Chapter 1-5 Final Group 5

Republic of the Philippines
North Eastern Mindanao State University

Rosario, Tandag City, Surigao del Sur 8300
Telefax No. 086-214-4221
Website: www.sdssu.edu.ph
CHAPTER 1
INTRODUCTION
Background of the Study
The COVID-19 pandemic has disrupted every facet of life globally. While
the adverse effects on the economy are revealing at the macro-level, the impact
of the pandemic is likely to be heterogenous across countries and individuals.
However, the impact of the COVID-19 pandemic on businesses in some
industries is particularly large. Many businesses have been through innovations
and strategies to respond and survive during this pandemic. With this, the
researchers wanted to study the financial performance of selected business
establishment such as restaurants in Tandag City amidst COVID-19 pandemic.
In the study of Hadiwardoyo (2020), financial performance of businesses
during COVID 19 pandemic. The most affected business such as hotels,
restaurant, credit-giving institutions for their sales and also poses great risks to
the global economy and security. Part of the economy are small business
establishment like restaurants which are also greatly affected in this pandemic
and it is strongly agreed by Farrell, Wheat, and Mac (2020). Accordingly, this
kind of business are more financially fragile, with lower revenues and less cash
liquidity than other businesses. In fact, a survey of more than 5,000 restaurant
owners and operators conducted by the national restaurant association (2020),
found out that sales were down to 47% and lost an estimated $25 billion during
the period from March 1 to March 22 nationwide. This proves that Covid 19 has
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significantly affected the restaurant industry as the pandemic rages on. However,
Sage Intacct (2020) stated in Trusted CFO Solutions Blog Posts written by Miller
(2020) that 58% nationwide of restaurant owners are having the food delivery
services which increased their revenue to 68%. Therefore, restaurants had to
adapt strategies to continue their business and to increase their revenue.
COVID-19 pandemic has caused great disruption in the economy. Thus,
this study is designed to look into the financial performance of business
establishment like restaurants and the owner’s strategy to improve resiliency.
There are present several strands of research on the financial status of
business establishments during covid-19 pandemic. However, to the best of our
knowledge, no research has yet explored the financial performance of restaurant
industry in Tandag City amidst pandemic. Therefore, this study contributes to the
emerging economy of Tandag City. It also helps the other restaurant owners who
failed to continue their business to regain and survive.
Conceptual Framework
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The paradigm of the conceptual framework of this study is shown in Figure
1 as it presents the schematic diagram of the study shown in the variables as
indicated. This paradigm shows the process on how the researchers measured
the financial performance of business establishment amidst of Covid 19
pandemic.
In the first box is the demographic profile of the respondents, data like
age, sex, address, year in business are gathered. In the second box, contains
the potential effects of covid 19 pandemic to performance of business
establishment are the business condition, employment and operation.
The third box, contains the output. An arrow connecting second box to the
third box is attached in order to show that the variables in the first and second
box where the basis in finding the effects of Covid 19 pandemic to performance
of business establishments.
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 Assessed
seminars/works
Respondent’s Effects of Covid 19 to
hop for business
demographic profile: financial performance
establishment
of business
owners to
establishment in
survive during
1. Age terms of:
pandemic
2. Sex
 Business
3. Address
condition  Flexible strategy
4. Year in business
 Employment
 Financial
predictability
 Operation
Figure 1 Schematic Diagram of the Study
Statement of the Problem
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The study aimed to determine the effects of covid 19 pandemic to financial
performance of business establishment performance. Specifically, it sought to
answer the following questions:
1. What is the profile of the respondent in terms of:
1.1 Age
1.2 Sex
1.3 Address
1.4 Year in business
2. What are the effects of covid 19 pandemic to the financial performance of
business establishments in terms of :
2.1 Business performance
2.2 employment
2.3 operation
3. Is there a significant relationship between the respondents demographix profile
to effects of covid 19 to financial performance of business establishment?
4. Based on the findings what recommendations may be given to improve the
financial performance of business establishments in amidst of Covid 19
pandemic?
Hypothesis
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There is no significant relationship between the independent and
dependent variable
Significance of the study
The finding of this study will be beneficial to the following entities:
Business owners/manager. This study is relevant to the business
owners for them to be ready how to respond, react and transform in the most
positive and productive way in times of pandemic. Through that, they will still be
able to maintain their performance in providing goods and services to the
consumer.
Employees. This study will pave the way on understanding to the
business owner’s management in surviving their business and to be aware of the
effects of pandemic in their job.
Other Researchers. The findings of the study may inspire their interest to
conduct similar studies in other area. This would provide them additional sources
as references of their study relative to the current study. It will also serve as their
reference for future inquiry.
Scope and limitation of the study
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This study intent to determine the effect of Covid 19 pandemic to financial
performance of business establishments in Tandag City. The research scope is
Covid 19 pandemic because it is the current phenomena problem of the world.
The business owner and managers will be utilized as the participants of the
study. The variables related in this study are the respondent’s profile, the effects
of covid 19 to financial performance and the proposal intervention. This research
is conducted on 2nd Semester of A.Y. 2020-2021
Definition of terms
For a better understanding of this study, the following terms are defined in
the context of this research:
COVID-19. COVID-19 stands for novel coronavirus disease 2019, which
refers to the year of its initial detection. COVID-19 is the illness related to the
current pandemic; the illness is caused by the virus SARS-CoV-2 (severe acute
respiratory syndrome coronavirus 2).
Employment. An agreement between an employer and an employee that
the employee will provide certain services. The employer typically controls what
the employee does and where the employee works.
Financial performance. A subjective measure of how well a firm can use
assets from its primary mode of business and generate revenues. The term is
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also used as a general measure of a firm's overall financial health over a given
period.
Lockdown. an emergency measure in which individuals are restricted
from certain areas in an attempt to control exposure or transmission of disease.
In a lockdown during an epidemic, individuals are encouraged to stay home.
Operation. The work of managing the inner workings of your business so
it runs as efficiently as possible.
Pandemic. a worldwide spread of an infectious disease, with larger reach
than an epidemic. Until COVID-19, the last pandemic was the H1N1 influenza
outbreak in 2009.Performance. The accomplishment of a given task measured
against present known standards of accuracy, completeness, cost, and speed.
Performance. The accomplishment of a given task measured against
present known standards of accuracy, completeness, cost, and speed.
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Chapter II
REVIEW OF RELATED LITERATURE AND STUDIES
This part of the presents and discusses the related literature and studies
carefully reviewed by the researchers to have great significance to the present
study.
Related Literature
FOREIGN
Pandemics are unusual occurrences, and their likelihood is affected by
human-induced changes in the natural environment. Furthermore, there is a lack
of transparency for preparedness, and many of the countries most at risk have
the smallest capacity to handle and mitigate pandemic risk
According to Tucker, 2020 the global consequences of the COVID19
pandemic are so serious, both in terms of human lives and financial impact, that
many of the world's most well-known brands could go bankrupt entirely, as
people all over the world, especially in developing countries, are confined to their
homes, causing a halt in economic activity.
Gourinchas(2020, p. 33)summarizes the effect on the economy by stating:
“A modern economy is a complex web of interconnected parties: employees,
firms, suppliers, consumers, and financial intermediaries. Everyone is someone
else’s employee, customer, lender, etc.” Due to the very high degrees of inter-
connectiveness and specialization of productive activities, a breakdown in the
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supply chains and the circular flows will have a cascading effect. Baldwin (2020)
describes the impact of COVID-19 on the flows of income in the economy. First,
households do not get paid and hence reduce their consumption and savings
levels. The decrease in savings reduce investment and hence ultimately diminish
the capital stock.26 Second, households reduce their demand for imports, which
in turn reduces income for the rest of the World, and hence the country’s exports
decrease. Third, the demand/supply shocks cause disruption in domestic and
international supply chains. Fourth, all of the previous shocks and disruptions
lead to a fall in output – causing reductions in the usage of the factors of
production. In this case, labor is more affected than capital through reduced
working hours or layoffs and hence lower earnings
In line with Ozili and Arun, (2020). The seriousness of the COVID-19
pandemic grows, it appears that COVID-19 will have a negative effect on
restaurant firms' liquidity and operating risks, as restaurant firms will face
substantial revenue shortfalls due to a sudden drop in consumer demand, as well
as temporarily disrupted operations.
In the early months of the pandemic, expenses fell sharply along with
revenues (Farrell, Wheat, and Mac, 2020a). From mid-April to May, cash
balances increased sharply, but with a timing that was consistent with the arrival
of cash inflows from federal programs including, but not limited to, the Payroll
Protection Program and other CARES Act programs (Farrell, Wheat, and Mac
2020c). Less clear is whether expense growth accelerated after these liquidity
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increases, or whether they continued to track the slow recovery of revenues. A
more detailed understanding of the progression of expenses is critical to ongoing
policy debates around the appropriate provision of cash liquidity to the sector,
and the potential for further shutdowns and revenue losses in the future.
According to Hudson Riehle (2021), the workforce before the pandemic,
the restaurant and foodservice industry projected it would provide 15.6 million
jobs in 2020, or 10% of all payroll jobs in the economy. But the impact of the
coronavirus caused staffing levels to fall across all restaurant and foodservice
segments, with restaurant employment below pre-pandemic levels in 47 states
and D.C.
Even Guest User (2018) contemplates employees' shortage as the most
significant problem most food chains face. Unfortunately, it is hard to find a
suitable employee willing to fulfill the service crew's duties since it is a short-term
option for most workers. Regardless of increasing the wages of the employee, it
is still hard to reach their satisfaction.
Local
. The Philippine Senate (2012) identified access to finance as the most
serious constraints to MSME growth and development. Aldaba (2012)
underscored that SMEs had been unable to access funds because of their limited
track record, limited acceptable collateral, and inadequate financial statements
and business plans. Banks turn down financial requests of SMEs because of
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poor credit history; insufficient collateral; inadequate sales, income or cash flow;
unstable business type; and poor business plans.
By the same token, the ASEAN Strategic Action Plan for SME
Development (2010–2015) identified access to finance as the primary goal, with
four additional dimensions: market and internationalization, human resource
development, information and advisory services, and technology and innovation.
This means that lack of access to finance makes it more crucial for MSMEs to
manage funds efficiently and effectively.
In the survey of Sage Intacct, and National Restaurant Association (2020),
Throughout Covid-19, restaurants have had to adopt to continue their
businesses. many others made some strategic but tough decisions that
increased their revenue. Before the covid-19 outbreak, 45% of those surveyed
were already using a third party delivery service for food orders. After covid-19,
that percentage jumped to 58%. And of that 58%, 68% increased their revenue,
most surveyed restaurants increased revenue as a result. However, one of the
restaurant business owners said that revenue dropped were initially tentative
since their experience of delivery wasn’t exactly encouraging. Because those
services only made up a tiny fraction of our pre-pandemic revenue, Lim Uy,
(2020).
According to Nurin, usual funding from the bank was always in favor only
to the large restaurant and nations. The majority of the bank fund providers were
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given consideration to the large restaurants. Only 5% of small and independent
restaurants were receiving fund assistance.
Bank loans to MSMEs accounted for only 3.2% of the GDP during the
same period. This suggests that a very small number of MSMEs have access to
bank credit. A prolonged pandemic will make it more difficult for MSMEs to raise
funds from formal financial institutions and to survive the crisis and its aftermath,
which could contribute to more potential losses to the Philippine economy and
risk the projected economic rebound in 2021 according to Shigehiro Shinozaki
and Lakshman N. Rao (2021)
Related studies
Foreign
In the study of Kim, Kim, Lee and Tang (2020) the influence of
macroscopic and infectious epidemic disease outbreaks on the financial
performance of the restaurant industry. Nine events on four epidemic disease
outbreaks during 2004–2016 were analyzed. Event study method and Mann-
Whitney U test were used as the research method and inferential statistic
respectively. They found out that confirmed the negative influence of epidemic
disease outbreaks on the restaurant industry, and identified all the three firm
characteristics serve as risk-mitigating factors. In the study of Farrell, Diana,
Chris Wheat, and Chi Mac. 2018, together, cash balances, revenues, and
expenses provide a summary of small business financial health. Balances
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provide the liquidity firms need, especially when they experience an adverse
shock. Operating cash flows—revenues and expenses—indicate the amount of
business activity, which may be reflected in cash balances. However, cash
balances are not simply the result of net changes in revenues and expenses:
business owners may also transfer personal assets or secure other financing to
replenish their balances. Our estimates of operating cash flows do not include
these types of financial transfers.
Similarly, Jung, Park,Hong and Hyun (2016) investigated the effect of an
epidemic outbreak on consumer expenditures. Data for the study was gotten
from scanner panel data on consumers' debit and credit card transactions. The
result from the regression analysis revealed that epidemics that outbreaks
caused considerable disruption in total consumer expenditures with significant
heterogeneity across categories. They further added that customers alter their
behaviors to reduce the risk of infection. Based on the empirical findings, the
study envisaged a significant reduction in investment, cash flow and bank
deposits.
According to Oliver Koster and Samuel Igoe (2020). The pandemic led to
an unprecedented lockdown of the global economy. This resulted in whole
industries not being able to sell their products and services to customers,
disruptions in the production process and supply chain, significant uncertainty
with plummeting demands.
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Local
According to the survey of World Bank, Department of Finance, and
National economic development authority (2020), despite the easing of the
community quarantine, firms have reported a deep reduction in sales revenue.
The estimated loss of revenue is at 64 percent in July 2020 compared to April
2020, with 89 percent of firms reporting a reduction in sales. However, in
alongside falling demand and disrupted supply chains, firms faced a deterioration
of their cash flow. 86% of firms reported reduced cash flows with 59% of firms
noting that access to financial services. In addition to this On average, 9.3
regular employees in small firms and 50.6 in large firms had their working hours
reduced; 6.8 in small firms and 29.4 in large firms were granted leave; 7.5
employees in small firms and 15.2 in large firms had salaries, wages, or benefits
reduced; and 2.5 employees in small firms and 3.1 in large firms were laid off.
In the study of Ralf Rivas (2020), 53% or over 82% of the 64 companies
COL financial monitored have reported lower earnings, while 15 or over 23%
reported losses during the period. Looking at sectors, restaurants posted the
sharpest dip at -264.9% while companies under consumer goods manufacturing
managed to grow at just 2.4%.
According to Bingham and Hariharan, (2020), on the concerns
related to the business operational continuity for all members of the organization,
employee protection, and market preservation are the top priorities. Given the
fact that the Covid -19 pandemic contains a very tremendous impact on
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restaurant business operation. And for fast recovery, business operators invest in
strategic, and financial resilience.
Based on annual survey of Philippine business and industry (2017),
majority of the establishment with Total Employment of 20 and over were
engaged in restaurants to 70.4% of the total. Employments of establishments
99.6% were paid employees and the remaining were working owners and unpaid
workers. Restaurants contributes the biggest share to total income and
expenses.
Synthesis
With other conditions remaining the same, the COVID-19 pandemic harms
the performance of business establishments.
According to Oliver Koster and Samuel Igoe (2020). The pandemic led to
an unprecedented lockdown of the global economy. This has resulted in the
entire industry not being able to sell their products and services to customers,
disruptions in the production process and supply chain, significant uncertainty
with falling needs. In fact, a survey of more than 5,000 restaurant owners and
operators conducted by the national restaurant association (2020) found that
sales dropped 47% and lost an estimated $ 25 billion in the period from March 1
to March 22 across the country. This proves that Covid 19 has had a huge
impact on the restaurant industry as the pandemic continues.
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Chapter III
RESEARCH METHODOLOGY
This chapter presents the methodology design used, the local of the study,
the research respondents, research instruments, validation of instruments,
administration of instruments and scoring tabulation that are being applied in
data gathering procedures and statistical treatment.
Research Design
The descriptive research used in this study, because the instrument is
adopted checklist questionnaire. Descriptive research aims to accurately and
systematically describe a population, situation or phenomenon. It can answer
what, where, when and how questions, but not why questions. Through this
method, the researcher will gather and identify the total answer of the respective
respondents which were the business owners and employees of every business
establishment in Tandag City.
Research respondent.
The respondents of this study were the business owners or a manager
that has at least two years’ experience in business and still currently in business
operation. They were chosen as the respondents since the purpose of this study
is to assess the performance of business establishment amidst of Covid 19. To
determine the respondents, the researchers make used of the Purposive
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sampling. Purposive sampling, also known as judgmental, selective, or
subjective sampling, is a form of non-probability sampling in which researchers
rely on their own judgment when they want to access a particular subset of
people, as all participants of a study are selected because they fit a particular
profile.
Research Instrumentation
The relative assessment description approach was used to include and
collect as much information as possible. Questionnaires are used in this process.
The researcher's tools are explored in detail. The key data collection instrument
for this analysis was a questionnaire. The questionnaire consist of (2) three
parts,Respondents Profile,effects of Covid 19 pandemic to performance of
business establishment which solely revolve in finding the propose intervention.
Research Local
This study was conducted at Tandag City. The city is located on the
northeastern coast of Mindanao Island facing the Philippine Sea. It is bounded on
the north by the municipalities of Lanuza and Cortes, on the east by the
Philippine Sea, on the south by the towns of Tago and San Miguel, and on the
west by the province of Agusan Del Sur. Tandag city is consistently high in terms
of population. In fact, it is the biggest municipality in the province of Surigao Del
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Sur. Along its proximity are some commercial/business establishments and
residential buildings.
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Figure 2. Location Map of the Study
Data Gathering Procedure
The study has used checklist questionnaire which respondents were
asked to select only answers from the choices offered as a list. Thereby the
study has used survey method for date collection through sending google forms
directly to the target respondents.
Statistical Treatment
In order to answer the problems of this study the researchers made used
of the following statistical treatments. The following statistical treatments are
proven to be of great solution and necessity in this study.
Frequency Counting and Percentage. Used to determine the percentage
usually for data on profile (e.g. level, age, gender, etc.).The measure of dominant
quantity will be utilized to determine the most probable event.
Weighted mean. To measure the general response of the survey samples,
the researcher will use the formula of the weighted mean.
Scoring Tabulation
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The researcher tallied and tabulated the result of the survey after collecting it
from the respondents. The response of the respondents using checklist
questionnaire and weighted mean were used to determine and evaluate the
result of the survey.
Chapter IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter presents, analyses and interprets the data gathered from the
respondents of the study.
1.1 Age 1.2 Gender

18-25 years old 45%
Female 60%
26-30 years old 17%
Male 40%
31-35 years old 15%
36-40 years old 15%
The table shows the profile of the respondents in terms of Age, Gender,
Business Location and Years in Business of the Business Establishment
Financial Performance amidst COVID 19 pandemic. Mostly of them belongs to
bracket 18-25 years old. Majority of them were female which has the greater
portion of the respondents with the percentage of 60%.
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1.3 Period of operation since establishment

0-5 years 57%
6-10 years 18%
11-15 years 8%
16-30 years 9%
31 years and above 8%
The majority of restaurants surveyed were relatively young firms, operating for 5
years or less accounting for 57% of total respondents, followed by firms
operating 6-10 years (18%), firms operating for 16-30 years (9%), firms operating
11-15 years and 31 years and above (8%).
1.4 Business Location

Awasian 7%
Bag-Ong Lungsod 29%
Bioto 4%
Buenavista 9%
Bungtod 4%
Dagocdoc 5%
Mabua 13%
Pandanon 4%
Quezon 2%
Rosario 1%
Salvacion 4%
San Agustin Sur 8%
Telaje 10%
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In addition, to the business location 29% of those surveyed operated on Bag-ong
Lungsod (Poblacion), followed by Mabua 13%, 10% in telaje, Buenavista 9%,
and San Agustin Sur, Tandag City 7%.
Business Establishment Financial Performance as to Effects of COVID 19
on business performance
2.1 Status of the Business after ECQ
Open 25%
Open but limited operation 51%
Temporarily closed 23%
Permamently closed 1%
The
tables present the Business Establishment Financial Performance. Its shows
that as to the effects of COVID 19 on business performance, the enhanced
community quarantine and other quarantine/lockdown measures dramatically
limited business activities throughout much of the Tandag City. According to the
survey, 51% of restaurant surveyed open, but limited open after the ECQ came
into effect. Limited operation continued open of 25% of the restaurant surveyed.
2.2 Who have faced limited operations
Less than 25% operational 44%
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25%-50% operational 51%
52%-75% operational 1%
More than 75% operational 4%
Among those with limited operation, one-fifth reported more than 50% of
their business continued, while 44% reported less than 50% of their business
operational. Only 23% of those surveyed remained temporarily close. Meanwhile,
1% closed permanently.
2.3 Expected Timeframe on the business recovery
Within 2 weeks 44%
1 month 51%
1-3 months 1%
More than 3 months 4%
Unable to judge 10%
In addition, the majority of the respondents could not assess the expected
time frame for business recovery following the lifting of the ECQ, due to the
uncertain business environment. Meanwhile, 10% responded that their restaurant
may recover within 2 weeks, then 22% of restaurant responded that it might take
1 month for business to recover after the ECQ ends, and 19% anticipated the
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recovery would take 1 to 3 months. Only 11% of restaurant surveyed expected a
recovery more than 3 months and 38% are unable to judge.
2.4 Status of Sales in April 2020 compared to March 2020
Increased 16%
\
Decreased 52%
Remain the same 32%
Lastly, the COVID 19 outbreak and lockdown measures led to a sharp
decline in April sales (80.4% on average by value) compared with March for 52%
of restaurant surveyed. Sales remained the same for 32% of restaurant. Only
16% reported an increased.
Business Establishment Financial Performance as to Employment
2.5 The full time regular workers as of April 2020
Hired 10%
Laid off 39%
Granted Leave of absence 13%
Had their salary wages or benefits reduced 12%
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No change 26%
The data shows the Business Establishment as to Employment, most
firms faced open but limited or limited business operations during the ECQ. In
April, 39% of restaurant surveyed laid off to full-time regular employees, while
26% no changes of full-time regular worker, followed by granted leave of
absence 13%; just 12% had their salary, wages or benefits reduced. Meanwhile,
10% of restaurant hired new regular employees to meet special household
demand.
2.6 Changes in total wages payments to all employees
Temporarily no payment 6%
More than 50% decrease 11%
31%-50% decrease 11%
11%-30% decrease 8%
1%-10% decrease 11%
No change 35%
In addition, many restaurants reported either no wage payments to
employees or a decrease in total wage payments. More concretely, 35% of
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restaurant reported no change in payment conditions to employees, 41%
reduced the total amount of wage payments, and 6% of restaurant did not pay
wages to employees temporarily after 15 march. Just 18% of restaurant reported
an increase in total wage payments to employees after the pandemic began.
Business Establishment Financial Performance as to Operations
2.7 Percentage of workers can work from home
Work from home not possible for any worker 55%
More than 50% 12%
26%-50% 19%
6%-25% 6%
1%-5% 8%
After the ECQ began, many restaurant were forced to close their
business, and Work from home become a used alternative approach to maintain
business activity. However, the survey findings revealed that work from home
was not necessarily feasible or ideal. More than half 55% of restaurant reported
that it was not possible to adopt work from home. Less than 50% of workers
could work from home without major operational disruptions in 37% of the
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restaurant surveyed. Only 8% reported 1 to 5% of workers could work from
home.
2.8 Cost of supplies or raw materials changes in ECQ

There
Increased 25%
was a
Decreased 50%
No change 25%
decrease in the cost of supplies and raw materials after the ECQ began for 50%
of restaurant; 25% reported an increase in cost; while 25% reported no change.
2.9 Financial Condition after COVID 19 outbreak
Already no cash and saving 17%
cash/funds covering operation
cost to be run out in 1-3 months 21%
cash/funds covering operation
cost to be run out in 3-6 months 30%
Enough savings, liquid assets
and other contingency budget 41%
Establishment face sharp deterioration of financial conditions after the
COVID 19 outbreak 30% of survey respondents had cash and funds covering
operation costs to be run out in 3-6 months. Another 41% reported have enough
savings, liquid assets, and other contingency budget to maintain their business
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for more than 6 months, and 21% reported cash /funds covering operation costs
to be run out in 1-3 months. Only 12% of restaurants had no cash or savings to
cover operation costs at the time of the survey.
2.10 Most significant financial problems of business during COVID

19 outbreak
No Specific problem 3%
other expenses 21%
Payment invoices 6%
repayment of loans 20%
rent 37%
staff wages and social security changes 35%
The most significant financial problem for restaurants during the COVID
19 pandemic is rent. This was cited by 37% of respondents. Followed by paying
staff wages and social security charges (35%), other expenses (21%), and
repayment of loans (20%).
2.11 source of funds can use to maintain or restart the business

Own funds or retained profit 32%
loans from informal money lenders 10%
family, relatives and friends 32%
business partners 9%
loans from digital finance platforms 6%
loans from nonbank finance institution 10%
loans/overdraft/line of credit from banks 29%
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During the ECQ, most restaurants surveyed relied heavily on their own
funds and/or retained profit to maintain their business, while exploring external
funding to fill gaps in working capital. In the multiple answer section of the
questionnaire, 30% reported used their own funds and/or retained profit to
continue business activities; 25% borrowed from family, relatives, and friends;
19% applied for loans/overdraft/lines of credit from banks for working capital;
15% could obtain loans/overdrafts/lines of credit from banks for working capital;
8% received funding support from business partners; 7% tapped nonbank
finance institutions; 7% borrowed from informal moneylenders; 4% used digital
finance platforms such as peer-to-peer lending; only 2% received funding support
from government.
For sources of future fund, those surveyed cited own funds and family,
relatives, and friends as the top financing method desired with 32% responses.
Meanwhile 29% of credit from banks, 10% would look to nonbank finance
institutions to fill their working capital needs, 9% would seek financial support
from business partners. Only 6% said they would seek loans from digital finance
platforms.
Correlation The value The P- Significance
of R Value
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Profile of the respondents Effects 0.0714. .834751 not significan
of Covid 19 on Business Performance t at p < .05
Figure 3
Significant Relationship between the Demographic Profile of the
Respondents and the Effect of COVID 19 on Business Performance
The figure 5 shows that there is no significant relationship of the
demographic profile and online modalities.
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Chapter 5
SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
This chapter includes the findings and its summary, the conclusion based on
the problems stated,and the recommendations that the researchers have gained
throughout the course of the study.
Findings
On the basis of the foregoing study the following findings were drawn:
1. In terms of the respondents profile as of sex, the female category has the
highest percentage which gained 60% and got the first rank. As of age bracket
with the frequency of 41 out of 91 respondents, 18-25 years old has the highest
percentage which gained 45.1%. Most of them business location is the Bag-ong
Lungsod that rate 29% and which Tandag’s most busy place. In terms of
operation, were young firms operating 5 years or less that gained 57.1% with the
frequency of 52 restaurant.
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2. In terms of Business Establishment Performance amidst COVID 19, findings
are follows based on figures respectively:
First, the researchers found out that in figure 2, business performance, the
highest respondent’s response that during enhance community quarantine they
are still open but limited operation with 25% to 50% operational. In addition, the
majority of the respondents could not assess the expected time frame for
business recovery following the lifting of the ECQ, due to the uncertain business
environment. Meanwhile, 22% of restaurant responded that it might take 1 month
for business to recover after the ECQ ends
Second, the researchers discovered that in figure 3, as to employment
during ECQ 39% of the restaurant’s employee have been laid off. However there
is no change of wage which gained 35% response from the respondents.
Third, the researchers learned that in figure 4, as to operation, 55% of the
restaurant responded that work from home is not possible and 50% decreased in
cost of supplies and raw materials. After the COVID 19 outbreak the survey
respondents had have enough savings, liquid assets and other contingency
budget to maintain their business for more than 6 months. Majority of the
respondents answered that the most significant financial problem during COVID
19 pandemic is the rent that gained 37% followed by staff wages and social
security changes with the rate of 35%.
3. In terms of the relationship between the demographic profile of the
respondents and effects of COVID 19 on business performance the researchers
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found out that there is no significant relationship between the independent and
dependent variables.
Conclusions
Based on the findings, the following conclusions were drawn:
1. Most of the respondents were female. As of age bracket, majority are 18-25
years old and respondents came mostly from Bag-ong Lungsod with 0-5 year’s
period of operation.
2. Most of the respondents faced limited operation after ECQ that results
decrease of sales and relied from their own funds to maintain their business. It is
concluded that the pandemic is heavily affecting labour markets, economies and
enterprises, including supply chains that may lead to widespread business
disruptions. The rapid outbreak of COVID 19 cause a big impact not only to
health but also to business industry. The business operation interrupted that
result to increase of unemployment. In addition most of the businesses laid off
and choose to work on their own. Therefore, the researchers conclude that
COVID 19 pandemic has a negative effect to business employment.
3. In terms of the relationship between the profile of the respondents and the
effects of COVID 19 pandemic to business performance, the researchers
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concluded that there is no significant relationship between the two variables
where the value of R is 0.0714 and the value of P is .834751.
Recommendations
The consequences of the coronavirus disease (COVID-19) outbreak are
unprecedented and felt around the world. The world of work is being profoundly
affected by the pandemic. In addition to the threat to public health, the economic
and social disruption threatens the long-term livelihoods and wellbeing of
millions. In the face of the COVID-19 crisis is global and open-ended, and it
affects everyone, including individuals, businesses and communities large and
small.
So the researchers recommended following:
1. The business owners have had to act quickly to optimize their
business’s resilience - rebalancing for risk and liquidity, while assessing
opportunities for growth coming out of the downturn.
2. Immediate actions can have an immediate impact on the survival of the
business, how quickly it rebounds from the global downturn, and its financial
health and sustainability going forward.
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3. Attending conferences, seminars and workshops relate to business is a
brilliant opportunity to learn new topics, to practical and strategic solutions
especially in amidst of pandemic business owners can learn how they will handle
their current situation.
4. They need to create strategies that balance the immediate needs of
their customers, employees and communities, with a return to long-term
competitiveness.
References
Farrell, Diana, Chris Wheat, and Chi Mac. (2020).”Small Business Financial
Outcomes during the Onset of COVID-19.” JPMorgan Chase Institute.
Allison, M. (2020). COVID-19’s Impact and Recovery for the Restaurant
Industry- Cash Flow, Business Models, The Future, Crisis Lights, Cash
Forecasting, & Survey Conclusions. Posted in Trusted CFO Solutions Blog Posts
from https://trustedcfosolutions.com/covid19-impact-restaurant-cash-flow-model-
future/
Lim Uy, S. (2020). Through COVID-19, top Philippine restaurants just want to
survive from https://www.rappler.com/life-and-style/food-drinks/top-philippines-
restaurants-just-want-survive
Annual Survey of Philippines and Industry. (2017). Accommodation and Food
Service Activities Sector for Establishment with Total Employment of 20 and
Over: Preliminary Results from https://psa.gov.ph/content/2017-annual-survey-
philippine-business-and-industry-aspbi-accommodation-and-food-service
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Ralf, R. (2020). How the Pandemic is Crushing Company Earnings from
https://www.rappler.com/newsbreak/in-depth/how-coronavirus-pandemic-
crushing-company-earnings
Hudson, R. (202). State of the Restaurant Industry report measures virus impact
on business from https://restaurant.org/articles/news/new-report-measures-
pandemics-effect-on-business
Gourinchas, P.-O. (2020). Flattening the pandemic and recession curves.
Mitigating the COVID Economic Crisis: Act Fast and Do Whatever from
http://vietstudies.net/kinhte/COVIDEconomicCrisis.pdf#page=38
Shigehiro Shinozaki and Lakshman N. Rao (2021). COVID-19 IMPACT ON
MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES UNDER THE
LOCKDOWN: EVIDENCE FROM A RAPID SURVEY IN THE PHILIPPINES from
https://www.adb.org/sites/default/files/publication/677321/adbi-wp1216.pdf
Michael Varcas (2021). Unemployment rate hits record high in 2020 from
https://www.bworldonline.com/unemployment-rate-hits-record-high-in-2020
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Appendix A
Proposed Intervention
Based on the foregoing study the researchers propose the following
intervention:
First the researchers proposed to Business owner establishment to
assessed seminars, workshop or webinars about the effects of pandemic to the
performance of business establishment to survive during pandemic.
Second the researchers proposed to form a flexible strategy in able the
business to respond and adapt to unpredictable environment changes.
 Review your strategy at regular intervals. This will allow owners to quickly
identify when their initial strategic assumptions are moving off track.
 Promote operational and individual flexibility within your company. It's not
just strategy that needs to enable flexibility, but also the business corporate
structures, systems, processes, budgets and, most importantly, people.
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 Develop a dynamic budgeting system. Just as the owners should review and
potentially modify the business strategy on a monthly or quarterly basis, they
should also do the same with budget allocations.
Third the researchers proposed the financial predictability, in these critical
time businesses are more financially fragile, with lower revenues and less cash
liquidity. Business owners must be able to predict their financial status for the
next few months, be proactive, think the possibilities and then develop a plan.
APPENDIX B
VALIDATION FORMS
Name of Evaluator :
Degree :
Position :
Number of Years in Teaching/Services :
To the evaluation: Please check the appropriate box for your rating
Point Equivalent 5 -Excellent
4 -Very Good
3 -Good
2 -Fair
1 -Poor
INDICATORS 5 4 3 2 1
1.) Clarity of Direction and items
The vocabulary level, language structure and concept of the questions suit the /
level of respondents. The test direction and items are written in a clear and
understandable manner.
2.) Presentation/Organizations items /
The items are organized in logical manner.
3.) Suitability of items
The items appropriately represent the substance of the research. The /
questions are designed to determine the conditions, knowledge, skills and
attitudes that are supposed to be measured.
4.) Adequateness of items per Category
The items represent the coverage of the research adequately. The number of /
questions per category is representative enough of all questions needed for
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the research.
5.) Attainment of the Purpose /
The instrument as a whole fulfills the objectives for which it was constructed.
6.) Objectivity
In each item question, there is only one specific answer to measure one /
behavior and no aspect of the questionnaire suggests bias on the part of the
research.
7.) Scale and Evaluation in Rating System
The scale adopted is appropriate for the items. /
Remarks:
_____________________________________________________________________
JAMES GREFALDE_____
Signature over Printed Name
APPENDIX C
SURVEY QUESTIONNAIRE
Business Establishment Financial Performance Amidst of Covid 19

Pandemic in Tandag Surigao del Sur
Business Name:
Part 1 : Respondent’s demographic profile

1.1. Age:
 18-25 years old
 26-30 years old
 31-35 years old
 36-40 years old and above
1.2 Gender:
 Female
 Male
1.3 Your business location:
 --Please select the location —
 Awasian
 Bag-ong Lungsod (Poblacion)
 Bioto
 Bongtud (Poblacion)
 Buenavista (includes Mahayag)
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 Dagocdoc (Poblacion)
 Mabua (Poblacion)
 Mabuhay
 Maitum
 Maticdum
 Pandanon
 Pangi
 Quezon
 Rosario
 Salvacion
 San Agustin Norte
 San Agustin Sur or Dawis
 San Antonio
 San Isidro
 San Jose
 Telaje (Poblacion)
1.5 Period of your operations since establishment (as of the end of 2019):
-- Please select one -- •
 0–5 years
 6–10 years
 11–15 years
 16–30 years
 31 years and above
Part 2: Effect of COVID-19 on Your Business performance

Business Condition
2.1 What is the status of your business after the Enhanced Community
Quarantine (15 March 2020)?
-- Please select one –

 Open
 Open, but limited operations (proceed to question 2.1.1)
 Temporarily closed
 Permanently closed (will not reopen)
2.2 If you have faced limited operations, what is the status?

 Less than 25% operational
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 25%–50% operational
 51%–75% operational
 More than 75% operational
2.3 What is the expected timeframe on your business recovery from the
end of the Enhanced Community Quarantine*?

 Within 2 weeks
 1 month
 1 to 3 months
 More than 3 months
 Unable to judge
* Business recovery means one of the following conditions: return to
profitability, return to previous production level, and return to previous
workforce level.
2.4 What is the status of your sales (value) in April 2020 as compared to
March 2020?

 Increased (proceed to question 2.3.1)
 Decreased (proceed to question 2.3.2)
 Remain the same (proceed to question 2.4)
Employment
2.5 As of the end of April 2020, how many full-time regular workers
were/have been*:

 Hired
 Laid off
 Granted leave of absence (e.g. sick leave, vacation leave, etc.)
 Had their salary, wages, or benefits reduced
 Had their working hours reduced
 No change
2.6 Changes in total wage payments to all employees after the COVID-19
outbreak (15 March 2020):

 Temporarily no payment
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 More than 50% decrease

 31%–50% decrease
 No change
 Less than 10% increase
 10%–30% increase
 31%–50% increase
 More than 50% increase
Operations
2.7 What percentage of your workers can work from home without major
disruption in your operations?

 Work from home not possible for any workers
 More than 50%
 26%-50%
 6%-25%
 1%-5%
2.8 How have your cost of supplies/raw materials changed since

imposition of the Enhanced Community Quarantine in April 2020 against
March 2020?

 Increased (proceed to question 2.11.1)
 Decreased (proceed to question 2.11.2)
 No change (proceed to question 2.12)
2.9 Financial condition after the COVID-19 outbreak (15 March 2020):

 Enough savings, liquid assets, and other contingency budget to
maintain business for more than 6 months
 Cash/funds covering operation costs to be run out in 3-6 months
 Cash/funds covering operation costs to be run out in 1-3 months
 Already no cash and savings • Others, please specify:
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_____________
2.10 What are the most significant financial problems for your company
during the COVID-19 outbreak?

 Staff wages and social security charges
 Rent
 Repayment of loans
 Payments of invoices
 Other expenses
 No specific problem
2.11 Funding conditions after the COVID-19 outbreak (15 March 2020).
During the Enhanced Community Quarantine period, have you:
-- Please select all that apply –

 Obtained loans/overdraft/line of credit from banks for working capital
 Applied for loans/overdraft/line of credit from banks for working
capital
 Utilized nonbank finance institutions (e.g., microfinance institutions,
pawnshops) for working capital financing
 Utilized digital finance platforms (e.g., peer-to-peer lending,
crowdfunding) for working capital financing
 Received funding support from business partner
 Received funding support from the government
 Borrowed from family, relatives, and friends to maintain business
 Borrowed from informal moneylenders to maintain business
 Used own fund/retained profit to maintain business
 Others, please specify: ________________
2.12 What sources of funds can you use to maintain or restart your
business?
-- Please select all that apply –

 Loans/overdraft/line of credit from banks
 Loans from nonbank finance institutions (e.g., microfinance
institutions, pawnshops) for working capital financing
 Loans from digital finance platforms (e.g., peer-to-peer lending,
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crowdfunding)
 Business partner(s)
 Family, relatives, and friends
 Loans from informal moneylenders
 Own fund/retained profit
 Others, please specify: _______________________
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CURRICULUM VITAE
PERSONAL BACKGROUND
Name: Ella P. Igong-Igong
Sex: Female
Age: 23
Civil Status: Single
Birthday: March 5, 1999
Birthplace: Guava Junction, Bislig City, Surigao Del Sur
Father: Joel G. Igong-Igong
Mother: Teresita P. Igong-Igong
Address: Bislig City, Surigao Del Sur
Educational Background
Tertiary: Surigao Del Sur State University
Rosario, Tandag City (2020-2021)
Secondary: Bislig City National High School, Surigao Del Sur
Primary: Bislig Central Elementary School, Surigao Del Sur
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PERSONAL BACKGROUND
Name: Frency Dae Jomillo
Sex: Female
Age: 24
Civil Status: Single
Birthday : May 25, 1998
Birthplace: Paranaque City
Father: Jory Yanson Jomillo Sr.
Mother: Rhea Ramos Dotimas
Address: Melissa Homes Subdivision Lot 10 Block 1 Brgy Victoria
Tertiary : Surigao Del Sur State University
Secondary : Saint Theresa College of Tandag Surigao del Sur
(2018-2019)
Primary : Ed Christian Academy, Tandag Surigao del Sur.
(2012-2013)
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PERSONAL BACKGROUND
Name: Mary Angelie L. Lagrama
Sex: Female
Age: 23
Civil status: Single
Birthday: June 20, 1999
Birthplace: Poblacion, Marihatag Surigao del sur
Father: Demetrio L. Lagrama
Mother: Angelina L. Lagrama
Address: Poblacion, Marihatag Surigao del sur
Tertiary: Surigao Del Sur State University
Rosary, Tandag City ( 2020-2021)
Secondary: Holy Child Acamedy of Marihatag Inc.
Marihatag Surigao del Sur ( 2018-2019)
Primary : Marihatag, Central Elementary School
Marihatag, Surigao Del Sur (2012-2013)
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PERSONAL BACKGROUND
Name: Jenny Gumanid
Sex: Female
Age: 24
Civil Status:Single
Birthday: March 9, 1998
Birthplace: Awasian Tandag City Surigao del Sur
Father: Leo Estapia Gumanid
Mother: Gemma Buenaflor Gumanid
Address: Awasian Tandag City Surigao del Sur
Tertiary : Surigao Del Sur State University
Secondary : Vicente L. Pimentel National High School
Quezon Tandag Surigao del Sur
Primary : Awasian Elementary School
Awasian Tandag Surigao del Sur
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Republic of the Philippines

North Eastern Mindanao State University

Background of the Study

of the pandemic is likely to be heterogenous across countries and individuals.

However, the impact of the COVID-19 pandemic on businesses in some

industries is particularly large. Many businesses have been through innovations

researchers wanted to study the financial performance of selected business

establishment such as restaurants in Tandag City amidst COVID-19 pandemic.

In the study of Hadiwardoyo (2020), financial performance of businesses

during COVID 19 pandemic. The most affected business such as hotels,

owners and operators conducted by the national restaurant association (2020),

services which increased their revenue to 68%. Therefore, restaurants had to

adapt strategies to continue their business and to increase their revenue.

COVID-19 pandemic has caused great disruption in the economy. Thus,

this study is designed to look into the financial performance of business

establishment like restaurants and the owner’s strategy to improve resiliency.

There are present several strands of research on the financial status of

business establishments during covid-19 pandemic. However, to the best of our

knowledge, no research has yet explored the financial performance of restaurant

failed to continue their business to regain and survive.

The paradigm of the conceptual framework of this study is shown in Figure

1 as it presents the schematic diagram of the study shown in the variables as

the financial performance of business establishment amidst of Covid 19

the potential effects of covid 19 pandemic to performance of business

establishment are the business condition, employment and operation.

Figure 1 Schematic Diagram of the Study

Statement of the Problem

The study aimed to determine the effects of covid 19 pandemic to financial

performance of business establishment performance. Specifically, it sought to

answer the following questions:

1. What is the profile of the respondent in terms of:

1.4 Year in business

2. What are the effects of covid 19 pandemic to the financial performance of

business establishments in terms of :

2.1 Business performance

3. Is there a significant relationship between the respondents demographix profile

to effects of covid 19 to financial performance of business establishment?

4. Based on the findings what recommendations may be given to improve the

financial performance of business establishments in amidst of Covid 19

There is no significant relationship between the independent and

Significance of the study

The finding of this study will be beneficial to the following entities:

Business owners/manager. This study is relevant to the business

able to maintain their performance in providing goods and services to the

Employees. This study will pave the way on understanding to the

business owner’s management in surviving their business and to be aware of the

effects of pandemic in their job.

reference for future inquiry.

Scope and limitation of the study

This study intent to determine the effect of Covid 19 pandemic to financial

performance of business establishments in Tandag City. The research scope is

Covid 19 pandemic because it is the current phenomena problem of the world.

of covid 19 to financial performance and the proposal intervention. This research

is conducted on 2nd Semester of A.Y. 2020-2021

the context of this research:

COVID-19. COVID-19 stands for novel coronavirus disease 2019, which

respiratory syndrome coronavirus 2).

Employment. An agreement between an employer and an employee that

the employee does and where the employee works.

Financial performance. A subjective measure of how well a firm can use

Lockdown. an emergency measure in which individuals are restricted

from certain areas in an attempt to control exposure or transmission of disease.

In a lockdown during an epidemic, individuals are encouraged to stay home.