ASSESSING THE ECONOMIC IMPACT OF FLOODING ON LOCAL BUSINESSES

IN BULAO

Presented to the

Faculty of Iponan National High School

Senior High School

A RESEARCH PAPER

Presented to the Faculty of Iponan National High School

In Partial Fulfillment

Of the Requirements of the Subject

Practical Research 2

Submitted by:

Neña Marie B. Deleña

Kaisha Jumawan

Jessica M Lodonia

Analyn Malaya

Mickaela T. Sindab

November 2024
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APPROVAL SHEETS

This Research Paper entitled, “Assessing the Economic Impact of Local Businesses in

Bulao”, prepared and submitted by Jessica M. Lodonia, Analyn Malaya, Kaisha Jumawan,

Neña Marie B. Deleña, and Mickaela T. Sindab, in partial fulfillment of the requirements for

Practical Research 2 subject, has been examined and is recommended for Oral Examination.

NERISSA D. DRIZ

Research Adviser

___________________________________________________________________________

PANEL OF EXAMINERS

Approved by the Committee on Oral Examination with a grade of ______

HARPER F. CAEL
Chairman
Research Coordinator

BABY RHESA O. CABEZAS MARY ROSE B. TORRES

Member Member
English Teacher Mathematics Teacher

Approved and accepted in partial fulfillment of the requirements for Practical Research.

November 12, 2024 MARISA D. CAYETUNA

Date of Research Proposal Secondary School Principal

TABLE OF CONTENTS
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Title Page i

Approval Sheets ii

Table of Contents iii

Chapter Page No.

THE PROBLEM AND THE BACKGROUND OF THE STUDY

Introduction 1

Theoretical Framework and Conceptual Framework 4

Statement of the Problem 8

Hypothesis 9

Significance of the Study 10

Scope and Limitations 11

Definition of terms 11

REVIEW OF RELATED LITERATURE

Introduction 13

Foreign studies 13

Local Studies 20

RESEARCH METHODOLOGY

Research Design 24

Research Environment 26
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Respondents and Sampling Procedures 27

Data Gathering Instrument 28

Validity and Reliability of Instrument 29

Data Collection Procedures 30

Scoring Guidelines 31

Statistical Instrument and Procedures 32

REFERENCE

APPENDICES

a. Slovin Formula & Sample Size

b. Research Questionnaire

c. Survey Results (Raw Data)

 CHAPTER 1

THE PROBLEM AND THE BACKGROUND OF THE STUDY

Introduction

Background of Study

Gradually, flood risk in densely populated communities is becoming a more

significant problem due to climate change and socioeconomic development. Unlike climate

change, the impact of socioeconomic development, which is a leading cause of rising flood

risk, has not been given the same attention. Urban development and population growth create

major problems in flood-affected regions. Therefore, a comprehensive understanding of the

effects of urban growth on flood risk is crucial for effective flood risk management (M.

Hemmanti et al., 2020). Although high-tide floods are brief and cause rare damage to

infrastructure, they can significantly affect businesses through interruption losses, often

overlooked in traditional flood damage assessments focusing on physical destruction and

prolonged closures (Hino et al., 2019).

When assessing the financial effects of floods on nearby enterprises in Bulao, Iponan,

there are a number of clear study gaps. There are still more studies needed to forecast the

effects on economic agreements that have due dates for installments. There is limited

knowledge known about floods and how it affects local business within the area of Bulao.

This knowledge can contribute to a variety of measures, including community-based

initiatives, government programs, and foreign help, are intended to increase citywide

resilience and lessen the city's susceptibility to flood dangers. A further obstacle in

attempting to determine the extent of financial harm is the lack

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of precise information regarding the losses incurred by individual cities and businesses.

Because of this, it occasionally presents an insufficient picture of the overall harm (Said &

Hassan., 2024).

According to Merz et al. (2021), during the 20th century, floods of catastrophic scale

have resulted in many millions of deaths, enormous annual economic losses totaling billions,

and considerable disturbances in international trade—such serious river floods result from the

atmospheric, land surface, and socioeconomic forces. Disastrous flooding is a regular

outcome of abnormal atmospheric patterns or deficient flood defenses, resulting in major

damage due to an absence of preparedness. The growth of both the economy and the

population has created an increasing impact on the frequency of flooding we experience over

the years. Andrews and Chandra-Putra (2019) have noted that effectively addressing

adaptation strategies in coastal towns - now more vulnerable to flooding from sea level rise

and fiercer storms - requires collaboration between private property owners and public

authorities to manage shared coastal assets skillfully.

The purpose of this study is to inform the participants, future readers, and the

community as a whole to boost their level of knowledge and awareness on the economic

impacts of flooding on local businesses. It is beneficial for the community of Bulao, the

barangay and everyone to be informed of how flooding can affect economic impacts local

businesses and how they can also be affected by this. It improves how the citizens as a

collective can use this information to the best interest by helping Bulao with improved local

govern initiatives and mitigation strategies. Knowledge of the socioeconomic characteristics

of civilizations together with their susceptibility to serious events is important for enhancing

resilience to flash floods (Khajehei et.al., 2020). Achieving this by asking participants

surveys and questions, to investigate the elements of the research, and to close the research

gap.
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Theoretical Framework

The study is supported by the theories of Organizational Theory and Behavior by Kuh

(2003) and Institutional Theory by Pinto (2017). This management concept, organizational

theory, is used to represent or describe the behaviors, designs, or structures of individual

organizations, as well as their contexts, activities, and processes. According to Kuh (2003),

interactions between organizational actors are referred to as organizational behavior, and the

results of their attitudes, convictions, and deeds are known as organizational events. This

theory encompasses two approaches: reactive and proactive. While the first concentrates on

an organization's capacity to deal with unforeseen circumstances, the second examines how

an organization's capacity to handle severe occurrences may also help an organization spot or

seize fresh opportunities quickly (A. Lengnick-Hall et al., 2011).

Organizational theory and behavior are significant because they can provide light on

how businesses damaged by flooding recover and what steps entrepreneurs take to address

any financial losses that may have occurred in the aftermath. Reactive responses are activities

that businesses take in the immediate wake of flooding, like handling interruptions or fixing

physical damage. And because they have an immediate effect on their finances and the day-

to-day operations, these setbacks can be difficult. On the other hand, the proactive approach

aims to increase resilience and take preventative measures against floods. Rebuilding

infrastructure and rearranging supply chains are two ways this approach might lessen the

damage to stores and give them a chance to open additional locations.

Organizational behavior studies how leadership, resource management, and decision-

making impact a business's capacity to rebound from flooding damages while ensuring local

profitability in the long term. It develops resilience for respondents to the next imminent

crisis and offers lessons in enterprise responses to catastrophic disasters such as floods.
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This study by Linnenluecke and Griffiths (2011) suggests that organizations can

enhance resilience by using adaptive response strategies to tackle unexpected weather

changes, such as flash flooding. It addresses weaknesses in sectors like energy, insurance,

and agriculture. It also addresses the challenges in understanding resilience advocacy due to

ambiguous and indeterminate variables. In response, it offers managers guidance on

identifying anticipated or predicted climate extremes and enhancing organizational resilience

through impact resistance and recovery speed. The concept of a "coping range" is introduced

to represent the range of meteorological conditions an object can withstand before the

impacts become "harmful." This approach helps organizations achieve long-term stability and

sustainability, potentially preparing them for extreme weather events and disasters.

According to Pinto (2017), institutional theory analyses how the institution's context

affects, influences, and restricts social choices. The institutional theory itself has been subject

to much-varied interpretations and applications within the field, as many writers have

proliferated it throughout several schools of thought. Yet, the basic tenet of institutional

theory is to stretch as far as possible in that direction and use insights at higher levels of

analysis through which lower-level processes and outcomes should be explained (Peters &

Pierre, 2012). The behavior, practices, and organizational structure in an institution are due to

institutional theory. In other words, institutions are affected by basically societal norms, legal

requirements, and even cultural expectations. In this view, organizations often succumb to

these external forces as a means of establishing legitimacy, stability, and survival in their

environments with the understanding that commonalities will result among similarly situated

organizations.

Framing flood risk programs with institutional theory in this manner enables

resilience strategies to be shaped by both an organization's internal capabilities and the

characteristics and pressures of the broader institutional environment. In addition to internal

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capacities, regulatory frameworks, social norms, and network cooperation are vital for

effective flood risk management. To promote resilience, robust institutional contexts, such as

increased government involvement, localized community relationships, adherence to industry

standards, and enhanced business flexibility, are indispensable. Assisting businesses in

anticipating, planning for, and responding to flood threats enhances overall resilience. This is

achieved by aligning the organization's activities with external institutional elements. This

comprehensive approach to flood risk management ensures that business continuity and

recovery policies are not just formal plans but also integral parts of a broader, ongoing

practice of managing internal and external factors.

Conceptual Framework

This study mainly focuses on the impact of Flood levels towards Flood Economic

Impact Among Community of Bulao, Iponan. In figure 1 The conceptual framework for this

study is designed to explore the relationship between flooding events (independent variables)

and their economic impacts on local businesses (dependent variables) and with the

explanation below.

Flood frequency, severity, & extent can influence on economic impacts of local

businesses. The severity or extent of a local business of damage of economic impacts will be

determine by the floods’ characteristics.

Business vulnerability can affect economic impacts on local businesses as well.

Factors of business vulnerability like the type of business (such as an agricultural business or

fishing business), if the business is within flood prone areas, and the level of how a business

is prepared can deeply influence the extent of economic impacts of local business.
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The economic conditions of a business can also influence the economic impacts of

local business and a business ability to with-stand flooding and it’s after effects. How a

community's economic condition can determine a business’s health

IN DEPENDENT VARIABLE DEPENDENT VARIABLE

Flood Frequency, Direct Economic

severity & extent Impacts
Business Vulnerability Indirect Economic
Economic Conditions Impact
Social and Market
effects

Figure 1. Schema of the study showing the relationship of the variables.

Statement of the Problem

The goal of this study is to ascertain the financial effects of flooding on local

businesses in Bulao, Iponan, and what kind of financial effects these firms will experience

following a flood. This research specifically sought to answer the following questions:

1. What are the types of local businesses and its vulnerability affected by flooding in

Bulao, Iponan?

2. What are the possible economic outcomes after a flood?

3. Is there a significant relationship between flood severity, frequency, and extent in

Bulao and the severity of economic impacts (direct, indirect, and social) on

businesses experienced during flooding events

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Research Hypothesis

Hypothesis: There is a significant relationship between flood severity, frequency and

extent in Bulao and the severity of economic impacts (direct, indirect, and social)

experienced during flooding events.

Null Hypothesis (H0): There is no significant relationship between flood severity,

frequency and extent in Bulao and the severity of economic impacts (direct, indirect, and

social) experienced during flooding events.

Scope and Limitation

This study focuses on assessing the economic impact of flooding on local businesses

in Bulao, Iponan. Specifically, to examine the indirect and direct effects such as property

damage, interruptions to business, and long-term financial effects. The study will gather data

from 349 respondents, including local business owners and community respondents, to

analyze how flooding has affected local business owners comprehensively. The study is

limited to the areas of Bulao, Iponan, meaning that this study will be a survey within the area

of Bulao, Iponan.

Figure 3. Map of Bulao

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Change to google maps

To avoid misinterpretation or unnecessary data taken from irrelevant areas. This area

will be researched to get the specific part of the topic. The researchers chose this specific

topic because the area was the most affected by floods. Additional problems will not be

covered in this study. Moreover, respondents will be given the same questionnaires for this

program. This study will only cater to those respondents in the area of interest and exclude

residents who will not be a part of the research. The research will not measure occupants

beyond the selected area.

Significance of the Study

This aims to provide information and awareness to local business owners and the

community regarding the economic impacts of flooding on local businesses. This study

investigates the impact of flooding on local businesses and the community. The findings of

this study will benefit the following groups:

Local Business Owners. Can use the findings to better prepare and respond to

flooding minimizing their economic losses.

Local Residents. Benefits from stronger businesses, which provide employment

opportunities and contribute to community stability.

Barangay Officials and Policymakers. Can use the insights to develop effective

disaster management strategies and support systems for local businesses.

Researchers Academics and the Future Researchers. Can utilize the findings to

advance the understanding of disaster economics and inspire further studies in similar context
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Local Community. Effectively controls the economic impact of flooding and serves

as a model for other areas. This strengthens the regional economy, stimulates collaboration

among towns, and improves disaster response.

Students. This study makes students more conscious of the consequences of climate

change, the study may inspire them to participate in neighborhood initiatives or disaster

prevention advocacy.

Parents. It encourages the parents to have a financial plan for unforeseen

circumstances like flood it can assist them by realizing the significance of disaster

preparedness.

Definition of Terms

The following terminologies are defined in accordance to their use in the study to

supply them with further precision:

Business Vulnerability. can therefore be defined as the ability of a business to be

exposed to different types of risks that may hinder its operations or endanger business’ assets.

Bulao. A part of Iponan, Zone 6 Bulao Cagayan de Oro city, an area close to a nearby

river and is usually prone to flooding.

Direct Effect. The instant impact after a flood, such as property damage or loss of

life.

Economic Conditions. the state of an entity's economy.

Economic Development. The exertion of local government or organizations to

improve the economic well-being and standard of life of the community and businesses.
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Economic Loss. Financial damage endured by local business owners and the

community caused by flooding.

Flood. An overlap of excessive water onto dry land.

Flood severity. The level of danger a flood could possibly be.

Indirect Effect. The secondary impact after a flood, such as an economic drop after

business disruptions.

Latter Effect. The after-effect or consequences after a disaster such as a flood.

Long-term Stability. A community’s or business’s ability to continue its function

and wealth over an extended period of time after a disaster.

Mitigation. Activities intended to diminish or abolish the enduring threat to

individuals and their possessions from natural hazards.

Reactive. An action performed by a person's initial response to a situation or

circumstance, such as responding to a flood after it occurs, rather than taking preventive

measures beforehand.

Resilience. The capability to withstand and recover quickly of local businesses and

community by calamities such as a flood.

Susceptibility. The probability of an area or community being affected by a flood due

to various factors such as location, structure, and readiness.

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CHAPTER 2

LITERATURE REVIEW

This chapter contains the literature relevant to tackle these aims and explains the

nature of the research project. It contains literature from recent and previous regarding to

economic impacts of flooding on local businesses and other related topics. It discusses the

information and conclusions from the previous studies that will be important to the topic.

Foreign Studies

In a study by Yin et al. (2021), flooding is identified as a significant and costly natural

hazard. The research examines economic losses due to fluvial flooding in six countries,

finding Egypt has the highest loss in terms of GDP, while China and India face the maximum

total loss. The study emphasizes the impact of socioeconomic variables on expected loss and

stresses the importance of integrating recovery dynamics into flood preparedness and

decision-making. Additionally, Alabbad, Y., & Demir, I. (2022) highlight that flooding is

expected to intensify due to climate change, with direct and indirect negative effects. Their

study aims to enhance flood risk management in Iowa towns by identifying vulnerabilities

and providing guidance in development plans to prioritize evacuation routes and the strategic

location of homes. The paper presents a case study to assess losses and damages during

floods, with recommendations including comprehensive flood management planning and

prioritizing structural upgrades for increased resilience against future floods.

The study by Porter et al. (2022) is the first U.S. spatial model for assessing flood

risks at the property level for commercial and residential buildings. The model estimates that
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within the next 30 years, flood risks will rise. This has resulted in a 25.4% escalation in

structural damage costs, along with a 26.5% rise in economic effects. In a related study, Song

et al. (2022) highlighted the evaluation of flood hazards in the YRB, finding that flood risks

will increase in 65-69% of the region from 2015 to 2045 under different climate scenarios.

These findings underscore the growing threat of floods due to climate change.

A flood risk assessment method was developed by Sun et al. (2024), taking into

account factors such as exposure, vulnerability, emergency response capability,

meteorological and geographic conditions, and disaster losses. The researchers utilized

ArcGIS for data visualization and analysis, ranking flood risks through the entropy weight

approach and the TOPSIS method. Endendijk et al. (2024) further emphasized that certain

businesses are more vulnerable to flooding and noted that climate change is contributing to

the increased frequency and severity of floods. Additionally, the study aimed to address the

limitations of previous empirical research by focusing on the duration of business

interruptions and losses following flood events.

According to Kok et al. (2023), the 2021 floods in the Netherlands affected

approximately 2,500 homes, 5,000 people, and around 600 companies, resulting in significant

economic damage. Initial estimates indicated total damages between €350 and €600 million.

However, new estimates, based on national disaster compensation data and insurance reports,

confirmed damages ranging from €400 to €500 million, surpassing the Meuse River floods of

1993 and 1995. The Geul floodplain suffered the most damage, and there was a noticeable

difference between professional evaluations and the perceived harm by local residents and

businesses. Furthermore, Vamvakeridou-Lyroudia et al. (2020) proposed an approach to

assess risks and implement adaptation measures using a participatory method involving local

stakeholders to enhance the resilience of interconnected Critical Infrastructures (CIs) to urban

flooding under climate change.

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Tanoue et al. (2020) explain that river floods cause widespread economic damage,

impacting both physical assets and economic activity within and outside the affected area.

Estimating direct and indirect economic losses accurately at finer scales is challenging,

hindering the development of effective flood risk management plans. Additional studies have

shown rising economic losses and societal disruptions due to the increased frequency of

urban flood disasters (Parent et al., 2023). The FEMA Hazus Flood Model is considered a

valuable resource for estimating potential flood damage in the United States. Incorporating

publicly accessible business data is crucial for accurately evaluating losses incurred in

company activities during a flood.

Ryo Taguchi (2023) observed that flooding can significantly disrupt business

operations, leading to negative market impacts both domestically and internationally. These

disruptions often ripple through the global economy, affecting supply chains and overall

economic performance. The impacts can vary, especially in terms of unit investments in

structures, the establishment of recovery projects, or the performance of recovery efforts. One

major result of flooding is the unanticipated disruption of business operations, which can

cause substantial economic losses on a global scale. Herath Srikantha (2021) aligns with this

view and emphasizes the importance of accounting for wind damage when assessing flood-

related losses. Srikantha argues that the combination of wind and floodwaters exacerbates

damage, complicating recovery efforts due to debris and structural failures, which ultimately

leads to longer restoration times and higher costs.

In this context, Skouloudis (2021) established that disruptions at the firm level often

have a ripple effect along the supply chain and affect businesses and the local economy. This

is even more pronounced for SMEs operating in vulnerable regions of the globe. Flash floods,

in particular, can have serious economic consequences. The strength of these effects depends

on the resilience of the organization and the availability of risk mitigation infrastructure. In
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the same vein, De Matteis (2021) pointed out that BCM (Business Continuity Management)

and organizational resilience are critical strategies for SMEs to mitigate and respond to

discontinuity. SMEs experience challenges common to their group when trying to adopt

BCM strategies. Among the advantages of BCM is the possibility of continuing business

management in different situations and increasing organizational readiness for negative

scenarios. It is crucial to gain insight into these dynamics to improve preparedness and

adaptability in increasingly volatile environments for SMEs.

Flooding has a significant economic impact, especially on local businesses in flood-

prone areas. The repercussions of flooding at the company level may spread across the

economy (Hu, Hall, Pan et al., 2019). Moreover, significant flooding disasters have both

short-term and long-term consequences, which may differ depending on existing

infrastructure, community planning, and recovery efforts (Sun, Mann, Skidmo, 2022).

Therefore, determining the economic impact of floods on local businesses and devising

appropriate mitigation strategies is critical.

Djanibekov et al. (2024) examined the impact of floods on businesses, particularly in

the agricultural sector, in Awanui Catchment, New Zealand. Areas prone to flooding

experience frequent changes in land use, affecting sheep and beef-intensive finishing lands.

Climate change exacerbates flood severity, leading to increased flood damage costs for the

dairy system. Furthermore, floods decrease the net revenue of sheep, beef, and dairy farming,

which is crucial to New Zealand’s GDP. English et al. (2021) found that companies investing

in agricultural products suffered significant economic losses due to preventive planting,

unlike farmers who were covered by insurance policies.

A report cited by Muzakar Isa (2022) highlights that small and medium-sized

businesses (SMEs) play a crucial role in Indonesia’s economic growth, fostering employment

generation and overall development. However, these businesses are particularly vulnerable to
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flooding, especially in areas like Central Java’s Klaten Regency. Dan Sadink (2021) explores

the interrelated variables that influence the likelihood of basement flooding, as well as the

potential and challenges linked to implementing and evaluating private-sector flood

prevention strategies. Understanding basement flood sensitivity at the lot-scale can help

identify the appropriate private-sector tactics homeowners should adopt to reduce the risk of

flooding, considering site-specific factors that influence flood vulnerability.

Ajiboyi and Orebiyi (2021) pointed out that flooding has both direct and indirect

effects on commercial profit losses and negatively impacts market supply. Nigerian cities,

which have undergone tremendous physical growth during the last three decades—

particularly in constructing and reconstructing highways, offices, markets, stores, and

manufacturing facilities—have become more susceptible to flooding. Micro and small

enterprises, in particular, are more vulnerable to natural disasters than larger corporations

(Lo, Lie, Pei, et al., 2021). As a result, small firms are the most vulnerable to floods, posing a

bigger danger to the economy as a whole.

Flooding also hampers the development of microbusinesses, and as such, this research

seeks to determine the impact of floods on retail businesses in Uganda as a way of measuring

business performance. Scuderi et al. (2019) discussed the effects of natural disasters on local

and national economies, noting that this is a major concern for governments and

policymakers, particularly in developing nations. Diez et al. (2024) acknowledged that

microbusinesses and household businesses are especially at risk from compound floods. The

frequency of such events negatively affects business performance, with lower performance

values when incidents occur at higher rates.

In terms of disaster response and preparedness, Garcia (2021) explored key aspects of

warning systems and community-based disaster preparedness during Typhoon Haiyan in

2013. The study emphasized the importance of tailoring strategies to the specific disaster risk
 16

management needs of communities. Kurata et al. (2021) also highlighted the importance of

multi-faceted disaster response strategies. Collectively, these papers contribute to a more

systematic understanding of how rapid and focused actions can mitigate the impacts of

typhoons and other forms of climatic disasters.

Rosmadi et al. (2023) explored the challenges faced by Malaysian local governments

in managing floods, particularly during monsoons. Despite improvements in disaster

management, the country continues to suffer from significant flood-related damages due to

climate change and gaps in implementing risk mitigation policies. Meanwhile, Pinos Juan

(2020) focused on the Ecuadorian highlands, stressing the importance of both conventional

and innovative approaches such as strategic land-use planning and coordinated water

governance to build resilience and better manage the growing risks of flooding in vulnerable

regions.

Daniel Spiteri (2022) conducted a study on the socioeconomic preparedness of

Malta's low-lying urban towns for coastal flooding impacts, engaging stakeholders from

business, local councils, and experts from public and private sectors. The research aimed to

assess readiness to handle flood risks. In a related inquiry, Sally Brown (2022) explored how

institutional actions like insurance access or engineering interventions influence household

adaptation behaviors. Three case studies from England highlight the complexities of

responsibility in managing flood risks and ensuring adequate responses to coastal

flooding.Local Studies

The Philippines is located in an area where climate and geological dangers frequently

cause calamities that claim the lives of many of its residents. According to Verres et al.

(2020), entrepreneurs in flood-prone areas differentiate between frequent daily floods and

rare large floods but only view the latter to constitute Serious dangers to their operations. As

noted by Rodolfo and Lapus (2021), they analyzed the geological hazards that may impact
 17

oyster farmers' livelihoods and proposed appropriate business continuity and disaster risk

reduction (DRR) activities. These findings emphasize the importance of proactive disaster

risk reduction efforts, as firms frequently underestimate the long-term effects of smaller,

recurring disasters.

In the study by Castilla et al. (2024), it was indicated that flooding provoked tension,

desertion, and serious losses in produce. After the flooding, several individuals suffered

losses of over ₱50,000. Residents have answered this challenge by putting into practice

methods such as permissible paving and native plant cultivation. According to reports, during

the last ten years, 1-3 instances of floods have caused numerous homes and businesses to

sustain flood damage that exceeds ₱15,000. This comprises all damages to either homes or

businesses. The connection between proactive and reactive flood preparedness measures and

reducing susceptibility was highlighted in the study. Bañados & Quijano (2022) highlighted

that ignoring these activities could bring about more regular instances of urban flooding.

According to Bringas et al. (2022), natural disasters have caused substantial financial

harm to economies around the globe, along with the destruction of lives and property. They

emphasize that natural calamities reduce short-term GDP per capita, while foreign direct

investment is advantageous in the long run. This result points to the need for a wide-ranging

strategy for emergency readiness. Hildago et al. (2022) observed that vendors in the informal

sector, without social protection, are vulnerable to typhoons and flood crises due to poor

housing conditions, business losses, insufficient risk management, and limited financial

means. In these conditions, business networks were thought to be less critical.

To address the growing risks of disasters resulting from climate change, seven coastal

barangays in Masinloc, Zambales, were examined in the study by Alberto et al. (2021).

Zambales Coastal Municipalities This study evaluated the vulnerability of Zambales' coastal

municipalities to climate change and identified important community-based and ecosystem-

 18

based adaptation strategies. It made clear through data analysis and mapping how important it

is to strengthen disaster resilience by enhancing the infrastructures of coastal communities

from storm surges, floods, and landslides. Further, Paz-Alberto et al. (2022) examined the

ability of seven barangays in Masinloc, Zambales, to adapt, with an emphasis on ecosystem-

and community-based methods. Though several barangays have shown a strong ability to

adapt through coastal resource conservation and catastrophe preparedness, others must put

additional.

Fernandez et al. (2019). Flooding has long been acknowledged as one of the most

serious environmental dangers to Philippine businesses, resulting in huge economic losses

ranging from destroyed infrastructure to disrupted operations, found that local businesses,

particularly small and medium-sized enterprises (SMEs), are disproportionately affected due

to inadequate disaster preparedness and recovery skills. In the study by Mohammed Kefi

(2020). The economic consequences of severe flooding on these businesses frequently

include both direct expenses, such as property damage, and indirect costs, such as revenue

loss and a drop in long-term consumer trust. Furthermore, the lack of effective flood

management measures exacerbates the problem, as local companies are typically left to

recover with little government aid. Addressing these concerns requires an integrated approach

that includes stronger infrastructure, effective risk management, and improved catastrophe

resilience methods.

As Williams et al. (2020) observed, the coastal districts in the Philippines

faced frequent mild to moderate floods in 2016, putting people's health, safety, and finances

at risk. Despite infrastructure upgrades reducing routine flood hazards, the threat of large

storms persists. The study, led by Lindy Williams (2020), revealed that while some wealthy

individuals have relocated and others have abandoned their homes due to flooding, most

residents do not view withdrawal as a temporary solution. The research, which examined
 19

flood risk and adaptation, including the potential for out-migration, took into account the

stance of protective motivation theory.

 CHAPTER 3

RESEARCH METHODOLOGY

In this chapter the researchers define the implementation of a quantitative study in its

research design, its research environment, respondents, sampling procedure, research

instrument, how data is collected, validity, and reliability. The first is the research design,

which supports the precise evaluation of the causal relationship between independent and

dependent variables. The research environment is integrated into a greater context, involving

alliances, stakeholders, and the strategic setting of these organizations. The research

instrument collects, calculates, and analyzes information about what was of interest in the

study. Data collection procedures for getting the data are such that accurate information is

obtained from different sources. Validity and reliability are when an instrument produces

consistent results.

Research Design

For this research, the researchers will use descriptive research design and correlational

research design. A descriptive research design represents a method to describe and quantify

the characteristics or behaviors of a population or phenomenon and is used for a simple

question of "what" is happening. It does not manipulate any variables but gives a snapshot of

the current situation. In correlation research design, we examine the relationship between two

or more variables to determine if they are connected. This type of research does not

manipulate the variables; it simply observes them as they naturally exist. The strength and

direction of the connection can be measured using a correlation coefficient, which can show a

positive, negative, or no correlation at all.

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Descriptive research design is used to explore the possible outcomes following a

flood. It aims to identify and outline the potential effects or consequences of a flood event

without delving into causal mechanisms. Similarly, when examining the primary types of

local businesses and their vulnerability to flooding, a descriptive research design is applied to

depict the current state or features of these businesses and their susceptibility to flooding.

This design focuses on characterizing and recording the traits of businesses, and their

vulnerabilities related to flooding, without exploring causal relationships.

There are various research designs that can be used to study the relationship between

flooding characteristics and their economic impacts on businesses. One of these designs is the

correlation research design. This method allows researchers to investigate how the severity

and frequency of floods affect businesses without artificially changing conditions. By

analyzing data on flood patterns and their impacts on businesses, researchers can determine

whether stronger or more frequent floods result in more economic damage. This method also

helps in identifying the strength and direction of these relationships. Ultimately, this research

design can help in identifying important connections that may be used to develop strategies

for mitigating flood-related economic harm.

Research Environment

This study focuses on the economic impact of flooding in Bulao, Iponan, Cagayan De

Oro City as a flood-prone area; it reflects the necessity for future implementations. The

research is concentrated on losses caused by frequent floods and how businesses deal with

their finances. It mainly comprises important aspects concerning drainage infrastructure,

systems for flood control, and government support for affected businesses. The other study

would focus on how flooding will disrupt business operations, customer traffic, and supply

chains.
 22

The study will be chosen because of its vulnerability to flooding; hence, its impact on

the enterprise in terms of the local economy is worth exploring. The ability of Bulao, Iponan,

and Cagayan De Oro City to control the economic effects of flooding will be pinpointed as

local businesses suffer certain losses when floodwaters persist in the area while assessing the

influence of the existing system of flood control, drainage facilities, and local government

support systems on overall success in handling ongoing challenges. At the same time, the

study will draw attention to the need for more state support and preventive measures

concerning flood impacts on local trade, particularly through the financial adjustments to be

made by firms. It explores some of the kinds of disturbances that flooding causes in the

operations of business activities. Some of these include breaks in the streams of customers

and disruptions in supply chains.

The effects are not only damage to the physical assets but also the derailment of the

smooth flow of goods and services coupled with a loss of revenue and further economic

strain. Since Bulao is prone to flooding, the effects of such environmental pressures on the

local enterprise are considered to present intervention strategies that could strengthen

business resilience and protect the locality from future flooding.

Research Population and Sampling

The researchers will carefully select participants to gather valuable insights into the

financial impacts of floods on local businesses. Understanding how floods affect these

enterprises is essential for evaluating their financial stability and daily operations, especially

in high-risk areas. The selection criteria will focus on respondents living in flood-prone

locations who have experienced significant operational or financial losses. This targeted

approach will capture a diverse range of perspectives from those most affected, specifically

homeowners and business owners. The study aims to assess the financial challenges these
 23

businesses face during floods, making the experiences and insights of the respondents crucial

for our understanding.

In Bulao, which has a population of 2,795, a sample size of 349 will be used to ensure

accessibility and cost-effectiveness. To accurately reflect the population, a stratified sampling

technique will be used, selecting respondents from each Purok based on the severity of

flooding in their areas. The study will primarily focus on residents and business owners in

flood-affected towns, with criteria including household type, age, income, location of

residence, and place of business. These criteria align with the study's goals and aim to

minimize selection bias, ensuring that the findings can be applied to a broader population.

Before data collection begins, respondents will be informed of their rights and the

overall goals of the study, ensuring confidentiality and voluntary participation. Only

individuals who provide informed consent will be included in the study; those who do not

consent will be excluded. Maintaining data integrity and protecting respondent privacy will

be prioritized throughout the survey process. This procedure is essential for upholding ethical

standards in the research.

Sampling Procedures

Intorductory paragraph

Table 3.2. Distribution of Bulao per Purok and Severity

Population Proporti
Respondents Size (N) on Sample Size
Purok 1 Medium Risk 101 0.04 13
Purok 3 Low Risk 90 0.03 11
Purok 3 Medium Risk 146 0.05 18
Purok 3 High Risk 501 0.18 63
Purok 4 Low Risk 88 0.03 11
Purok 4 Medium Risk 158 0.06 20
Purok 4 High Risk 224 0.08 28
Non-Affected 1451 0.53 184
Total: 2759 1.00 349
 24

Research Instrument

A structured survey questionnaire will be used in this research in an effort to measure

the economic effects of flooding in businesses; the questionnaire yields quantitative data from

respondent’s perceived views on businesses in areas prone to flooding. Additional closed

items designed to provide additional depth to particular areas include the same questions that

target certain economic parameters of change in revenue, the cost associated with floods,

repair expenses, shutdown operations, and impacts on employment. Likert scale questions

quantify financial implications and organizational preparedness, which are directly

comparable across the participants. This instrument will allow for a regression analysis to

establish an economic cost associated with each flood event and evaluate other

macroeconomic factors in operation within the affected enterprises.

Validity and Reliability of Instruments

When studying the economic impacts of flooding on local businesses, it is crucial to

ensure that research instruments are both valid and reliable. Validity measures how

accurately an instrument captures the intended data on economic impacts, ensuring that

results genuinely reflect the financial challenges businesses face due to flooding. In this

study, our instrument has a validity score of 0.7, indicating a moderate level of accuracy in

assessing the intended impacts. Reliability, on the other hand, refers to the instrument's

consistency across different instances, allowing researchers to trust that similar outcomes will

be achieved under similar conditions. Together, validity and reliability ensure that findings

about flooding's economic effects are both credible and reproducible, making it possible to

draw accurate conclusions for flood mitigation and business resilience strategies.
 25

Assessing the effectiveness of the study hinges on the importance of internal

consistency and reliability. A reliable survey tool is essential for accurately measuring the

economic effects on businesses, especially when it demonstrates high internal consistency.

The carefully designed survey effectively gathers comprehensive information on how local

businesses handle disruptions, financial losses, and their strategies for resilience. By ensuring

its dependability, the tool consistently delivers insightful results, allowing us to gain a clear

understanding of the resilience and financial risks faced by businesses in Bulao, Iponan. The

findings from this survey are pivotal in revealing the financial impact of floods on nearby

businesses. They provide crucial insights that will inform and guide future planning and

resilience initiatives with confidence.

Data Collection and Procedures

When evaluating the economic impact on local firms, data gathering processes are

critical for achieving trustworthy and accurate results. The process usually begins with

identifying the target population, the respondents of flood affected areas. The respondents

will be answering survey questionnaires to acquire information regarding the economic

impacts due to flooding on local businesses. The survey questions will be designed to assess

the objectives of the study and the relation of both independent and dependent variables.

The respondents will be chosen using a stratified random sampling to acquire

information regarding the economic impacts due to flooding on local businesses. The survey

will be created via paper-based questionnaires in a span of three days. All respondents will be

given a brief introduction of survey, explain the key purpose of the study, the respondent's

permission to participate and to guarantee the right of anonymity and confidentially of the

respondent's answers.
 26

Respondents will be given moments to answer the survey. After the three days of

requesting to answer the surveys, the responses will be completed reviewed and filed. The

following responses will be encoded to excel for analysis of its demographic and the

responses for each problem of the research. For valid survey questionnaire, the survey will

be tested for Cronbach alpha to ensure validity and reliability.

Scoring Guidelines

The range of operational and financial difficulties faced by flood-affected firms is

reflected in the scoring criteria used to measure the economic effects of flooding on nearby

companies. It examines how floods can impact economic stability by looking at these rules,

revenue loss, repair costs, supply chain disruptions, and labor levels. In an effort to measure

the extent of flood impacts and spot trends by company size, type, etc., the researchers assign

scores to responses in these categories. Data comparison and the identification of the broader

economic effects of floods on local businesses are made possible by this methodical

methodology.

Table 3. 2. 1: Shows the Likert Scale's range and description.

Quantitative
Score Describing the flood as impactful
Description

4 Strongly Agree The respondents were highly impact and

affected throughout.

3 Agree The respondents were mostly impact

with some minor concerns.
The respondents claim the impacts are
2 Disagree
minor.

1 Strongly Disagree The respondents felt that there was little

to no impact.

In the study "Describe the Economic Impact of Flood Risk in Local Businesses in

Bulao", the Likert scale was used to assess respondent's perceptions of various statements
 27

related to flood risk and its economic impact. A rating of 1 (Strongly Agree) indicates a

strong belief that flooding significantly affects business operations and profitability. A rating

of 2 (Agree) reflects a general acknowledgment of the challenges posed by flood risks,

though with less intensity. Conversely, a rating of 3 (Disagree) suggests that respondents

believe flood risks do not substantially impact local businesses, while a rating of 4 (Strongly

Disagree) indicates a strong conviction that flooding has little to no effect on their economic

performance. This structured approach allows for a nuanced understanding of how local

businesses perceive the economic implications of flood risks.

Statistical Instrument and Procedures

These statistical instruments will be used to precisely interpret the acquired data.

1. In the case of the respondent's perceived impact of flooding on local businesses,

descriptive statistics, including means, percentage distributions, and standard

deviations, will be used to outline the respondents’ profiles.

2. Inferential Statistics: The relationship between economic impact severity and flood

characteristics will be investigated. Questionnaires will be completed on flood factors

(frequency, depth, duration) and economic impacts (property damage, income loss).

Survey items will be checked for reliability using Cronbach’s alpha, with a threshold

of 0.7. Correlation and regression analyses will determine the linkage between flood

characteristics and economic impact. Targeted flood mitigation strategies will be

developed based on results in high-risk areas.

3. Significant correlations between flood frequency, intensity, and extent in Bulao will

be compared using descriptive techniques, along with the direct, indirect, and societal

economic effects that flooding occurrences have on enterprises. To ensure that the

flooding assessment tools or questionnaires measure the same decision-making

 28

aspects consistently, this method helps quantify the answers to different survey

questions.

4. After obtaining each respondent’s required consent, data will be gathered and

arranged using an instructional method recording sheet and an accommodated Likert

scale. The research technique, including the presentation of the data and the goals of

the study, was thoroughly justified. Throughout the process, the respondents' privacy

was maintained.
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 Appendix A

Slovin's Formula and Sample Size

N
¿ 2
1+ N ( e )

2759
¿ 2
1+ 2759 ( 0.05 )

2759
¿ ❑
1+ 2759 ( 0.0025 )

¿ 349

Table 3.1. Distribution of Bulao per Purok and Severity

Population Proporti
Respondents Size (N) on Sample Size
Purok 1 Medium Risk 101 0.04 13
Purok 3 Low Risk 90 0.03 11
Purok 3 Medium Risk 146 0.05 18
Purok 3 High Risk 501 0.18 63
Purok 4 Low Risk 88 0.03 11
Purok 4 Medium Risk 158 0.06 20
Purok 4 High Risk 224 0.08 28
Non-Affected 1451 0.53 184
Total: 2759 1.00 349

APPENDIX B
 Survey Questionnaire
IPONAN NATIONAL HIGH SCHOOL ree
Name (Optional): (1)
Dear Respondents, 6. My business
Thank you for participating in our location is prone to
survey! Your feedback is invaluable for our flooding
research, “The Economic Impacts of 7. I’ve taken
Flooding on Local Businesses in measures to
Camansi & Plaza, Iponan.” Please answer protect my
all questions honestly; your insights are business.
crucial for shaping future developments. The 8. I feel ready for
survey will take just a few minutes, and your future floods.
responses will remain confidential. We 9. I believe
appreciate your input and look forward to government
your contributions! support is available
Part I. Demographic Profile/ for businesses.
Respondents Information 10. I need more
1. Age: ________ resources to
2. Gender; Male Female strengthen flood
3. Educational attainment? resilience.
II. Possible Outcomes After a Flood
No formal education High school A. Business Operations
graduate College graduate Survey Questions Strongly Agree Disag Strongl
Agree (3) ree y
Elementary graduate Senior (4) (2) Disagr
High graduate Postgraduate degree ee (1)
4. Income level: __________ 1. The flood greatly
4. Type of business? disrupted daily
business
Retail Manufacturing Others:
operations.
__________________ 2. The flood caused
Services Food/Restaurant major revenue loss
5. Number of years in 3. Employee
business:
_____________ attendance and
6. Location of business: _______________ availability were
I. Vulnerability Assessment of Local seriously affected by
Business Types Affected by Flooding. the flood.
A. Business Information 4. The flood severely
Survey Questions disrupted
Strongl Agree Disagr Stronour supply
y Agree (3) eechains.
(4) gly
(4) 5. Business
Disa facilities
weregree
heavily
damaged
(1) by
1. Flood recovery is flooding
challenging for my B. Economic Outcomes
business type Survey Questions Strongly Agre Disag Strongl
2. I know the risk in Agree e (3) ree y
my area. (4) (2) Disagre
3. My business is e
prepared for floods. (1)
4. My location 6. Floods increased
increases flood risk. cost for recovery
5. My business is efforts.
vulnerable to 7. Flood recovery
flooding. affects local
B. Vulnerability Factors employment rates in
Survey Question business
Strongly Agree Disagre Stron
Agree (3) 8. Flood
e (2) gly increases
(4) costsDisag
for local
businesses
9. Floods disrupts
regional supply
chain stability
10. Floods
negatively impact
local economic
growth
III. Correlation Between Flood
Characteristics and Economic impacts
A. Flood Characteristics
Survey Questions Strongly Agre Disag Strong
Agree e (3) ree ly
(4) (2) Disagr
ee (1)
1. Flood frequency
has impacted my
business.
2. Flood severity
significantly affects
my business.
3. Flood extent has
impacted my
business.
4. Increased flood
influences
preparedness.
5. Preparedness has
mitigated frequent
flood impacts
B. Economic Impacts
6. Flooding has
significantly impacted
my property or stock.
7. Flooding has
affected my
operations (e.g.,
costumer loss, supply
chain issues).
8. Flooding has
negatively impacted
the well-being of my
employees or
customers.
9. Flooding has
hindered my
business’s financial
recovery.
10. Flooding has
affected my
business’s long-term
stability.

Thank you very much for participating on

our survey! Your feedback is a crucial part
of our study.

GROUP 4 ABM-12
 APPENDIX C

Raw Data (Pilot Testing)

 PART II. SURVEY QUESTIONNAIRE
PROBLEM # 2
BUSINESS DISTRUPTIONS AFTER A FLOOD
MEA TOTA
1 2 3 4 5 6 7 8 9 10 N L
4 4 2 3 2 4 4 4 3 4 3.40 34
3 2 3 2 3 3 4 4 3 4 3.10 31
4 3 4 3 3 2 3 3 3 4 3.20 32
3 3 2 2 3 2 2 2 3 3 2.50 25
4 3 3 4 4 4 3 3 4 3 3.50 35
2 2 3 4 4 2 2 4 3 4 3.00 30
2 3 3 3 4 4 3 3 4 3 3.20 32
2 2 3 3 4 3 4 2 3 3 2.90 29
3 3 3 3 3 2 4 4 3 3 3.10 31
3 3 3 3 3 4 3 3 4 4 3.30 33
3 4 3 4 3 3 3 3 4 4 3.40 34
3 4 3 4 4 2 3 4 3 3 3.30 33
3 4 3 4 3 3 4 3 4 4 3.50 35
4 3 4 3 4 4 4 4 4 3 3.70 37
3 4 3 4 4 2 3 3 3 3 3.20 32
4 4 4 4 4 3 4 4 4 3 3.80 38
2 2 2 3 2 3 3 2 4 4 2.70 27
4 4 3 4 2 2 3 3 3 4 3.20 32
2 3 3 2 4 2 3 3 4 3 2.90 29
3 4 3 3 3 4 4 4 4 4 3.60 36
3 3 4 3 3 4 4 3 3 4 3.40 34
3 3 3 3 3 3 3 4 4 3 3.20 32
4 3 4 3 4 4 4 3 4 4 3.70 37
3 4 3 4 3 4 3 4 4 3 3.50 35
2 2 2 2 1 2 2 3 3 2 2.10 21
4 3 3 3 2 4 4 3 4 4 3.40 34
3 3 3 3 3 3 3 3 4 3 3.10 31
3 3 4 3 3 3 3 3 3 3 3.10 31
2 2 3 3 3 2 3 4 4 4 3.00 30
3 3 4 4 3 3 4 4 3 3 3.40 34
91 93 93 96 94 90 99 99 106 103 96.4 964
3.03 3.10 3.10 3.20 3.13 3.00 3.30 3.30 3.53 3.43 3.21 32.13
0.72 0.71 0.61 0.66 0.78 0.83 0.65 0.65 0.51 0.57 0.36 3.60
0.65 0.60 0.62 0.57 0.43 0.60 0.66 0.45 0.39 0.34
0.52 0.51 0.37 0.44 0.60 0.69 0.42 0.42 0.26 0.32 10
4.55
12.95
1.11 0.65 0.72

PART II. SURVEY QUESTIONNAIRE

PROBLEM # 3
RELATIOSHIPS BETWEEN FLOOD CHARACTERISTICS AND ECONOMIC
IMPACTS ON BUSINESSES
TOTA
1 2 3 4 5 6 7 8 9 10 MEAN L
3 3 2 4 4 2 4 3 3 1 2.90 29
4 3 3 2 3 2 3 3 3 2 2.80 28
2 3 2 3 3 3 3 3 3 3 2.80 28
4 4 3 3 2 3 4 3 4 4 3.40 34
4 4 3 3 4 4 4 4 4 4 3.80 38
3 3 3 4 4 4 4 4 3 3 3.50 35
3 3 2 3 3 3 3 4 4 4 3.20 32
4 3 3 4 3 2 3 3 4 4 3.30 33
4 3 4 3 3 3 3 3 3 3 3.20 32
3 3 3 3 3 3 3 3 3 3 3.00 30
3 3 3 4 4 3 4 3 4 3 3.40 34
3 4 3 4 4 3 2 4 3 4 3.40 34
3 4 3 4 3 4 4 3 4 4 3.60 36
3 3 4 3 3 3 4 3 4 3 3.30 33
3 4 3 3 3 3 4 3 4 4 3.40 34
4 4 4 4 4 4 4 4 4 3 3.90 39
3 2 2 3 3 3 3 3 3 3 2.80 28
4 4 3 4 3 4 4 4 3 1 3.40 34
3 3 4 4 3 3 3 3 3 3 3.20 32
3 3 3 3 3 3 3 3 3 3 3.00 30
3 3 4 3 3 3 3 3 3 3 3.10 31
3 3 3 3 3 3 3 3 3 3 3.00 30
3 3 4 2 3 4 4 4 4 4 3.50 35
3 2 2 3 3 4 4 2 3 3 2.90 29
1 1 1 3 3 1 2 2 2 4 2.00 20
3 3 3 3 3 3 3 3 3 3 3.00 30
4 4 4 3 4 3 4 4 3 4 3.70 37
3 3 2 3 2 3 4 2 3 2 2.70 27
3 4 2 3 2 3 4 3 3 4 3.10 31
3 3 2 3 3 3 4 4 4 4 3.30 33
95 95 87 97 94 92 104 96 100 96 95.6 956
3.17 3.17 2.90 3.23 3.13 3.07 3.47 3.20 3.33 3.20 3.19 31.87
0.65 0.70 0.80 0.57 0.57 0.69 0.63 0.61 0.55 0.85 0.38 3.80
0.67 0.79 0.65 0.32 0.42 0.69 0.55 0.74 0.70 0.27
0.42 0.49 0.64 0.32 0.33 0.48 0.40 0.37 0.30 0.72 10
4.46
14.4
6
1.11 0.69 0.77