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FIL2

Personal finance defines all financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings and retirement planning

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Chryss John Querol
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82 views

FIL2

Personal finance defines all financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings and retirement planning

Uploaded by

Chryss John Querol
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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A RESEARCH STUDY PRESENTED TO THE FACULTY OF THE NOTRE DAME RVM

COLLEGE OF COTABATO – COTABATO CITY, MAGUINDANAO IN PARTIAL FULFILLMENT


OF THE REQUIREMENTS FOR FIL 2 PAGBASA AT PAGSULAT TUNGO SA PANANALIKSIK

TITLE: COVID-19 CRISIS MANAGEMENT OF MICRO, SMALL AND MEDIUM ENTERPRISES


(MSME’s) IN THE PHILIPPINES

CHRYSS JOHN T. QUEROL


Researcher

LEONARD RUIZ VILBAR, LPT


Adviser

October 2020
ACCEPTANCE PLEDGE
In fulfillment of one of the requirements of the subject Filipino 2, Pagbasa at Pagsulat tungo sa
Pananaliksik, this research entitled, “COVID-19 CRISIS MANAGEMENT OF MICRO, SMALL
AND MEDIUM ENTERPRISES (MSME’s) IN THE PHILIPPINES”
This research was prepared and presented to our Filipino subject teacher, Mr. Leonard Ruiz
Vilbar, LPT of the researcher Chryss John T. Querol from Bachelor of Science in Business
Administration
Data contained in this research was researched, organized, and prepared by the second-level
researcher in tertiary. Accepted as project in Filipino 2 as on of the requirements in the
aforementioned subject by Mr. Leonard Ruiz Vilbar, LPT
ACKNOWLEDGEMENT
Special thanks to the following persons who made this research project possible:
Yasuyuki Sawada – Chief Economist and Director General, Asian Development Bank
Asian Development Bank Publications
www.foi.gov.ph – Freedom of Information Commission
S. Ma. Fe D. Gerodias, RVM – School President
Mr. Leonard Ruiz Vilbar, LPT – Research Adviser
TABLE OF CONTENTS
Chapeter I: Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 8
Purpose of the Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Significance of the Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Limitations and Delimitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Definition of Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 12
Chapter II: Review of Related Literature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
CHAPTER I
STATEMENT OF THE PROBLEM

INTRODUCTION
The coronavirus disease (COVID-19) has shocked global, regional, and national economies.
People’s lives and economic activities have been strictly limited to safeguard health and control
the spread of the virus. Travel bans, temporary closures of schools and businesses, and social
distancing have accompanied quarantines. Meanwhile, private sector businesses have cut back
production as well as service delivery, and have been forced to temporarily lay off employees.
They face a lack of working capital, making it difficult to continue operating.
Prolonged containment of COVID-19 increases the risk of business failure and bankruptcy. In
particular, micro, small, and medium-sized firms are at great risk due to abrupt supply chain
disruptions and tightened financial conditions.
Developing a crisis management plan also helps teams identify potential threats as they plan and
game out the tasks, communications, and information they’ll need to deal with those threats.
PURPOSE OF THE STUDY
This research focuses on the crisis management strategies that can be conducted to micro, small
and medium enterprises (MSMEs) in the Philippines amid Covid-19 pandemic. The report
provides a rich set of initial facts and ideas for the government to develop evidence-based
policymaking to support the revival of Philippine enterprises hurt by the pandemic. It also provides
survey-based information for current and future analytical use. We hope this report contributes to
the ongoing policy discussions on firm-level support measures needed to reignite the Philippine
economy (Sawada, 2020)
SIGNIFICANCE OF THE STUDY
The results of the study will be of great benefit to the following:
Business owner. To strategize to create profit and improve sales helping the economy to
recover.
Business groups. Through proper information and initiatives, they may assist and be of help in
this program.
Government agencies. Through cash assistance and help they may assist and assess the
extent of decline in sales.
National government. Through low interest in loan, loans and extension of payables it greatly
helps the business entities to recover and maximize profit.
Researchers. to provide adequate information and assistance regarding on social media
marketing strategies and techniques and other related learning about it.
LIMITATIONS AND DELIMITATIONS OF THE STUDY
Limitations of the Study:
This research is limited only on crisis management for micro, small and medium enterprises
(MSMEs) in the Philippines. Management and finance are out of bounds. This is to target
strategies that will drive customers to buy in spite of quarantine protocols for the business entity
to continue to perform yet sales breakeven. Strategies on how to operate in spite the Covid-19
crisis is S.M.A.R.T. though need strict monitoring and recording to avoid unnecessary problems in
the future.

Delimitations of the study:


Initially, this study will confine itself to interviewing and observing the impact of Covid-19
pandemic to micro, small and medium enterprises (MSMEs) in the Philippines.
DEFINITION OF TERMS
Micro, Small and Medium Enterprises (MSMEs) - any business activity or enterprise engaged in
industry, agribusiness and/or services, whether single proprietorship, cooperative, partnership or
corporation.
S.M.A.R.T. - smart, measurable, attainable, relevant and timely.
Crisis Management - the process by which a business or other organization deals with a sudden
emergency situation.
Strategies - a plan of action or policy designed to achieve a major or overall aim.
Sales - a period during which a retailer sells goods at reduced prices.
Coronavirus disease (COVID-19) - is an infectious disease caused by a newly discovered
coronavirus.
CHAPTER II
REVIEW OF RELATED LITERATURE
To address the adverse impacts of the COVID-19 pandemic, MSMEs started implementing
adaptive business measures. Among which are digitalization or the use of online platforms for
their business transactions, cost reduction, diversification of products and services, utilization of
non-cash payment options, and allowing employees to work from home. (UNDP-Philippines,
https://www.ph.undp.org/content/philippines/en/home/presscenter/pressreleases/202-/msme-
sector-is-key-to-covid-19-inclusive-recovery-for-ph.html)
According to Sawada (2020), Wholesale and retail trade was the sector most adversely affected
by the ECQ.
The Philippines has historically been on the receiving end of disasters, such as typhoons and
floods. MSMEs in the Philippines have had to respond to disruptions caused by these disasters,
develop coping mechanisms, and work their way out of these challenges.(MicroSave Consulting,
https://www.microsave.net/2020/05/22/helping-msmes-get-back-on-their-feet-insights-from-
msmes-in-the-philippines-that-have-overcome-disasters/)
According to Sawada (2020), While most enterprises did not change employment arrangements
for part-time workers, many had their working hours reduced.
The so-called “new normal” should not lower productivity but rather increase it. The
pandemic may have shrunk demand for some products in the international market. The challenge
moving forward is sustaining the demand for products and creating new demand, as well as new
markets. With digitalization, critical processes such as trade registration, inspections, screening,
and payments, will be hastened.(Development Asia, https://development.asia/policy-brief/how-
smes-can-bounce-back-covid-19-crisis)
According to Sawada (2020), Half of the firms surveyed suspended wage payments after the
COVID-19 outbreak, with the suspension more pronounced in microenterprises.
More than half of the country’s micro, small and medium enterprises (MSMEs) in the country had
to stop their operations due to the COVID-19 pandemic (DTI, 2020)
According to Sawada (2020), Work from home was not a feasible option for any workers in most
enterprises; it was more pronounced in microenterprises.
Mandatory thirty (30) days grace period for all loans falling due within the (ECQ) and waiver of
penalties, interest, and other charges. (HG Legal Resources, https://www.hg.org/legal-
articles/government-steps-to-assist-micro-small-and-medium-enterprises-during-and-after-the-
covid-19-lockdown-in-the-philippines-55266)
According to Sawada (2020), Regular and part-time workers in traditional trade and services were
hurt most by the ECQ.

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