COVID19 as a threat to Local Businesses
Covid19 as a threat to Local Businesses
Maricris Ebiosa
Alennezar Mapula
Jay R. Tomong
College of Business Administration Department
Bachelor of Science in Business Administration Major in Financial Management
Negros Oriental State University
Professor Ernesto Tumacole
April 8, 2021
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COVID19 as a threat to Local Businesses
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I. Introduction
We are facing the biggest crisis in the history which is the spread of so called virus, corona
known as covid19. We conduct this research for us to be able to pin point how covid19
became a threat to the economy especially in local businesses. We should able to understand
the threat and have corrective alternatives.
The problem is that covid19 slow the movements in the economy affecting business
transactions and income. Closing of business establishment and higher chances of
unemployment rate that is essential for surviving.
This crisis affecting not only the economy’s health but also the people’s mental health. They
might die in stress and anxiety than being contaminated by the virus. I want to know more of
the effects of covid19 to the local business and what they are having as an alternative for
surviving.
If I’d be able to find out its effects, this can help the owners to make an action to the
problems and be able to survive and help the economy to survive.
The COVID-19 pandemic has followed by social distancing, and the lock-down has hit the
business market so hard. Even the well-established ones need to re-look how they manage
and operate their business to keep the financial wheel turning.
Unfortunately, the startups and small businesses impacted brutally, as they have scarcer
funds to manage crises. However, some say that great companies often come out during
market downturns. Many innovative entrepreneurs have stepped up to help with some old or
COVID19 as a threat to Local Businesses
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new techniques and products. With the sudden change in the market due to COVID-19, the
businesses needed to change their perspective on entrepreneurship. While some businesses
have come to a standstill, there are a few opportunities that have knocked our doors.
Investors are showing interest in funding potential COVID-19 solutions and also in
industries that could thrive in the post-pandemic world.
As the cases are growing and people are staying indoors, industries like healthcare,
education, entertainment, and basic day-to-day necessities are booming. Quarantine is
forcing companies to push their services online that has led to a massive elevation of the
technology department.
As the COVID-19 situation has not resided completely; people prefer to buy either local or
online. Easy access to groceries on e-commerce platforms with safe delivery assurance is the
major go during and even post COVID.
The pandemic boosted food deliveries companies. While the Covid-19 pandemic has rocked
every industry in different ways, for on-demand food delivery, 2020 was something of a
moment. With restaurants forced to close during lockdowns, food delivery has become a
lifeline to ensure some continuation of business.
Some establishments suddenly change their way of living to something more helpful to the
people and to themselves. With the skyrocketing demand of food deliveries, many deloivery
services like Grab, Food panda, Tuktok, Gopapa and many more have responded to the crisis
by introducing contactless delivery options to eliminate the risk of spreading the virus
between the customer and driver.
COVID19 as a threat to Local Businesses
Another factor driving demand for food delivery services is the increased number of
restaurants offering home delivery. Since social-distancing measures forced restaurants and
bars to close, many have switched to delivery to stay afloat during the pandemic. Grab and
other restaurants have also recently expanded into grocery deliveries as a result of COVID19. Both services recently announced partnerships with several supermarkets and
convenience stores that will allow customers to order a selection of essential food, cleaning
and hygiene products to be delivered to their homes.
1.1 Objectives
The objectives of this research are to know if food delivery services really an advantage to those
who do this business. Due to the pandemic people starts to change their business to spmething
more convenient and most helpful to people. This study examines the determinants of the
customer ordering experience, which include website trust, customer satisfaction and loyalty.
Results reveal that not only is there a significant positive relationship between website quality
and website trust but also a significant positive relationship between service quality and
customer satisfaction
1.2 Statement of the problem
During the outbreak of the COVID19 - pandemic, businesses were forced to stop their
operations temporarily, as a result many employees lose their job. Unemployment goes even
higher. Even in our own surroundings, in our own neighborhood, we can see a lot of jobless
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COVID19 as a threat to Local Businesses
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people. Not only large businesses were forced to shutdown their operations, but as well as the
small - scale businesses. Vendors of certain goods have vanished along the streets. This
observations leads to questions as how business sectors cope the changes brought about by the
pandemic and what are some of their alternatives they conduct during their operations while
maintaining the minimum health protocol. This study is somehow significant, especially to some
business owners whose business are still in a ceased conditions until these days.
1.3 Review of Related Literature
COVID-19 is a disease caused by a new strain of coronavirus. ‘CO’ stands for corona, ‘VI’ for
virus, and ‘D’ for disease. Formerly, this disease was referred to as ‘2019 novel coronavirus’ or
‘2019-nCoV’ ( WHO , March 2020 ).
Most of business establishments stop their operations temporarily during the height of the
pandemic. Yet cross - sector representatives have expressed hopes of better days to come amid
the threat of the pandemic as President Rodrigo Duterte pronounced his plans and programs for
the last two years of his terms ( Partlow, 2020 ). Meanwhile, Dumaguete City plans to ease the
impact of the COVID19- pandemic by rebuilding the local economy ( Tilos, 2020 ). The mayor
stated the needs to bolster the local economy and the need to encourage investors from the
outside to spend more funds in the City while maintaining minimum health protocols. The mayor
added that he already recieved many letters of intent, especially from Business Process
Outsourcing ( BPO ) companies that are willing to transfer in Dumaguete City ( Remollo, 2020 ).
If this will become materialize, individuals who lose their job amidst the pandemic, soon have a
chance to obtain a fullfilling career.
COVID19 as a threat to Local Businesses
1.4 Research Questions
1. What are other factors that changed in a business sectors that was brought about by
COVID19 - pandemic ?
2. How businesses cope the changes brought by this pandemic , being able to keep their
operations flowing while maintaining safety ?
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COVID19 as a threat to Local Businesses
References :
Jennifer C. Tilos , September 14, 2020 , Internet : https://pia.gov.ph › articles
Mary Judaline Partlow , July 27, 2020 , Internet : https://www.pna.gov.ph/articles/1110277
Internet : Key Messages and Actions for COVID-19 Prevention and Control ...
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Questionnaire
What factors in your business changed due to this COVID-19 pandemic ? Check all applicable.
o
o
o
o
o
o
o
Confidence of the employee to work onsite
Working practices
Pay
Number of employees
Supplies of goods
Demand of goods
Business hours
How much disruption to your business have these challenges caused ?
o
o
o
o
o
Severe disruption
Moderate disruption
Low disruption
No disruption
Not sure
How does your business's tunover for the last two weeks, compare to normal operations of
your business ?
o
o
o
o
o
o
Turnover has increased by more than 50%
Turnover has increased between 20% and 50%
Turnover has not been affected
Turnover has decreased between 20% and 50%
Turnover has decreased by more than 50%
Not sure
How did the price of materials, goods, or services brought by your business changed in the last
two weeks, compared with normal price fluctuations ?
o
o
o
o
o
Prices increased more than normal
Prices did not change any more than normal
Prices decreased more than normal
Some prices decreased, some increased
Not sure
Which of the following statements best describes your business's trading status ?
o
o
o
o
o
Currently trading and have been for more than the last two weeks
Started trading within the last two weeks after a pause in trading
Paused trading but intended to restart in the next two weeks
Paused trading and does not intend to restart in the next two weeks
Permanently ceased trading
Is your business using, intending to use, any of the following safety measures in the workplace ?
COVID19 as a threat to Local Businesses
o
o
o
o
o
o
o
o
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Adjusted working practices
COVID-19 vaccinations
Hygiene measures
Personal Protective Equipment
Social distancing
Temperature checks
Other
None of the above
In the last two weeks, approximately what percentage of your workforce have :
o Moved from homeworking to the normal workplace
o Moved from the normal workplace to homeworking
Source :
https://www.ons.gov.uk/surveys/informationforbusinesses/businesssurveys/thequestonsonthe
businessimpactofcoronaviruscovid19survey