THE EFFECTS OF THE ECONOMIC CONSEQUENCES OF COVID-19 ON SMALL

BUSINESS OWNERS IN KIDAPAWAN CITY

NEIL HUMPREY DELOS REYES LICATAN

A RESEARCH PAPER PRESENTED TO THE FACULTY AND STAFF

OF THE SENIOR HIGH SCHOOL DEPARTMENT OF
KIDAPAWAN CITY NATIONAL HIGH SCHOOL,
KIDAPAWAN CITY IN PARTIAL
FULFILLMENT OF THE
REQUIREMENTS IN

PRACTICAL RESEARCH I

CHAPTER I

JUNE 2021
 ABSTRACT

LICATAN, NEIL HUMPREY D, 2021. “THE EFFECTS OF THE ECONOMIC

CONSEQUENCES OF COVID-19 ON SMALL BUSINESS OWNERS IN KIDAPAWAN
CITY.” PRACTICAL RESEARCH I. SENIOR HIGH SCHOOL-GRADE XI STEM E.
KIDAPAWAN CITY NATIONAL HIGH SCHOOL, KIDAPAWAN CITY, COTABATO. 39
pp.

Subject Teacher: ROMILEI A. LICERA, Ph.D.

Because of the rapid increase in daily new COVID-19 cases since mid-March

2021, the Philippines government has enacted a slew of restrictive measures in an

attempt to halt the epidemic. A one-week lockdown was announced for Metro Manila

and four adjacent provinces on 29th March but was extended for at least an additional

week on 5th April. The total number of people impacted by the new lockdown measures

are estimated at around 26 million, or around one-quarter of the total population of the

Philippines, as well as being the largest economic region of the Philippines economy.

While these measures have slowed the community spread of COVID-19, they resulted

in significant adverse impacts on family incomes, jobs, education of children, food

security, and businesses.

The true effects on the economy can be seen at the household or family level.

Impacts on enterprises are seen in households as job losses, sharp drops in income,

and movement limitations, all of which contribute to lower consumption of basic

commodities and services including food and health care.

 CERTIFICATE OF APPROVAL

This research paper entitled, “THE EFFECTS OF THE ECONOMIC

CONSEQUENCES OF COVID-19 ON SMALL BUSINESS OWNERS IN KIDAPAWAN
CITY.” prepared and submitted by Neil Humprey Delos Reyes Licatan in partial
fulfilment of the requirements in Practical Research I (Qualitative Research) in the
Senior High School Department of Kidapawan City National High School is hereby
accepted.

ROMILEI A. LICERA, Ph.D

Teacher

ISRAEL A. GABION
SHS Assistant Principal for Academics

ROSALINDA T. LONZAGA, Ph.D

Principal IV
 TABLE OF CONTENTS

PRELIMINARY PAGES
Title Page
Abstract
Certificate of Approval
Acknowledgement
Table of Contents
CHAPTER I – THE PROBLEM AND ITS SETTING
Introduction
Objectives
Scope and Delimitation
Definition of Terms
CHAPTER II – REVIEW OF RELATED LITERATURE
CHAPTER III – METHODOLOGY
General Procedure
Setting of the Study
Research Participant
Research Design
Sampling Technique
Research Instrument
Data Analysis

CHAPTER IV – RESEARCH FINDINGS

Individual Profile
Key Themes: Interview Proper
CHAPTER V – INTERPRETATIONS, CONCLUSIONS AND RECOMMENDATIONS
Interpretation and Conclusion
 Recommendations
CHAPTER VI – SUMMARY
REFERENCES
APPENDICES
CURRICULUM VITAE
 CHAPTER I – THE PROBLEM AND ITS SETTING
INTRODUCTION

Beyond the disease's spread and efforts to contain it, the COVID-19 pandemic
has had far-reaching economic implications. Concerns have changed from supply-side
manufacturing challenges to decreased business in the services sector as the SARS-
CoV-2 infection has spread around the world. The pandemic triggered the world's
greatest recession in history, affecting more than a third of the global economy. How
harmful these impacts are to the economic state of the Philippines. Filipinos lost their
employment and were given subsidies, but they still needed to find other sources of
income. This income is insufficient to make ends meet. Furthermore, there is an
economic slump, which is causing many overseas Filipino workers (OFWs) return
home. In the short term, governments must deal with a number of issues, including
responding to the health crisis, managing the effects of the economic shock.

Objectives of the Study

This study aims to gather information about the perceptions of small business
owners affected by the economic consequences of COVID 19.

 To determine the difficulties that small business owners have to tackle in this
pandemic.
 To determine how COVID 19 affects the economy in the Philippines.
 To determine the people who are most affected in these economic
consequences.
Scope and Delimitations

This study explored the perceptions of small business owners in Kidapawan on

the effects of the economic consequences due to COVID -19 were the respondents of
the said study.

The pandemic has wreaked havoc on the country's economy. COVID-19 has a
huge impact on food security, nutrition, people's livelihoods, health concerns, and
natural resources, to name a few.

The data gathering procedure was conducted on March 2021 to June 2021. The
main instrument used in gathering data was survey questionnaires. An interview was
also conducted to clarify and answer additional questions.

Definition of Terms

Economic Implications - A financial effect that something, especially something new,

has on a situation or person: Increased tourism has had a significant economic impact
on the resort community.

Employment - Is a relationship between two parties, usually based on contract where

work is paid for.

Economic State – Refer to the present state of the economy in a country or region.

Global Economy - Refers to the interconnected worldwide economic activities that take
place between multiple countries.

COVID-19 - Coronavirus disease (COVID-19) is an infectious disease caused by a

newly discovered coronavirus.
 CHAPTER II – REVIEW OF RELATED LITERATURE

The COVID-19 epidemic and its accompanying economic crises provide

enormous problems, posing several unknowns and forcing painful trade-offs. Both
crises are global in scope, yet their consequences are highly localized. Both crises
require a swift policy response, even if it is rough around the edges. However, countries
cannot do this on their own; global crises necessitate global solidarity and cooperation.
To assist countries recover faster from the COVID-19
epidemic, governments must drastically revamp policies and invest in public health,
economic stimulus, and social safety nets. The economic analysis warns that a
hodgepodge of previously implemented remedies would not succeed, and that
governments must work together to speed up recovery. Working in silos is not an option
in this global situation.

COVID – 19 Economic Impacts

The pandemic's economic and social effects are devastating, tens of millions of
people are at risk of falling into extreme poverty, and the number of people who are
undernourished, which is presently estimated to be around 690 million, might rise to 132
million by the end of the year. Hundreds of millions of businesses are in danger of going
out of business. Nearly half of the world's 3.3 billion workers are at danger of losing their
jobs. Workers in the informal economy are particularly vulnerable because they lack
social security and excellent health care, as well as having lost access to productive
assets. Many people are unable to feed themselves during lockdowns since they do not
have the means to make money.

Women have been struck more economically by the epidemic since they make
up a big number of the workforce in Covid-19-affected industries like lodging and food
services, as well as in front-line vocations like health and social care. They have had to
take on greater care obligations at home as a result of school closures. The epidemic
threatens to reverse decades of gains on gender equality, whether through job losses or
school closures. Covid-19 has been slowing down progress on clean energy too, at
least temporarily, by curbing investments and delaying the expansion of clean energy
technologies.

Tackling Global Poverty

While no economy is immune to economic shocks, lower- and middle-income

countries are the hardest hit because they have weaker economic defenses and rely on
a few sectors, such as commodities and tourism. Millions of people have already been
pushed into poverty. For the first time in 20 years, extreme poverty increased in just a
few months of Covid-19. Wealthy countries were able to intervene early to protect
people and businesses, injecting $9.8 trillion into their economy, the largest portion of
the $11.7 trillion spent worldwide to deal with the pandemic's aftermath. Low- and
middle-income countries, on the other hand, have not been able to do so. (2021, June
6). The Covid-19 effects on societies and economies: News.Wellcome.
https://wellcome.org/news/equality-global-poverty-how-covid-19-affecting-societies-and-
economies.

Impacts on small businesses in the Philippines

Without a doubt, the economy as a whole is on the verge of a downturn. Due to

the global pandemic influencing the flow of supply and demand in the country, several
business industries have slowed significantly. Depending on how long the epidemic
lasts, the Philippines might lose between P276.3 billion and P2.5 trillion. In the worst-
case scenario, the economy could enter a recession as the labor supply falls to 19.7%.
On the other side, if the country successfully combats the virus in the second quarter of
the year, labor supply may only decline to 7.4%, with most industries thriving.

Nonetheless, many Filipinos may lose their jobs if COVID-19 continues. Due to a
shortage of financial resources, industries such as BPO, tourism, and aviation have laid
off their staff. Meanwhile, in terms of construction, it is well known that the “Build, Build,
Build” program's infrastructure is based on Chinese finance. Because of the epidemic,
not only the construction, but also the compensation of the people engaged, was put on
hold. Many of them work on a daily basis.

Big multinationals may survive the present economic downturn, but the
Philippines' micro, small, and medium companies (MSMEs) are absorbing the brunt of
the financial blow. According to the Philippine Statistics Authority's (PSA) most recent
List of Establishments, the country has 998,342 MSMEs, accounting for 99.52 percent
of all local enterprises in 2018. The absence of consumer demand puts firms' financial
capacity to stay afloat, as well as their ability to maintain their employees, to the test.
Some SMEs are attempting to match today's demand pattern by providing online and
delivery services. To meet their financial obligations, however, fewer personnel are
required.

MSMEs in the Philippines have suffered as a result of the pandemic and the
restrictions imposed to stop it spreading. This paper examines the nature and scope of
COVID-19's influence on MSMEs' cash flows, company operations, and supply
networks. It goes into greater detail about the coping mechanisms they used to lessen
the impact of the disruption. The paper also makes policy recommendations.
 CHAPTER III

RESEARCH METHODOLOGY

The goal of this chapter is to describe the research method used in the study as

well as the procedure that was used to evaluate the findings regarding the effects of the

economic consequences on small business owners in Kidapawan due to Covid-19.

The research plan, including the general procedure, study participants, setting

research design, analysis method, and ethnical concerns are also primary components

of this chapter.

General Procedure

The procedure in gathering of data pertinent to this study includes the following:

1. Ask permission to conduct the study from the principal.

2. Identify the participants and ask them whether they consent to being interviewed

for the study. They must be assured of their right to remain anonymous and to

maintain their secrecy.

3. Conduct of survey.

4. Data analysis.
Setting of the Study

The study took place at Kidapawan City, North Cotabato during the seventh

month of 2021.

Research Participant

The participants in this study are three (3) store owners and are currently staying

at Kidapawan City, North Cotabato.

Research Design

Research Design
 This study utilized qualitative research design since it analyzes information

conveyed through language and behavior in natural settings. It is used to collect

expressive knowledge about attitudes, values, emotions, and motives that

underpin actions that is not expressed in quantitative details.

The target respondents where the data were obtained are the selected

purposely.

Research Instrument

The research instruments utilized to gather the needed information was as follows:

a. Online Questionnaires – Online questionnaires we’re used. The forms was

intended for the researcher’s guide in determining the respondents

b. Survey (Guide questions) - The following questions will be used as a guide to

determine what questions to ask the respondents about their own personal

experiences and perspectives.:

1. What are your thoughts regarding the economic downturns that are

happening in the country right now?

2. What challenges have you encountered in these downturns?

3. How did these challenges affect your business?

4. Who do you think are the people most at risk of these difficulties?

Data Analysis

The narrative analysis will be used by the researcher to interpret texts or visual
data that have a storied form. According to a traditional assumption of storytelling
approaches, people share tales to better structure and make sense of their lives, and
their storied reports are useful and purposeful. The goal of narrative analysis is to
study and conceptualize human experience through language. Scholars of narrative
strive for a thorough examination of the meanings people assign to their interactions.
The goal of narrative analysis is to study and conceptualize human experience
through language. In order to perform in-depth explorations of the interpretations
people assign to their experiences, narrative academics interact with small groups of
subjects to achieve rich and free-ranging discussion.

CHAPTER IV

RESEARCH FINDINGS

In this study, three participants shared their perceptions on the economic

consequences that has affected their business. A narrative of each participant’s showed

their way of responding their knowledge, stand and opinion and about the recent

happening.

The purpose of this chapter is to present the findings related to the four

questions:

What are your thoughts regarding the economic downturns that are happening in the

country right now? ; What challenges have you encountered in these downturns? ; How

did these challenges affect your business? ; Who do you think are the people most at

risk of these difficulties

Individual Profile

Nathan
Nathan is a Vape Shop owner. Nathan is currently residing in Kidapawan City, North

Cotabato, Philippines. Nathan is currently running a vape shop in Kidapawan and

claims that he is affected by these economic consequences.

Belle

Belle is a Snack House owner in Kidapawan City. Belle is currently living in Kidapawan

City, North Cotabato, Philippines. She is also affected on these economic

consequences.

Frenji

Frenji is an Instagram Clothing Store owner. Frenji is currently staying in Kidapawan

City, North Cotabato, Philippines. She is also one of the many people who claims to be

affected on these economic downturns.

Key Themes: Interview Proper

Table 1.1 Participant’s thoughts regarding the economic downturn in the country (For
participant number 1).

Participant Question: What are your thoughts

regarding the economic downturns that
are happening in the country right now?
Nathan These downturns are heavily affecting my
business and sales, because of the
ongoing quarantines.

Table 1.2 Participant’s thoughts regarding the economic downturn in the country (For
participant number 2).
 Participant Question: What are your thoughts
regarding the economic downturns that
are happening in the country right now?
Belle Economy is sonewhat low due to
Pandemic issue. But we should not lose
hope since it us us who is responsible for
the consequences we made if we will not
make any moves to earn a living.

Table 1.3 Participant’s thoughts regarding the economic downturn in the country (For
participant number 3).

Participant Question: What are your thoughts

regarding the economic downturns that
are happening in the country right now?
Frenji The way both the government and most
citizen handles regarding the economic
status of the country gives disadvantages
to each other with only the thought of
themselves

The Participants described the said downturns in similar ways. For Nathan these
downturns are affecting his business and his sales because of the ongoing quarantines.
For Belle, she said that we should not lose hope since it is us who is responsible for
these consequences. For Frenji, she said that the government and citizens gives
disadvantages to each other.

Table 2.1 The challenges these participants encountered in these downturns (For
participant number 1).

Participant Question: What challenges have you

 encountered in these downturns?
Nathan Financial issues due to less customers
coming over to my shop, especially the
sudden price hikes of the stocks i need.

Table 2.2 The challenges these participants encountered in these downturns (For
participant number 2).

Participant Question: What challenges have you

encountered in these downturns?
Belle Financial issues were inevitable during
this covid 19 pandemic. Our businesses
at first were affected because some of
our outlets were force to close because it
is situated in and near schools.

Table 2.3 The challenges these participants encountered in these downturns (For
participant number 3).

Participant Question: What challenges have you

encountered in these downturns?
Frenji Limited access to people and resources.

Both Nathan and Belle had similar encounters in the downturns, both of them
experienced financial issues during the pandemic. For Frenji, she also had the same
experience when it comes to resources and stocks.
Table 3.1 Participant’s on how the challenges affected their business? (For participant
number 1).

Participant Question: How did these challenges

affect your business?
Nathan It affected my sales and some of my
financial matters.

Table 3.2 Participant’s on how the challenges affected their business? (For participant
number 2).

Participant Question: How did these challenges

affect your business?
Belle It struck us with scarcity in financial
matters.

Table 3.3 Participant’s on how the challenges affected their business? (For participant
number 3).

Participant Question: How did these challenges

affect your business?
Frenji The sales were lousy and the shipments
were risky.

The Participants had similar answers regarding on how those challenges affected
their businesses. For Nathan and Belle, it both caused them financial problems while
Frenji’s sales were lousy and the shipments we’re risky because it might be infected
with COVID.

Table 4.1 Participant’s thoughts on who they think are the people who are most at risk
of these difficulties? (For participant number 1).

Participant Question: Who do you think are the

people most at risk of these difficulties?
 Nathan People who are running small businesses
and people who are depending on it
because that's their only way of putting
food on their table.

Table 4.2 Participant’s thoughts on who they think are the people who are most at risk
of these difficulties? (For participant number 2).

Participant Question: Who do you think are the

people most at risk of these difficulties?
Belle Those people who are susceptibles and
co-morbids. Business men and self-
employed.

Table 4.3 Participant’s thoughts on who they think are the people who are most at risk
of these difficulties? (For participant number 3).

Participant Question: Who do you think are the

people most at risk of these difficulties?
Frenji The ones that are at the bottom of the
social pyramid.

Participants enumerated or answered to whom are the people who are most
affected by the difficulties that’s caused by these economic downturns. For Nathan, the
people most at risk of these difficulties are people who are running businesses and
people who are depending on it. For Belle, the people who are susceptibles and co-
morbids. Business men and self-employed. For Frenji, the ones that are at the bottom of
the social pyramid.

CHAPTER V

INTERPRETATIONS, CONCLUSIONS AND RECOMMENDATIONS

This chapter offers the summary of the research effort conducted the
conclusion obtained and the recommendation made as a result of this investigation.
The objective of this study was to examine the effects of the economic consequences
of COVID – 19 on small business owners in Kidapawan. The participants of the study
were citizens of Kidapawan City. The researcher used an Online survey form and
survey (guide questions) in order to gather necessary information. In order to choose
the most relevant individuals, they will be chosen through criterion sampling. It is
critical to carefully pick the parameters for criterion sampling in order to identify cases
that will have detailed and rich data applicable to the specific research situation.

Interpretations

The research study found out that:

1. Most of the student respondents were currently staying at Kidapawan City, North
Cotabato, Philippines.
2. All the parcipants gave their thoughts about the effects of the economic
consequences on their businesses. Their response they each have different
ways in dealing with the situation although most of it are quite alike.
 3. Based on the answers of the participants, it is clear that they have experienced
those consequences differently.

Conclusions

Based on the findings of the study, it is possible to infer that all of the business

owners have same perceptions on these economic consequences due to COVID – 19

and how it affected them. Two of the participants had remarkably similar responses

when asked about how the challenges they faced affected their businesses. The

researcher concludes that the respondents have the same views and experiences about

the effects of the economic consequences of COVID – 19 on their businesses.

Recommendations

Future researchers who want to do further study on the effects of the economic
consequences of COVID – 19 on small business owners in Kidapawan are advised to
take in consideration the following recommendations:

 Improve the objectives of the study

 Drafting the survey questionnaires for the respondents

  This study could be used as a reference for future scholars working on the same
topic. 
 If you want to get a better understanding of a given phenomenon, you can ask
more questions.
 CHAPTER VI

SUMMARY

According on qualitative data collected via online surveys with particular respondents
who were specifically targeted for the research, the following are the summary of
results.

1. The respondent’s thoughts regarding the economic downturns that are

happening in the country right now.

The participants observed that these downturns are the cause of

people who are not following the said rules and health guidelines. Nathan has
experienced the negative effects of these downturns on his business, while
Belle and Frenji had similar observations that the this economic downturn is
the consequence of people not following the rules.

2. Dealing with the challenges encountered in these downturns.

Because of the downturns, all participants had the same experience of

financial issues, due to the lack of customers buying their products and
having less access to their resources.

3. The effects of these challenges on their businesses.

 The participants responded similarly to the effects of the challenges on
their businesses. Nathan had less customers which is affecting his income,
same goes to Belle and Frenji their sales we’re lousy and it struck them with
scarcity in financial matters.

4. Participants' perceptions of those they believe are the most vulnerable to

these challenges.

Jobless people, and the less fortunate, are particularly vulnerable to these
difficulties as a result of these economic consequences because of COVID – 19.

References

“The Social and Economic Impact of Covid-19 in the Asia-Pacific Region”

https://www.undp.org/publications/social-and-economic-impact-covid-19-asia-pacific-region?
utm_source=EN&utm_medium=GSR&utm_content=US_UNDP_PaidSearch_Brand_English&utm_campa
ign=CENTRAL&c_src=CENTRAL&c_src2=GSR&gclid=CjwKCAjwq7aGBhADEiwA6uGZp0VgSrafeUFAHf
COYjijVPeN0FqFYuk2qsMIFXlr4PnY-iI0LqdUdxoCmmAQAvD_BwE

“Impact of COVID-19 on people's livelihoods, their health and our food systems”

https://www.who.int/news/item/13-10-2020-impact-of-covid-19-on-people%27s-
livelihoods-their-health-and-our-food-systems

“From equality to global poverty: the Covid-19 effects on societies and

economies”

https://wellcome.org/news/equality-global-poverty-how-covid-19-affecting-societies-and-
economies

“The Impact Of The Coronavirus (COVID-19) On Businesses in the Philippines”

https://sciencepark.com.ph/blog/covid-businesses-philippines/
“Rethinking the impact of the lockdown on micro, small, and medium-sized
enterprises in the Philippines”

https://www.asiapathways-adbi.org/2021/04/rethinking-impact-lockdown-msme-
philippines/

“Philippines: Impact of COVID-19 on Micro, Small, and Medium Enterprises

(MSMEs)”

https://www.microsave.net/2020/08/04/philippines-impact-of-covid-19-on-micro-small-
and-medium-enterprises-msmes/

“Assistance to Vulnerable Households, Small Businesses Key to Mitigating

Pandemic’s Impact and Hastening Recovery in the Philippines”

https://www.worldbank.org/en/news/press-release/2020/09/29/assistance-to-vulnerable-
households-small-businesses-key-to-mitigating-pandemic-s-impact-and-hastening-
recovery-in-the-philippines
APPENDICES
Appendix A: Letter of Approval
June 1, 2021

MS. ROSALINDA T. LONZAGA, Ph.D

Principal IV
Kidapawan City National High School
Roxas Street, Kidapawan City

Dear Ma’am:

Greetings of Peace!

The Senior High School Grade XI – STEM students of Kidapawan City National High
School are tasked to conduct a study as a requirement in our Practical Research I
subject for the Second Semester of School Year 2019-2020.

In view of this, I am humbly asking for your permission to allow me, Neil Humprey
Licatan, to conduct the study entitled “THE EFFECTS OF THE ECONOMIC
CONSEQUENCES OF COVID-19 ON SMALL BUSINESS OWNERS IN KIDAPAWAN
CITY” in this institution.

Your kind approval to conduct our research studies will be greatly appreciated.

Thank you and God Bless.

Very truly yours,

NEIL HUMPREY LICATAN

Grade XI STEM E – Researcher

Noted by:

ROMILEI A. LICERA, Ph.D

Practical Reseach I Teacher
Recommending approval:

GLADY E. PAGUNSAN, Ph.D

SHS Program Coordinator

Approved by:

ROSALINDA T. LONZAGA, Ph.D

Principal IV
Appendix B:

OUTLINED ONLINE QUESTIONNAIRE

Greetings!

I am Neil Humprey D. Licatan of XI - STEM - E, humbly asking you to take part in

my study entitled Economic Consequences of COVID – 19 in the Philippines. This study
would need at least 3 correspondents to voluntarily share their thoughts and sentiments.
We assure you that we will keep your identity anonymous. The data gathered will be
used for research purposes only.

Thank you for participating and answering my survey!

God bless

Name (optional):

Type of business you're currently running (Optional):

1. What are your thoughts regarding the economic setbacks that are
happening in the country right now?

2. What challenges have you encountered during these setbacks?

3. How did these challenges affect your business?

4. Who do you think are the people most at risk of these difficulties?
Appendix C: Documentation

Answer of Respondent 1
Answer of Respondent 2
Answer of Respondent 3
CURRICULUM

VITAE
 Name: Neil Humprey D. Licatan

Age: 17 years old

Birthday: August 6, 2003

Address: Mt. Apo Village, Kidapawan City, North Cotabato

Mottto: “Train your mind to see the good in every situation”