Volume 8, Issue 10, October – 2023 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

The Impact of COVID 19 on Barangay Micro

Business Enterprises in Zamboanga City, Philippines
Maria Teresa A. Sta. Ana Esa H. Jumlail, Jr.
Western Mindanao State University College of Public Administration and Development Studies

Abstract:- The Barangay Micro Business Enterprises recovery stage six months after the shutdown in March, but
(BMBEs) is a law enacted on 2002 that aims to develop MSMEs are still struggling with a steep decline in demand
Filipino entrepreneurial spirit by providing a vibrant and earnings. In the case of Zamboanga city which consist of
business environment. Moreover, this law also created the 98 coastal and mountainous barangays, fish and fish
Small and Medium Enterprises Development Council products, processed fruit, coconut-based goods, shell and
(SMED) in the country to supervise and implement the rubber products, wooden furniture, and fish are among
provision of law. This program of the government was Zamboanga's main exports; rice is an import. The city is a
disrupted by the devastating impact of the Covid-19 hub for Moro bronze and brass goods and a gathering place
pandemic in 2020. The BMBEs and SMEs were largely for shells, which, if not exported, are primarily used for
affected by the disease as movements of goods and domestic button production. Interisland and oceangoing
services to include people were limited and even vessels can dock at a big wharf. The city has an airport and
immobilize. This paper delves into the specific impact of serves as the Pan-Philippine Highway's southernmost point
the disease to the BMBEs in the identified community in (Britanica, T., 2023). This description made the city a best
Zamboanga City. Descriptive data analysis method was locale for BMBEs and MSMEs. According to the Philippine
utilized to be able to get an estimate numerical data and Statistic Authority (PSA) the city is one of the highly
the qualitative explanation of the responses of the urbanized cities in Mindanao and the basis for the
participants. The study revealed that the disease measurement is the city’s annual generated revenues. On
impacted the transaction, processes and production of 2020 Covid- 19 pandemic rack the country to include
good and services of the identified BMBEs in Zamboanga Zamboanga city. Thus, movement of goods and services to
City. There were numbers of enterprises decided to shut include the mobility of people was also hampered and the
down their operations to cut the cost of continuous loses BMBEs and MSMEs were paralyzed. This academic paper
of their enterprises. Moreover, government aids were will determine the impact of the pandemic to the people of
selective and unsustainable. The impact of the pandemic Zamboanga who are engaged in BMBEs through the use of
affected not only the enterprises in the city. descriptive procedure of analyzing the gathered data.
Functionalities of education, health to include families
were also disrupted. This experience shall serve as lessons The idea behind this study is to gain a deeper
learned for the state and local actors. Holistic approach understanding of the existence of Barangay Micro Business
should always be considered and people should always be Enterprise in barangays that would also assist the potential
at the center. entrepreneurs to engage in business. Furthermore,
understanding the functionality of Barangay Micro Business
Keywords:- Covid19, Barangay Micro Business Enterprises, Enterprises and how benefits contribute to uplift the lives of
Community, Descriptive, Impact. the community and its beneficiaries considering that they are
into business. Notwithstanding the impact of the COVID 19
I. INTRODUCTION to the latter. The study therefore, gives a two perspective; one
(1) is how BMBEs work and how does benefiting the
The strict lockdown ran from mid-March to end of May community, and two (2) how did the COVID 19 affected the
2020 in the National Capital Region and other high-risk functionality of these enterprises. This could be a basis for
provinces, causing huge economic loses (Shinozaki et al. state actors and community leaders to stretched the capacity
2021). 1Moreover, the Philippine economy has entered the building not only on the side of BSBMes but also on the
aspects of emergency situation.
1 Sta. Ana, Maria Teresa A., Western Mindanao State
 Zamboanga City is a Business Hub in Mindanao
university
Zamboanga City is one of the Philippines' oldest cities,
2 Jumlail, Esa Jr., H., College of Public Administration and
having a rich history and distinct culture. In terms of land
Development Studies area and population, it is the third-largest city in the nation.
3
Shinozaki, Shigehiro and Rao, Lakshman Nagraj, COVID- The city is also a hub for economic activity in Mindanao,
19 Impact on Micro, Small, and Medium-Sized Enterprises with an up-to-date airport and seaport acting as the region's
under the Lockdown: Evidence from a Rapid Survey in the main entry points for goods. It is known as the sardine capital
Philippines (March 18, 2021). of the Philippines and is also Western Mindanao's tourism
center. Zamboanga City, known as "Asia's Latin City," is

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Volume 8, Issue 10, October – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
significant economically and culturally, but up until recently,  Status of BSBEs in the City of Zamboanga
the city's local business climate was hindered by significant Based on the records of the City Treasurers Office in
difficulties with business registration and the profusion of Zamboanga City from year 2003 to 2015 a total of three
unregistered commercial premises. Additionally, to its yearly hundred fifty-nine (359) individuals came to their office to
Doing Business Report, the International Finance register and was approved. To include, a total of thirty-three
Corporation (IFC) released its second sub-national 2011 (33) new applicants were granted a Certificate of Authority
Doing Business Report in the Philippines in December, operating as Barangay Micro Business Enterprise in year
which offers objective measures of business regulations and 2003, year 2004, a total of seventy-three (73) registered with
their enforcement across 183 economies. In a research forty (40) new applicants and thirty-three (33) existing. In the
comparing the business regulatory climate in 25 cities, year 2005, a total of fifty (50) registered with ten (10) new
Zamboanga City earned a strong sixth place. Given where applicants and forty (40) existing. Year 2006, a total of
things were in 2005, when The Asia Foundation launched its nineteen (19) were registered with nine (9) new applicants
Transparent Accountable Governance (TAG) Project with and ten (10) existing, year 2007, a total of twenty-four (24)
funding from the United States Agency for International registered with fifteen (15) new applicants and nine (9)
Development (USAID), this is a remarkable accomplishment. existing. Year 2008, a total of twenty-two (22) were
In 2005, obtaining a business license in Zamboanga City took registered with seven (7) new applicants and fifteen (15)
14 days (as opposed to just 2 days in other cities), as noted in existing, year 2009, a total of twenty-one (21) were registered
the IFC study. The extra time was not included in the 14 with eleven (11) new applicants and ten (10) existing. Year
days. 2010, a total of eighteen (18) were registered with seven (7)
new applicants and eleven (11) existing. Year 2011, a total of
 The concept of BMBes twenty-eight (28) were registered with twenty-one (21) new
The government, in its objective to strengthen Micro applicants and seven (7) existing. Year 2012, a total of
Business Enterprises in the country and provide more jobs, twenty-one (21) registered as existing BMBE and no new
livelihood and a better quality of life for Filipinos has applicants. Year, 2013, a total of twenty (20) were registered
enacted Republics Act 9178, otherwise known as the with five (5) new applicants and fifteen (15) existing. Year
“Barangay Micro Business Enterprises Act of 2002 providing 2014, a total of nineteen (19) were registered with four (4)
incentives and benefits therefore, and for other purposes”. new applicants and fifteen (15) existing, year 2015, a total of
2
The law is geared towards the development of the Filipino eleven (11) were registered with three (3) new applicants and
entrepreneurial spirit by providing a business environment. eight (8) existing. As of August, 2015, there are only 11
Along with this provision, the formulation of a Small and Barangay Micro Business Enterprises registered in their
Medium Enterprise Development Council (SMED) is hereby office to include Barangay Mercedes, Zone IV, Cabaluay,
created, to effectively spur the growth and development of Victoria, Pamucutan, Cawit, Canelar, Guiwan and San
small and medium enterprises throughout the country, and to Ramon. These incidents the BMBEs in Zamboanga city is
carry out the policy declared in this act. The Council shall be being promoted and recognized.
headed by the Secretary of Trade and Industry as Chairman,
and may elect from among them a Vice- Chairman to preside  During the COVID 19 Pandemic
over the Council meetings in the absence of the Chairman. A plan has been put up by the Zamboanga City
Barangay Micro Business Enterprises (BMBEs) refer to any Chamber of Commerce and Industry Foundation, Inc.
business entity or enterprise engaged in the production, (ZCCCIFI)3 to mitigate the economic impact of the
processing or manufacturing of products or commodities, coronavirus 2019 (Covid-19) pandemic. In 2020, the
including agro-processing, trading and services, whose total ZCCCIF president, Pedro Rufo Soliven, stated that as the
assets including those arising from loans but exclusive of the organization representing business and commerce in
land on which the particular business entity’s office, plant Zamboanga City, they are obligated to bring to the attention
and equipment are situated, shall not be more than Three of the government, authorities, and beloved leaders the plight
Million Pesos (P3, 000,000.00). The above definition shall be of businessmen, especially those in the medium, small, and
subjected to review and upward adjustment by the SMED or micro enterprises. Moreover, he highly recommended actions
Small Medium Enterprises Development Council, as that outlined in a resolution that the Chamber Board of
mandated under Republic Act No. 6977, as amended by Directors endorsed during a meeting on March 31, 2020 and
Republic Act No. 8289. The objective of the Republic Act one of the recommendations made by the ZCCIFI is for the
No. 9178 is to promote economic development through Banko Sentral ng Pilipinas (BSP) to order private financial
providing barangay micro businesses the means to develop and banking institutions to increase the loanable amount for
their entrepreneurial capabilities and skills. Also, it targets entrepreneurs in the city. The local administration has also
the informal sectors and underground economy in the local been asked to "waive business taxes for all enterprises for
level to venture into the influence of economy. The one year, starting this 2020 until December 31, so that
government sees this as an opportunity to achieve economic businesses can channel monies to aid their employees in
harmony. Further, this will potentially generate more need, buy personal protective equipment, and rebuild their
employment and possibly help lower poverty incidences in operations. Additionally, ZCCIFI requested that the local
the country. government waive real property taxes for all commercial and

5
Zamboanga City Chamber of Commerce and Industry
4
“Barangay Micro Business Enterprises Act of 2002” Foundation, Inc. (ZCCCIFI)

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Volume 8, Issue 10, October – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
industrial properties for the entire year, especially for small  Level of Functionality of Barangay Micro Business
firms, and reduce land taxes by 20% for the following three Enterprises
years. The organization has also requested that the The level of functionality of the Barangay Micro
Department of Education (DepEd) "move all primary and Business Enterprises prior to the pandemic is under
secondary school openings to September, or align and Progressive level with a rating of twenty-one to fifty (21-
synchronize it with the opening of tertiary educational 50%) percent which connotes a gradual progress in the
institutions, so that parents can rebuild savings for performance of the duties and responsibilities of the
enrollment, and students can enroll in higher-quality cooperatives.
programs."
 Factors Affecting the Level of Functionality during the
II. METHODOLOGY COVID-19
The level of functionality of Barangay Micro Business
This study used descriptive research design to assess the Enterprises, revealed that enterprises who registered as
Barangay Micro Business Enterprise in selected barangays of Barangay Micro Business Enterprises prior the effects of the
Zamboanga City through the use of questionnaire and pandemic complied with all the given requirements to avail
interview guide. This study was conducted in Zamboanga the Certificate of Authority to operate in the barangays. The
City but limited only to 11 barangays to wit; Barangay assessment of the enterprises to start the business may vary
Mercedes, Zone IV, Cabaluay, Victoria, Pamucutan, Cawit, upon the recommendation of the City Treasurers Office. In
Canelar, Guiwan and San Ramon under Barangay Micro addition, the enterprises activities help strengthen the local
Business Enterprises where the registered Barangay Micro economy and assesses to ensure the progress of Barangay
Business Enterprises are located. Probability sampling Micro Business Enterprises in the barangay. On the other
method was used in selecting the respondents through hand, in 2020 the gradual impact of the pandemic to BMBEs
stratified sampling technique. First, the researcher got the list and MSMEs felt by the cooperative members. As to assess
of Barangay Micro Business Enterprises from the on the capacity and capability of the enterprise to operate and
Zamboanga City Treasurers Office. There are eleven (11) seeing to it that the functionality of organization will be
existing Barangay Micro Business Enterprises in Zamboanga maintained and sustained even during the pandemic or any
City. All or 100% of the Barangay Micro Business eventualities may arise.
Enterprises shall be taken as sample. Equal proportion of
each Barangay Micro Business Enterprises shall be used as Therefore, the reason for the level of functionality of
respondents to include: one (1) entrepreneur, two (2) Barangay Micro Business Enterprises was reverted the
employees, and three (3) consumers per Barangay Micro program from progressive to unprogressive level. Other
Business Enterprise and a key informant from Small Micro actors were recorded such as the individual applying for
Enterprise Development (SMED) Council with a total of 67 membership were not able to comply for all the necessary
respondents. The researcher used Interview Guide to gather requirements as registered enterprise du tot the limited
data from the respondents. The researcher asked permission transactions brought about the health protocols of the local
from the respondent of selected barangay operating Barangay government units.
Micro Business Enterprises through a request letter where the
data gathering conducted. The researcher asked specifically  The BMBEs strategies to improve the socio-economic
the entrepreneurs, employees and customers for their condition of its beneficiaries
approval and consent to be interviewed and when granted, On the perspective of the key informant, beneficiaries
the interview will take place. For the key informant, same of BMBEs preferred to make their transaction through the
procedure had undergone. Data Analysis was quantitative- use of online platforms but still the initiatives did not already
qualitative design. help them surpassed the losses incurred by the impact of
Covid-19. Moreover, online marketing during the pandemic
III. RESULT helped them cope with the demands of the environment.

 The Socio-Demographic Profile of Key Informant during IV. DISCUSSION

the interview
The key informant of the study is a female and college The pandemic in general perspective was seen to be
graduate who is already engaged Barangay Micro Business detrimental to the enterprises as based from empirical data
Enterprise for eleven (11) years and a part of Small Micro gathered during the series of interviews and FGDs. On the
Enterprises Development (SMED) Council as Registration other hand, this effect was only experienced in the beginning
Officer under the City Treasurers Office. Accordingly, her and in the mid outbreaks of the disease. As the time being
experiences in BMBEs before the pandemic involves various various strategies especially in the business and economic
activities such as production, distribution, trading, services structure like in the Philippines were able to cope using
and manufacturing of goods and services that are saleable in modern tools such as the mass medical, social media and
the area. other internet application available. When business face its
downfall during the pandemic, strategies were also
established and innovated. The ease of doing business
become evident especially in government transactions and in
Small Scale Businesses in the city or municipality.

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Volume 8, Issue 10, October – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
V. CONCLUSION

The pandemic has greatly impacted the economy all

over the world especially those in the micro small medium-
scale enterprises sectors like in the Philippines. Moreover,
Zamboanga City’s Barangay Micro Business Enterprises
(BMBEs) were able experienced problems such as loss of
capital and income generation activities that supposed to aid
their needs especially in the difficult time like the pandemic.
On the other hand, people of Zamboanga were able to
establish strategies to cope with their problems through the
use of social media applications and other internet related
platforms. Therefore, a further study on the most effective
social media application that is relevant to the functionality
of the BMBEs is hereby recommended.

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