THE TOP 5 EFFECTS OF COVID - 19 PANDEMIC TO SARI - SARI

STORES IN POBLACION , GETAFE , BOHOL

Accountancy , Business & Management SHS Students

Sto. Niño Institute of Getafe , Bohol , Inc.

Poblacion , Getafe , Bohol

Arellano , Deiszerie B.

Arellano , Eva Jane A.

Celocia , Krestyl Mae D.

Pogoy , Maricar P.

Socatre , Deo Grace A.

Sumalinog , Joseleo G.

Torrejos , Chesca Marie G.

Torrenueva , Jenny T.

December 2021
THE TOP 5 EFFECTS OF COVID - 19 PANDEMIC TO SARI- SARI

STORES IN POBLACION , GETAFE , BOHOL

A Research Presented to the Faculty of the Senior High School of

Accountancy , Business , & Management

Sto. Niño Institute of Getafe , Bohol , Inc.

In Partial Fulfillment Requirements for the Grade 12 Accountancy ,

Business , & Management Students

Sumalinog , et. Al

December 2021
 CHAPTER 1

THE PROBLEM AND ITS SCOPE

Rationale

Through the year 2020 was recorded as one of the difficult year in

the whole world due to the spread of the deadline virus that made every

human life change drastically . It was called COVID - 19 . The virus

affects the global economy and financial markets . One of the most

affected economic sector are the microsellers that makes up a massive

portion of business in the Philippines . Specifically to the small

neighborhood retail outlets that sell general merchandise were hard -

pressed to keep things going as they rely on foot traffic to bring in the

business due to lockdown and closing of all the borders in the

community . Sari - sari stores have been a tradition of community - based

micro consumer business and have in fact become a basic entrepreneurial

institution in the Philippines .

Sari - sari Stores cheap prices flexible credit terms and selling wide

range of basic consumer goods and is commonly located on the street and

even corners. Sari - Sari store is a part of the Filipino daily life living .
Filipino builds their own business to earn more income even they’re

working to their specific job . The more it’s seen in many places the

more we convinced to know about the business .

Covid-19 pandemic costs substantial disruptions in the business as

community restrictions have limited the movement of people and reduced

business operations . The range of the customers and supplies become

limited due to enhanced community quarantine that was implemented by

the Government . COVID-19 pandemic gives impact in every sector of the

business whether it is Micro , Small , and Medium Enterprises ( MSME’S ) .

All businesses in the Philippines creates business planning to win this

battle against COVID-19 . Every corner of the country suffers in this issue ,

and one of that is Barangay Poblacion , Town of Getafe , and Province of

Bohol . Barangay Poblacion , Getafe , Bohol have many entrepreneur , some

business that exist in this place is the Sari-sari store . Sari - Sari Stores

also affected in this current issue named Coronavirus Disease 2019

( COVID-19 ) . Mostly affected in their Sari – sari Stores are their income ,

capital , customers , inventory , and operation . There’s a lot of effects of

COVID-19 to the Sari – sari Stores and this was found out by the

microsellers as a challenge for them to possess . COVID-19 affects their

business and their lives , anf they have no choice but to accept this

challenge and plan some strategy that can make this challenge go away

in their way .
 This study will give further understanding of the effects of COVID-19

to sari – sari stores . Information can give good analysis and identifies the

effects of COVID-19 encountered by the Sari – sari Store Owner’s

connected to income and capital specially this pandemic period . The

researchers came up with this study to determine and describe the effects

of COVID-19 to Sari – sari Store Owner’s in Poblacion , Getafe , Bohol ,

since there is no recent evaluation conducted by the school regarding the

top 5 effects of COVID-19 in the Sari – Sari Store . The researchers also

believe that evaluation of the students service is really essential to assess

it’s effectivity and providing the concern at the same time identify the

strength to be retained and which areas that needs improvement .

Literature Background

This study is founded by the following reviews that come from

various studies to support the writer’s present study.

In the Republic Act No . 9501 , an act to promote entrepreneurship

by strengthening development and assistance programs to micro , small

and medium scale enterprise , amending for the purpose of Republic Act
No . 6977 . As amended , otherwise known as the Magna Carta for small

enterprises and for other purposes . Republic Act No . 6977 , as

amended , is hereby further amended to read . Declaration of Policy -

Recognizing that Micro , Small , and Medium Enterprises ( MSME’s ) have

the potential for more employment generation and economic growth and

therefore can help provide a self - sufficient industrial foundation for the

country , it is hereby declared the policy of the state to promote , support ,

strengthen and encourage the growth and development of MSME’s in all

productive sectors of the economy particularly rural / agri - based

enterprises . To this end , the state shall recognize the specific needs of

the MSME’s and shall undertake to promote entrepreneurship support

entrepreneurs , encourage the establishment of MSME’s and ensure their

continuing viability and growth and hereby attain Countryside

Industrialization by :

a) Intensifying and expanding programs for training in

entrepreneurship and skills development labor ;

b) Facilitating their access to sources of funds ;

c) Assuring to them access to a fair share of governments

contracts and related incentives and preferences ;

d) Complementing and supplementing financing programs for

MSME’s and doing away with stringent and burdensome

collateral requirements that small entrepreneurs invariably find

extreme difficulty complying with ;

 e) Instituting safeguards for the protection and stability of credit

delivery system ;

f) Raising government efficiency and effectiveness in providing

assistance to MSME’s throughout the country , at the least

cost ;

g) Promoting linkages between large and small enterprises , and

by the establishments of the common service facilities ;

h) Making the private sector a partner in the task of building up

MSME’s through the promotion and participation of private

voluntary organizations viable industry associations , and

cooperatives ;

i) A balance and sustainable development through the

establishment of a feedback and evaluation mechanism that

will monitor the economic contributions as well as bottlenecks

and environmental effects the development of MSME’s .

The study of “ THE BUSINESS EFFECTS OF PANDEMIC : A

RAPID LITERATURE REVIEW “ states that shutdowns did cause

significant last for many businesses especially those in the service and

entertainment industries that suffered double digit losses in revenue

( Turner J . et . Al , 2020 ) . The overall business environment has yet to

adjust : there is a continued sharp dim and drop in demand a d revenue

according to the follow up survey in the Philippines covering August to

September 2020 , according to Shinozaki S . et . Al , 2021 from COVID -

19 Impact on Micro and Small and Medium Enterprises under the

Lockdown : Evidence from Rapid Survey in the Philippines .

Another study of The Impact of COVID - 19 on Small and Medium

Sized Enterprises SME’s : Evidence from Two - wave Phone Surveys in

CHINA states that the outbreak of COVID - 19 under resultant lockdown

cast a heavy toll on SME’s . Affected by problems of logistic blocks labor

shortage and drops in demand 80% of SMS temporarily closed ( Ruochen

D . et . Al, 2020 ) . The drop in active businesses owners was the largest

on record and losses to business activity were felt across nearly all

industries African American drop 41% , Latins drop 32% , and Asian

dropped 26% it is according to Robert Fairlie , 2020 from Impact of

COVID - 19 on Small Business Owners : Evidence from the first 3

Months after Wide Spread Distancing .

It has been more than two months since quarantine was

implemented and aspects of COVID - 19 on business in the Philippines

are just drastically being felt . With several establishments forced close ,

the Philippine economy could be on its way to verge of collapse if the

pandemic isn’t contained . There is no doubt that the economy is a whole

is now on the brink of a recession .

 Several business industries have taken a much slower pace due to

the global pandemic affecting the flow of supply and demand in the

country . According to Rappler the National Economic and Development

Authority ( NEDA ) has estimated that the Philippines Grow Domestic

( GDP ) may be as low as their 0.6% this year . ( Ronnie Salonga , May

29 , 2020 )

According to ( Olarte and Chua 2015 ) reported the competition

among micro scale business and price - markups remain high , yet they

continue to grow . Sari - sari store is well known micro scale business in

the Philippines . It made an important role in economic growth and

development , just like the other stores , like supermarkets and mart . Sari

- sari store provide us our primary needs such as foods and other

essential needs that is purchased from Sari - sari store nearby at

affordably portioned quantities , sometimes even or credit . “ Sari - sari “ in

English term means various or different . In a Sari - sari store they sell

various kinds of Food products that can be stocked longer and will not

expire . It is a small time business that is available in anybody with a

small capital , sari - sari store is a good business to start with . It helped

the Philippines to lessen the poverty and unemployment rate .

 The crisis is also exerting sudden and unprecedented pressures -

sometimes up , but more often down - on demand and pricing . In many

sectors from air travel to durable goods sharp drops in demand , excess

capacity , and heightened price sensitivity are converging to drive down

prices and destroy value .

Many customers are asking for discounts and contract renewal ,

while some competitors are making aggressive pricing decisions . In other

sectors from shipping and groceries to medical supplies and demands has

risen to levels no one could have anticipated in early 2020 , putting

upward pressure on prices . Each company faces a unique array of

challenges today ; no single approach or solutions will suit them all . But

it could be helpful to consider pricing challenges in the following three

main market scenarios ; Companies experiencing a sharp and

unprecedented drop in demand , Companies experiencing an explosive

increase in demand , and Companies with muted or lumpy demand .

( Abdelnour et . Al . , 2020 )

In early months of the pandemic , the typical small saw substantial

revenue and cash liquidity declines ( Farrel et . Al . , 2020 ) ; moreover ,

there were high observed rates of small business failures . ( Bartik et . Al .

, 2020 ) This observation are consistent with the view that revenues and

cash liquidity are strongly related to small business survival . Expenses fell
sharply along with revenues . From mid - April to May , cash balances

increased sharply , but with a timing that was consistent with the arrival of

cash inflows from federal programs including but not limited to payroll

protection program and other Cares Act ( Farrel , Wheat and Mac ) . Less

clear is whether expense growth accelerated after this liquidity increase ,

or whether they continue to track the slow recovery of revenues .

A more detailed understanding of the progression of expenses is

critical to on going policy debates around the appropriate provision of cash

liquidity to the sector , and potential for further shutdowns and revenue

losses in the future . ( JP Morgan , Year 2020 )

The COVID - 19 pandemic was another burden for them , some

entrepreneurs had to cut prices so people can afford the products or buy

more since everyone in the community was affected by the contract and a

pandemic . Armed conflicts can have devastating effects on people’s

livelihoods and insecure environment causes small businesses lose oncome

quickly . For some entrepreneurs , the future is always uncertain . Some

make sures to add their savings in case of an emergency , and also sets

aside some of the earnings to grow their sari - sari store ( ICRC ,

2020 ) .
 In addition , Impact of COVID - 19 on Entrepreneurship states with

an increasing need for entrepreneurship and other ways of thinking that

suitable for the new way of life , has also led to the global

transformation . Entrepreneurs are known because they are fine to take

risk , imaginative , and creative than people who are not entrepreneurs

when they can meet the market demands . This means that with such

features and skills , entrepreneurs will be able to respond to their needs .

The focus is currently about how businessman reacts to Coronavirus

pandemic and what all that is required entrepreneurial success .

According to the theory of (Torres et. Al. b , 2021 c. ) , further

studies about the perception of burnout or general mental health issues ,

with a focus on experiences during COVID - 19 pandemic across more

countries , industries , and fields , could expand what we know about the

responses of entrepreneurs during the crisis and how negative effects ( e .

g . burnout ) could be a levelage . They added ; COVI - 19 put a large

strain on entrepreneurs , who experienced an unprecedent shock to their

businesses .

Therefore , the presented literature is considered to be an

indispensable studies to the researchers in determining the top 5 effects

of COVID - 19 pandemic to the sari - sari stores . This study could also
lead to further understanding of sari - sari store owners in developing

their stores and on how to handle it on its excruciating times just like the

crisis that the world is still facing .

 Theories Legal Basis
According to the theory of Republic Act No. 9501 . An
(Torres et. al. 2021 b, 2021 c). act to promote entrepreneurship by
Further studies about the strengthening development and
perception of burnout or general assistance programs to micro , small
mental health issues, with a , and medium scale enterprises ,
focus on experiences during the amending for the purpose of
COVID-19 Pandemic across Republic Act No. 6977.
more countries, industries and Complementing and supplementing
fields, could expand what we financing programs for MSME’s and
know about the responses of doing away with stringent and
entrepreneurs during the crisis burdensome collateral requirements
and how negative effects (e. g. that small entrepreneurship invariably
burnout) could levelage. Base in find extreme difficulty complying
the theory of Torres et. al. with .Barangay Micro Business
2021 it shows the socio- Enterprises ( BMBE’s ) Act of 2002
economic theory focusing to the (R. A. No. 9178 ) - a law that
socio-economic crisis. They promotes the establishment of
added; CFOVID-19 put a large Barangay Micro Enterprises in the
strain on entrepreneurs, who Philippines and provide s incentives
experienced an unprecedented and benefit such as income tax
shock to their businesses. exemption and access to financial ,
industrial , marketing , and
knowledge support from the
government.

Effects of COVID - 19

Independent Variables

 Income
 Capital
 Customers
 Inventory
 Operations

Intervening Variables

Top 5 Effects of COVID - 19

Dependent Variables
 THE PROBLEM

Statement of the Problem

This research aims to identify the top 5 effects of COVID - 19

Pandemic to Sari - sari Stores in Poblacion , Getafe , Bohol .

Specifically aims to answer the following questions :

1. What are the effects of COVID - 19 Pandemic to the Sari - sari

Stores in terms of their ?

1.1 Income

1.2 Capital

1.3 Customers

1.4 Inventory ; and

1.5 Operation

Alternative Hypothesis :

The alternative hypothesis stated that there is significant

effects among COVID - 19 :

1.1 COVID - 19 Pandemic and the Sari - sari Store’s Income

 1.2 COVID - 19 Pandemic and the Sari - sari Store’s Capital

1.3 COVID - 19 Pandemic and the Sari - sari Store’s

Customers

1.4 COVID - 19 Pandemic and the Sari - sari Store’s

Inventory

1.5 COVID - 19 Pandemic and the Sari - sari Store’s

Operation

Significance of the Study

The findings of the study may provide how to COVID - 19

pandemic affect small business in terms of its financial aspects . It will

explain how each owner cope up from challenges they’ve experience

during the pandemic . So the result of the study would benefit the

following :

School Administrations . This study has been beneficial to the school

administrators for it ables them to know the current situation of the

microsellers and the community . In that way , they could be able to help

the microsellers to innovate new ideas and techniques on how to make

their business improve . They could also help through giving them advice

or any suggestions to have development of their business . In some case

they could also help our community .

Government . The study provides an information that gives a great impact

to the government that serves us a guide to the individuals that helps

them become prosperous . And in order to let the Government be aware

in the improvements needed . This study gives a well explained concept

on the virus affecting each lives especially to the microsellers .

Sari - sari Store Owners . Enhancement of strategies that can lead to

better management of their business . The development of their capacity

and how they respond to the changes during this pandemic .

Community . This study will help the community to understand the real

situation of a micro scale business and it also provides tips on how to

overcome crisis .

Consumers . The consumer can be more aware of the service being

offered by the sari - sari store during this pandemic thus , giving them

more opportunity to avail and enjoy the services of the sari - sari store .

The Writers . The thesis writers would gain knowledge and how they can

manage their own business on their future careers .

Future Researchers . This study would serve as their reference and

guide for the future researchers .

RESEARCH METHODOLOGY

Research Design

To achieve the purpose of this study , a descriptive survey method

is used since the researcher want to determine the top 5 effects of

COVID-19 to the Sari-sari Store and how it affects the income , capital ,

customer , inventory , & operation of a sari - sari store . The questionnaire

will be in a Checklist type which enable them to check the good choice

to what they’ve experienced during the COVID – 19 Pandemic .

Environmental & Respondents

The study will be conducted in Poblacion , Getafe , Bohol . The thesis

writers choose to aforementioned community as the recipients of the study

in order to help the Barangay addressing the effects of COVID-19

Pandemic that hardly affects the sari- sari stores in the barangay .
 The respondents of this study will be the sari-sari store owners in

Poblacion , to attain the aims of this study , it will conduct a random

sampling to the sari-sari stores that is located in this barangay .

Research Instrument

The researchers adopt a standardized questionnaire from the study

of the various researchers namely as : Caliboso , A. L ( 2020 ) entitled “

Complications brought by COVID-19 Pandemic to Sari-sari Stores in Laoac

, Pangasinan “ ; and The COVID - 19 Impact on Philippine Business :

Key Findings from the Enterprise Survey ( Asian Development Bank ) , the

questionnaire will be used as main tool in gathering data . The

questionnaire is in a way of checklist , is utilized from checking the best

choice that fits the respondent’s experience .

There will be three sections of the questionnaire which are : Part I .

Demographic Profile of the Respondents ; Part II . Business Profile of the

Respondents ; Part III . Sari - sari Store Owner’s Experienced during

COVID - 19 .

Research Procedures
 The thesis writers will ask permission , approval and assistance from

the respective authorities of the school and of the barangay hall .

In the conduct of the study , the thesis writers will explain the

purpose of the study beforehand and expand the direction for better

comprehension . The respondents will be given 30 minutes to answer the

questionnaire honestly and sincerely . The writers will facilitate them until

they are finished . The questionnaire - checklist aims to provide proper

responses and the data from the objectives that supports the study will be

constructed . The questionnaire - checklist made by the researchers will be

presented , analyzed , and checked by the research adviser to ensure the

validity of responses . Permit to conduct a research study will also be

secure through a letter requesting for an approval from the School

Director , School Principal of Sto. Niño Institute of Getafe , Bohol , Inc .

and also an approval from the Barangay Captain of Poblacion , Getafe ,

Bohol . Data gathered from the answered questionnaire will be checked ,

classified , tabulated , and analyzed according to the design described in

this chapter for analysis and interpretation .

Statistical Treatment

In the analysis and interpretation of data , the following formulas

will be used :

F
Percentage or P = ˟ 100
N

Where : P = Percentage

F = Frequency

N = Number of Cases

For statistical purposes , the responses on the top 5 effects of

COVID - 19 that the sari - sari store experienced will be identified by a

check mark ( / ) .

Weighted Mean . This technique will be used to measure the central

tendency were some values were given importance over others . This was
used to gauge the average value of responses to items in the

questionnaire ( Ferguson , 1992 : 482 ) Using the formula :

Σ FX
X w=
N

Where:

X w = weighted mean

∑FX = summation of frequency of scale value x

N = number of cases

The weight of equivalent means are computed as follows:

Xw = ∑ FX
N

Or the sum of products of the response frequency by the number

of cases. To further categorized the responses, a least experienced may

be considered thus, the nominal scale:

For the top 5 effects of COVID-19:

/ - Yes

x - No

The same scale was use in interpreting the composite weight

means:

∑ of weight means
Number of items
Chi-square of contingency will be used to determine the significant degree

of relationship among COVID-19 to sari-sari stores to their Income, capital,

customers, inventory, and operations, the data’s were subjected to chi-

square test using the formula ( Angeles, 2005, 061, 269 )

∑ ( F o−F e )
2
2
x=
fe

Where:

2
x = Correlation coefficient

f o= Observed frequency

f e= Expected frequency

C =
√ x2
N +x
2

Where:

C = Partial correlation

N = Population

C
r =
0.87

t = r
√ n−2
1−r 2

Where:

t = Critical value
 The obtained chi-square ratio will be checked against the Table of

Significant values at 0.05 level of significance.

DEFINITION OF TERMS

To obtain clear understanding of this study , the following terms are

defined :

COVID - 19 . “ Corona Virus Disease “ is not notify a global

pandemic and health crisis: it has also severely affected the global

economy and financial markets . It specially affects the small business like

sari - sari store .

SARI - SARI STORE . is one of the smallest MSME’s units have in

the economy that is greatly affected by the COVID - 19 Pandemic .

MSME’s . “ Micro, Small and Medium Enterprises “ the engines of

economic growth and development . A business that maintains revenues ,

assets or number of employees below a certain threshold .

 BMBE’s . “ Barangay Micro Business Enterprises “ refers to any

business entity or enterprise engaged in the production, processing or

manufacturing it products or commodities.

Income. Describes how the change in the price of a good can

change the quantity that consumers will demand of that good and related

goods, based on how the price change affects their real income.

Capital . Cash is liquid assets being held or obtained for

expenditures. In broader sense, the term maybe expanded to include all of

a company’s assets that have monetary value, such as its equipment, real

estate, and inventory. But when it comes to budgeting, capital is cash

flow.

Customer. Individuals or business that consume or use goods and

services. Customers are the purchasers within the economy that buy

goods and services, and they exist as consumer or alone costumers.

Inventory. An asset that is owned by a business that has the

express purpose of being sold to a costumer, in the form of raw

materials, work in process, and finished goods. Managing well is beneficial

to you as an SME.

Operation. Is all the actions that are necessary for running your

business and generating income.