Service establishments and retailers in Tagbilaran City are more vulnerable to business closure.

Half of the service establishments we surveyed said that they face the risk of closure in the next 6 months. On the other hand, 46.7% of retailers and 44.4% of manufacturers surveyed expressed the same.

What is alarming is that 28.6% of retailers and 11.4% of service establishments surveyed expressed that if the current business climate continues, they will be forced to close in a month or less.

42% of businesses are facing the risk of closure in the next six months.

Of the 206 businesses we surveyed, 4 out of 10 businesses said that they will likely close in the next 6 months or less because of economic hardships experienced.

Those that are operating for less than five years are most vulnerable. The longer the business is operating, the higher the likelihood that they will be able to survive this crisis.

To cope with the adverse effects of COVID-19, businesses initiated several changes in their operations.

Businesses we surveyed made significant changes in work arrangements by temporarily reducing employees (3 out of 10 businesses) and laying-off some workers (1 out of 10 businesses). To protect liquidity, businesses also decreased or controlled expenses and negotiated payment terms with creditors.

Interestingly, the pandemic pushed businesses to re-calibrate marketing strategies by increasing marketing efforts (25% of businesses) and developing new products or services (19%). Those with technical expertise resorted to online-selling during the lockdown.

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