Chapter III

PRESENTATION OF RESULTS AND DISCUSSION

This chapter explores the challenges faced by Small Business Entrepreneurs in Vigan

City, drawing upon the main themes that emerged from the interview process and subsequent

data analysis. Initially, a brief profile of each participant is presented to provide context. The

key themes identified during the analysis include (1) the inevitable circumstances, (2) lack of

sources on capital, (3) strategies, (4) City ordinances, (5) perception on their business and (6)

reason behind having a business. These themes are interconnected, revealing that the

challenges faced by small business entrepreneurs in Vigan City affect all aspects of their lives.

By analyzing the data, it became evident that these challenges have a comprehensive impact,

influencing not only their businesses but also their personal and professional well-being.

1. Participants

Participant one is a Vigan City Public Market vendor selling traditional cloth, bamboo

crafts, and sashes. Her company is called Lopez Sisters’ Store. She inherited this business from

her mother because the aging process has rendered her unable to work for it. She has been

managing it since 1986. She is a devoted mother to her two kids. She is also dedicated to

maintaining her business in spite of the difficulties she encountered a few years ago.

Participant two is also a Vigan City Public Market vendor wherein she sells branded

clothes located at the center of the market. Her business is called AshDri’s dry goods which is

dedicated to her two lovely children. Despite of all the circumstances that she’s been through,

she still wants to keep her business alive.

 Participant three is still a Vigan City Public Market vendor selling different kinds of

food usually for breakfast and snacks in the morning. He just started this business a few months

before the pandemic came and it affects all of us.

2. The Inevitable Circumstances

Unsurprisingly, running a business involves challenges at every stage for any business

owner (Majumdar, 2020). All of the participants determine that there are inevitable

circumstances that they’ve been through throughout their business journey. This includes the

following:

2.1 COVID-19 Pandemic

One of the most common problems of the small business entrepreneurs is the time

when COVID-19 Pandemic came, one of the participants said that:

Way back in the time of COVID-19 pandemic, this was the most difficult part my

business because face to face contact is limited and of course it affects my business as I am in

the food section.

(Participant 3).

Social‐distancing restrictions and health‐ and economic‐driven demand shifts from

COVID‐19 are expected to shutter many small businesses and entrepreneurial ventures, but

there is very little early evidence on impacts (Fairlie, 2020). Therefore, this is what happened

to one of our participants, though he choose not to stop his business and made some

adjustments to still cope up with the situation.

Another participant added that COVID-19 Pandemic is really one of their challenges

most especially on their business.

 The number one challenge was during the pandemic. During the pandemic, I really

didn’t know if I could recover or not. I tried to maintain my business for two to three years. I

kept maintaining it, even paying for the license, hoping that after the pandemic, I could start

again.

(Participant 1).

According to Fairlie, 2020, the widespread closing of stores and businesses in the

United States and around the world due to the coronavirus is unprecedented. Stores, factories,

and many other businesses have closed by policy mandate, downward demand shifts, health

concerns, or other factors. Many of these closures may be permanent because of the inability

of owners to pay ongoing expenses and survive the shutdown. The impact on small businesses

around the world is likely to be severe.

2.2 Customers Preferences

So when we say inevitable circumstances we will also deal to the customers

preferences that as the time goes by, there are what we call the in demand clothes ‘mga uso”

that is indeed ever changing.

One of the participants have mentioned this and said:

Another one is the consumers preferences because as you can see there are other

businesses here that sells dry goods just like clothes. And we all know there are also online

shopping that customers can buy clothes that is much cheaper and convenient to use than ours.

(Participant 2).

According to Dutta, 2023, appealing to consumer preferences is a necessity for

success, and it has become much more important in an omnichannel digital environment, where
changes are constant. Several of these developments have been linked to the Covid-19

epidemic.

2.3 Seasons

So, I’ve faced many challenges, especially during the rainy seasons when it’s difficult

or it’s very challenging to sell our products.

(Participant 1).

Everyday vendors faced different challenges in their businesses, but most especially

during rainy seasons. As we all know, during rainy seasons it is hard for us to go out with the

reason in mind that it is so hassle, and lethargic. And this results to the stagnant selling of our

local vendors in the public market.

3. Lack of Sources on Capital

As we are all aware of, money moves the business. Business owners needs capital to

start with and in continuing their businesses alive amidst of all the challenges given. All of the

participants declare that one of their challenges in putting up and getting back alive their

businesses most especially after the pandemic is the sources of capital. The participants said

that:

If we’re talking about the challenges, the most crucial challenge is where we will get

our capital. Of course we are buying our products in full price, and if we don’t have money to

purchase those products our business can’t move.

(Participant 2).

On the other hand, one states that:

 Another challenge was the capital because everything was depleted. Additionally, most

of my customers are tourists and by that time only few are on vacation because of the pandemic

and post-pandemic, it’s really hard because they we’re also affected. People didn’t have much

money to spend on.

(Participant 1).

There are many reasons why small businesses don’t succeed, one of the most common

reasons being lack of capital. Lack of capital can result in not having enough to cover overhead

expenses, funding expansion opportunities, or launching a new product to market.

According to Small Business Reality, 2021, nearly a year into the COVID-19 pandemic

that has devastated our country and economy, small business owners continue to experience

significant financial setbacks that are being exacerbated by challenges accessing the capital

they need to sustain their businesses.

4. Strategies

After all the challenges that the small business entrepreneurs have already stated, they

also came up with some strategies to at least recover most especially during the pandemic.

According to Cook and Karau,2023, the study revealed a variety of strategic responses

and highlighted creativity and flexibility in coping with uncertainty. Business owners adapted

their strategies regarding processes, products and target customers to remain flexible and

reallocate resources to meet ever-changing demands. Some created and strengthened

relationships with other business owners, clients, customers and the community. Several

showed optimism for the long-term, whereas others viewed survival as contingent on a speedy

return to normalcy

4.1 Digital Communication

 One of the advantages of having a digital phone is for the purpose of communication.

Nowadays, phones are considered as our needs because reality speaking we can’t live without

our phones most especially that we are living in this modern world. One of the participants

used this strategy and clearly stated that:

The main strategy that I put in my business is to take their orders through digital like

text messages and chats in messenger. And also, I didn’t hire a partner in delivering their orders

because of the salary that was supposedly for my family.

(Participant 3).

Toro, 2020 states that Small business owners shifted their communication with

customers from in-person to digital channels as a result of COVID-19 and the trend toward

digital is projected to continue, finds a new report by the Canadian Federation of Independent

Business (CFIB). In fact, half of business owners (51 per cent) predict they will rely on digital

communications a lot more in the coming year.

Small businesses thrive because of the relationships they have with their customers,

but they have had to shift the ways they connect with customers.

4.2 Price Floor

Another strategy that they imposed is the prices to go down. Not to the extent that they

will not have any profit but to at least sell their products for them to have a money for everyday

expenses and needs. Price-setting is challenging even in normal times, shocks during the past

few years, such as the pandemic and inflation, have made it harder.

One of the participants stated that:

If we’re talking about the strategies, it’s really hard. But for us to sell our products,

we will just lower the prices of our goods. Even if I only had a small amount of profit as long
as it gives me back the investment and at least have the payments to all the necessary things to

be paid at my business and to support my family.

(Participant 2).

Firms were decreasing their prices about as often as they were before the pandemic, but they

began increasing their prices a lot more frequently (Montag, 2022). That means before and

during the pandemic they are usually decreasing their prices, but then at the moment that

pandemic has been totally removed they wanted to increase their prices for them to have a

much more profit than the previous years.

4.3 Loans

Borrowing money is one of the strategies imposed most especially if you really lack

on having a capital for starting up again your business most especially after the pandemic or in

keeping it alive. The participant said that:

The number one strategy in business is to borrow money. Even if you have some, you

still need to borrow money that’s why you need to be careful so that you can find a way to start

again. That’s what I thought because, out of necessity, I had to take out a small loan just to

start. While selling, I paid off the loan because if you don’t plan carefully, it’s hard to recover.

Also, I had two children who were studying at the time.

(Participant 1)

Business loans are vital for entrepreneurs, startups and established businesses looking

to grow or overcome short-term financial challenges. This flexible financing is typically

provided through banks, credit unions and online lenders, with varying interest rates,

repayment terms and eligibility requirements ( Treece & Tarver, 2024)

 Loans for small businesses can be used for numerous purposes, including financing

new equipment or inventory, expanding operations, hiring new staff and consolidating debt.

5. City Ordinances

City ordinances are meant to be followed by the affected people. There are chances

that it is for the benefits of the affected people or sometimes it is the other way around.

Some ordinances in the Vigan City for small business entrepreneurs

Ordinance No. 21 Series of 2013-Ordinance Approving the New Schedule of Fare Market

Values

Ordinance No. 6, Series of 2006-Revenue Code of the City of Vigan as amended

Ordinance No. 18, Series of 2005-Vigan City Investments Incentives Code of 2005

5.1 Strictly Implemented

Almost all of our participants have claimed that the laws and ordinances are indeed

strictly implemented. The participants said that;

They also raised our permit fees and they are strict in providing the protocols. Yes we

are vendors and they should have looked at our situation first before implementing protocols

that is against us. Additionally, it was difficult for us to sell our products but then again all of

our fees are still going up and we can’t do anything about it. There is no such thing as an

extension on our land borders, like the hanger stand it is still prohibited. Then of course it was

removed and yes we have to follow them .

(Participant 2).
 The City ordinances are strictly implemented and the people have to follow this rules

for them not to be violated. And of course, they also know that this ordinances are also for the

benefits of most of the individuals.

5.2 Advantages of City Ordinances

Only one of the respondent tell that the city ordinances is for the common good of all

the individuals directly highlighting the COVID-19 Pandemic. And he said that:

Yes I don’t see anything that is against us, it’s a good way for our safety and also to be

secured.

(Participant 3).

Before, during and after the pandemic the city ordinances are always for the common

good. A reasonable law is necessary, moral , useful, clear in expression and adapted to place

and time. The people are moved to follow the law when it is reasonable.

5.3 Disadvantages of City Ordinances

Base on our data gathered, there are really disadvantages of the city ordinances but

then they don’t have the power to state their voices. The participant said that:

Well, the ordinances are generally good, but sometimes they are challenging. For

instance, regarding my permit for native woven clothes, if the authorities are understanding,

it’s good. One time, someone came to inspect, and we had to pay a lot for our license because

they saw other items on display. I explained that I didn’t have enough native items because they

were expensive. So, I took a small loan to buy other items to sell. Then as time goes by, they

told us to report again, and we had to go through the process again. But I had already obtained

a permit and a mayor’s permit. Someone from the municipality came and saw other items, and

it became an issue again.

 (Participant 1).

The city ordinances are strictly implemented, there is also an advantages but on the

other hand there is always a disadvantages most especially to the part of the sellers. But then

again, ordinances are needed to follow and if not properly observe you will be violated.

6. Perception of their Businesses

Small business entrepreneurs have their own perception on their businesses. It’s either

the advantages or even their disadvantages to other businesses. Perception according to

Cambridge Dictionary, it is someone’s ability to notice and understand things that are not

obvious to other people.

6.1 In Demand

The economy relies on the willingness of consumers to make purchases and the ability

of companies to supply them. Consumer demand drives production and supports a thriving

economy by decreasing inflation and interest rates.

When we say it is in demand, the products are usually sold at the market at the moment.

And this is what the participant said:

For us, our advantage is that our products don’t go out of style. Unlike clothes that can

become outdated, our items like blankets and trays are still useful. Like for example lace is

especially in demand during graduations. Students and teachers from the school order from

me. Even nursing students in the University of Northern Philippines order items like sashes

and tokens. They are happy with our products, especially the rattan baskets they use recently

in their performance.

(Participant 1).
 Having products that is relevant and highly needed at a certain time is highly

appreciated. That means the seller is creative in thinking what could be used usually at this

moment~ graduation period. That means having sashes and tokens are great to have and sell to

the market.

6.2 Disadvantages of their Products

One of the participants have said that their business has a way more disadvantages than

advantages to the other businesses. This is what she said:

Mostly it’s a disadvantage, because “ukay-ukay” is really evident at the moment. And

our business is mostly branded. They are more patronizing the ukay ukay because it is cheap

and some customers are really looking and basing on the prices. And of course the presence of

online shops such as Lazada, Shopee, and Shein. Yes, there are customers but only few, one to

two per day so what I said it is difficult , so it is a disadvantage not advantage.

(Participant 2).

In this, they are only focusing on selling the branded clothes that’s why that can’t keep

and go with the flow to the other in demand products. Therefore, their products are not highly

patronize by the consumers because whether we believe it or not we people in this modern

world are more on patronizing what is in demand.

6.3 Good Location

One of the participants have mentioned that his business is in a good location which

attracts more customers that the other businesses located also in he Vigan Public Market.

Maybe I’m the only one located here at the center of our market, well there are some

businesses of food that was already cooked located out there but it’s very far away from me and
their location is not well suited for the customers. Indeed, it’s a unique product because it’s

usually good for breakfast and snacks most specially to the vendors here in Vigan City market.

(Participant 3).

According to Business Information, 2021, deciding where to locate a business has

always been important. A good location for your business is vital, but choosing the right one

can be something of a balancing act. Ideally, the location should be convenient for your

customers, employees, and suppliers – without being too expensive for your business. You

should weigh up the advantages and disadvantages of various locations when deciding on a

suitable place for your business property.

7. Reason Behind Having a Business

This is very important because the answer makes the difference. There are so many

reasons why people want to start their own businesses.

The participants have their own story to tell when it comes to the reason behind having

a business.

7.1 Inheritance

After I graduated, I started a business because my mother already had a business.

When we were young, my mother had a business at the public market. We had a stall there, but

it burned down. After that, we transferred here, and I’ve been managing our business since

1986.

(Participant 1).

On the other hand, one of our participants said that:

 If we talk about the reason behind having a business, it was an inheritance from my

parents. They are both business minded individuals and when the time came they already

retired I inherited our business.

(Participant 2).

Thus, our participants inherited these business to their parents. Which means it goes

down to generation to generation.

While inheriting a thriving family business may be a way to preserve and continue the

family’s legacy and entrepreneurial spirit, inheriting a business can also be a significant

responsibility, requiring time, energy, and resources to manage and grow the business.

SUMMARY, CONCLUSION AND RECOMMENDATIONS

This chapter presents the summary, conclusion and recommendations that the

researchers wanted to indicate.

Summary

This research wanted to know the Challenges faced by Small Business Entrepreneurs

in Vigan City including their strategies, city ordinances and their perceptions on to their
businesses. This study use Thematic Analysis for a clear understanding and deeper analysis

unto the challenges faced by small business entrepreneurs in Vigan City.

The data included in this research study uses primary and secondary resources which

includes the book written by Gamundoy, Bucal and EM (2024) that entitled “Challenges of

Small and Medium Enterprise towards Progress”. The data included in the results and

discussion are from the interview conducted.

To the challenges faced by small business entrepreneurs, the researchers discovered

that most of the downfalls of their businesses is during the Covid-19 pandemic. And aside form

these, customer’s preferences are indeed an ever changing event in our lives. Another one is

the seasons that is base on the weather on a certain time period.

To the strategies, the researchers found out that the participants have their own coping

mechanism when dealing to a certain inevitable circumstances .

To the City ordinances, the researchers found out that the participants reacted in

different ways which is base on their own experiences.

Conclusion

Based on the findings summarized, the researchers arrived at the following

conclusions:

1. That the challenges faced by the small business entrepreneurs are all started way back on

the time of Covid pandemic year 2019.

2. That their strategies really improves their business and creates a wide gap from the

potential problem.

3. Their businesses has their own unique characteristics in terms of the products they are

selling to the market.

Recommendation

Based on the conclusion, the following are the researchers recommendation:

1. It is much suitable if the sellers know how to cope up with the ever changing needs and

demands of every individuals.

2. To the consumers even if we are living in this modern world, do still go to the market with

face to face interaction to the people.

3. This study can be done again with a much deeper analysis and broad resources to be

incorporated in this research.