Impact of Covid-19 on SMEs in UK Hospitality Sector

BUSINESS RESEARCH
PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................3
Background of study....................................................................................................................3
Research aim and objectives........................................................................................................3
Research questions.......................................................................................................................4
Rationale of the study..................................................................................................................4
Literature review..............................................................................................................................4
Factors affecting SME's...............................................................................................................4
Impact of Covid on Hospitality sector.........................................................................................5
Strategies of SME's to deal with Covid.......................................................................................6
RESEARCH METHODOLOGY.....................................................................................................6
Research type...............................................................................................................................6
Research approach.......................................................................................................................7
Research philosophy:...................................................................................................................7
Data collection.............................................................................................................................8
Data analysis................................................................................................................................8
Research limitations.....................................................................................................................8
Ethical consideration....................................................................................................................9
Data analysis....................................................................................................................................9
Challenges faced by SME's due to changes in business environment.........................................9
Covid and its effects on hospitality industry..............................................................................10
SME's and its methods of dealing with Covid pandemic..........................................................10
CONCLUSION..............................................................................................................................11
Recommendations......................................................................................................................12
REFERENCES................................................................................................................................1

Topic: To access the impact of covid 19 disruption on small and medium-sized enterprises in
UK hospitality sector. A study on Capital hotel.
INTRODUCTION
Background of study
The hospitality sector of UK is booming and contributing in the economic growth of the
country. The hospitality sector of UK provides employment opportunities to many citizens.
Covid 19 adversely affected the small and medium-sized enterprises and some of them also shut
down because of no business due to the pandemic and some other major problems which this
pandemic has caused are supply chain disruptions, demand decreased, shortages of raw material,
transportation disruptions etc. not only the hospitality industry but every industry are facing the
impact of covid 19 on their businesses but it is also agreed that the major victims of coronavirus
are the small and medium-sized enterprises as compare to large companies as small enterprises
does not have sufficient resources and are not prepared for such pandemic because these
enterprises are majorly dependent on their daily transactions and customer base.
MSME contribute major in economy which provide employment to many people globally
(Bartik and et.al., 2020). In the hospitality sector their earnings are from guests who visit and
stay at their hotel but due to covid 19 lock down happened which restricted the free movement of
people globally and no people means no sales and no profit so MSME faced huge loss because of
it they reduce the number of workforce appointed and also stopped many services which earlier
they were providing. Capital hotel is a small hotel in UK which is known for the good quality of
services provided by them, proper hygiene is also provided by the hotel. This study will discuss
the aims and objectives of the research along with the research questions and rationale of study.
Further will tell about literature review, research methodology and data analysis by constructing
themes. This study will also give recommendations which will complete the investigation.
Research aim and objectives
Aim
The aim of current investigation is to ascertain the impact of covid 19 on small and medium-
sized enterprises like Capital hotel.
Objectives
By considering the above aim following objectives are made:

 To analyse the factors which impact the small and medium-sized enterprises within
hospitality sector.
 To access the influence of covid 19 on small and medium-sized enterprises with regard
to Capital hotel.
 To evaluate the positive responses for SME in order to recover from covid 19.
 To recommend effectual strategies to MSME against covid 19 disruption.
Research questions
Q1 What are the positive response of SME to recover from covid 19 ?
Q2 Which factors has impact the small and medium-sized enterprises with regards to hospitality
sector?
Q3 What is the extend to which covid 19 influence the Capital hotel?
Rationale of the study
The major reason for doing this research is to know that how covid 19 has impacted the
MSME. This is the research issue because in this pandemic conducting research is not easy
(Fairlie, 2020). So through thematic perception test technique research will shed light on the
level of covid 19 which has impacted small and medium companies.
Literature review
Factors affecting SME's
As per the views of Jones and Comfort, (2020), SME's are mainly affected due to the
changes in the environmental factors. As the environment is highly volatile external factor which
continuous changes. Due to the changing environmental factors the working of SME's got
affected. Covid-19 being a part of environmental factor affected the SME's sector at a larger
scale. Covid-19 along with its impact has also threatened the base of SME's in terms of major
losses or shutting of business. On the other hand Matti and Zhou, (2017) said that working of
SME's got majorly affected due to the changes of political factor. Brexit in UK brings a major
political change that affected the working of SME's in terms of imposition of restriction on
performing the trade activity between UK and European Union. Political factor not only affected
the business or operation of SME's but it has also affected its sales and objectives.
According to Bartik, (2020), SME's got majorly affected due to technological
environment. Being working on smaller scale with low investment capacity, SME's found many
difficulty in adopting and upgrading the technology. Due to this SME's and its business faces