operating

Factors Frequency Percentage Rank

Negotiating with workers 4 40% 1

Displaying the goods online 3 30% 2

Reducing the working hours 2 20% 3

Delivering the goods for free 3 30% 2

3 30% 2
Using downtime to retrain
workers
Taking advantage of peak 2 20% 3
selling times
Reducing production of goods 4 40% 1
or services

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 Data of the Initiatives that the Public Market Meat Shops Did to Keep Their Business

Reducing the number of 3 30% 2

temporary workers
Increasing production due to 4 40% 1
increased demand
Negotiating payment terms 1 10% 4
with banks and suppliers
Diversifying sales channels – online 1 10% 4
marketing, sales, delivery
Asking the workers to take unpaid 2 20% 3
leave Asking the workers to work
for reduced pay

In Table 8.4, it clearly shows that the three common initiatives done by the business owners of

the meat shops in the public market are negotiating with workers, reducing the production of

goods or services and also increasing production because of demands. However, some meat

shops displayed their goods online (30%), delivered the goods for free (30%), used downtime to

retain workers (30%), reduced the number of temporary workers (30%), reduced working hours

(20%), took advantage of peak selling times (20%), asked workers to take unpaid leave and to

work for reduced pay (20%), negotiating payment terms with banks and suppliers

(10%), and diversifying sales channel (10%).

Table 6

Data of the Small Businesses that Have an Idea About Financial Crisis Management

Factors Frequency Percentage Rank

Yes 33 82.5% 1

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No 7 17.5% 2

Total 40 100%

In operating a business, it is very essential for the business owners to have an idea about

financial crisis management. The data in Table 6 shows that out of 40 small businesses

respondents, 33 of them have an idea what financial crisis management is and only 7 of them

didn’t. Based on the data gathered by the researchers, it proves that the majority of the small

businesses in Bogo City already know what financial crisis management is.

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 Table 7

Data of the Small Businesses that were able to Manage their Businesses During the Crisis

Factors Frequency Percentage Rank

Yes 37 92.5% 1

No 3 7.5% 2

Total 40 100%

The data in Table 10 shows that 37 of the small businesses were able to manage their

businesses despite the crisis. The data also justify that some small businesses continued to

operate well even without the knowledge of what financial crisis management is. However, there

were 3 small businesses who weren’t able to manage their businesses well during the COVID-19

outbreak.

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 CHAPTER V

SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATIONS

This chapter presents the summary of the findings of this research, the conclusions derived from

these findings, and the researchers’ recommendations for future researchers of similar concern.

A. Summary of Findings

Table 3 shows that 77.5% of the businesses continued to operate despite the crisis

experienced. However, despite the great number of businesses who continued to operate

despite the crisis, there were also businesses who needed to stop their operation for some

time. In fact, the data above shows that 17.5% of the businesses needed to stop because of the

COVID-19 cases, 10% stopped their operations and continued recently, and 5% stopped

because of the decreased number of orders.

Table 4 shows that 45% of the businesses’ owners consider their current financial

situation to fit fairly well or in a good state despite the current problems caused by the

COVID-19 situation in the vicinity. However, the percentage for those who consider their

financial situation neither good nor bad resulted to a total of 42.5% from all the responses

given. Based on the data shown above, 5% of the total respondents consider their financial

situation to be in a very good state, while another 5% does not consider theirs as not very

well fitting or in a fairly bad state. The remaining 2.5% of the total respondents have

considered their financial situation to be in a bad state where difficulty in maintaining funds

is noticeable.

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 Table 5 shows that 30% of the total respondents are able to set aside money for their

financial responsibilities, while another 30% responded to having slight difficulties in setting

aside money for other purposes. Based on the data above, it also shows that 27.5% of the

total respondents consider their financial situation for excess money neither good nor bad.

The table also shows that 7.5% of the business owners are able to save a lot of money even

after paying their bills, while 5% of the respondents find it quite difficult to set aside excess

money due to certain situations such as experiencing low profit and little to no sales.

Most of the small eatery businesses in table 8.1 did negotiate with workers as their

initiative to keep their business going despite the crisis. While, 30% of them reduced their

working hours, peddled their goods from house to house and increased their production due

to the increase of demand, and 20% reduced the production of goods or services. And only

10% displayed their goods online, reduced the number of their temporary workers,

diversified sales channels, asked their workers to take unpaid leave and asked them to work

for reduced pay, and diversified products to respond to new demands.

Just like the small eatery businesses, most of the local bakeries in table 8.2 did

negotiate with their workers as an initiative. The least initiative performed by the local

bakeries are displaying their goods online, delivering the goods for free, using downtime to

retain workers, asking workers to take unpaid leave and work for reduced pay, and

diversifying products to respond to new demands. And some local bakeries did reduce their

temporary workers (40%), increased their production because of the demands (40%), reduced

their working hours (30%), and negotiated the payment terms with the banks and suppliers

(30%).

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 Table 8.3, the fish shops in the public market, 60% of them delivered the goods for

free as an initiative to keep their business going during the COVID-19 outbreak. The other

initiatives done by the business owners of the fish shops in the public market are negotiating

with the workers (40%), displaying their goods online (30%), reducing the production of

goods or services (30%), increasing production due to increased demands (30%), negotiating

payment terms with banks and suppliers (30%), taking advantage of peak selling times

(20%), peddling of goods from house to house (10%), and reducing the numbers of their

temporary workers (10%).

Table 8.4, clearly shows that the three common initiatives done by the business

owners of the meat shops in the public market are negotiating with workers, reducing the

production of goods or services and also increasing production because of demands.

However, some meat shops displayed their goods online (30%), delivered the goods for free

(30%), used downtime to retain workers (30%), reduced the number of temporary workers

(30%), reduced working hours (20%), took advantage of peak selling times (20%), asked

workers to take unpaid leave and to work for reduced pay (20%), negotiating payment terms

with banks and suppliers (10%), and diversifying sales channel (10%).

B. Conclusions

Financial Crisis Management is proven to have such a big impact on how small

business owners can maintain their financial stability during a time of crisis. The

researchers conclude that a huge number of small businesses located in Bogo City were

greatly affected by the pandemic. Based on the data gathered by the researchers, most of

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 the owners of small businesses faced financial crisis management in running their

businesses during the COVID-19 outbreak. However, some business owners were not

aware of the term "Financial Crisis Management Plan" before the conducted survey, yet

have been unconsciously using this certain technique for their business to continue its

operations despite the negative impact that was brought by the COVID-19. Small

businesses that are battling to stay open or are planning to reopen should be aware of and

take advantage of all available financial relief options brought by the pandemic. Small

Business owners have to understand that being knowledgeable on the variety of causes

that could affect a business's financial state can contribute to how they will select the

appropriate solution for their business without having to risk their business. Definitely,

this study makes a significant contribution to positive change if small business owners

are encouraged to develop financial crisis management strategies after learning about this

study.

C. Recommendations

This research’s findings recommends that the business owners of this study of the

should make risk analysis and business steadiness planning in all critical federal and

regional institutions, explore opportunities for cross-border , and cooperate with domestic

small business firms, support medium- and long-term business that lead to resilient

supply chains for critical goods and services under the market, accelerate development of

e-market systems including digital marketing, which the small businesses are small

eateries , public meat Shop and public fish shop.

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 COVID-19 outbreak has a widely impacts to the business owner in small

businesses and most studies showed that there is a lack of flexible work strategies, formal

documentation mechanisms, and comprehensive crisis management and aftershock

strategies for new micro enterprises with little previous crisis experience. We recommend

that small businesses and owners of small business should consider long-term and

adoptive crisis management strategies, not only focusing on financial factors but also

fully taking nonfinancial factors into account, owners top management, as well as

different levels of personnel, should be involved in developing crisis management

mechanisms according to their needs. All should work in exploring new markets and

incorporating technology into their future growth, produce different sanitary materials up

to end of the pandemic, and make their marketing flexible based on situations, which is

another sign of active learning and improvement from the crisis. In the long run, the urge

to grow and expand market share may be a strong driving force for small business to

strengthen their resilience and renewal strategies.

References

● https://www.mygreatlearning.com/blog/financial-management-introduction-guide/

● https://www.dti.gov.ph/resources/msme-

statistics/#:~:text=2020%20MSME%20Stati

stics&text=Of%20these%2C%20952%2C969%20(99.51%25),at%200.49%25%20(

4%2C716)

● https://blogs.imf.org/2020/04/14/covid-19-crisis-poses-threat-to-financial-stability/

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 ● https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.researchsq

uare.com/article/rs-34541/v1.pdf&ved=2ahUKEwjV5YHOtoj4AhVQ6XMBHYMzC

cYQFnoECAsQAQ&usg=AOvVaw1Ps1laTsNJDUfXCI6FGXad

● https://fbr.springeropen.com/articles/10.1186/s11782-020-00094-2

● https://www.google.com/url?sa=t&source=web&rct=j&url=https://connectedcouncil

.org/wp-content/uploads/2022/04/Digitally-Driven-2021.pdf&ved=2ahUKEwidgo2yu
Ij4AhXL8HMBHedKDMYQFnoECAYQAQ&usg=AOvVaw1Z0ectTbd_4y85_2yCe

Y6r

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