Impact of Covid-19 on Small and Medium Businesses in UK - Quantitative Data Analysis Report

This report sheds light on the impact of Covid-19 on small and medium businesses in the UK. It analyzes official statistics to determine the negative impact on business operations, unemployment rates, and customer demand. The report also identifies ways in which businesses were affected and how it impacted their overall performance during and post Covid-19.

QUANTITATIVE DATA ANALYSIS REPORT

EXECUTIVE SUMMARY
The entire report shed a light upon different ways through which pandemic affected the
small businesses in UK. For that, official statistics has been taken that determine in how many
ways Covid-19 affected the entire business operations in adverse manner. Such that it highly
affected unemployment rate of a country because range of companies force employees to leave
the business. Also, the demand of a customers also affected adversely such that customers do not
spend to buy anything because of lower down the economic rate of a country. Further, it has
been identified that there is a negative impact upon the business operations and that is why, it
affected the overall performance of a company during and post covid-19.

Table of Contents
INTROUCTION .............................................................................................................................3
Aim..............................................................................................................................................3
Literature review.........................................................................................................................3
Data analysis ..............................................................................................................................6
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

Topic: To identify the impact of covid-19 upon small and medium businesses over the UK
sector
INTROUCTION
Pandemic affect the entire business in opposite manner because it leads to shut down the
businesses and this in turn affect the performance of company adversely. Similarly, the present
study is also shed a light upon its impact over the trade and businesses. Further, the report is
based upon secondary data collection methods only where authentic sources considered in order
to meet the defined aim. The chosen business problem for this report is to determine the impact
of pandemic over the SME sector in UK because it is affected the most and for that government
also offer range of grants in order to improve the business operations. Moreover, the report will
also assist to determine different ways through which businesses affected and this in turn causes
direct impact over the company as well. Further, with the help of official national statistics
sources, the report will determine ways through which small businesses affected negatively and
this in turn affected the demand of customers as well. Also, report uses secondary data
collection method in order to develop brief thesis that assist to determine the impact of covid -19
upon business performance in which data is supported through different authors and with the
help of findings, study will determine range of ways through which the data can be presented.
Aim
The aim of the study is to determine the impact of pandemic upon UK small and medium
businesses by considering different elements within a study.
Literature review
According to Victor and et.al. (2021) SME sector of UK contribute to 47% to the
economy of UK and that is why, it can be stated that it is a key role in boosting the productivity
of UK that increases the brand image at global level. From the results generated through
McKinsey survey, it has been analyzed that the sector has thrive due to tough trading restriction
which imposed during covid-19. This in turn reflected that there are major areas which are highly
affected due to pandemic and this in turn worrying the owner because they do not have any
options that can be used to improve the business performance. However, Juergensen, Guimón
and Narula (2020) critically analyzed that the revenue of SME fallen in May 2020 whereas they
also gain their market from November 2020.

According to the secondary data, the above image clearly reflected that the sales is
improved from November and this is because there were no restrictions imposed during these
days and that is why, the company increases their sales by contributing their part towards a UK
economy (UK small and medium size enterprise: Impact on COVID 19, 2021).
In the opinion of Melnyk and et.al., (2021) there are many sectors that affected negatively
and they also took enough time in order to recover from the same that helps to improve the
business performance. The resource also reflected that unemployment rate also arose by 5% and
this in turn indicate that there was loss of jobs that also consider negative impact over UK
economy. Not only this, most of the SME sector also faces range of challenges due to pandemic
which includes that travel and tourism sales fall due to banned of tourism and this affect their
performance in negative manner. Also, Hurley and et.al., (2021) argued that the trend in SME is
completely changed after pandemic because the turnover and employment decreases quickly that
affect the business performance in negative manner. This in turn affect growth of a companies
and also experienced a decline in turnover than employment where government also support to
provide grants.
Belghitar, Moro and Radić (2021) investigated in their study that nearly half of the UK
manufacturers recover soon at the end of 2020 and this is because government offer range of
grants to the businesses in order to revive them back to their original position. It is so small

businesses contribute 50% to the UK economy and that is why, government focuses upon this
area so that the business can earn profit. During the pandemic, government offers range of
facilities however, stockpiling is consider one of the major issue in other countries. It is nit
highly affected in the areas of UK because government makes enough preparations in order to
improve the business performance. The survey conducted from the Lumina intelligence stated
that 34% of UK consumer either have or considering the food and drinks before the end of 2020
and this in turn lead to increases stockpiling. Brown and Cowling (2021) critically evaluated that
this challenges lead to increases the product shortage and lack of lorry drivers also increases the
issue among UK SME.
Overall, it has been reflected that there is a major negative impact identified upon SME,
but with proper grants from government, the sector recovered soon. This in turn reflected that
there was a great loss of skilled employees and this contribute to increase the unemployment
rate. Along with this, it has been identified that the demand of customers also decreases and that
is why, it affected the supply rate of SME as well.
Research Methodology:
Research type: For the present study, quantitative research type has been adopted that
helps to meet the defined aim of a research. Here, numbers, facts and figures has been used in
order to determine the results pertaining to chosen aim.
Data collection: There are two types of data collection i.e. primary and secondary where
only secondary data collection methods has been adopted. In this, only official sites considered
and relevant books and journals chosen in order to generate the best outcomes regard to chosen
aim.
data analysis: In order to present the data collected from ONS, thematic data analysis has
been used where different graphs and charts used to present the findings that helps to meet the
defined aim. Through this, data can be interpreted according to themes so that impact of covid -
19 can be determine upon SME sector of UK.

Data analysis
Question: Are you expecting to temporarily or permanently close any sites in the next two
weeks?
Interpretation:
The majority of the business houses are expecting to close the site temporarily or
permanently in the next two weeks. This is a common perception of all the business houses due
to covid pandemic situation. As the crisis could drag the business venture to suffer in delivering
the business operations which will result into closure of sites.
Question: In the last two weeks, how has the coronavirus (COVID-19) pandemic affected
your business's turnover, compared to what is normally expected for this time of year?
0 - 9 10 - 49 50 - 99 100 -249
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
6.2% 9.0% 9.6% 9.9%
68.0%
75.7% 78.8% 79.0%
15.9% 12.1% 9.2% 9.0%9.9%
3.2% 2.4% 2.2%
Yes
No
Not sure
Not applicable
Illustration 1: No stites to be closed UK small and medium size enterprise: Impact on COVID
19. 2021

Interpretation:
As per the views given by majority of respondents it can be stated that in the pandemic
turnover of the company do not got affected. This is indicating one aspect or fact that the
pandemic situation could not affect and influence the turnover situation of the business house.
Question: Has your business exported goods or services in the last 12 months?
*
*
*
*
0 - 9
10 - 49
50 - 99
100 -249
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4
1.0%
2.1%
1.5%
2.4%
2.8%
4.2%
4.5%
6.5%
33.9%
30.7%
36.3%
34.0%
14.6%
17.7%
20.3%
22.6%
17.1%
21.5%
17.2%
15.4%
19.7%
16.4%
11.6%
9.9%
Turnover has increased
between 20% and 50%
Turnover has increased by up
to 20%
Turnover has not been affected
Turnover has decreased by up
to 20%
Turnover has decreased
between 20% and 50%
Turnover has decreased by
more than 50%
Not sure
Illustration 2: Turnover not affected in covid UK small and medium size enterprise: Impact
on COVID 19. 2021

Interpretation:
The majority of business venture did not find it able to export in the last 12 months. This
is clearly indicating about the downfall of business houses witness in the previous one year. The
pandemic situation could completely demolish the economic activities at the international level
which also resulted into downfall in business operations.
Question: How has your business’s exporting of goods or services been affected by the
coronavirus (COVID-19) pandemic in the last two weeks?
0 - 9 10 - 49 50 - 99 100 -249
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
11.7%
18.0%
29.6% 32.9%
84.3% 80.3%
69.0%
63.6%
4.1% 1.7% 1.4% 3.6%
Yes
No
Not sure
Illustration 3: No export made in last 12 months UK small and medium size enterprise:
Impact on COVID 19. 2021

Interpretation:
The majority of opinions of the respondents did disagree that the pandemic situation cold
get influence due to the pandemic or covid situation. This is a key feature associated with the
business entity to not to get affected due to the pandemic situation.
Question: Has your business imported goods or services in the last 12 months?
0 - 9 10 - 49 50 - 99 100 -249
0
0.1
0.2
0.3
0.4
0.5
0.6
48.1% 47.6%
52.0% 49.7%
25.7%
33.4% 35.7% 36.6%
5.7% 2.6% 4.0% 2.4%
5.7% 6.7% 4.5%
8.7%
Not been able to export in the
last two weeks
Exporting has not been
affected
Exporting, but less than normal
Exporting more than normal
Not sure
Illustration 4: UK small and medium size enterprise: Impact on COVID 19. 2021Exports not
affected

Interpretation:
In the last 12 months business has not imported good from outside.
Question: How has your business's importing of goods or services affected by the
coronavirus (COVID-19) pandemic in the last two weeks?
0 - 9
10 - 49
50 - 99
100 -249
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
12.0%
21.3%
31.9%
40.0%
82.5%
76.2%
65.6%
55.7%
5.4%
2.5%
2.5%
4.3%
Yes
No
Not sure
Illustration 5: No important in last 12 months UK small and medium size enterprise: Impact
on COVID 19. 2021

Interpretation:
The effect of the pandemic do not include the reduction in the import for the small
business houses in the last two weeks. This is denoting that the important has been constantly
active for the small business venture to deliver the regular operations. Import is usually occur to
channelises the regular operation activity of companies.
0 - 9
10 - 49
50 - 99
100 -249
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7
13.4%
4.4%
1.3%
32.5%
56.0%
61.3%
57.5%
30.9%
29.9%
31.9%
30.6%
4.9%
1.6%
3.1%
3.1%
18.3%
8.2%
3.1%
7.5%
Not been able to import in the
last two weeks
Importing has not been
affected
Importing, but less than normal
Importing more than normal
Not sure
Illustration 6: UK small and medium size enterprise: Impact on COVID 19. 2021 import not
affected in last two weeks

Question: In the last two weeks, did your business use logistics services to distribute goods
or services produced, within the UK?
Interpretation:
The majority of the small business houses operate in the United Kingdom do not need
logistic services. As the small business houses usually contain a small operational budget which
motivate them to skip the outsourcing services.
Question: How did the prices of goods or services sold by your enterprise change in the last
two weeks, compared with normal fluctuations?
0 - 9 10 - 49 50 - 99 100 -249
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
16.9%
26.4%
35.3% 36.6%
1.0%
74.5%
69.5%
60.7% 58.4%
7.6% 3.5% 3.5% 4.7%
Yes
No, because we could no
obtain the UK logistics
services we needed
No, because we did not need
UK logistics services
Not sure
Illustration 7: no logistic services are used UK small and medium size enterprise: Impact on
COVID 19. 2021

Interpretation:
The price of the good sold did not change in the last two week. This is indicating with the
situation that inflation did not took it step forward irrespective of the covid 19 situation.
Question: How has the coronavirus (COVID-19) pandemic affected your business’s stock
levels in the last two weeks?
0 - 9
10 - 49
50 - 99
100 -249
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
9.6%
9.2%
9.8%
9.2%
84.0%
80.8%
81.8%
75.0%
4.1%
7.0%
6.8%
13.8%
2.3%
3.0%
1.6%
1.9%
Yes
No
Not sure
Not applicable
Illustration 8: prices not changed in last two weeks UK small and medium size enterprise:
Impact on COVID 19. 2021

Interpretation:
Stock level had no relation with the covid situation.
Question: Is your business stockpiling any materials or goods?
0 - 9 10 - 49 50 - 99 100 -249
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
3.6%
10.7% 9.5% 8.4%
22.3%
37.2% 38.9% 40.2%
10.3%
18.1%
13.0% 14.4%
1.6% 3.5% 3.9% 5.5%
62.2%
30.5% 34.7% 31.5%
Stock levels are higher than
normal
Stock levels have not changed
Stock levels are lower than
normal
Not sure
Not applicable
Illustration 9: Stock level not affected UK small and medium size enterprise: Impact on
COVID 19. 2021

Interpretation:
The small business houses in the United Kingdom are not being involved in the stock
piling activities or practices. The views stated by the majority of respondents are indicating
towards this fact.
Question: How has the coronavirus (COVID-19) pandemic affected your business's capital
expenditure?
0 - 9 10 - 49 50 - 99 100 -249
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
6.6% 7.3% 9.4% 8.3%
89.0% 89.8% 87.2% 87.8%
4.4% 2.9% 3.4% 3.9%
Yes
No
Not sure
Illustration 10: no stockpilling UK small and medium size enterprise: Impact on COVID 19.
2021

Interpretation:
The covid pandemic could not create any impact over the capital expenditure requirement
of the company. This is a fact that indicated by the majority of respondents it can be indicated
that capital expenditure did not get affected.
Question: Which governments in the UK provided the small business grant, or grants?
0 - 9
10 - 49
50 - 99
100 -249
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4
13.4%
11.4%
7.3%
4.6%
28.9%
31.3%
37.1%
34.0%
7.8%
14.3%
20.4%
26.8%
11.6%
11.5%
10.5%
11.7%
25.4%
11.8%
8.9%
6.9%
Capital expenditure is higher
than normal
Capital expenditure has not
been affected
Capital expenditure is lower
than normal
Capital expenditure has
stopped
Not sure
Not applicable
Illustration 11: capital expenditure not affected UK small and medium size enterprise: Impact
on COVID 19. 2021

Interpretation:
In United Kingdom grant is usually initiated by the UK Government in England only.
This is a key fact that could highlight in this research that the grant is only initiated in England
only. Grant is a very basic need associated with the business houses and especially in respect to
the small business houses operate in the United Kingdom this is identified as a huge financial
help or support for the business venture. The other part also initiate some kind of help but in
limited number.
Question: How much confidence does your business have that it will survive the next three
months?
0 - 9 10 - 49 50 - 99 100 -249
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.9% 1.7% 3.9% 3.1%
7.8%
20.0% 15.8% 11.0%
81.3%
71.2% 75.1% 81.1%
4.5% 6.1% 3.3% 3.5%4.5% 1.6% 3.5% 3.1%
Northern Ireland Executive
Scottish Government
UK Government - England only
Welsh Government
Not sure
Illustration 12: grant provided by UNited KIngdom government UK small and medium size
enterprise: Impact on COVID 19. 2021

Interpretation:
In United Kingdom as the small business houses contain a dominance due to the majority
of the number are belong to the small and medium scale of business venture. The stability of
these businesses give them a high confidence to survive in the next three months. The pandemic
could demolish the business growth possibility but still the financial stability and liquidity
situation allow these venture to survive for the next few months. There are only few businesses
who are not sure about the survival but majority of them are indicating and giving positive
response over the survival.
Question: In the last two weeks, roughly what proportion of your enterprise's workforce
were:
0 - 9
10 - 49
50 - 99
100 -249
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7
37.5%
46.1%
60.1%
66.4%
40.1%
39.3%
31.5%
26.1%
11.8%
8.1%
4.3%
3.0%
7.5%
5.2%
3.2%
4.2%
High confidence
Moderate confidence
Low confidence
No confidence
Not sure
Illustration 13: business survive in next three months UK small and medium size enterprise:
Impact on COVID 19. 2021

Interpretation:
The majority of the workforce in United Kingdom belong to the small scale enterprises
are working on the regular or normal pace. This is a case of majority of the small business
venture where employees are working on the regular work flow. The pandemic situation did not
influence the demand of the product in market which could motivate the business management to
sustain the normal pace.
Question: Approximately what percentage of your workforce do you expect to be made
redundant over the next three months?
0 - 9 10 - 49 50 - 99 100 -249
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
18.9% 16.6% 13.0% 10.5%
57.3%
63.5% 63.6%
58.4%
14.9% 16.1%
20.0%
27.6%
7.5%
1.5% 1.0% 1.2%
On partial or furlough leave
Off sick or in self-isolation due
to coronavirus with statutory or
company pay
Made redundant
Working at their normal place
of work
Working remotely instead of at
their normal place of work
Other
Illustration 14: workforce working on normal pace UK small and medium size enterprise:
Impact on COVID 19. 2021

Interpretation:
The views stated by the majority of business houses are denoting that 0 to 9 employees in
small business houses might enforce redundant in every organization. The number is also similar
for 10 to 49 which is 1.9, 50 to 99 that is 1.4 and 100 to 249 is 1.6%. The maximum vote is in the
favor of 0 to 9 in number.
CONCLUSION
By summing up above, it has been concluded that pandemic affect the SME in negative
manner such that there are various areas that highly affected due to Covid-19 which includes
trading, stockpiling, demand and supply etc. Through the data analysis section where, data
considered from official national statistics concluded that majority of the people stated that
demand of customer decreases whereas there is minor impact over the trading. The stockpiling
also increases for the particular areas and that is why, it affected the overall performance of
companies in negative manner.
2.5%
1.9%
1.4%
1.6%
0 - 9
10 - 49
50 - 99
100 -249
Illustration 15: workforce redundent UK small and medium size enterprise: Impact on
COVID 19. 2021

REFERENCES
Books and Journals
Belghitar, Y., Moro, A. and Radić, N., 2021. When the rainy day is the worst hurricane ever: the
effects of governmental policies on SMEs during COVID-19. Small Business Economics,
pp.1-19.
Brown, R. and Cowling, M., 2021. The geographical impact of the Covid-19 crisis on
precautionary savings, firm survival and jobs: Evidence from the United Kingdom’s 100
largest towns and cities. International Small Business Journal. 39(4). pp.319-329.
Hurley, J. and et.al., 2021. Impacts of the Covid-19 crisis: evidence from 2 million UK SMEs.
Juergensen, J., Guimón, J. and Narula, R., 2020. European SMEs amidst the COVID-19 crisis:
assessing impact and policy responses. Journal of Industrial and Business
Economics. 47(3). pp.499-510.
Melnyk, S.A. and et.al. 2021. The pandemic and SME supply chains: Learning from early
experiences of SME suppliers in the US defense industry. Journal of Purchasing and
Supply Management. 27(4). p.100714.
Victor, V. and et.al., 2021. From a Recession to the COVID-19 Pandemic: Inflation–
Unemployment Comparison between the UK and India. Economies. 9(2). p.73.
Online
Business Impact of COVID-19 Survey (BICS) results. 2020. [Online]. Available through:
<https://www.ons.gov.uk/economy/economicoutputandproductivity/output/datasets/
businessimpactofcovid19surveybicsresults>.
UK small and medium size enterprise: Impact on COVID 19. 2021. [Online]. Available through:
<https://www.mckinsey.com/industries/public-and-social-sector/our-insights/uk-small-and-
medium-size-enterprises-impact-of-the-covid-19-crisis >.