OUR LADY OF FATIMA UNIVERSITY 1

Chapter 1

THE PROBLEM AND ITS SETTINGS

This chapter presents the purpose and background of the study, statement of the problem,

lastly scope and delimitation.

Introduction

In March 2020, the number of people infected by COVID-19 in the Philippines began

to increase, All transport between the country was stopped, strict community quarantines were

imposed – which restricted people from traveling outside their own neighborhoods and most

public services were halted. Shops were forced to close and many people were unable to continue

working. The COVID-19 crisis has far-reaching consequences for MSEs which include declining

demand, increased costs, liquidity, and supply challenges. One of the economic pillars in the

Philippines is the small business sector. Republic Act 9178, also known as the Baranggay Micro

Business Enterprises (BMBEs). Microeconomics policies and training are important to develop

entrepreneurs to take advantage of opportunities created by globalization. Small businesses are

most clearly present at the growing number of markets, have both fulled and met these demands.

Small enterprises aim to create large-scale employment in the economy and separate from the

formal sector and they can achieve this target with very limited finances and investment. Another

objective is to spread industries and trade in an economically backward area. This helps in the

development of the overall economy while experiencing a pandemic.

In this study, the fundamental reason for this is to determine why small businesses around

Barangay Cupang in Antipolo, Rizal Philippines is to find out how they overcame the challenges
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during the pandemic. The current situation today due to pandemic resulted in the raise of cost of

living in the Philippines. Also products prices around the country have risen consistently due to

supply chain disruptions, rising shipping costs, bad weather and limited access of hiring an

employees due to the crisis. This study is important as it shows the importance of experiences and

challenges to all small businesses around Barangay Cupang in Antipolo City during the crisis. It

benefits a lot of people to know how they achieved or establish their business while facing the

pandemic. Researching this type of topic will help us categorize, strategize, and knowing the

success and failure rate of these businesses while facing a crisis.

The goal of this study is to explore the experiences of various owners of small businesses

sector in Barangay Cupang Antipolo City on how they manage their businesses while facing or

experiencing different challenges and problems. We are aware that the majority of small business

owners are struggling with the financial crisis. The problem statement seeks to identify their

struggles and difficulties in handling and managing their business, as well as to seek and provide

solutions to this problem, so that future small business owners understand how to properly

manage their business.

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Statement of the Problem

The purpose of this study is to know the experiences and challenges of small businesses

during the pandemic around Barangay Cupang in Antipolo City. In addition, to know how they

handle and support their needs and daily experiences by having a small business. Knowing that

some of the owners of that small business are having difficulties managing their money and for

additional investment as well. The problem statement aims to identify their struggle and

difficulties in handling and managing their business and also how they approach customers to

promote their products. Also to know what are the effects of happenings or problems they

experiencing, like over price affect their businesses.

This research seeks to answer the following;

1. What are the challenges that you’ve experienced in operating your business

during the pandemic?

2. How can you overcome this challenges while facing the crisis? What are your

ways?

3. How do you manage the situation while facing this challenges?

4. What are the strategies and techniques you do to ensure that your business are not

getting bankrupt?

5. What are the sacrifices that you have done to preserve your business?
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Significance of the Study

The significance of the study in research is to know the effects of covid-19 pandemic

significantly impacting small businesses in Barangay Cupang, Antipolo City Rizal so that small

businesses know how to respond and identify strategies to overcome the effects of Covid-19

pandemic. It also offers the benefits in the following:

Students – It is convenient for students like me to buy goods because these micro businesses

offer items that can be purchased in small quantities that fit our budget.

Parents – For parents who do not have time to go grocery shopping or who have forgotten

some necessities, these micro businesses allow them to easily access all of the items that they

need as some micro-businesses are one-stop shops.

Community - They contribute in the sense that they pay taxes for their businesses, which are

used to improve the city.

Aspiring businessman - Those who are interested in starting a micro-business will benefit

from researching successful and unsuccessful micro-businesses. Being critical in your studies,

such as conducting a feasibility test, will help you achieve a high rate of success.

Future researchers - This research will be helpful and useful to the researchers by gathering

information from this study and having more knowledge.

Customers - This study will help the customer be aware about the products, services, store

and performances.

Vendors - This study may serve them as a guide to them to be more improving and develop

their store, product, and services.

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Scope and Delimitation

The scope of this research is to understand the status of micro-businesses food industries

around Baranggay Cupang Antipolo City. This research aims to analyze the food industry by

identifying the types of micro-businesses, their size, the number of employees, and their financial

performance. Additionally, this research will also look at the impact of the local environment on

the success of these businesses, such as the presence of competitors, the availability of customers,

and the economic conditions. The researchers will also consider the role of the local government

in regulating these businesses and the feedback from the customers. Furthermore, the research

will also assess the impact of the mall on the micro-businesses’ performance. The delimitation of

this research is to focus solely on the micro-businesses around Barangay Cupang Antipolo City.

This research will not consider the impact of other factors, such as the global economy, on the

performance of the businesses. And this research will only focus on a specific area and will not

consider the performance of micro-businesses in other locations. Also this research will not

consider the impact of other factors, such as the pricing policies of the businesses, on their

performance.
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Chapter 2

Review Related Literature

Foreign

“The Impact of COVID-19 Pandemic Crisis on Micro-Enterprises: Entrepreneurs’ Perspective on

Business Continuity and Recovery Strategy”

According to Fabiel, Noor Fzlinda (2020), Many nations have implemented movement and travel

restrictions in response to COVID-19 pandemic outbreaks. One of the industries in Malaysia that

is most immediately impacted by the movement's control order is small business. In actuality,

smaller businesses are more significantly impacted than their larger counterparts. Due to the

closure of numerous supporting industries including retail and transportation, entrepreneurs

endure business cancellation or closure as well as decreased income. Studies on the effects of a

pandemic epidemic on micro businesses in underdeveloped nations, particularly with regard to

business continuity and recovery plan, are still lacking. It is critical to investigate how micro

entrepreneurs handle crises and the choices they make to keep their businesses alive. This study

examines two micro-entrepreneurs' perceptions on their business continuity plan amid a

movement control order in rural Sabah. The outcomes of unstructured phone conversations offer

insights into the crisis management strategy and recovery plan of micro-enterprises. Through

affiliated entrepreneurial development groups, this study will ideally aid in the building of strong

support systems that enable micro business owners to prosper both during and after a crisis.
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“ The unique role of relationship marketing in small businesses’ customer experience”

According to Gilboa, Shake (2019 November), The objective of the current study is to define

the customer experience in small enterprises. Small businesses must communicate humanely with

customers in order to provide a consistent customer experience. Personal care and social

relationships are two facets of the market relationship. In this encounter, it is recognized as being

significant or found to be such. We incorporated the results of our study of customers and

conversations with small businesses. and as a result, there is increased trust in the company, there

is a social interaction, and commitment is fostered. Furthermore, both of these tactics produced

pleased clients.

Small businesses are privately-owned enterprises that have a small market share.

The 2019 annual small business survey of Wells Fargo and Gallup defined recruiting new

customers as one of the top challenges facing small businesses (Newport and McMuarry, 2019).

Offering a distinctive and one-of-a-kind customer experience can be a

competitive strategy to address this difficulty. Interestingly, literature surveys have

shown that while the concept of customer experience has gotten significant attention in

the world of major corporations, it has rarely been discussed in studies of small

Organizations.

Due to a number of issues, the literature relationship relating to small company elements

lacks coherence. those who address the viewpoint of the customer (Song etnal., 2018). Several

research questions have been addressed, the majority of which have ignored the importance of

customer experience. Last but not least, despite the fact that many of these studies concentrated
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on the owner-customer interaction, numerous hypotheses have been advanced to explain these

relationships, leading to a variety of results and recommendations.

“Small businesses and their challenges during COVID-19 pandemic in developing countries: in

the case of Ethiopia”

According to Engidaw, A. E. (2022), The primary goal of this study was to illustrate the

difficulties faced by small enterprises in underdeveloped nations—more especially, Ethiopia—

during the corona virus pandemic. The study used secondary data analysis in accordance with a

descriptive research design as its methodology. In addition, both qualitative and quantitative

research methods were used to conduct this study. The secondary data analysis result reveals that

both small and large businesses are facing difficulties. The unprecedented coronavirus crisis has

destroyed many businesses around the world, and it is difficult for them to survive with decreased

revenue, lost jobs, slowed life, and poor marketing performance. It is even difficult for them to

maintain composure and keep their business alive. The government should collaborate with

affluent individuals and other non-governmental organizations in order to help these firms using a

variety of strategies. Additionally, small business owners must control expectations and maintain

communication with their team, vendors, banks, and clients throughout this alarming coronavirus

outbreak. Lower costs, be transparent with employees about finances, continue marketing, find

new ways to provide their product, and recover from the catastrophe.
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“The Impacts of Covid-19 on small business and medium enterprises”

According to Warsame, A. A. (2020), This study aimed to assess the impact of COVID 19 on

Small and Medium Enterprises (SMEs). The SMEs contribute to the national economy, are a

source of income for society, and create jobs opportunities for youth, women and society at large.

COVID19 has evolved into unprecedented health, economy, society, business and the entire life

cycle. Current outbreak has severe economic impact in the world. Containment measures should

be commended by world governments to curb the spread of this pandemic Spread of COVID19.

As a result, the government imposes curfews, bans on public events, social gatherings, stay

at home and close non-essential businesses. This study is limited to small businesses in Garowe

Assess how the pandemic has impacted small business supply and demand, revenue, employees

and other businesses operation. According to survey respondents, the study found that supply fell

by 38% and demand fell by 83% as the respondents of the study confirmed. Earnings experienced

an 89% drop, and 60% of small businesses were forced to cut working hours. Meanwhile, 75% of

respondents were confirmed to be planning or planning to lay off employees. Many SMEs faced

cash decline, cash income from sales fell by 72% and accounts receivable also fell 61% revealed

that 64% of small businesses do not cover operating costs. The small business was in financial

trouble, or bankruptcies resulted in massive job losses and factory closures. COVID 19 is

Financial support is needed to protect people's lives and livelihoods, as it can have dire

consequences for small businesses.especially the most vulnerable.

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"Economic effects of the COVID- 19 pandemic on small businesses"

According to Maksim Belitski, Christina Guenther, Alexander S. Kritikos, and Roy Thurik,

research (2021), Epidemics and pandemics do not just come and go in our lives, but they also

leave a great impact and change in the economy and society. it has become a great test to all the

peoples of the whole world because it has changed everything. We are now five years into the

pandemic, which began in December 2019 and was declared worldwide in January 2020. Almost

millions of people died in the first years of the pandemic, and millions of jobs were also stopped.

due to the fact that people can't come close and go out, which is the reason why small businesses

are affected the most

As a result, self-employed people with small businesses are more affected than employed

people. all over our world. Because physical proximity is critical, the service sector is affected.

Many small businessmen in the world were forced to stop their business, for the reason that there

was almost no one to buy because people at that time were also forbidden to go out. their business

will only lose money if they continue. According to Fairlie and Fossen (2021) female small

business owners have a higher percentage of income loss than their male counterparts Kenney

and Zysman (2020), "the never meet in person era" industries such as transportation, hospitality,

and the arts, as well as entertainment and personal services, have changed affecting both small

and large businesses.

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Locale

“Small Business Creation and Entrepreneurship during Crisis: Insights from the Experiences of

New Start-Ups in the Philippines during the COVID-19 Pandemic”

According to Francisco, J. P., Romero, R. Y., & Flaminiano, J. P. (2022), The entrepreneurial

process that nascent entrepreneurs went through while launching new enterprises during the

pandemic using information from in-depth interviews with owner-managers of small businesses

in the Philippines. We looked at how the pandemic issue was affecting both the emerging

entrepreneur and the emerging business. We discovered that the majority of business owners were

motivated by the need to develop alternate revenue streams during the pandemic. The capacity to

swiftly identify new market opportunities and the use of bricolage to start the entrepreneurial

process despite resource limitations were two traits that were shared by pandemic startup

entrepreneurs. We also discovered that, since mobility limitations hindered traditional offline

social networks, online social capital created mostly on social media platforms played a

significant role in the process. Very little access among respondents was a result of respondents'

lack of trust and awareness of government assistance programs.

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“Challenges of Small and Medium Enterprise towards Progress”

According to Gamundoy, L. U., Bucal, R. J. & EM, F. S. (2020), This study is to identify the

obstacles that small and medium-sized businesses in Pulo, City of Cabuyao, Laguna, Philippines,

face in their efforts to advance. It is anticipated that SMEs' competitiveness would increase as a

result of better understanding their problems, and that eventually they will grow and expand their

operations. When it comes to the nature of the business, medium enterprise business owners with

the least capitalization of 11,000 and above and with a capacity of 11 years of business operations

most frequently use the service type. They all concurred that the numerous restrictions for

business loans make it challenging for them to obtain funding. They are also vulnerable to the

fierce competition that is developing among unregistered businesses as a result of the products

that are being supplied to the market at significantly lower prices. Some SMEs in this situation

have been unable to compete with the micro businesses. They all disagree on the idea that the

emphasis on providing support is intended only for micro-enterprises, just as they disagree on the

LGU's claim that there is not enough funding to support it in furthering the promotion of the SME

sector.
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“The Impact of Covid-19 Pandemic Among Micro Business Enterprise in Buenavista Agusan del

Norte”

According to Buquis Jr., C. L., Maturan, C. A., Miras Jr., E. M. & DE LIMA, M. (2021), The

purpose of this study was to ascertain how the Covid-19 Pandemic affected micro businesses in

Buenavista, Agusan del Norte. A descriptive study design was employed by the researchers. A

self-made survey questionnaire was created after carefully considering certain relevant

publications and online resources. The statistician then reviewed the questionnaire and gave ideas

for improvement in preparation for reliability tests. Based on the study's findings, they prioritized

creativity as their top management talent when coming up with a plan to take advantage of the

chances presented by the epidemic and choose the best response to the issue at hand.The study's

findings also indicate that business owners, on average, "strongly agree" that the Covid-19

outbreak has had an impact on their business plans, indicating that they always employ the

business plan. It revealed that the participants' favored management technique was generally

"Price." Despite Covid-19, they raised the prices of the most popular products, and the prices of

goods are influenced by rivals. It was advised that the management take the study's findings into

account, develop strategies, and establish protocol to help the company sustain its operations and

a positive working environment.

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“Digital Innovations in MSMEs during Economic Disruptions: Experiences and Challenges of

Young Entrepreneurs”

According to Engidaw, A. E. (2022), The increase in COVID-19 cases around the globe has a

significant impact on many facets of society. The enormous public health crisis that has forced

business people to close down commercial facilities and drastically transfer enterprises into

digital platforms has had a significant impact on the world economy, which is no exception. The

pandemic's enormous challenges have provided entrepreneurs from throughout the world with

fantastic opportunity. They believed that digital tools would be crucial to navigating the recovery

route and ultimately enduring the crisis and even thriving in the future. In this study, young

Filipino entrepreneurs examine the factors that promote and obstruct digital innovations in micro,

small, and medium-sized firms (MSMEs) during economic crises. 46 Filipino online business

owners were interviewed in-depth using a qualitative methodology by researchers, who then used

inductive content analysis to identify themes. Results showed that entrepreneurial innovations of

moving businesses to digital platforms are reinforced by the pandemic's negative effects, which

were classified into intrinsic (such as personal and professional growth) and extrinsic (such as

mobility restrictions, market conditions, and household economic status) motivations. Participants

discussed the challenges facing digital entrepreneurs, such as the knowledge required for

operating an online business, issues with the digital platforms' markets, the lack of high-quality

internet infrastructures, and pandemic restrictions. The results of this study add to the body of

knowledge on entrepreneurship and point to potential topics for empirical research in order to

create programs that assist business owners during downturns in the economy.
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“Opportunities and Challenges of Selected One Town One Product Enterprises in Selected Towns

of Cavite Amidst Pandemic”

The Philippines' One Town One Product (OTOP) initiative encourages businesses to market

goods that are readily available in their communities. This study intended to identify the potential

and challenges faced by these businesses in Cavite. Purposive sampling, descriptive-correlational

design, and flexible data survey methodologies through questionnaires were all used by the

researchers. The proponents discovered that the majority of OTOP businesses were in their early

stages of operation, had an initial capital of less than Php 300,000.00, and had one to nine

employees on average. The study's participants faced difficulties with production, a reduction in

workforce, setting up funds for employee support, controlling their cash flow, luring in new

clients, and safeguarding the people's health and welfare. The correlation findings were also not

significant. All null hypotheses are therefore accepted. The findings of this study serve as a

benchmark for strategic policy implementation and rebound plans among pandemic-affected

firms.
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Chapter 3

METHODOLOGY

This chapter the researchers discussed the following: research design, place where the

interview was conducted, population and sampling technique, confidentiality of respondents, the

instruments used, how the information is gathered, and method of analysis.

Research Design:

A researcher’s research design is the framework for the technique and methods that the

researchers will use in conducting a research. The design enables the researchers to focus on

research methods that are suitable for the subject matter and set up their studies for success. This

study used the phenomenological method as a part of a qualitative research method. In which the

researchers looked for the past experiences between the variables without using the method of

surveying. It is a viable option for investigating the experiences of micro businesses around

Barangay Cupang Antipolo City during the pandemic as it doesn’t need to use survey as a method.

This research design is suitable for the topic since it is a great way to quickly collect data from

natural settings. Since this pandemic is a current issue, it will allow researchers to apply the

results obtained in real-world scenarios. Overall it will help to assess the experiences of citizens

of Antipolo to their micro businesses.

Research locale:

This research was conducted at Barangay Cupang Antipolo City. This location was chosen

because of its knowledge of the small business food industry. The researchers selected in
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Barangay Cupang of Antipolo because of the qualifications of the respondents, based on the

researcher's aim. You can place any of the many options that can assist a small company and its

Surroundings. Many potential responses are available and there are several opportunities to ask

inquiries due to the crowding and variety of each floor. and the researchers are relatively close by..

It will be easy to obtain significant information needed for research.

Key Informant Selection:

Our group uses Phenomenological research in Studying our research proposed topic. The

method that we use is the descriptive phenomenology method. Descriptive phenomenology is a

powerful way to understand subjective experience and to gain insights around people's actions

and motivations, cutting through long-held assumptions and challenging conventional wisdom.

This method helps us more understand and gain insights in the research study we proposed and to

understand the meaning of people's lived experience.

Research Ethics:

In our research, research ethics are critical. It assists respondents in maximizing potential

benefits while minimizing potential harms. Being honest, responsible, non-discriminatory,

respectful, and confidential are important to the respondents. This research ethics enables senior

high school students in ABM to learn more about the vendor system who has a macro business in

Barangay Cupang Antipolo City. As researchers, we respect the respondents' decisions; we do not

want to force them to participate in our study; it is perfectly fine with us if they do not want to;

however, we greatly appreciate it if they cooperate with our study, and we value their choices.
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We expected them to answer the questions honestly and accurately once they agreed to an

interview or survey. However, all information gathered by the researcher from respondents will

be kept confidential and treated with respect.

Research Instrument:

The research instruments we used in this study are observation, interview, and document

analysis. We, the researchers on this topic, collect data in this study through observation and

interviews. There are different types of observation, and the one we used was structured

observation, which is a qualitative research methodology used in the social sciences for many

years. It is a method in which an independent researcher observes and records an event or series

of events in their natural setting.

Data Collection:

Using the use of criteria, the researchers chose the respondents. The interview took place at

Barangay Cupang Antipolo City. The respondents at Barangay Cupang met the criteria that the

researchers specified, and the owners are competent for the research, thus the researchers chose

this location as the study's setting. The responses at the selected locale meet the researchers'

criteria. The researchers confirmed that the respondents met their eligibility requirements. We

have a starting point for our questions from the respondents who are available. The informed

consent was distributed, and the researchers made sure that the respondents read and understood

it. The interview is anticipated to take place if the respondent accepts our terms.

A qualitative study on the small-scale food businesses in the area of Barangay Cupang

enquire about the interview and observation experiences with the respondents. Next, while the
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researchers worked in pairs, one was tasked with documenting the crucial data to make it clear

what the respondents are expressing themselves verbatim throughout the entire interview as well

as the other began the interview. Writing was used to record the interview; the information

gleaned from the interview information provided by respondents will serve as evidence that the

researchers will examine and employ a method of analysis. .

Data Analysis:

It is a technique for identifying, analyzing, and presenting textual topics. To describe the

phenomenon, According to Fereday & Muir-Cochranen (2006), it entails a search for themes that

emerge as being relevant. The thematic approach is helpful for developing theories across a

variety of situations and identifying similar themes across research participants and the events

they narrate. It enables the researcher to take into account the context of each respondent's remark

when combining meanings behind it. Also, it is a simple technique that may be applied to

investigate complicated phenomena.

In this study, qualitative research was the method of choice for the researchers. The

researchers document and summarize their findings regarding the experience of micro-small

businesses. Regardless of their circumstance, approach, response, and concerns. In order to

corroborate the conclusions, the researchers compared the derived general themes from the

obtained data with the relevant literature and studies they had gathered.