CHAPTER 1

Problem and its Background

The Phenomenon

Introduction
In the business world, there will be a lot of milestones before we could say that it is
“established”. It is a battlefield for the most creative and innovative minds. However, even the
most established business owned by the most innovative mind has its challenger, and that is
inflation. Ladler and Parkin (1975) states that “inflation is a process of continuously rising prices,
or equivalently, of continuously falling value of money” (Theories of Inflation, p.741). Inflation’s a
negative factor for businesses, it has a domino effect, wherein when prices hike raw products
rise too and so as the business owners’ products will rise, and this will affect the consumers and
they will not buy products that will affect their budget, the bottom line is businesses will not grow
that much, sometimes it will lead to bankruptcy.

As inflation continues to rise, the COVID-19 pandemic heightened the weight of the problem.
The businesses were shut down, and the only businesses that are allowed to operate were the
ones that sell necessities such as food and medicines. However, they may be allowed to
operate but there are only so few customers that are coming in because most people are not
allowed to go out and the only transaction of business is deliveries in conformity to the
government’s new policies in order to fight the pandemic. And with this, the inflation rate
continues to increase, and so are the prices of the products and services.

Despite these struggles and milestones, the mature small business owners at Brgy. Malanday,
Marikina City have thrived through it. The Banchetto de Marikeños is a known place in Marikina
and was established during the pandemic, in June 2021. Before, it was unorganized food stalls
inside the subdivision until the owner of the land decided to put an administrator on the
subdivision to regulate and organize the whole area, therefore even before it was named
“Banchetto de Marikeños” the food stalls were originally there, and the administrator processed
permits from the local government unit for it to be legal.

Mature small business enterprises may have struggled these past few years because of inflation
and the current pandemic. This study will assess how the mature small business enterprises in
Malanday, Marikina City thrived through the difficulties such as inflation and the pandemic. This
study also seeks to know what strategies and techniques they have used to maintain and keep
their business. Our study provides information to help existing small business owners and future
business owners to determine the strategies and techniques they could use in establishing a
business and maintaining its condition just in case they come across these difficulties.

The Problem Statement

An uncontrollably rise in the inflation rate of the Philippines, has been a burden for many of our
fellow Filipino citizens. It has been reported that last January 5, 2018 by Philippine Statistics
Authority that our average inflation rate for the year 2015, 5 years before the pandemic is 1.5%,
and as the years go by the inflation rate keeps going up, and in year 2019, before the pandemic
our average inflation rate is 2.4%, since then, the rate of inflation comes higher and higher. In
2022, the average inflation rate was 5.8% from which we can clearly see how much it has hiked.
And, this affected the lives of many Filipinos, most especially, business owners. The inflation
itself has been a huge milestone for business owners, and the pandemic has added to the
weight of the problem. It created a larger set of risks for them to handle. During Pandemic, the
government implemented lockdowns and many businesses struggled due to lack of customers
and heightened restrictions to fight the pandemic. Many businesses were closed down, but
some remained open. Products were halted and warehouses were locked up. One interviewee
noted, “Before pandemic okay pa naman kasi may mga trabaho pa yung tao eh, uhmm pero
nung nagstart na yung pandemic grabe!” (Personal Communication, April 8, 2023). It appears
that even before the pandemic there has been a struggle among business owners especially
during the pandemic. How do these small business owners that remained open before and
during the pandemic handled this situation carefully and were able to continue their business
journey? What are the successful strategies of the matured small business enterprises that
survived before and during the pandemic here in Malanday, Marikina City?

Research Objectives
There is information that we need to know in order for us to explore this topic. That’s why we,
the researchers, have come up with these goals to explore the other factors around this
phenomenon.
1. To explore the common knowledge about the known strategies of small business owners
in small areas more.
2. To gain information that small business owners need in order to sustain and continue
their business.
3. To discuss the information gathered and create effective suggestions and
recommendations for small business owners.

Research Postulates
1. In this study, we assume that in every small business owner that we will have
interactions with, there would be different strategies that would lead us to different
perspectives and knowledge. We will try to seek every bit of their bright ideas and logics
in order to create a whole new side about the things that business owners need to know
as they’re also seeking different strategies.

2. Furthermore, the information we’ll be able to gather will guide us to build a whole new
concept for business owners that struggle to continue their businesses due to inflation
and other factors that may be a hindrance for them. The information that we gathered
will then be transferred into this study and hoping that business owners who’ll read this
will be able to get the help they need.

3. Lastly, the information we gathered will be able to discussed freely and open-mindedly,
with no false information, and using the voice of the business people who took years in
order to polish their skills into being a successful business owners and carrying the
names of their very own business establishments.

Exemplification of Terms

1. Battlefield – A term that is used to describe how intense the competition of different
businesses in the business world is.

2. Inflation – measures how much more expensive a set of goods and services has become
over a certain period.

3. Heightened – A term used for describing the situation during COVID-19 when the government
has intensified the rules and regulations for better handling the situation of the pandemic.

4. Hike – a sharp sudden increase in the price of foods, services, and goods.

5. Mature - A term used for businesses that have been established for more than five years.
 CHAPTER 2
Review of Related Literature
The review of the literature for this study focuses on the small business owners’ hindrances and
how the present economic state of our country greatly affects small business owners. In
exploration through different studies, the researchers have gained new knowledge that will
guide them to support their topic. This chapter will discuss the related literature, studies, and
articles taken from different local and international sources that will support and developed the
information that will contribute in gestating the study. This includes (1) Small Businesses, (2)
Inflation and Stock Prices, (3) Food Inflation, (4) How pandemic and inflation affect economic
growth, (5) How Inflation Affects Global Trade and Development Due to COVID-19, and lastly
(6) The Strategies.

Defining Small Business and its Status in the Philippines

A small business is said to be with lesser employees and less revenue. There has been
a plethora of definitions for small business since the 19th century. The Philadelphia Social
History Project entitled “Immigrants and Industry: The Philadelphia Experience, 1850-1880” was
one of the earliest studies of small businesses, wherein the considered small and medium-sized
business was the firms with less than 50 employees (Osteryoung and Newman, 1993).
However, as the business world progressively changes, there has been some modification in
defining “small business”. The Philippines Statistics Authority propounds its (2) two criteria for
specifying the MSMEs or the Micro, Small, and Medium Enterprises, first is if it has less than 10
employees, it is a micro-enterprise, and if it has 10-99 employees, it is said to be a small
enterprise, and it is said to be a medium enterprise if it has 100-199 employees, secondly, is the
MSMEs assets, it is considered as micro-enterprise if it has ₱3,000,000 asset size, a small
enterprise if the asset size is ₱3,000,001-₱15,000,000, and lastly, a medium enterprise if the
asset size is ₱15,000,001-₱100,000,000. Therefore, when it comes to defining small business,
Osteryoung and Newman (1993) expounded that “It is clear that the definition of small business
has changed over time” (p. 226). Small businesses are accessible to all people, especially to
those people who have enough but not much capital to start their businesses. Most people
commence businesses as their retirement plan or backup plan, and to have extra income.
However, entrepreneurs and small business owners have their polarity, Lazear (2005) defined
that entrepreneurs are factotum apparently because they have a broad set of expertise, and on
the other hand small business owners cannot take greater risks mainly because they do not
have enough capital and business is not their expertise, unlike entrepreneurs who have enough
knowledge and experience about businesses. In the recent work of La Porta and Shleifer (2008)
and Banerjee and Duflo (2011) appeared that in developing economies the preponderance of
small businesses remained stagnant and is not progressive in any apparent way. Most MSMEs’
level of preparedness was not that high, that’s why it is most likely to fail. According to Lussier
(1996), the capital and management experience of a person were the (2) two most
distinguishable factors for failure and success, however, there is no specific distinction on why
and how a small business fails, because, there is a wide variety of factors on why a small
business fails. For instance, the COVID-19 pandemic is a natural catastrophe and such a
natural catastrophe disrupts the supply chain globally (Prasad et al., as cited in Parilla, 2021). It
shows that natural catastrophes have a domino effect in the sense that even though the
catastrophe does not directly impacts the MSMEs, it is still affected. Mainly because, when
significant major emergencies occur MSMEs are at higher risk (Lu et al.,2020, as cited in
Malinao & Ebi, 2022). Before the COVID-19 pandemic, small businesses were operating
normally, of course, there were still a great number of challenges. Competitors and inflation
were the (2) two main problems of business owners back then. However, the COVID-19
pandemic created a huge impact on the business world, and due to the heightened restrictions
most establishments were shut down, accompanied by travel bans. According to the data
gathered by Bartik Et al. (2020) that all businesses were not equally affected by the negative
impacts of the COVID-19 pandemic. Those businesses that are considered essential remained
open and still operational, although the ones that are not considered essential were forcibly
closed down, and this affected how individuals live normally, it has a consequential impact on
how people interact, work, produce, exchange, and consume (International Trade Center, 2020,
as cited in Malinao & Ebi., 2022). Malinao & Ebi (2022) states that “Small and medium-sized
enterprises (SMEs) play an essential role in many economies, driving development, creating
jobs, and expanding commercial opportunities”. When businesses were shut down during the
first quarter of the pandemic, the Philippine economic growth faltered, so, the government
granted the reopening of essential businesses. However, even though the government
permitted the reopening of essential MSMEs, the MSMEs struggled in keeping their business in
operation, due to this, there have been financial strains and higher risks for most MSMEs to
close permanently (McCloskey & Heymann, 2020, as cited in Malinao & Ebi, 2022). When it
comes to the percentage of damage of the pandemic (Malinao & Ebi, 2022) states that there
has been a significant in revenue, because the pandemic has harmed the 93% of enterprises.
Due to the fact that almost all of the enterprises were harmed in a way, the government has
made solutions to support the MSMEs, in this way, the Philippine economy would gradually soar
and lessen the financial impact of the pandemic. In small businesses, there are smaller and
simpler risks taken, but, it has a significant positive effect on the economy of one’s country. The
success of MSMEs is as important as the success of big entrepreneur firms and companies.
Therefore, the situations and struggles of MSMEs must be tackled thoroughly, because it is
crucial for the benefit of the country. And, the COVID-19 pandemic has brought us to
necessitate a broad analysis of this topic, for this will be a huge aid in the world of business.

Synthesis;
Small businesses are defined as companies with fewer employees and lower revenue.
However, the definition of a small business has evolved over time. In the Philippines, Micro,
Small, and Medium Enterprises (MSMEs) are classified based on their number of employees
and assets. Small businesses are accessible to individuals who have enough but not much
capital to start a business. Entrepreneurs and small business owners have different
characteristics, with entrepreneurs having a broader set of skills and expertise. In developing
economies, most small businesses remain stagnant and are not progressing. The COVID-19
pandemic has created significant challenges for small businesses, with many being forcibly shut
down. The impact of the pandemic has harmed 93% of enterprises, leading to financial strains
and higher risks of permanent closure. The success of MSMEs is essential to the economy, and
their situations and struggles need to be addressed to ensure their growth and development.

Food Inflation
Food Inflation is where the price of a food product has increased due to numerous factors that
affect the food supply. It halts our ability to purchase foods that were once low priced. Some
product’s ingredients were decreased to obtain the standard that we’re having now in order to
gather customers.

As for today, the inflation’s still not that high for middle-class and rich people. But for low-class
people, it’s a problem that would cause them struggle and frustration in everyday life. People’s
biggest problem nowadays is inflation, it becomes a part of their whole routine. When buying
products, especially foods, they take note of every change in a particular product’s price. Upon
taking note, cash inside our wallets are suddenly decreasing and our budgets have to change
quickly or we’ll never be able to take responsibility for the food we eat. Every year, inflation rates
will increase depending on the factors that make the inflation. Demands, expectations, and cost-
push helps inflation to increase. Another factor is, it will keep on increasing if one’s income is
straight away. (What Is Food Inflation?, 2022) Poor people, especially here in the Philippines,
may experience such consequences as the inflation’s rate increases. As food products go to a
rapid increase in prices, they might be unable to purchase these things that keep a human
being alive. Some people might experience hunger in the long run as the inflation rate is
changing our budget as we experience it. Also, entrepreneurs such as vendors and sari-sari
store owners may experience loss of customers as their own products undergo an uneven raise
of price. Ingredients are decreased for products to follow the standards that the Food Industry
implemented due to inflation. Some Food Companies might close as the inflation rate starts to
increase at an unreasonable amount once again. (Purnell, 2023)

According to Tomoki Fujii (2013), garbage scavengers found in Tondo, Manila are seen
struggling in order to earn money and feed their families the nutrients they need in order to
survive. The overall impact of inflation has been a struggle for a lot of people. The unstoppable
increase of prices on all of the food products around the world will leave a mark for decades.
Aside from these, the causes of food inflation are already recognizable. During COVID-19,
people are already struggling to write down their budgets and the supply chains are already
disrupted. Interruptions happened and so, workers such as farmers and supply workers have
been stopped in carrying supplies and goods as the COVID-19 virus is spreading uncontrollably.
Protecting our fellow Filipinos from these dangers is also causing a lot of inconvenience for the
poor. For example, physical interactions have been limited and going out is halted for the
meantime and a lot of poor people are struggling to earn money during these events. Another
factor is the change in weather. High temperatures are leading to drought in rice fields, and also
brings damage to crops and limits the overall supply of a rice company. Overall, a smaller
inconvenience and smaller selections of food products will lead to higher prices. (What Is Food
Inflation?, 2022)

To conclude, Food Inflation is the unreasonable increase of food product’s prices which halts
the ability of some people to purchase, obtain, and gain food as long as the inflation rate isn’t
going down. These might affect people who aren’t able to obtain or purchase their everyday
needs.

Synthesis;
Food inflation is a serious issue that affects people's ability to access and afford basic food
products. It is caused by various factors such as disruptions in the supply chain, weather
conditions, and changes in demand and expectations. Poor and low-income individuals are
most affected by food inflation, as they struggle to afford the increasing prices of basic food
products. The effects of food inflation can also be seen on small businesses such as vendors
and sari-sari store owners who may experience a loss of customers due to the uneven increase
in prices of food products. The COVID-19 pandemic has exacerbated the issue of food inflation,
as disruptions in supply chains have caused smaller selections of food products, leading to
higher prices. In conclusion, food inflation is a significant problem that affects individuals and
businesses alike, and addressing its underlying causes is essential to ensure everyone has
access to affordable and nutritious food.

Inflation on Stock Market

Inflation has been an everyday problem for people in the world. Experiencing Inflation is hard,
product’s prices, bills and even service’s prices are increasing nowadays.
As long as we, the Filipinos, are appreciating 1% of the Inflation rate, its equivalent is
5.947758% in Stock Prices in the run. (Banawa et al., n.d.)

According to James Chen (2022), stock market means that the shares of companies that are
held publicly are either bought or sold. There are several exchanges happening in which a
publicly held company will undergo such financial activities through formal exchanges and via
over-the-counter exchanges that are operated under defined sets of regulations. Buyers and
sellers meet in order to exchange their company’s equity shares. Also, stock markets are
enabling access for investors to trade and exchange their capitals. That’s why stock markets are
components of a free-market economy. Furthermore, it allows price discovery for investors to
see the shares of corporations and make it serve as their barometer for the overall economy.
Buyers and sellers sets their standards high, they are assuring their customers and partners by
giving them a fair price, high degree of liquidity, which according to Adam Hayes (2023), is the
ability of an asset to be converted into cash without affecting its market price, and its
transparency, which according to R. Williams (2011), is the details where it describes the extent
of the product or asset in public or made in public. These factors are the components that hold
the trust of buyers and sellers in this type of career, and these also act as market participants in
order to compete in the public market. Moreover, stock markets allow you to raise money by
investing in a company and participating in their financial achievements. You can also raise a
profit by participating in their capital gains and earn more income through dividends.

Increasing prices of products is not good for stocks. The corporation's profit in stocks will be
affected, and the investor might step back and stop holding on stocks due to the rising rate of
inflation. It could lower one’s investor confidence since they wouldn’t be able to profit on the
stocks they’re selling and taking back in return. Investors might also back out on selling stocks if
the inflation rate increases to an unreasonable rate and might affect their sales in the run.
Inflation has been affecting the equities as well, by having its return low, unlike the past returns
where the inflation rate is lower than what we are having now. It also risks premium, that’s why
some investors aren’t confident in selling stocks when inflation rate is higher. If stocks aren’t as
good as before, no one will buy them which is what investors fear. No quality, no sales. No
sales, no customers. No customers, will lead to closing or retiring. It might also end your career
as a Stock Investor because you’re failing to buy or sell public shares from companies. Inflation
is a real problem when it comes to stocks as these affect not only the price, but also the quality
of what the investors are selling. (Zucchi, 2023)

To conclude, Inflation just not affects the price of a product, but also its quality. The relationship
of Inflation and Stock Markets is similar to Food Companies. Quality is lost, but the sales are still
stable. Though selling products at an increased inflation rate is still good, it’s also risky.

Synthesis;
Inflation is a problem that affects people worldwide, as prices of goods and services increase. In
the Philippines, a 1% inflation rate is equivalent to a 5.947758% increase in stock prices. The
stock market enables publicly held companies to undergo financial activities through formal and
over-the-counter exchanges, providing access for investors to trade and exchange their capital.
The stock market allows price discovery for investors, and its components of fair pricing,
liquidity, and transparency hold the trust of buyers and sellers. Inflation affects the equity shares
of corporations, lowering investor confidence and risking premiums. Inflation also affects the
quality of stocks, and if the returns are low, investors might not be confident in selling stocks.
This relationship is similar to food companies, where quality is lost, but sales are still stable.
Selling products at an increased inflation rate is still good, but it's also risky.

Pandemic Inflation affects Economic Growth

 The COVID-19 pandemic has had a significant impact on businesses worldwide.
Challenges faced by businesses during the pandemic, including changes in consumer
behaviour, supply chain disruptions, financial constraints, and regulatory changes. Pandemic
has accelerated the adoption of digital technologies, increased collaboration and innovation,
and highlighted the importance of resilience and adaptability in business Zackery A, (2022).
Supply chain disruptions have been one of the most significant challenges faced by businesses
during the pandemic. The closure of factories and ports, as well as restrictions on travel and
transportation, have caused delays and disruptions to the delivery of goods and services
(Klingebiel & Ramondo, 2020). This has led to shortages of critical supplies, such as personal
protective equipment (PPE) for healthcare workers and essential goods for consumers.
According to the study of McKinsey & Company (2020), the impact of the pandemic has not
been evenly distributed across all sectors and industries, with some being more severely
affected than others. For example, businesses in the hospitality, tourism, and retail sectors have
been hit particularly hard, while those in the healthcare and technology sectors have
experienced growth and increased demand for their products and services.

Economic growth will be based on how the country’s government handle its nation in
order to developed and innovate, however it is still a higher impact for an individual to cooperate
in terms of economic growth of the country. Inflation rate is increasing due to pandemic,
because the country is still recovering from the damages that the COVID 19 omit. Small
businesses also contributes to the factors of economic growth wherein it does not hinder the
fact that it was solely affected by the pandemic since most of establishments are closed down
due to safety protocols and implemented rules and regulations of the government to prevent a
larger affected area. . So much for that, small, and medium enterprises (MSME’s) is a lifeblood
of the economy since company, establishment, services, and etc. are the one who covers a
higher taxes than to employment, according to the study of Tecson, Karina (2022), after
pandemic there are difficulties on receiving government support for doing the business, since
the pandemic occur, many small businesses or either big company’s also suffers from the
damages, and that allows economic growth to perish. An article by Dylan Koji Co (2022)
“Inflation rate soars in the Philippines” states that Philippine peso has lost its value to U.S dollar,
the inflation rate in the Philippines is 8% which in comparison with U.S with 7.1 inflation rate.
The demand of goods and services has decrease due to increase overhead cost of fruits,
vegetables, meats, necessities, and etc. Since the cost is higher the demand will decrease
because most people cannot afford a higher expense living because of the after effect of the
pandemic. Consumers cannot afford to buy anything that is out of their budget, because during
pandemic there are business who experienced bankruptcy, decreasing of employees, low
demand of goods or services, and etc. Many business has experience hardships during and
after pandemic because of this crisis, there are simultaneously marketing and administrative
strategies that still does not help to boost their demand due to lack of budget or expenses of the
people. In the interview of Dylan, a student has also suffers to budget their expenses in schools,
wherein the school cafeteria has risen their price, there are also incident that most expensive
brands has lowered their normal price range because there are no demand from the people.
According to Asian Development bank (2021) “COVID-19impact on micro, small, and medium
sized enterprises under the lockdown: evidence from a rapid survey in the Philippines” the
findings of their research is that the most affected of the COVID 19 Lockdown and ECQ was the
establishment of education, construction, accommodation, food services, tourism, and
manufacturing. After pandemic most companies are still adjusting with the damages of the
crisis, because there are still earmark that the pandemic left, but still inflation rate is
continuously rising. After six months most business held work from home arrangements, the
longer the business does not have income, the more economy will fall under. The capital of the
small medium enterprises will gradually decrease that is why work from home was establish or
implemented so that it will lessen the burden to the employer. For instance, the alternative work
from home was one of the greatest strategy that saved a lot of businesses in overcoming the
crisis during pandemic, because MSME is a lifeblood of the economy, if there are no circulation
of trade in terms of monetary value it will result poverty. Furthermore, the inflation rate in the
Philippines during work from home arrangement was still higher, the employer and employee
has been affected that is why unemployment rate also increases.

The COVID-19 pandemic has had a significant impact on the global economy, and it is widely
recognized that the pandemic has not promoted economic growth. According to a report by the
International Monetary Fund (IMF), the pandemic has resulted in a "severe decline in global
economic activity," with most countries experiencing negative growth rates in 2020 (IMF, 2020).
Furthermore, the pandemic has caused significant disruptions to supply chains, reduced
demand for goods and services, and forced many businesses to close temporarily or
permanently. This has led to job losses, reduced incomes, and increased financial hardship for
many individuals and households. The pandemic has also had a significant impact on the travel
and tourism industry, which is a significant contributor to many national economies (World
Travel and Tourism Council, 2021).
Synthesis;
In summary, the COVID-19 pandemic has had a widespread impact on businesses worldwide.

The challenges faced by businesses during the pandemic include changes in consumer

behavior, supply chain disruptions, financial constraints, and regulatory changes. The impact

has not been evenly distributed across all sectors and industries, with some being more

severely affected than others. The pandemic has accelerated the adoption of digital

technologies, increased collaboration and innovation, and highlighted the importance of

resilience and adaptability in business. However, the pandemic has resulted in a severe decline

in global economic activity, with most countries experiencing negative growth rates in 2020. The

small and medium-sized enterprises (MSMEs) have suffered the most due to decreased

demand, increased inflation rate, and difficulties in receiving government support. Work from

home arrangements have been implemented as a strategy to lessen the burden to the

employers, but the inflation rate in the Philippines during work from home arrangement was still

higher, and the unemployment rate also increased. Overall, the pandemic has highlighted the

need for economic resilience and adaptability in the face of future crises.

Inflation Affects the Global Trade and Development Due to COVID-19

The impact on trade and development is significant because of the COVID-19 pandemic,
which in turn has affected businesses in various ways. Here are some ways in which trade and
development have been affected by the pandemic and how they impact businesses. Disruptions
to global supply chains: The pandemic has caused significant disruptions to global supply
chains, with restrictions on transportation and trade leading to delays and shortages of raw
materials and finished goods. This has affected businesses that rely on these supplies, with
many facing challenges in meeting demand and maintaining production (UNCTAD, 2020). In
addition, it increases the trade protectionism: The pandemic has also led to an increase in trade
protectionism, as countries have implemented measures to protect domestic industries and
reduce their reliance on foreign goods and services. This has led to a reduction in global trade
and increased costs for businesses that rely on international trade. (UNCTAD, 2020)
 In the book published by United nations, entitled “ Impact of the Covid 19 pandemic on
trade and development” (2022), Global trade connects countries through importing and
exporting goods or products, the exchanging global demand between countries has help
international competitiveness. However, when the pandemic has started global financial crisis
has also arise wherein it affects the global trade between countries. Global demand was not
meet due to lack of supply, the example for that is the demand of masks in public which is used
to protect ad prevent people to get infected by the COVID 19. The demand is high but the
supply cannot cover all the demand of the people who wants to purchase the masks, and during
the time of crucial moments in the Philippines, all basic protections such as face masks, face
shield, vitamins, and etc. was overpriced, which is duly because of inflation rate increases. Due
to supply chain disruptions, the pandemic has led to disruptions in supply chains, with
lockdowns and restrictions on movement leading to a shortage of goods and services. This has
led to an increase in inflation, as the limited supply of goods has resulted in higher prices for
consumers. (UNCTAD, 2020). The pandemic has also led to fluctuations in currency values, as
markets have been affected by uncertainty and changes in demand. This has contributed to an
increase in inflation, as businesses that import and export goods have had to deal with changes
in the value of currencies that affect their costs and revenues. (IMF, 2020).

The COVID-19 pandemic has had a significant impact on the exporting and importing of goods,
including the issue of inflation. The disruption of supply chains, increased shipping costs,
currency fluctuations, and government policies have all contributed to higher inflation rates,
which have had an impact on businesses and consumers. In summary the given data provides
an understanding about on how the economy and businesses relate to each other wherein it
has a connection to each other, first the inflation has been a burden to consumers and also to
the manufacturer because the demand was affected negatively, there are people that cannot
afford things that they usually purchase before pandemic. Second, small enterprises is where
small business have been affected due to poor support of the government and to the continuous
increasing of inflation rate that affects the management decision and cycle of the business. And
lastly in terms on trade and development in the country’s there are big companies that are also
affected by this inflation because the demand was also decrease, the price is higher and the
people cannot afford to buy things that is not necessary. The trade of goods and commodities
plays a significant role in satisfactory of social demand in the Philippines. To conclude, inflation
rate affects the businesses and also its consumers, it is a domino effect that both parties are
suffering.
Synthesis;
The COVID-19 pandemic has had a significant impact on trade and development, which in turn
has affected businesses in various ways. One of the major impacts is the disruption to global
supply chains, which has led to delays and shortages of raw materials and finished goods. This
has affected businesses that rely on these supplies, with many facing challenges in meeting
demand and maintaining production. Additionally, the pandemic has led to an increase in trade
protectionism, as countries have implemented measures to protect domestic industries and
reduce their reliance on foreign goods and services. This has led to a reduction in global trade
and increased costs for businesses that rely on international trade. Furthermore, the pandemic
has led to disruptions in supply chains, which has resulted in a shortage of goods and services.
This has led to an increase in inflation, as the limited supply of goods has resulted in higher
prices for consumers. The pandemic has also led to fluctuations in currency values, as markets
have been affected by uncertainty and changes in demand, contributing to an increase in
inflation. All of these factors have had an impact on businesses and consumers. In summary,
the COVID-19 pandemic has had a significant impact on trade, development, and businesses.
The disruption of supply chains, increased shipping costs, currency fluctuations, and
government policies have all contributed to higher inflation rates, which have had an impact on
businesses and consumers. It is a domino effect that both parties are suffering, and the issue
needs to be addressed for sustainable economic recovery.

Strategies
Putting up a business is not that complicated compared to formulating different strategies to
keep the business operational. According to Steiner “Strategy refers to basic directional
decisions, that is, to purposes and missions. Strategy consists of the important actions
necessary to realize these directions”, a strategy is what keeps everything running, especially in
the business world, conducting and experimenting with different strategies would encourage
new ideas and modification to ameliorate the status of one’s business. However, not all
strategies would work, for instance, there are certain situations that somehow are not familiar to
us and it needs a different strategic approach. Moreover, each business has its distinctions, in
terms of its objectives, characteristics, and qualities, and this varies with different industries
(Gadeanne, 1998, as cited in Simpson et al., 2004). The success of one’s business depends on
their objective, purpose, and goals. Many researchers attempted to define success, however,
according to Watson et al. (1998) as cited in Simpson et al. (2004), none of these attempts have
agreed on the success factors. We usually view success based on growth and revenue, but, it’s
more than that because as we study the factors that lead to success it becomes complex
(Simpson et al., 2004). Effective strategies are one of the factors that lead to success, however,
there’s a distinction between operational effectiveness and strategies, and these two are often
mistakenly thought of as one. According to Porter (1996), “Operational effectiveness (OE)
means performing similar activities better than rivals perform them”, whilst strategies is a unique
way to compete with other business. Although, these two are both crucial for superior
performance in business, which is the goal of any business in different industries (Porter, 1996).
Strategies before the pandemic were simple, everyone could promote their business wherever
at any time. Most strategies were traditional, such as: giving pamphlets, offering free deliveries,
and advertising it in newspapers. However, strategies should be different based on the place,
time, and situation the businesses are in, because, if not, strategies may not be effective and
productive as a success factor of success. Moreover, strategies have changed ever since the
pandemic, since promotion options became limited. The pandemic had a great impact on the
business world, wherein, they needed to innovate and adjust with the protocols given by the
government. Since COVID-19 started, traditional ways of businesses became useless because
the cost would be extortionate (Parodi & Liu, 2020, as cited in Krishna, 2020). This new
challenge to different business industries has tested their resilience and as a response to the
global pandemic, social media and Internet technology has been the main promotional platform
for different businesses, it also became the main mode of transaction. According to Bennett
(2012), internet technology and social media have contributed to the success and operations of
businesses, because somehow, it became vital for businesses. In the present day, the internet
and its elements have been crucial strategies for most businesses, especially for small
businesses because it doesn’t cost much and it is reliable, consistent, and accessible.
(Conclusion) Strategies are important as it guides us to consider our clear goal, and it provides
a clear path to have healthy competition from other business competitors. Strategizing is the
blueprint for the success of every business. Strategies make the business unique and alluring
for consumers. As Michael Porter, the father of the modern strategy, said, “Strategy is about
making choices, tradeoffs; it’s about deliberately choosing to be different”.

Synthesis;
In summary, while putting up a business may not be that complicated, formulating effective
strategies to keep the business operational is essential for its success. Strategies help to set
clear goals and provide a clear path towards healthy competition from other businesses.
However, strategies are not a one-size-fits-all solution and need to be tailored to the specific
objectives, characteristics, and qualities of each business and industry. Success is a complex
concept, and while growth and revenue are important factors, effective strategies are just one of
the many factors that lead to success. Operational effectiveness and strategies are often
confused, but they are distinct concepts that both contribute to superior business performance.
The COVID-19 pandemic has challenged businesses to innovate and adjust their strategies to
adapt to the new normal. Social media and internet technology have become vital promotional
platforms and modes of transaction for businesses, especially for small businesses that are
cost-effective, reliable, consistent, and accessible. In conclusion, strategizing is essential for the
success and survival of every business, as it helps to differentiate them from competitors and
attract consumers.