The COVID-19 outbreak serves as a stark reminder that pandemics, like other sporadic disasters, have occurred in the past and will continue to do so in the future. Even if we can't stop deadly diseases from spreading, we should be prepared to mitigate their societal impacts. The present pandemic is wreaking havoc on economies all around the world, and it does not appear that any country will be spared. This has far-reaching implications for not only the economy, but for the entire society, resulting in significant shifts in how firms and consumers conduct themselves. This special issue is part of a global effort to examine some of the pandemic-related issues that are influencing society, including as changes in consumer behavior and enterprises, as well as ethical concerns.

WHAT IS A BUSINESS?

The term business refers to an organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or they can be non-profit organizations that operate to fulfill a charitable mission or further a social cause.

HERE ARE SOME THEORETICAL FRAMEWORKS:

According to Parilla(2021) In a few months, the COVID-19 pandemic, which was triggered by a new coronavirus, has completely changed the lives of millions of individuals worldwide, including the lives of many successful businesses. The findings of this study give comprehensive and relevant insights into the impact of the pandemic on MSMEs in many facets of their economic life during the epidemic, including their perspectives on the near and distant future. We discovered that most entrepreneurs believed that the pandemic had a 70-100 percent negative impact on their company. The majority of small and medium-sized enterprises (SMEs) suffer financially due to decreased profitability and sales. These entrepreneurs' coping methods in combating the consequences of the epidemic include requesting that the government adopt less stringent regulations for the continuation of their operations and reducing expenditures like travel. Many small and medium-sized enterprises (SMEs) will survive the epidemic for more than six months. However, many will require government support in order to continue operating during the pandemic.

Monetary Struggles of Small and Start-Up Businesses

Big conglomerates may survive the current economic crash, but micro, small, and medium enterprises (MSMEs) in the Philippines are taking the hardest hit financially. According to the latest List of Establishments from the Philippine Statistics Authority (PSA), there are 998,342 MSMEs in the country, which takes up 99.52% of all local businesses as of 2018. The lack of consumer demand tests businesses’ financial capacity to keep their enterprises afloat, together with trying to support their workforce. Some MSMEs try their best to match today’s algorithm of demands by offering online and delivery services. However, lessening of employees are needed to keep up with their financial demands.

According to an article by CNN Philippines, the government has already allotted a P120-billion credit guarantee program and P51-billion wage subsidy programs for micro-businesses. This is through the Department of Finance together with the Department of Trade and Industry’s low-interest lending program for small businesses. These may aid entrepreneurs in maintaining their financial assets as well as compensating their workers.

ACCORDING TO THE STUDY OF Shinozaki and Rao 2021 ENTITLED “COVID-19 IMPACT ON MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES UNDER THE LOCKDOWN: EVIDENCE FROM A RAPID SURVEY IN THE PHILIPPINES

This paper examined the initial 1-month impact on MSMEs in the Philippines after the ECQ or lockdown began. It described the effect of the initial policy measures and some policy implications with evidence obtained through the nationwide rapid survey conducted from the end of March to mid-April 2020. The COVID-19 pandemic and lockdown measures created two streams of business clusters—contracting firm groups that were devastated by the lockdown and those that benefitted from the lockdown. The LPM regression identified the MSME groups that were hurt most and those that benefited most. It found that education, construction, accommodation and food services (including tourism), and manufacturing were hurt most; power and energy, information and communication technology, and real estate coped better. The findings of this paper addressed the importance of two policy approaches in the early stage following the lockdown—timely identification of focus groups for assistance and differentiation of policy measures by firm size. Toward the year 2021, Asian economies gradually shifted to the recovery stage. However, the overall business environment has yet to adjust; there is a continued sharp drop in demand and revenue according to the follow-up survey in the Philippines covering August and September 2020. Business and employment conditions differ by firm size, but MSMEs are evolving under a new normal that requires a more contactless society. Assistance for MSMEs to shift their business to digital transactions is another policy priority given that their traditional business model requires physical and personal contact. Six months after the outbreak, MSMEs have started introducing work-from-home arrangements. However, working capital shortages are continuing to rise, as the follow-up survey found. There is increased need among MSMEs for further financial assistance from the government. COVID-19 containment will continue into 2021. Given the different abilities of MSMEs to adjust by firm size, the government could pay more attention to a phased approach and differentiate policy measures by firm size and sector. Now is the time to consider an optimal approach that offers targeted assistance yet ensures fiscal sustainability in a post-COVID-19 environment.

Conclusion

COVID-19 has had a significant impact on the world economic and financial markets, in addition to becoming a global pandemic and public health disaster. The disease mitigation measures that have been imposed in many nations have resulted in significant income reductions, increased unemployment, and disruptions in the transportation, service, and industrial industries, to name a few. Most governments throughout the world appear to have misjudged the risks of rapid COVID-19 spread and have been primarily reactive in their crisis response. Because disease outbreaks are unlikely to go away anytime soon, aggressive international action is necessary to preserve lives while simultaneously safeguarding economic growth.

As the virus spreads and impairs economic activity, particularly in wealthier countries, we expect financial markets to remain volatile. It's still uncertain if this crisis will have long-term structural consequences for the global economy or will merely have financial and economic consequences in the short term. Infectious diseases like COVID-19, in any case, have the potential to devastate the regional and global economies.