Professional Documents
Culture Documents
An Undergraduate Thesis
Presented to the Faculty of the
College of Business, Entrepreneurship and Accountancy
RIZAL TECHNOLOGICAL UNIVERSITY
Maybunga, Pasig City
In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Business Administration
Major in Operations Management
By
November 2022
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APPROVAL SHEET
_________________________
Date JENNYLYN M. MARCELINO, MBA
Adviser
___________________________________________________________
PANEL OF EXAMINERS
Approved by the Oral Examination Committee with a grade of_______.
_________________________
DR. LEONILA C. CRISOSTOMO
Date Dean, College of Business,
Entrepreneurship, and
Accountancy
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ACKNOWLEDGEMENTS
study:
KRISIA T. OLEDAN, MBA and sharing their ideas and suggestions for the
guidance helped the researchers in all the time of research and writing of this
study;
understanding, full support and sacrifices that gave them the greatest
and NORIEL LASTROLLO, LPT, DBA who took a careful review of our paper
All other friends and classmates whose names may not appear but
gratefulness of our Almighty God, our Savior, for the knowledge and wisdom
J.D.B.B.
R.C.M.C
R.B.L.
K.D.B.P.
Y.R.Y.
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DEDICATION
been our source of inspiration and gave us strength and when we thought of
giving up, who continually provide their moral, spiritual, emotional and financial
support.
who shared their words of advice and encouragement to finish this study. And
lastly, we dedicated this book to the Almighty God. Thank you for the guidance,
strength, power of mind, protection and skills and for giving us a healthy life. All
J.D.B.B
R.C.M.C
R.B.L.
K.D.B.P.
Y.R.Y.
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ABSTRACT
Small and Medium Enterprises (SMEs) play a very important role in the
and logistics bottlenecks, lack of working capital and working with limited
resources. The researchers conducted this study to identify how flexible the
and analyzing the information. Survey conducted through google forms and
Average Weighted Mean and Pearson-r. The study used secondary data
significant relationship between the effect of pandemic and the SMEs flexibility
TABLE OF CONTENTS
Title of Page………………………………………………………………… i
Approval Sheet……………………………………………………………… ii
Acknowledgement………………………………………………………….. iii
Dedication……….…………………………………………………………… v
Abstract………………………………………………………………………. vi
Table of Contents…………………………………………………………… vii
List of Appendices………………………………………………………….. ix
List of Figures……………………………………………………………….. x
List of Tables………………………………………………………………… xi
Financial…………………………………………………………………….. 13
Strategies…………………………………………………………………… 14
Identifying Opportunities…………………………………………………... 16
Adapting to Change………………………………………………………... 18
Business Process Redesign……………………………………………… 19
Approaches of SMEs to Flexible Management………………………… 21
LIST OF APPENDICES
Appendix A – Survey Questionnaire……………………………………… 56
Appendix B – Letter for Validation of Instrument……………………….. 61
Appendix C – Request for Conducting Survey……………………...…... 64
Appendix D – Letter for Respondents…………………………………..... 65
Appendix E – Validators Certificate………………………………………. 66
Appendix F – Request Letter for Statistician…………………………….. 69
Appendix G – Certification of Reliability and Validity…………………… 70
Appendix H – Certificate for Statistician………………………………….. 71
Appendix I – Certificate for Grammarian…………………………………. 72
Appendix J – Request Letter for the List of SMEs in Pasig City………. 73
Appendix K – Proof of Request Approval………………………………... 74
CURRICULUM VITAE………………………………………………………… 75
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LIST OF FIGURE
Figure 1: Research Paradigm……………..……………………………. 3
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LIST OF TABLES
Table 1: Likert Scale Interpretations ……………………………………… 26
Table 2: Frequency and Percentage Distribution of Respondents
as to Nature of Business…………………………………….……. 30
Table 3: Frequency and Percentage Distribution of Respondents
as to Years in Operation……………………………………….…. 31
Table 4: Frequency and Percentage Distribution of Respondents
as to Capitalization…………………………………………………. 32
Table 5: Mean Result of the Effect of Pandemic to the SMEs
in terms of Operation……………………………………………… 33
Table 6: Mean Result of the Effect of Pandemic to the SMEs
in terms of Financial………………………..………………………. 34
Table 7: Mean Result of the Effect of Pandemic to the SMEs
in terms of Strategies……………………………………………… 35
Table 8: Mean Result of the Flexibility in Management of Selected
SMEs in terms of Identifying Opportunities…………………….. 37
Table 9: Mean Result of the Flexibility in Management of Selected
SMEs in terms of Adapting to Change……………………………. 39
Table 10: Mean Result of the Flexibility in Management of Selected
SMEs in terms of Business Process Redesign………………… 39
Table 11: Correlation Result on the Relationship Between the Effect of
Pandemic and the Approach in the SMEs Management……… 41
Table 12: Proposed Action Plan for SMEs in Adapting the
Changes………………………………………………………….. 43
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
CHAPTER I
THE PROBLEM AND ITS BACKGROUND
Introduction
The proposed study seeks to determine how the pandemic has affected
SMEs' performance and the main obstacles that must be solved through
implemented to deal with the difficulties that SMEs are facing. The main goal of
variety of reliable internet sites to collect their data. All of the sources of data
and literature consulted for this manuscript are rich in substance. The
researchers made sure that the information they acquired was reliable and
businesses that maintain their sales, assets, or personnel count below a specific
level. Small and midsize firms (SMEs), despite their modest size, are crucial to
both the supply and demand sides. The unexpected and dramatic loss of
As a result, for the time being, the majority of firms are focusing their
employee safety. This will be crucial for preserving incomes and employment,
to trade and the global supply chain. The primary challenges will be addressing
strategies and management flexibility, allow them to enter new markets, and
effective strategies during the pandemic. The findings of this paper, especially
management and their employees who will mainly benefit in this study. The
contribution of this paper for the local government is that they will have an idea
regarding the situation of SMEs in the economy and with that they will identify
For the future researchers, they could analyze the content of this paper to serve
Conceptual Framework
INPUT
PROCESS OUTPUT
Demographic profile of the
respondents. Data gathering
through Online
Business Type
Questionnaire Google
Years of Operation Form and Printed
Action plan for
Capitalization Materials
Approaches in
Effects of SMEs to Pandemic Presentation of Data
Flexible
Operation Interpretation and
Management to
Financial analysis of data
survive in
Strategies unforeseen crisis.
Flexibility in Management
taken by SMEs
Identifying Opportunities
Adapting Change
Business Process
Redesign
Significant relationship
between the effect of
pandemic and approach of
SMEs
Proposed Action Plan for
SMEs in Adapting the
Changes
intermediate, and output variables generate causal links in accordance with the
1.3Capitalization
2.1 Operation
2.2 Financial
2.3 Strategies
changes?
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Hypothesis
The hypothesis that the researchers had interfered had been tested at
City during pandemic. This research used Small and Medium Enterprises (SME)
Pasig City.
and manager as the respondents to answer the survey questionnaires for the
which the research was conducted was 30 people who fill-out survey questions
using Google Forms and printed questionnaires. The expected time allotted in
conducting the survey took no more than 30 days. It is for the benefit of meeting
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
the real professionals for the study at various times throughout the day. The
researchers set aside one week in tabulating and analyzing the data.
gain sufficient knowledge and apply the strategies on their businesses, its
which are crucial to the nation's economy. Together with the future researchers
who may explore the content of this paper for them to grasp an idea regarding
how SMEs were affected and strategize during pandemic and the approaches
that the researchers gathered was included to help them. This manuscript sole
with the significant and useful information that can help them in finding a flexible
business management.
Employees
the certain policies in the business that may be applied in situations that can
affect them. It can also help them identify the strengths and weaknesses that
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
their business has to improve and correct any potential issues about the effects
Local Government
This study will contribute to the idea of local government on how they can
help the economy to formulate strategies on saving businesses that may decline
in times of pandemic.
Future researchers
This study will give and expand knowledge applicable to the current and
reference for other researchers that will conduct the same or related studies, it
researchers in the future. Also, this may anticipate the processes involved in the
industry of SMEs.
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Definition of Terms
For better understanding of this study, the following were the important
Flexibility - refers to the ability to quickly adapt to new situations as they arise.
parties.
Resilience - refers to the business that quickly adapt the changers while
running a business.
Small and Medium Enterprises - based on Magna Carta for the capitalization.
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
CHAPTER II
REVIEW OF RELATED LITERATURE
pertinent to the study. These articles discuss the theories, concepts and
production, and services, SMEs have an important role in the market growth of
businesses. The Magna Carta for Small and Medium Enterprises (SMEs)
classifies an enterprise as small if its asset size is between Php 3,000,001 and
and are run depending on the decisions of the owners and they rather focus on
maximizing their profit than expanding their business. In doing it , they use their
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own resources to finance their companies because they value returns over
Flexibility in Management
the working process. For instance, given the size of small enterprises, the
digitalization is low and access to and use of technology is challenging. The cost
of unused labor and capital weighs heavier on SMEs than on large companies
Glory Dee A. Romo (2021) claims that while numerous countries enacted
measures like movement limitations to halt the virus from spreading, the
COVID-19 pandemic has had an effect on the entire planet. All industries have
pandemic's increased costs, lower sales, and labor-related problems like pay or
during unplanned and unforeseen events like the COVID-19 epidemic. Adopting
household from spreading. Retrenchment may be the only way for a corporation
Most firms loss their valuable intangible assets because they were forcely close
their income. Policy responses have been swift and forceful overall, helping to
avoid a wave of bankruptcies thus far. SMEs in the industries most affected by
financial situation of SMEs was generally favorable prior to the COVID-19 crisis.
public consumption. SMEs are threatened when demand declines because their
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
business models, like those of SMEs, are so dependent on the flow of money
from their sales. This kind of influence is important because SMEs rely heavily
combat the crisis. They can use tactics and methods to assist their business
Operations
businesses and jobs after the Covid-19 breakout in early 2020. Data from the
Department of Trade and Industry (DTI) in the Philippines shows that during the
The COVID-19 pandemic has had negative effects, and SMEs have
these are cost savings, product and service diversity, usage of non-cash
payment alternatives, and allowing staff to work from home. Digitalization is the
use of online platforms for commercial transactions. The majority of SMEs still
require aid to recover from their losses, despite these adaptable solutions.
emergence of a new market sector online in the nation depends on its digital
infrastructure.
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Since then, a lot of businesses of all sizes have used technology like
Zoom virtual meetings and other techniques to keep the economy going and
prevent a complete shutdown of the global economy. Prior to this global health
crisis, small businesses did not view the deployment of some technology as
essential (Ting; Webster, 2020). These technologies became one of the coping
and exaggerated the impact that technology can have on some organizations'
result of rules from the government, dwindling demand, poor health, and other
factors. Many of these closures may be permanent because the owners of many
of these enterprises are unable to pay ongoing expenses and survive the
Financial
sector is still strong, according to our evaluation of the market. According to BSP
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
2021). While looking for outside funding to bridge shortages in working capital,
the majority of businesses depended significantly on their own funds and/or kept
(SMEs) financial situation was mostly favorable, according to the OECD (2021).
relatively subdued economic activity. Credit conditions for SMEs had improved,
with credit rejection rates at low levels and loan portfolios gradually shifting to
and how much the crisis is affecting them, according to Alexander (2020). They
Strategies
Article, the COVID-19 pandemic has affected nearly all Americans' daily lives
and driven them to adapt and innovate as they transition into the new normal.
Small enterprises, which had to deal with declining customers and workers while
implementing new social segregation and public health standards, have been
among the most negatively impacted groups. When they questioned small
company owners across the nation about how the coronavirus had affected their
operations, they discovered that many of them had shown resilience and viewed
the difficulty as a chance to expand their operations and keep serving their
communities.
are working harder than ever to maintain the smooth operation of their company
with less resources. Nguyen, Ngo, and Tran claim that a study of 672
Identifying Opportunities
available to help SMEs during the pandemic, including specific programs for
women-owned and led businesses. Some perspectives from SMEs in the food
how the crisis affected them and the assistance they were able to obtain. The
expressed needs of SMEs on the best way for businesses to recover from the
should look for and take advantage of opportunities as we move into the next
phase of the recovery from pandemic. This entails carrying out an "after-action
review" to gather data and insights on the lessons learned from the pandemic.
These insights will then be used to prioritize actions that will increase the value
of the business now and build strategic resilience for the future. As more
certainty and stability return, businesses that take these steps now will be better
able to take advantage of opportunities that arise during the recovery from
commerce movement and now sell their goods online and accept cashless
2020).
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
well as dangers and take advantage of those opportunities that can be beneficial
Be creative
SMEs must look at their business plans as well as their position in the
market. They will be able to plan their recovery and remain resilient in
Be ready to pivot
not hesitate to take action. They recognized their strengths and shifted
with crises. For instance, establishing a logistics arm to support the main
can diversify. An owner thinks that the logistics division can help other
Owners changed their business models in novel ways as they went along
Others have made it through and plan to use innovations developed during the
pandemic to boost their revenue and create new opportunities as the economy
Adapting to change
(PNA) The Covid-19 recent World Economic Forum (WEF) report, but there are
A recent WEF poll indicates that despite greater knowledge of the value
of digital technology, many SMEs have either halted or abandoned their efforts
digital technologies.
Lack of financial resources and access to them, a skilled labor force, and
Above increasing productivity and minimizing costs, which used to be the main
priorities for most businesses, agility and flexibility in operations have emerged
as top priorities. "In general, SMEs are becoming more interested in digital
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solutions." Furthermore, the top objectives for digital technologies were those
ecosystems. Resilience includes the ability to pivot and change business activity
2020).
digital applications and platforms. Some firms began their journey, focusing
changing their old approaches and taking a fresh look at business processes,
have been facing limited resources as a result of the current crisis. Although,
businesses. The established principles of the internal system and the risks that
Small firms may consider a benchmark strategy for coping with the impact
behavior during and after a pandemic and understanding how SMEs can
respond to the demands of the new society, wherein they can rethink their
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operations and expand the use of digital technologies. For better preparation in
the potential crises are all functional that new knowledge models may help in
Many businesses, both medium and small, have had difficulties during
pandemic. Businesses all across the world have been forced to adjust to shifting
conditions and consumer behavior as well as look for possibilities during difficult
times. This required a lot of creativity, originality, and the development of fresh
typical business tactics that organizations have used to thrive and survive the
1. Investing in innovation
order for businesses to remain viable, they had to make sure that their
employees could continue working from home and those customers could buy
their products or use their services online. New software, digital platforms, and
of Spanish small businesses have a website that acts as a sales channel. This
Ecommerce has increased dramatically over the past year, which has
increased demand for reliable and effective logistics. Smaller firms in particular
have felt the pressure to react quickly to logistical demands in order to ensure
modeling is a new corporate strategy born out of the epidemic. Business agility
can keep its adaptability during these times, its prospects of success and
is because it affects how consumers see the brand and encourages them to
CHAPTER III
RESEARCH METHODOLOGY
in this study. The presentation includes the research design, sampling scheme,
The descriptive approach was used to analyze and answer the questions
in this study. This includes gathering data and information, which lead to data
of the researchers both before and during the study process. In order for readers
to more easily understand the filters through which questions were posed, data
researchers will take into account and clearly articulate their position and
Bias and subjectivity are defined up front in a clear and understood way
for readers since while they are not necessarily bad things, they are
while also maximizing their own personal gain. Respect is shown for each
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
information confidentiality.
already been gathered and is available from other sources without difficulty.
such circumstances.
This study will involve thirty (30) random owners of small and medium
Pasig City. Researchers used random sampling techniques to be criteria for the
downfall due to the pandemic falls to the SME category offering products or
services.
Participants who can provide in-depth information about the topic being
studied are sought out using this strategy. The quantitative researchers who set
The study respondents are owners and managers under SMEs in Pasig
City. The researchers were divided into 15 small and 15 medium-sized firms to
balance the results and better understand how the recent economic crisis
manufacturing products. Selected SMEs were chosen randomly from Pasig City
Research Instruments
information from our population of interest. A Google form was sent online and
companies of the selected SMEs in Pasig City. The questionnaire was given to
the owners or managers of enterprises that are open-ended that will require an
Part 2. In this part, the researchers used another set of questions, a Likert
Table 1
Likert Scale Interpretations
selected.
adviser and validators for comments and validation. Further revisions and
refinement have been made for final drafting before distribution. After
The first step used was to ask permission from the researcher adviser
the respondents and the managers of the selected SMEs in Pasig City through
a letter of request to conduct this study. To clearly identify the small and
medium businesses in Pasig City, researchers sent a request letter to the LGU
researchers made sure that they complied with RA 10173, also known as the
Philippine Data Privacy Act of 2012, that they were providing a consent letter
Researchers made sure that all the information from the respondents were kept
confidential and for academic purposes only. After the researchers already had
a list and the approval to conduct a survey, the questionnaires were distributed
the relevant data. Retrieval of questionnaires followed and the retrieved forms
After the researcher collected the survey data, relevant data was
tabulated and arranged with the following statistics that provided the place to
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The researchers tallied and tabulated the data using Microsoft Excel in
This was used to help the researchers to make inferences about the
frequency.
Formula:
Where:
% - Percentage
F - Frequency
Formula:
𝐹𝑥
X =𝑁
X= Weighted Mean
F = Frequency
N = Number of Respondents
3. Pearson R.
management in terms of Innovation, Labor Force, Supply Chain and the effects
Formula:
Where:
r = correlation coefficient
CHAPTER IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
the data gathered by the researchers and in accordance with the research
questions in Chapter 1.
Table 2
Frequency and Percentage Distribution of Respondents as
to Nature of Business
in terms of the nature of business they owned. It is significant to note that the
Manufacturing with 5 or 16.67%; and the least is the hybrid business with only
3 or 10%.
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directly with consumers, is likely the most significant sector of the economy. All
businesses that provide goods and services to the final customer for domestic
and personal use are included, from kiosks and local grocers to national grocery
Table 3
Frequency and Percentage Distribution of Respondents as
to Years in Operation
with regard to years in the operation of their business. "Most of the respondents
have been operating from the span of 5-9 years " with the frequency of 11 and
36.67%. Followed by 1-4 years of operation with the frequency of 9 and 30%,
over15 years of operation with 7 and 23.33%, 10-14 years operation with 3 and
10% and the shortest span of operating a business was less than 1 year having
a 0 frequency and percentage. UP-ISSI Diliman (2020) cites data showing that
2017.
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
1.3 Capitalization
Table 4
Frequency and Percentage Distribution of Respondents
as to Capitalization
Capitalization Frequency Percentage Rank
₱3,000,001 - ₱10,000,000 6 20.00 3
₱10,000,001 - ₱15,000,000 9 30.00 2
₱15,000,001 - ₱25,000,000 12 40.00 1
₱25,000,001 and above 3 10.00 4
Total 30 100.00
Table 4 shows that 50% of the respondents are small businesses with
- ₱15,000,000 having 30% , and the other 50% of the respondents are coming
largely on their own cash and/or maintained profits to keep their operations
running while looking into external funding to bridge any shortages in working
capital.
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Verbal
Operations Mean Interpretation Rank
1. Demand for numerous types of 3.03 Agree 3
products is dropping.
2. Difficulty in production and raw 3.00 Agree 4
material suppliers.
3. Due to shortages and logistics 3.17 Agree 1
bottlenecks, it is becoming more
difficult to send and receive
products on time.
4. Experiencing sales activity 3.13 Agree 2
disruption
5. Activities of business were being 2.90 Agree 5
closed by the government at the
height of the pandemic in March
to April 2020.
Average Mean 3.05 Agree
Legend: Strongly Disagree (SD) = 1.00-1.49, Disagree(D) = 1.50-2.49, Agree(A) = 2.50-
3.49 and Strongly Agree (SA) = 3.50-4.49
becoming more difficult to send and receive products on time ” and the rated
rated mean of 3.13, the demand for numerous types of products dropping with
the mean of 3.03, the difficulty in production and raw material suppliers; at the
least, activities of business were being closed by the government at the height
of the pandemic in March to April 2020 with the mean of 2.90. The respondents
“Agree” that some areas in the selected SMEs have been affected by the
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shut down due to government regulations, declining demand, ill health, or other
cover ongoing costs and survive the shutdown, many of these closures might
2.2 Financial
Table 6
Mean Result of the Effect of Pandemic to the SMEs
in terms of Financial
Verbal
Financial Mean Interpretation Rank
1. Sudden decrease in sales and 2.93 Agree 2
revenues.
2. Increasing costs on creation and 3.03 Agree 1
delivering the products to the
consumers.
3. Over indebtedness or numerous 2.60 Agree 4
credit loans to support financing
4. Simultaneous liquidity crisis, a 2.93 Agree 2
lack of cash or easily-
convertible-to-cash assets on
hand.
5. Availability of purchases of 2.93 Agree 2
inventory on payable.
Average Mean 2.88 Agree 3
Legend: Strongly Disagree (SD) = 1.00-1.49, Disagree(D) = 1.50-2.49, Agree(A) =
2.50- 3.49 and Strongly Agree (SA) = 3.50-4.49
the products to the consumers" with the rated mean of 3.03 followed by the
in sales and revenues with the rated mean of 2.93; at the least of over
2.60.
are financially vulnerable and how much the crisis is affecting them. They
discovered that 40% fewer people were employed and that 43% of the
enterprises in their sample, which is heavily weighted toward the retail industry.
2.3 Strategies
Table 7
Mean Result of the Effect of Pandemic to the SMEs
in terms of Strategies
Verbal
Strategies Mean Interpretation Rank
1. Strategies worked with limited 3.30 Agree 3
resources
2. Lack of flexible work strategies 2.97 Agree 5
for employees
3. An evident retrenchment, cutting 3.03 Agree 4
back or a reduction of employees
to get back within budget.
4. Continuous act to preserve 3.37 Agree 1
ongoing activities with the aim of
maintaining the existing state of
the business.
5. Has been able to engage in 3.33 Agree 2
innovative strategic renewal and
explore opportunities.
Average Mean 3.20 Agree
Legend: Strongly Disagree (SD) = 1.00-1.49, Disagree(D) = 1.50-2.49, Agree(A) =
2.50- 3.49 and Strongly Agree (SA) = 3.50-4.49
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
preserve ongoing activities with the aim of maintaining the existing state of the
business " with the rated mean of 3.37 followed by they have been able to
engage in innovative strategic renewal and explore opportunities with the rated
mean of 3.33. Followed by the strategies worked with limited resources with
reduction of employees to get back within budget with the rated mean of 3.03;
and at the least the lack of flexible work strategies for employees with the mean
of 2.97. The average score is 3.20, demonstrating that the responders have a
public consumption. SMEs are threatened when demand declines because their
business models, like those of SMEs, are so dependent on the flow of money
from their sales. This kind of influence is important because SMEs rely heavily
combat the crisis. They can use tactics and methods to assist their business
Table 8
Mean Result of the Flexibility in Management of
Selected SMEs in terms of Identifying Opportunities
Verbal
Identifying Opportunities Mean Interpretation Rank
1. Was able to reassess their 3.40 Agree 1
growth opportunities in the new
normal.
2. Those opportunities can 3.27 Agree 3
reallocate their capital more
efficiently.
3. The business looks for an 3.30 Agree 2
income strategy to adjust their
operation amidst pandemic.
4. Examined the industry trends 3.17 Agree 4
and insights.
5. Focused to the needs and 3.03 Agree 5
desires of its customer.
Average Mean 3.23 Agree
Legend: Strongly Disagree (SD) = 1.00-1.49, Disagree(D) = 1.50-2.49, Agree(A) = 2.50-
3.49 and Strongly Agree (SA) = 3.50-4.49
Table 8 shows that "the respondents were able to reassess their growth
opportunities in the new normal " with the rated mean of 3.40 followed by the
business looking for income strategy to adjust their operation amidst pandemic
with the mean of 3.30. Followed by the opportunities can reallocate their capital
more efficiently with a rated mean of 3.27. Followed by the examined the
industry trends and insights with the mean of 3.17; at the least was to focused
to the needs and desires of its customer with the mean of 3.03. 60% of the
19) pandemic. Some SMEs, for example, have jumped on the e-commerce
2020).
Table 9
Mean Result of the Flexibility in Management of
Selected SMEs in terms of Adapting to Change
Verbal
Adapting to Change Mean Interpretation Rank
1. Adapted successfully to a rapidly 3.40 Strongly Agree 2.5
changing business environment.
2. Adopted advanced technology. 3.40 Strongly Agree 2.5
3. Sustained protection systems. 3.23 Agree 4
4. The business adjusts their 3.43 Strongly Agree 1
workforce necessary for operation
and to cut down expenses.
5. Had new partnerships, both within 2.83 Agree 5
and outside of the industry.
Average Mean 3.26 Strongly Agree
Legend: Strongly Disagree (SD) = 1.00-1.49, Disagree(D) = 1.50-2.49, Agree(A) = 2.50-
3.49 and Strongly Agree (SA) = 3.50-4.49
Table 9 shows that "the business adjusts their workforce necessary for
operation and to cut down expenses " with the mean of 3.43 followed by the
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
includes a sense of creative and innovative ability to pivot and adjust company
Table 10
Mean Result of the Flexibility in Management of
Selected SMEs in terms of Business Process Redesign
Verbal
Business Process Redesign Mean Interpretation Rank
1. Was able to set up clear goals and 2.97 Agree 5
objectives for processing the
adoption of a new business model.
2. Observed current performance of 3.20 Agree 2
the business and identified areas
that have gaps.
3. Applied new ideas in redesigning 3.10 Agree 4
and developing changes that solves
areas that are lacking.
4. Had continuously monitored 3.13 Agree 3
business performance as a result of
the new design.
5. Analyzed the results of gathered 3.23 Agree 1
information in the current process
and decide if it will be continued or
stopped.
Average Mean 3.13 Agree
Legend: Strongly Disagree (SD) = 1.00-1.49, Disagree(D) = 1.50-2.49, Agree(A) = 2.50-
3.49 and Strongly Agree (SA) = 3.50-4.49
in the current process and decided if it will be continued or stopped " with the
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
mean 3.23 followed by the observed current performance of the business and
identified areas that have gaps with the mean of 3.20. Followed by that they
with the mean of 3.13. Followed by they applied new ideas in redesigning and
developing changes that solves areas that are lacking with the mean of 3.10; at
the least they were able to set up clear goals and objectives for processing the
adoption of a new business model with the rated mean of 2.97 and with the
have started to plan and put into practice paradigm reforms in their business
how they approach traditional approaches and taking a fresh look at people,
operations?
Table 11
Correlation Result on the Relationship Between the
Effect of Pandemic and the Approach in the SMEs Management
the effects of pandemic in terms of Operation, Financial and Strategies, and the
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
interpretation.
Hence, based on the values presented above, the "null hypothesis was
failed to reject for the variables effects of pandemic " in terms of Operation,
between the effect of pandemic and the SMEs flexibility in management. "
discourage investment and cause business closures and job losses that result
changes?
Table 12
Proposed Action Plan in SMEs for Adapting to the Changes
Table 12 outlines the plan that business owners must follow "in order to
develop their operations without taking out loans or borrowing money and by
putting money into new technologies that will help them to make a profit. " These
tactics are based on the average weighted mean, which reveals that business
owners have the lowest performance in finance and business process redesign.
Therefore, the study developed a plan that could help them generate a profit
CHAPTER V
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
Small and Medium Enterprises during pandemic. It emphasized the result of the
quantitative data analysis to come up with findings and conclusions drawn from
Summary of Findings
Pasig City. The stores that offer goods and services to the final consumer
for domestic and personal use fall under this kind of business.
Pasig have an experience varying from 5-9 years and 1-4 years in
years and up business operations. With less than 1 year in operation, none
1.3 Capitalization
2.1 Operations
concur that these effects include lower demand for a number of product
2.2 Financial
and profits.
2.3 Strategies
restricted resources and business continuity. And agreed due to the lack
3.1 Identifying
chosen SMEs in Pasig highly agreed, and the remaining agreed, that they
pandemic.
that they have gaps. On top of that, they analyze the results of the
information they gathered in their current process during the pandemic and
The researcher proposed the plan of action for SMEs for the performance
that needs to improve based on the result of findings where businesses may
Conclusions
City that buys finished products and resells them to consumers, such as
grocery stores, drug stores, and other businesses that sell products to
individuals and buy in small quantities, with the majority operating for less
than five to nine years. Since the pandemic, a large number of SMEs have
5. The proposed action planned goal consists of strategies for the SMEs to
Recommendations
and objectives to take into account, among other things, changes in their
support both the company and its employees. They may also need to
financial situation.
5. Future researchers can also widen the location of study from Pasig City,
to Metro Manila. They may also shift from Small and Medium Enterprise
strategy.
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
REFERENCES
Adam, N. A., &Alarifi, G. (2021, May 27). Innovation practices for survival of
entrepreneurship.springeropen.com/articles/10.1186/s13731-021-
00156-6
https://www.sunstar.com.ph/article/1793081/baguio/opinion/tibaldo-
the-magna-carta-for-micro-small-and-medium-
enterprises#:~:text=The%20Magna%20Carta%20for%20MSMEs,bus
iness%20environment%20conducive%20for%20MSMEs
Review. https://sbir.upct.es/index.php/sbir/article/view/298
DTI. (2021, August 31). MSME resources. Department of Trade and Industry
Philippines. https://www.dti.gov.ph/negosyo/msme-
resources/?gclid=CjwKCAiAyfybBhBKEiwAgtB7fmP8wYR4uVjAHmC
CQj3C_WKSCQbafPoAXsZBf-veKkv1LsBXlhu7exoCitQQAvD_BwE
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
DTI. (2022, August 8). Useful articles for MSMEs during COVID-19 crisis.
https://dti.gov.ph/covid19/tech-tools/msmes-articles/
https://learnmore.duke.edu/certificates/entrepreneurship?gclid=CjwK
CAiAyfybBhBKEiwAgtB7fuHtuK9ZHioROtBNTruWrR_nu0Mj6_2nMo
kdQgo3hqZ5ydidzTIK5RoC1f4QAvD_BwE
https://www2.upmin.edu.ph/index.php/news-sp-5975/5288-
organizational-resilience-and-impacts-of-the-covid-19-pandemic-on-
philippine-businesses
owners: Evidence from the first three months after widespread social ‐
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7461311/
Knowledge Repository.
https://openknowledge.worldbank.org/bitstream/handle/10986/36519/
9781464817601-ch01.pdf
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
https://doaj.org/article/dd68d85178954aee803b9b1b5a4f1ef3
https://journals.sagepub.com/doi/full/10.1177/09721509211039145
https://www.scirp.org/journal/paperinformation.aspx?paperid=81884
Nguyen, H. H., Ngu, V. M., & Tran, A. N. (2021, February 2). Financial
Research | IDEAS/RePEc.
https://ideas.repec.org/a/eee/riibaf/v56y2021ics0275531921000015.h
tml
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
entrepreneurship.springeropen.com/articles/10.1186/s13731-018-
0093-4
https://kaufmanrossin.com/blog/how-business-process-redesign-in-
new-normal-can-help-maximize-value/
content/uploads/2021/03/02112318/COVID-19-Impact-On-Small-
Business.pdfv
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
APPENDICES
(Appendix A – K)
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
APPENDIX A
Survey Questionnaire
Small and Medium Enterprises (SMEs) Approach in Flexible Management
During Pandemic
Name (Optional):_______________________________________________
Business Name (Optional):______________________________________
Position of the Respondent:______________________________________
PART I. DEMOGRAPHIC PROFILE OF THE BUSINESS RESPONDENTS
Instructions: Please check the appropriate box provided below.
A. Nature of Business
Manufacturing
Merchandising
Service
Hybrid Business
Others (please specify):_
B. Years in Operation
₱3,000,001 - ₱10,000,000
₱10,000,001 - ₱15,000,00
₱15,000,001 - ₱25,000,000
₱25,000,001 and above
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
A. Operations 4 3 2 1
(SA) (A) (D) (SD)
1. Demand for numerous
types of products is
dropping.
2. Difficulty in production and
raw material suppliers
3. Due to shortages and
logistics bottlenecks, it is
becoming more difficult to
send and receive products
on time
4. Experiencing sales activity
disruption.
5. Activities of business were
being closed by the
government at the height
of the pandemic in March
to April 2020.
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
4 3 2 1
B. Financial (SA) (A) (D) (SD)
1. Sudden decrease in sales
and revenues
2. Increasing costs on
creation and delivering the
products to the consumers.
3. Over indebtedness or
numerous credit loans to
support financing
4. Simultaneous liquidity
crisis, a lack of cash or
easily-convertible-to-cash
assets on hand
5. Availability of purchases of
inventory on payable.
4 3 2 1
C. Strategies (SA) (A) (D) (SD)
1. Sudden decrease in sales
and revenues
2. Increasing costs on
creation and delivering the
products to the consumers.
3. Over indebtedness or
numerous credit loans to
support financing
4. Simultaneous liquidity
crisis, a lack of cash or
easily-convertible-to-cash
assets on hand
5. Availability of purchases of
inventory on payable.
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
A. Identifying Opportunities 4 3 2 1
(SA) (A) (D) (SD)
60
OPERATIONS MANAGEMENT DEPARTMENT
4 3 2 1
B. Adapting to Change (SA) (A) (D) (SD)
4 3 2 1
C. Business Process Redesign (SA) (A) (D) (SD)
APPENDIX B
Letter for Validation of Instrument
Greetings!
We, the researchers, are 4th year BSBA Major in Operations
Management student at Rizal Technological University are currently
undertaking research entitled, “SMALL AND MEDIUM ENTERPRISES (SME)
APPROACH IN FLEXIBLE MANAGEMENT DURING PANDEMIC”
With your expertise, we are humbly asking your permission to validate
the attached survey questionnaire for our study.
Thank you very much for your cooperation and for accepting our request.
May God bless you.
Respectfully Yours,
Lignes, Rusell
Researcher
Noted by:
Respectfully Yours,
Lignes, Rusell
Researcher
Noted by:
Respectfully Yours,
Lignes, Rusell
Researcher
Noted by:
APPENDIX C
Request for Conducting Survey
Dear Sir/Madam:
Greetings!
We are 4th year students of Rizal Technological University taking up
Bachelor of Science in Business Administration Major in Operations
Management and as a requirement for our program, we are currently
undertaking a thesis entitled, "Small and Medium Enterprises (SME)
Approach in Flexible Management During Pandemic".
In line with this, we would like to humbly ask for your cooperation and
time in answering our survey questionnaire, which are relevant to the objectives
of our study. The survey would last only about less than 10 minutes of your time
to accomplish. The participation in the survey is entirely voluntary and there is
no known or anticipated risk to participation in this study. Rest assured that your
answers will be treated with utmost confidentiality and will only be used for
academic purposes.
Your approval to conduct this study will be greatly appreciated. Thank
you in advance for your interest and assistance with this research.
Respectfully Yours,
Lignes, Rusell
Researcher
Noted by:
APPENDIX D
Letter for Respondents
Dear Respondents:
We, the researchers, conducting a research study entitled, “SMALL AND
MEDIUM ENTERPRISES (SME) APPROACH IN FLEXIBLE MANAGEMENT
DURING PANDEMIC ”, as a course requirement for the degree of Bachelor of
Science in Business Administration Major in Operations Management.
This complies with RA 10173, also known as the Philippine Data Privacy
Act of 2012. We are providing you with this letter to inform and secure your
consent. We shall be grateful if you could take a few minutes of your time to
answer the following questions on the survey questionnaire. Please be assured
that your responses will be treated with utmost confidentiality, and it will be used
for academic purposes only.
Respectfully Yours,
Lignes, Rusell
Researcher
Noted by:
APPENDIX E
Validators Certificate
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
APPENDIX F
Request Letter for Statistician
Respectfully Yours,
Lignes, Rusell
Researcher
Noted by:
APPENDIX G
This is to certify that this study had undergone Pilot Testing and passed the
Reliability Test and Validity test.
Thesis Title:
Researchers:
Jade Daryl B. Bejar
Recem Cymon M. Cerojales
Rusell B. Lignes
Kristel Dianne B. Pansacala
Yuugi R. Yokota
Date Issued:
October 07, 2022
APPENDIX H
Certificate for Statistician
CERTIFICATION
This is to certify that appropriate statistical treatment of data was applied by
the undersigned to the thesis listed below to ensure valid and reliable results.
Thesis Title:
Researchers:
Jade Daryl B. Bejar
Recem Cymon M. Cerojales
Rusell B. Lignes
Kristel Dianne B. Pansacala
Yuugi R. Yokota,
Date Issued:
October 07, 2022
APPENDIX I
Certificate for Grammarian
CERTIFICATION
This is to certify that I, Gemmarie E. Belardo, LPT had checked and
edited all through the pages of the thesis entitled “SMALL AND MEDIUM
ENTERPRISES(SMEs) APPROACH IN FLEXIBLE MANAGEMENT DURING
PANDEMIC” of Jade Daryl B. Bejar, Recem Cymon M. Cerojales, Rusell B.
th
Lignes, Kristel Dianne B. Pansacala and Yuugi R. Yokota all 4 year students
under Bachelor of Science in Business Administration Major in Operations
Management of Rizal Technological University.
Signed this 25thday of December in the year of our Lord, 2022 at Rizal
Technological University.
APPENDIX J
Request Letter for the List of SMEs in Pasig City
Lignes, Rusell
Researcher
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
APPENDIX K
Proof of Request Approval
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
CURRICULUM VITAE
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
OBJECTIVE: EDUCATION
OBJECTIVE: EDUCATION
RECEM CYMON M.
CEROJALES
Signature Over Printed Name
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
RUSELL B. LIGNES
Block 7 Lot 9 P. Cruz Villa Bambang, Taguig City
+6391 5791 7523
2019-202244@rtu.edu.ph
OBJECTIVE: EDUCATION
RUSELL B. LIGNES
Signature Over Printed Name
COLLEGE OF BUSINESS, ENTREPRENEURSHIP, AND ACCOUNTANCY
OBJECTIVE: EDUCATION
YUUGI R. YOKOTA
Green Heights Subd. Nangka Marikina 1808
+ 6395 2601 1003
2019-202244@rtu.edu.ph
OBJECTIVE: EDUCATION
YUUGI R. YOKOTA
Signature Over Printed Name