“IMPACT OF COVID-19 ON BUSINESS PERFORMANCE”

Barayong National High School - SHS Department

A Research Proposal submitted in partial fulfillment of the requirements in
PRACTICAL RESEARCH 2

By:
Jee Vee T. Dian
Lorevic E. Jose
Jamaicah Shane Conahap
Krisken G. Corpuz
Jurime S. Seledio
Dexter F. Malugao

Maricar B. Zabala
Research Adviser
October 10, 2022

CHAPTER I
 INTRODUCTION

A previously unidentified corona virus that is known as the 2019 novel coronavirus first

appeared in Wuhan, China, in late December 19. This outbreak spread quickly throughout many

Chinese cities and to at least 25 other countries as of February 6th, 2020.

The condition is referred to as Corona virus Disease-2019 (COVID-19, WHO on

February 11, 2020). It is a notifiable communicable disease of the fifth category and was also

given the term Severe Pneumonia with Novel Pathogens by the Taiwan CDC and Ministry of

Health on January 15, 2019. COVID-19 is a possible zoonotic rate (approximately 2%-5%)

If there is a lack of strict infection control or if the right personal protective equipment is

not available, person-to-person transmission may happen through contact or droplets,

endangering the first-line healthcare personnel.

Numerous firms had to shut down because to the COVID-19 pandemic outbreak,

which has caused an unparalleled disruption of operations in most industry sectors. Short-term

issues that retailers and brands must overcome include those pertaining to human health and

safety, the supply chain, the workforce, cash flow, consumer demand, sales, and marketing.

Nevertheless, overcoming these obstacles won’t ensure a bright future or perhaps one at

all. This is due to the fact that after this pandemic, the world will be substantially different from

what was prior to the outbreak. Many markets have disappeared, particularly in the tourist and

hospitability industries. All organizational chores are designed to be prioritized, spent as

efficiently as possible, or delayed if they won’t be useful in the current setting. An indefinite
hiring freeze has been established by businesses, particularly start-ups. Online communication,

online entertainment, and online purchasing are all seeing extraordinary growth at the same

time.

In the consumer products business, for instance, the crisis is driving significant structural

changes that are profoundly altering how and what costumers buy. Companies will need to think

about how these changes will affect how they design, communicate, develop, and run the

experiences that customers need and want after the immediate threat of the infection has passed.

Companies or firm business performance are being thrown off balance by the COVID-

19 problems because of fundamental shifts in customer behavior, supply networks, and routes to

market. The pandemic response has highlighted the necessity for executives to quicken the

implementation of agile working practices and value chain transformation to aid manage

Uncertainty.

After a pandemic epidemic, we have learned from our past mistakes and have grown

more cautious and guarded. We conserve resources so that we will be ready if the unexpected

occurs again. Food, equipment, and medicine are among the goods that nations are beginning to

store away or plan to create locally. Additionally, stable supply chains are crucial or larger

multinational corporations.

In order to prevent having to cease production in the future due to poor business

performance, it is highly possible that this epidemic will force these companies to reconsider

their supply chains and, presumably, transfer those chains closer to the point of need.
Authorities have also said that other people from other nations are risky because they might be

infected with the illness. A closed boundary suggests that the danger ix external.

Because of these factors, nations can start to become less globalized and more

nationalistic.

This could be a risky development because it will probably take international cooperation

and resource sharing to defend against the long-term effects of a pandemic outbreak. In order to

address further global issues that may come up int the future, such cooperation is essential.

THEORETICAL FRAMEWORK OF THE STUDY:

Numerous small firms work in the service and retail industries and deal directly

with the customer. Due to the limits and closures enforced by the government, these

Industries were the most negatively impacted by the COVID-19 epidemic (Cao & Leung,

2020).

As was mentioned, small firms frequently operate in narrow and very particular

business and are able to provide something distinct from the conventional goods and

services provide by big organizations. Particularly in the industrial sectors, many of them

serve as specialized suppliers of parts, components, ands subassemblies as well as

subcontractors to large industrial companies (Yew Wong & Aspinwall, 2004). Given there

status as crucial industrial enterprises to the economy, most of these companies continued

to operate during the COVID-19 period.

 The more diverse the stock economy and culture in which a company operates, the

more information sources and fresh perspectives it is exposed to, which enables it to build

the skills and quick learning cycles required for innovation and the expansion of

commercial prospects. Therefore, companies operating in the global market exhibit higher

flexibility, which helps them adapt to change better than companies operating only in the

local market (Autio et al. 2000; Zahra et al.,2000). Additionally, the pandemic started at

various dates and had varying degrees of damage around the world.

Hence, the following theories:

H1: The rate of income from export sales is greater among companies who’s

revenues increased or stayed the same throughout the pandemic than it is among

companies whose income decreased during that time.

H2: The degree to which modifications or adjustments are made in the business

action and export sales have a positive association, such that companies with a high

percentage of export sales income exhibit a greater degree of change and change in their

business during the outbreak.

CONCEPTUAL FRAMEWORK OF THE STUDY:

The independent variable or cause of this is COVID-19 and the dependent variable or its

effect on business performance.

INDEPENDENT DEPENDENT
VARIABLE VARIABLE

COVID-19 BUSINESS
PERFORMANCE
STATEMENT OF THE PROBLEM:

The world bank claims that COVID-19 has affected almost every organization in the

world, despite the fact that results have varied widely even between different countries and

industries.

According to statistics gathered between October 2020 and January 2021, sales for one-

fourth of enterprises or businesses decreased by 50% from pre-pandemic levels, and on average,

sales decreased by 27%.

They must first recognize the issues that their company is having with the pandemic in

order to retain the losses of the businesses and regain their prior profitability.

When did it occur?

Why did that occur?

Who will accept accountability?

And how they would implement several strategies to ensure that their business would

return to its heyday.

NULL HYPOTHESIS:
 There is no significant relationship between COVID-19 and business performance.

SIGNIFICANCE OF THE STUDY:

Students/teachers/administrators: to gain knowledge and insights about the impacts of

covid-19 on business performance.

Decision makers in the business: our research is valuable to decision-makers, including

managers and investors, and may aid them in reaching the optimal management or investment
decisions.

Government: the government need to understand how businesses react to the pandemic in
order to pinpoint the industries that are more susceptible to the effects of the crisis and the key
financial management choices that businesses must make when facing a crisis.

Future researchers: to serve as an additional guidance for conducting studies like this in
the future.

SCOPE AND DELIMITATION:

The respondents of this research are the 5 small business owners around Poblacion

Magsaysay Davao Del Sur that are most affected during the time of COVID-19 crisis. This aims

to conclude how much the COVID-19 pandemic affects their whole system of operation and

how can they cope up with these situations.

DEFINITION OF TERMS:

Business performance- the ability of a business to adopt optimal organization with the

goal of providing a product or service that meets consumers and customer’s expectations

determines this factor, which is strongly related to commercial effectiveness.

Covid-19- a mild to severe respiratory illness caused by a corona virus (severe acute

respiratory syndrome corona virus 2 of the genus beta corona virus), which is primarily

transmitted by contact with infectious material (such as respiratory droplets) or with

objects or surfaces contaminated by the causative virus. This illness is characterized in particular

by a fever, cough, and shortness of breath and may progress to pneumonia and respiratory failure

(Meriam webster).

Slovin’s formula- is used to calculate the sample size necessary to achieve a certain

confidence interval when sampling a population. (www.hotjar.com).

 CHAPTER II

REVIEW RELATED LITERATURE:

The Corona virus Disease 2019 (COVID-19) pandemic, which started in China in

December 2019 (Akpan et al., CDC, 2020; Huang et al., 2020; ting et al., 2020), caught

everyone off guard and unprepared, disrupted business operations and had severe negative

consequences on small enterprises (Akpan et al., 2020b; Humphries et al., 2020).

Since they are more likely to be concentrated in industries that have been directly

impacted by COVID 19 reaction measures (such as retail and services) and are often more credit

limited than bigger enterprises, small businesses are like to be badly impacted (Cao & Leung,

2020; Kumar & Francisco, 2005). It’s crucial to note that small businesses make up the bulk of

corporations in the economy and account for a sizable portion of employment (Humphries et al.,

2020).

Previous research by Harel et al. (2019b, 2020a, 2020b) that focused on encouraging

innovation in small businesses in industry sectors revealed that small businesses that

implemented processes for sharing and utilizing knowledge (referred to as “sharing processes” in

Harel et al. (2020a) and processes for developing an innovation culture that encourages

innovation (referred to as “cultural processes” in Harel et al. (2020b) were more successful in

encouraging innovation. Prior research on small businesses has also demonstrated the benefit of

innovation and its direct connection to business performance and growth (Baregheh et al., 2009;
DTI, 2003; Smith, 2005; Taques et al., 2020).

The purpose of the current study was to examine the impact of the pandemic on the range

of operations and revenues of small businesses in industrial sectors, as well as the extent to

which adjustments or changes were made to business activities in order to meet the new

challenges of this period, given the widespread effects of COVID-19 on all spheres of life,

particularly the economy and the business sector.

Adams et al. (2020) also analyzes the impact of this COVID-19 containment measures on

US and UK workers using evidence from real-time surveys. Most relevant to the results

described in this memo is the documenting significant adverse effects on US workers.

We found that business owner’s expectations for the future were negative and worsened

during the study period. Thirty-seven percent of respondents said that in the first week, he did

not expect to recover within two years, compared to his last week, he was 46%. the smallest

companies also had the lowest awareness of government assistance programs and the slowest

growth in awareness after the passage of the CARES Act, falling to catch up with larger

Companies. Bartik et al. (2020) He surveyed 5,800 small businesses in the United States on

Alignable, a network-based small business platform.

Small businesses have been hit hard by the crisis, with many close or laying off

employees. Their survey reached slightly larger companies and found that the majority were

planning to apply for funding through the CARES Act.

 Many businesses also started conducting business in a working from home (WFH) setting

during the COVID-19 epidemic. The association among WFH and small company performance

during pandemic is the main topic of this study. The COVID crisis had an impact on our

economy, but one thing it did was make working from home (WFH) more widely accepted and

used. 37% of employment in the United States, with variations among localities and industries,

may be completed totally at home, according to (Dingel & Neiman, 2020). 45% of businesses

used at least some teleworkers during the COVID-19 pandemic, according to Bartik, Cullen et al.

(2020b), and more than a third of those businesses anticipate that WFH will continue to be

increasingly prevalent at their businesses following the pandemic. Between mid-March and early

April 2020, the percentage of American employees engaged in WFH more than quadrupled to

over 60% according to Gallup Panel (2020), and 59% of US workers who had engaged in WFH

during the epidemic would like to maintain it as their primary mode of work.

The outbreak of the novel corona virus disease (COVID-19) has severely impacted

various industries and geographies, including healthcare, business and transportation. Quarantine

policies resulted in a sharp drop in population mobility, weakened purchasing power, and

economic stagnation. At a macro level, the COVID-19 outbreak has triggered the worst global

recession since the economic downturn of the 1930s. China’s gross domestic product fell by

6.8% in the first quarter compared to the same period last year, with many countries suffering

from severe corporate bankruptcies and unemployment (Fu and Shen 2020).

At the firm level, the COVID-19 outbreak has impacted stock markets (lyke 202a; Liu,

Wang, ang Lee 2020; Narayan and Phan 2020), firm performance in the energy sector (Fu and

Shen 2020), and other aspects (Hagerty and Williams 2020). Public companies are a fundamental
building block of national economies, so during these difficult economic times, we need to assess

the impact of such a major public health emergency on corporate performance.

Research suggests that factors within the financial system may be a key contributor to

recent economic declines (Zubair, Kaabir & Huang 2020). For example, the economic

“stagflation” pf the 1970s was caused by the high oil prices during that time, and the economic

crisis of 2008 was caused by the subprime mortgage crisis (Zubair, Kabir, and Huang 2020). Yet

the recent recession has been driven by external factors, largely driven by his post-COVID-19

pandemic mandated lockdown policies. Therefore, the methods used to analyze and measure the

economic impact of the financial crisis were not applicable during the COVID outbreak.

Currently, there are limited ways to assess the impact of emergencies on economies, industries

and businesses, especially the impact of the COVID-19 pandemic.

Covid-19 pandemic starts in China. The spread of this virus in addition to the millions of

deaths it has caused, has affected people in more than188 countries worldwide and many

businesses around the world and the global economy in general. The economic cost of the

pandemic seems to be enormous, and everyone is wondering how economic recovery can be

achieved (Kalogiannidis, et.al 2020).

The COVID-19 pandemic has spread at a very disturbing speed to the whole world and

affecting manufacturers across multiple countries, enterprises are facing a decrease in demand,

shortage of raw material, export order cancellation, and transport disruptions. COVID-19

affected the small businesses because they are lacking funds to somewhat manage or prepare for

such a long-term disturbance. Besides lockdown was implemented by most countries in late

March 2020.
 Some businesses at that point of time had only about two weeks of cash on hand at that

time and had more than 590,000 in monthly expenses, whereas other companies who earlier

made some good profits had only enough cash to sustain for a maximum of two months.

Additionally, COVID-19 caused a major economic shock apart from impacting public health.

The pandemic had caused massive damages to small businesses within a week and even

before the government aid became available (Robert, 2020).. due to the effect and keeping in

mind the employees were horrified by the COVID outbreak as the chances of getting infected

from a person to another was very high and according to government regulations, people were

requested to stay indoors to break the chain of the Novel Corona Virus.

The businesses reduce the number of employees average of 40 percent because of the

restriction. The government is lifting the lockdown and relaxing restrictions in many states, the

government can figure out the active businesses but still, there is no chance of determining the

closed businesses as temporary or permanent closure (“COVID-19 and the New Leadership

Agenda”, 2020).
 CHAPTER III

METHODOLOGY/METHODS

RESEARCH DESIGN:

This study used a correlational research design to assess the relationship between covid
19 and its impact on performance.

According to Coyle, correlational research can reveal which variables are interacting and
what kind of interaction is taking place, enabling the researcher to make predictions based on the
discovered relationships. Correlational research is a type of nonexperimental research that makes
it easier to predict and explain the relationship among variables.

This study determined the relationship of covid 19 and its impact in business
Performance.

RESPONDENTS:

The respondents of the study are the small business owner’s in Poblacion Magsaysay
Davao del Sur.

Table 1 presents that there are 6 total respondents of small business owner’s in Poblacion
Magsaysay Davao del Sur who answered the survey questionnaires for this study, specifically,
Alma Geulagon owner of a banana buy and sell and one of his staff, Vergie Sabado owner of a
sari-sari store, Rosalyn Asintado owner of a snack house and one of his staff, and Manuel Velez
owner of 4M meat shop.

Table 1:
 SMALL BUSINESSES NUMBER OF RESPONDENTS
Banana buy and sell 2
Sari-sari store 1
Snack house 2
Meat shop 1
TOTAL 6

SAMPLING PROCEDURE:

We calculate the sample size using Slovin’s method (n=N / 1+Ne2), where N is the total
number of small enterprises in Magsaysay (40), and the MSE is 40, resulting in sample size of 6
responders.

This sample size is sufficient to collect comprehensive data in all Magsaysay region
including those that are typically underrepresented in surveys.

We use convenience sampling as a method to select the small businesses and owner’s that
are available and convenient for us to conduct a survey.

We also make simple questions and ask the respondents to answer the survey with their
permission.

Lastly, we collect data for the municipal of Magsaysay to receive responses from those
selected sample size with a high response rate that supports the validity of their results.

MEASURE:

The instruments that will be used in this study are well structured because these
questionnaires were used by other researchers in the field. The first and second set of questions

was adapted from the U.S Census Bureau and it is all about understanding the effect of changing

business conditions due to the corona virus pandemic on business. While the third and fourth set

of questions was adapted from the follow up survey of main street America and it is all about the

impacts of covid-19 on small businesses. The items were answered by the respondents using 4

like scale. For content validity and reliability, validation by experts was also administered.

DATA ANALYSIS:

In order to interpret and analyze the gathered data, the following statistical tool will be

used. The impact of covid-19 on small businesses performance will be analyzed using

prescriptive analysis in developing data analytics maturity and enabling better decision-making

in advance for enhancing business performance. it clarifies the prescriptive analytics research

area, synthesizes the literature review to identify the current research challenges, and suggests

areas for future research. This paper investigates the existing literature relating the prescriptive

analytics and popular methods for its implementation.

The focus of the current evaluation of the literature is on prescriptive analytics, which is

the most complex sort of business analytics and can provide firms with the most insight and

value (lknys & Pedersen (2016), it tries to suggest (prescribing) the optimal decision possibilities

so that users can benefit from the future as it is forecasted. This is accomplished by incorporating

the outcomes of predictive analytics and applying Al, optimization algorithms, and expert

systems in a probabilistic setting to provide adaptive, automated, limited, time-dependent, and

optimal judgments (Basu, 2013; Engel, Etzion, & Feldman, 2012; Gartner, 2017).
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