Assessment of the environmental and socio-economic impacts of COVID-19 to small and medium enterprises (SMEs) in selected municipalities in Laguna, Philippines

This study was undertaken to determine the environmental and socio-economic impacts of COVID 19 on small and medium enterprises engaged in food and beverages business in Los Baos, Calauan and Victoria, Laguna, Philippines. A total of 195 business managers and owners were interviewed using a research-developed questionnaire consisting of three parts. MENROs were also interviewed to know the waste management issues in relation to waste generation in the three municipalities during the pandemic. In terms of economic aspect, results indicate that majority of three enterprises (63%) were slightly affected by the pandemic. Their main challenge was lack of working capital to maintain or re-start their business but instead of borrowing from leading institutions which entail high interest, they opted to use their savings, sold assets, or borrow from relatives. Other strategies include online selling, customized products, filed for bankruptcy, reduced the number of employees, salaries, and wages temporarily. They also availed of government programs through cash aid and small interest business loans, but they wanted more government support to hasten their recovery such as easier access to financial/credit support, tax relief, more assistance program to SMEs and stricter implementation of protocols during a pandemic. It was also noted that businesses should have a workable Business Continuity Plan in order to be competitive. To achieve this, the government should come up with national policy interventions that support and encourages innovations especially for SMEs. During the pandemic, 38% of the respondents reported a decrease in the volume of wastes while 49% said the volume was the same. Kruskal Wallis was used to test the null hypothesis on the KAPP (Knowledge, Attitude, Perceptions and Practices) on waste management between the municipalities. It was revealed that there is a significant difference between the three classes of municipalities on some variables but none for others. Since there is no published work yet on this topic, findings in this study will serve as valuable inputs in recommending policy interventions to provide the necessary support to SMEs.