Impact of Covid-19 on SMEs and Role of UK Government in Supporting Them

CONTEMPORARY
BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Role of the UK government in supporting the SMEs during the Covid-19:...............................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
SME- small to medium-sized business, works as a principle driving force in development. Small
and medium-sized businesses are the non subsidiary bodies or independent firm that employ less
number of employees as per the stated numbers (Koirala, 2019). The relevant numbers in such
firms are 250. In the further report based on the SME'S discuss what are the key challenges faced
by the internal environment. This report also discuss the strategies of the interaction with
external environment in the last two years and also the role-played by UK government in
supporting the small and medium-sized business in the crucial times of Covid-19.
MAIN BODY
Let's talk about the key challenges faced by the internal environment of SME'S that interacted
with the external environment:
1. Covid-19: The Covid-19 not only impacted the health of the different nations but also
caused the high level of deficiency to the businesses functioning on large scale and many
of the business functioning in the small-medium sized industries. The impact of Covid-19
raised some major questions a) how the economic disruptions caused by the Covid-19
will be adjusted by the small scale businesses. b) how long the crisis would last and how
much the expectations of the businesses are affected. c) how alternative policies affect the
business and in how much time the employment problems will be cured off. The
pandemic has caused the massive dislocation of the small businesses and many of the
new start-ups just after its onset (Müller, and et.al). COVID-19 as a external factor
affected the internal factors of business:
 Marketing : It affected the marketing policies of the business which affected every
aspect of the marketing as crises challenged the in depth core of the businesses. In this
time many of the businesses suffered from the unattainable commerce and some tackled
too much demand, in the case of the small businesses they left their marketing and the
businesses are turned off by putting it out of the business. The effect of Covid caused
huge losses to the businesses functioning on the lower levels and the businesses have lost
their self-esteem. This put businesses on the condition of the reinvention by leaving the
survival behind to cure the losses caused by the pandemic. The pandemic put the big
brands to adapt the policy of digitalization and online platforms as the mobile phone in