Impact of COVID-19 on Business Environment of SMEs

Individual Essay

TABLE OF CONTENTS
IMPACT OF COVID-19 ON BUSINESS ENVIRONMENT OF SMES.......................................3
REFERENCES................................................................................................................................9

IMPACT OF COVID-19 ON BUSINESS ENVIRONMENT OF SMES
SMEs or Small and Medium-sized Enterprises are the businesses which have revenue, turnover
or total of balance sheet, assets, investment and staff headcount i.e., the number of employees
below a certain mark or threshold. In UK, the threshold for Small-sized enterprises is generally
less than 50 employees, turnover of equal to or less than € 10 million and the medium sized
enterprises have less than 250 employees, and turnover of equal to or less than € 50 million.
Business environment consists of various factors that have direct or indirect impact on the
organisation. The organisational structure and its culture, objectives, manpower, physical and
financial resources, technological resources, organisation’s goodwill, mission, etc. are part of
the organisation’s internal environment which can be controlled by the business(Möller,
Nenonen and Storbacka, 2020). The factors that are outside the organisation and beyond its
control form the external environment which is generally the conditions the organisation works
in. The external environment is beyond the control of the organisation.