Response of Small and Medium Sized Enterprises to COVID-19 Disruption

Business Research Project –
Entrepreneurship
[TO INVESTIGAT THE RESPONSE OF SMALL AND MEDIUM SIZED ETERPRISES TO
COVID-19 DISRUPTION]

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION..................................................................................................3
Background................................................................................................................................3
Rationale....................................................................................................................................3
Aims and Objectives.................................................................................................................4
CHAPTER 2: LITERATURE REVIEW.......................................................................................5
1. Impact of the corona virus (Covid 19) on businesses.....................................................5
2. Decision-making process of SMEs in the current pandemic time period....................5
3. Major challenges faced by small and medium-sized businesses due to Covid 19....6
4. Key opportunities for SMEs placed and prepared...........................................................6
CHAPTER 3: RESEARCH METHODOLOGY..........................................................................7
CHAPTER 4: RESEARCH AND FINDINGS.............................................................................9
Themes.......................................................................................................................................9
Findings....................................................................................................................................12
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................12
CONCLUSION.............................................................................................................................12
RECOMMENDATIONS..............................................................................................................13
REFERENCES............................................................................................................................15
APPENDIX...................................................................................................................................18
Gantt Chart and WBS.............................................................................................................18
Ethics Form..............................................................................................................................19

CHAPTER 1: INTRODUCTION
Background
Presently the whole world is suffering from the very negative impact of corona
virus which is also known to be COVID-19, in which government of each country has
taken different steps towards systemically dealing with this pandemic. This pandemic
has had a very bad impact on different SMEs of the United Kingdom, because small
and medium-sized businesses of this country currently do not have appropriate
customers to sale their different products and services (Küçük, Lenoël and Macqueen,
2020). The main aim behind completing this research report is to investigate the
response of small and medium sized enterprises to COVID-19 disruption: implications
for the United Kingdom (UK). Small and medium size companies are facing several
problems because o Covid 19 pandemic. The reason behind selecting this sector is
helping out them in knowing ways of running business because small and medium size
are the one who got affected the most as compared to big organizations.

Rationale
COVID-19, currently everyone knows about this term, because it is the pandemic which
has very badly affected to the human live or human civilisation. There are thousands of
businesses and companies has been permanently closed due to this pandemic.
Basically, due to stop the spread of corona virus infection, governments within almost all
countries has imposed rule of lockdown their people or businesses. In this situation,
government of the UK also was imposed rule of lockdown in order safeguarding their
people, so this pandemic and lockdown has very negatively affected to the SMEs of the
United Kingdom (Carmody and et.al., 2020). The main reason behind choosing this
topic for the research topic is to know how the sector of SMEs within the UK deals with
this pandemic. This research work will also be able to know the government’s steps
which it has taken in the welfare of small and medium-sized businesses after the
pandemic.
Aims and Objectives
Aim
To investigate the response of small and medium sized enterprises to COVID-19
disruption: implications for the United Kingdom (UK).
Objectives
 To know about the positive immediate responses for SMEs should be for
recovering from the Covid 19.
 To highly the decision-making process of SME in the time period of pandemic.
 For identifying major challenges which has faced small and medium-sized
businesses due to Covid 19.
 For analyzing key opportunities to SMEs that has suitably placed and prepared.
 To know the effectiveness of national policy interventions and schemes for
supporting SMEs.
Research Questions

 What are the positive immediate responses for SMEs to systematically recover
from Covid 19 pandemic?
 What types of decisions are taken by different small and medium-sized ventures
in the current pandemic time period?
 What are the major challenges of Covid 19 which are currently faced by different
small businesses?
 Government of the UK takes which steps for helping or supporting different
SMEs in the current pandemic time period.
CHAPTER 2: LITERATURE REVIEW
1. Impact of the corona virus (Covid 19) on businesses
According to Mason (2020), Covid 19 has very negatively impacted to
businesses of all countries and nations. Currently sales ratios and profit margins of
different businesses completely have decreased just because of corona virus pandemic.
In this situation, there are great loss has faced by different ventures of the United
Kingdom as well. Currently hospitality businesses and companies of the United
Kingdom have been fully collapsed, because these companies don’t have customers or
people within the market for selling their hospitality services. This pandemic has
affected to the businesses of other industries and sectors as well, like; retail, travel and
tourism, food and beverage, fashion etc. However, currently large-sized businesses are
able to handle this situation of pandemic, because they have very strong funding
sources. But businesses which come under the SME sector are not able to again run
their business operations in the market place. They require putting their huge efforts for
raising fund in the market place, because currently the UK’s economic is suffering from

the slowdown. There all are some major factors which show the actual impact of Covid
19 on the businesses including SMEs of the United Kingdom.
2. Decision-making process of SMEs in the current pandemic time period
As illustrated by Rapaccini and et.al. (2020) after the Covid 19, the mindset and way of
thinking of people have completely changed, and this is why top-level management of
different SMEs also has started thinking something differently for gaining proper profit
margins in the current pandemic time period as well. When SMEs do not have
customers after pandemic for selling their products, then most SMEs have taken
decision to make changes in products quality and pricing strategies. For example; some
small and medium-sized businesses have started to use proper sanitizer facility in their
workplace for making people or customers comfortable. Basically, these types of
decisions of SMEs can attract many new customers in the market place.
3. Major challenges faced by small and medium-sized businesses due to Covid 19
As per Juergensen, Guimón and Narula, (2020) the major challenges that SMEs in the
UK are facing is deeply unsettling due to worriers and disruption of the economy,
fluctuations in demand and supply, logistics and supply chain issues, consumer
behavior and purchasing power and a high decline in sales. As per the author, the onset
of the pandemic led to lockdowns across the UK which led to closing down of the
physical stores, which mostly consists of the small and medium enterprises. As per the
study, more than half of the country’s economy is stagnant and expect recession while
the other half is extremely weak. There are concerns among the SMEs regarding
defaulting loans, issues with cash flow, concerns and challenges to retain their
employees, a drop in the sales turnover, operating profit and revenue, postponing the
growth projects. There are issues of freezing of the external funding, immense cash
crunch, a high plunge in the creditworthiness and ratings, a lack of recapitalization, high
uncertainties and fear of going of business, delay in lockdown, backlash, inability to
catch up with the online and digital markets etc. (Guimón and Narula, 2020).
4. Key opportunities for SMEs placed and prepared
According to the study by Rowan and Galanakis, (2020) the major threats that SMEs
around the UK are facing are in terms of uncertainty, revenue impact, drop in the