Impact of COVID 19 on Small Business: A Case Study on Home Bake

This dissertation examines the impact of COVID 19 on small businesses, with a case study on Home Bake. It explores the ways in which Home Bake is affected by the pandemic and suggests strategies to overcome the impact. The effectiveness of small business strategies in dealing with the pandemic is also evaluated.

Dissertation

Title:
To examine the impact of COVID 19 on the small business. A case study on home bake.
INTRODUCTION
Research aims
The main purpose of this research is determine the information about the influence of
current pandemic situation on the small business in UK which are situated as high street shops.
So the aim of the company is:
“To analyze the impact of COVID19 on the small business. A case study on Home Bake.”
Research objectives
· To understand the impact of COVID 19 on small businesses and business of Home Bake.
· To investigate the different ways trough which Home Bake affected by the impact of
COVID 19.
· To explain the different strategies and plan that can consider by Home Bake in order to
overcome the impact of COVID 19.
· To evaluate the effective of strategies that use by small businesses in order to deal corona
virus pandemic situation.
Research questions
· What is the impact of COVID 19 on small businesses?
· What is the influence of COVID 19 on the business of Home Bake?
· What are the different ways through which Home Bake affected by the impact of COVID
19?
· What are the different strategies and plan that can consider by Home Bake in order to
overcome the impact of COVID 19?
· What is the effectiveness of strategies that use by small businesses in order to deal corona
virus pandemic situation.
Background of the Dissertation
In current corona virus pandemic situation, the entire business world is highly affected in
unfavorable manner. COVID 19 and the resulting economic volatility has had an important
influence on small business crosswise the UK. The pandemic threatens the mental wellbeing of
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the small businesses owners and self employed which make up the backbone of the nation’s
economy in unprecedented forms (Bartik and et. al., 2020). This matters on more than just a
personal level, as when small businesses’ owner feel well, they are more persistent, productive
and innovative as well as their business perform and operate in effective manner. Small business
makes an effective contribution in the economic development of UK which is account for 50%
of the total profit generated by UK business (How the COVID-19 crisis is affecting UK small
and medium enterprises, 2020) . But with the current pandemic situation, causing a crisis that
highly affects the small businesses. The current dissertation will also cover information about the
impact of COVID 19 on the small businesses. For the completion of this research, Home Bake is
considered. This was incorporated in 2016, with a view to helping others create delicious baked
goods at home. It is situated in Queen St in the stunning historic town of Southwell,
Nottinghamshire. They offer a range of goodies, from ready to roll icing in a rainbow of colours,
to cake toppers and edible glitter. Also, they are always on hand to provide advice and direction
with any project from piping to a tiered wedding cake.
Along with this, the current research assessment will consider information about the
research aim, objectives and research questions, background, significance of the dissertation and
the research statement. Furthermore, the report will explain about the research framework,
research problem and the statement of the study. In the last, a brief summary will explain about
the specific area and theme of the research in an appropriate form.
Significance of the Dissertation
The key essentials of this research study is that it will provide deep and brief information
about COVID 19 and the impact of it on small business as well as the influence which is made
by it on the business operations and activities. The purpose of the project is to test the
independent research abilities that investigator have obtained during their time of performing
regarding project (Bartik and et. al., 2020). Additionally, this dissertation is significant as it
provide the exploration, discretion and explanation about the chosen area of research. As well as
this study is crucial because it provide detailed information about the impact of pandemic
situation which highly affect the small business like Home Back which are operating their
business in UK such as High street with the aim of offering quality services to people and
fulfilling their needs by providing commodities as per the requirements. Also, this is significance
for the researcher because it enable in developing research skills of individual and offering
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knowledge about different area as well as improve their information and enhance experience.
Along with this, it will be beneficial for the investigator in future when the individual will
perform regarding similar kind of research project. Then it will provide an effective support to
researcher in meet the research requirement in developed manner. The main significance of this
research is to offer information about the research problem so that further research can be
conducted in effective manner (Fairlie, 2020). Also, it is important because the research can
discuss the implications of the potential outcomes that based on the research questions and
problem statements or the phenomenon of research.
The Research statement
This current research and dissertation is outlined the information and study about the area
of impact of COVID 19 pandemic on the small business of UK. With the use of effective tools
and techniques, the investigator will collect information about the research topic that how this
pandemic situation affect the business of Home Bake, Along with this, the key statement of it is
the to explain the information about the measures and strategies which are considered by the
small firm in order to deal with the challenges of epidemic. In order to collect data in order to
meet the aim and objectives of the research, the individual set goals. For example, to collect
information regarding the deigned objectives by using effective methods and tools as well as
techniques of research and data collection so that appropriate findings can be collected in
appropriate form. Along with this, the goal of this investigation is to briefly monitor and examine
the impact of existing pandemic situation which imposed the unfavorable impact on small
businesses in different manner like reducing profits, consumer base, sales and many more
(Humphries, Neilson and Ulyssea, 2020). Along with this, the research statement is crucial
because it offers some guidance in setting up a research questions and serves as an introduction
to the resultant dissertation. Additionally, this statement of research will support the research in
structuring the research as per the designed aims and objectives in more significant manner.
Structure of research
The research framework supports theory of the research study which in the case is impact
of COVID-19 on small business firm. This current research project will consider different
sections like Introduction, Literature review, methodology, results, discussion, result and
discussion, conclusion and limitations. Within the introduction part, the investigator will explain
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information regarding research aims, objectives and questions on the basis of research title and
topic. Moreover, this segment considers information about background of the research by
explaining the COVID 19 and its impact on business as well as the selected business which
suffer the issues of this pandemic. Additionally, the description is also provided about the entire
research framework (Cavallo and Forman, 2020). The introduction part is also covering different
topics like rationale of research, significance of research, statement of study, research problem
and brief summary. The rational segment demonstrates about the reason behind conducting
research about the particular area of investigation. Whereas the significance area explain the
usefulness and essentialness of the research and how can be useful in context of researcher.
The literature review section will provide a brief explanation about the selected area of
research. The literature review focuses on identification of effect of COVID-19 on small
business organisation in the UK with information related to the impact of strict trade restrictions
imposed by the British government on the small and medium enterprises in UK. In addition to
this the literature review looks at the impact of COVID-19 on small business organisation
operating in the food industry with specific focus on eating establishment. This is the specific
industry as the selected organisation Home Bake is small enterprises which is a part of the
British food industry. The strategies for reducing negative impact of COVID-19 on small
business enterprises is also provided in this section of the research. Main strategies covered here
are suitable for small business enterprises. Evaluation of success of these strategies is also
provided in this section with the aim of identification of their contribution in helping small
business enterprises recover from COVID-19 .Methodology section considers information about
different research methods and tools which are considered by the researcher in order to collect
information with the aim of meeting the requirement of research objectives. The result section
will consider information in statistical, graph and charts form. The results from this section are
helpful in understanding the effects of COVID-19 on small business enterprises operating in the
British food industry with specific focus on eating establishment. Objective data a out various
strategies adopted by small and medium-sized sized eating establishment of UK to survive in the
pandemic is provided through this part of the investigation. This is helpful in understanding
effectiveness of various strategies. Discussion describe about the interpretation of the elements
which mention in the results section. Results and discussion will cover information of findings
and discussion in accumulation form. In the end, conclusion of the whole project will present and
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limitations of the research will explain that face by the investigator in order to meet the
expectations of the research or dissertation.
Research problem
This is a statement about an area of concern, a condition to be developed, a difficulty to be
eliminated or troubling questions which exists in scholarly literature, in theory or in practice that
points to the need for meaningful understating and deliberate. In current project or dissertation,
the research will present information about the impact of COVID 19 on the small business of
UK. In addition to this includes description of the impact of COVID-19 on various business
aspects of small firms in UK, the steps taken by surprise small firms and the impact of financial
aid provided by the government to small businesses firms. Food industry in particular is selected
for understanding the changes created by COVID-19 on the food industry. The eating
establishment sector in particular is the focus of identification of change made by COVID-19 on
food industry. Strategies for small business enterprises from food industry in particular to survive
in the pandemic is also provided in this section. Furthermore, strategies assisting small business
organizations in financially recovering from the negative impact of COVID-19 are also provided
in this part of the research. Within this study, the research will further to get more information
about the research topic and problem. In addition to it, this section also consist the information
about the issues which are faced by the researcher in order to organize and conduct investigation
in more appropriate form. So within this current project, the surveyor can face issues regarding
time, cost and collection of data (Ferneini, 2020). This research is based on an important topic
which requires more and detailed information to meet the objective of it. So in context of it, the
individual can face lack of time issue because the person can be required more time to present an
appropriate study. Apart from this, the researcher can need more cost so that the data can be
collected in efficient manner with the support of appropriate equipment.
Rationale of for conducting research
The reason behind the organizing this research is to get brief information about the impact
of COVID 19 and analyses the influence of corona virus pandemic over small business firm. By
conducting this research, the barriers faced by small business organisation can be determined, the
impact of COVID-19 on small business forms operating in the food and confectionery industry
can be understood in profound manner. Also reason is that the person can assess the strategies
and plans which are used and opted by small business in order to deal with influence of current
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epidemic (Tkach and Kurpayanidi, 2020). With the organisation of this study, investigator can
monitor the significance the strategies which are imposed by small businesses to deal with its
impact in long run. It is also beneficial for the research at personal level, because working
regarding this research project, the individual can make development and enhancement in
knowledge and information about particular topic. Moreover, this also beneficial for the
individual to make improvement in different skills like research ability, time management,
technical skills and many more. This research is useful in gaining an understanding about
process of completing a research in a timely manner which will assist in effective completion of
the any future research.
Summary
Form the above information, it has been summarized that this introduction section define
information about the research aim, objective and questions which are the key aspects of the
research because the entire and overall project is based on the aims and objectives. Furthermore,
the segment will consider data regarding research background which consist brief explain about
the content on which the whole project is based which include about impact of COVID 19 on
Small business, company information and the report structure. The effects of COVID-19 on
various aspects of small business enterprises is involved in this part such as impact of strict trade
regulation on British small firms. Moreover, the importance of research is defined which
demonstrate the essentialness of the dissertation by presenting its significance (Huang and et. al.,
2020). Also, research statement and structure part are explained with the consideration of data
about sections which the overall project is included. Research problem described about the issues
and limitations which faced by the researcher in order to conduct this research. The final section
of rationale of research define the reason behind the organisation of study be explaining an
effective justification.
Literature review
Theme: Consequences of COOVID-19 on small business forms in UK.
According to Dimson and Sharma (2021) many small business forms in Britain had been
struggling to make enough money to cover daily expenses. The strict trade restrictions imposed
by the UK government had demotivated small business owners last year as they feared that their
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business might not be able to recover from the pandemic. 52% of the 653 small business owners
surveyed by the authors stated that if the conditions remain the same, there firm will have to
wind up their business in less than timespan of twelve months. This has direct affect on the
British economy as SME account for 50% of the total revenue generated by UK based
organizations. The November 2020 survey depicted improvement in revenue of SME but the
pandemic has been for certain industries as the respondent stated no sign of financial recovery.
One of the worst hit industries suffering financially from the spread of COVID-19 is the food
and accommodation industry. The survey respondents from this industry stated that there were
no improvement in revenue generated in November as compared to May 2020. The education
and wholesale industries showcased similar pictures as small business owners from these sectors
faced unimproved situation in terms of increased revenue. The November 2020 survey depicted
that small business owners are optimistic about future of their business as they fell that the
economic conditions of the country will recover after reduction in COVID-19 cases. The main
impact of the COVID-19 pandemic has been on the economic situations of the small business
owners.
Mutation of virus to form a new variant large amount of cases lead to imposition of strict
business restriction which created dire situation for UK small business owners. This resulted in
some industries such as the food and accommodation industries not being able to make enough
earnings to repay loans or leases. The optimism surrounding the better future of the lockdown
will either be elevated by effective distribution of COVID-19 and financial assistance from the
government government or decreased by extended lockdown and spread of the new variant of the
virus. Employment opportunities at small business organisation in UK is also affected by the
spread of COVID-19 virus. This impact is faced by both small and large scale organisation by
small scale organisation. It is found that many small business firms are aiming to furlough some
of their staff as a measure for reducing the loss the economic adversity created by the spread of
the virus. In addition to this respondents of the survey have stated that by November on an
average 23% of their staff had been laid off because of low revenue of their enterprise. Low
economic activity in Britain due to the pandemic has affected the growth strategies of many
small business organisation. Instead of seeking growth opportunities, small business firms are
currently focusing on ensuring that the earn enough income for completing their daily business
activities. They have to postpone various growth prospects in order survive such adverse
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conditions and recover from the negative effects of such conditions as soon as the British
corporate world returns to normalcy (UK small and medium-sized enterprises: Impact of the
COVID-19 crisis, 2021). Financial aid provided by the government is helpful for many business
owners to keep their business running during such low economical environment. Many small
business organisation are aiming to apply for the furlough plan of the British government while
others are planning to get a loan to secure financial resources for an uncertain future. The furlong
scheme of the British government provides financial aid to cover some parts of the employee
remuneration of workers on temporary leave (furlough). This is also known as employee
retention and is implemented in order to help firms affected by the COVID-19 pandemic. The
uncertainty related with the COVID-19 virus is another factor which has demotivated small
business organisation about future development. Deferral of tax payment is another type of
government assistance which is helping small and medium businesses survive in the current
situation.
Theme: Influence of COVID-19 in changing the food industry.
As per the view of Nunn (2020), the COVID-19 pandemic has affected the British food industry.
It is because of the widespread virus infection that the food industry is facing transformational
change which includes restaurants, eating establishment and confectionery. The impact of this
pandemic has made a long lasting impact which will be seen even after the pandemic is over.
During the lockdown, imposed by the UK government restaurants and eateries all across UK
were closed down. This affect of the lockdown can be directly seen on the food industry as
London which is the food metropolis of UK had all of the restaurants closed down because of the
restrictions of COVID-19 lockdown. COVID-19 has shown various defects in the British food
industry and primary the eating establishment located across the country which makes this sector
vulnerable to sudden environmental change. Tight cash flows, high overhead and reliance on
tourism are some of the aspects of small restaurant and eating establishment in London which
have lead to decrease in profitability during the pandemic (Restaurants will never be the same
after coronavirus- but that may be a good thing, 2020). Confectionery, bakery, restaurants,
eateries, coffee shop and other small businesses rely on income from tourism to gain
profitability. This source of income completely stopped after global spread of the pandemic
which had negative impact on small eating establishment of UK. The pandemic has resulted in
closing of sit down service in restaurants, eateries and confectionery. This has affected restaurant
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which use this service as main source of income and establishments which are able to provide
delivery services are seeing huge increase in influx of consumers. The pandemic has created
work from home situation for many consumers which has affected time at which online
deliveries and orders are made. Consumers are ordering on weekdays and weekends by a similar
amount which has increased orders at establishment with online ordering throughout the week. In
addition to this another change in the consumer behavior created by the pandemic is that
consumers are taking more time weighing alternatives in order to select the most affordable and
high quality eating establishment. This change in consumer behavior is attributed to the
pandemic as the work from have given consumers more time while the deteriorating economical
condition all over the globe has encouraged consumer to spend their time looking at options to
purchase high quality services at affordable price. This consumer thinking towards finding value
for money has affected the eateries sector as the most firms aim to provide high quality products
at competitive pricing in order to attract consumers. Another factor impacting the food industry
and primarily the eating establishment sector is that as consumers have more time on their
hands , home cooking seems the most affordable option for many consumers which were not
able to purse home cooking due to busy schedule. These types of consumers have increased
competition for eating establishment which only offer cooked meals. In the other hand
organisation which offer ingredients rather than cooked meals such as meal kit firms and
confectionery businesses which provide baking equipment and ingredients Most small eating
establishment in UK do not have sustainable business model which was showcased during the
pandemic and was another reason behind restaurants and eateries closing up. It is essential for
eating establishment to change their ways and adapt to online ordering so that they can survive
the pandemic and recover from financial losses in a swift manner. This economic and social
crisis has changed the English food industry and will result in evaluating the fundamentals of an
eating establishment. A change in the food industry in Britain which is caused by COVID-19 is
that business are focusing on creating business models which are suitable for eating at home. It is
essential for members’ of the food industry to understand reasons behind their vulnerability and
take action to adapt with envious changes in the external environment.
Strategies for facing COVID-19 for eating establishments
According to Roberts (2020) COVID-19 has created a business environment which is hostile
towards every industry. The food industry and particularly the eating establishment and dining
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sector is one of the main industries facing harmful consequences of the COVID-19 pandemic. In
case of small and medium-sized businesses from this sector, the pandemic has created frightful.
circumstances. Small eating establishment which provide online ordering face high influx of
consumers while enterprises which have limited delivery and online payment options are
struggling to survive in this already competitive sector. It is important for business firms to
create and utilize an effective strategy for surviving such difficult times.
The primary strategy for a small business in the eateries business is to utilize technology to gain
competitive advantage. In the digital age consumer expects to order and pay for their food
products, cooked meals, ingredients and equipment with the help of digital medium. Small
business firms need to construct user friendly website which is updated regularly is a necessity to
operate in an environment which does not facilitate in store visitation. In addition to this small
business owners need to provide navigation facility on their website which enables consumers to
track the progress of their order in real time ( 5 Strategies to survive the COVID-19 Business
environment, 2020) Facilities which assist in contactless payment, self ordering systems and
customer followed engagement loyalty programmes application which increase consumer
visitation are essential pieces of technology for eating establishment such as confectionery and
restaurants.
Usage of digital technology for online payment and ordering allows small business firms to gain
access to consumer contact information such as phone number and e-mails. This can be used by
small business firms to stay in contact with the consumer. Small and medium-sized eateries need
to communicate with the consumer about special offers and built personalized interactions to
gain loyal consumer base. In addition to this the focus of such establishment needs to be on using
communication channels to promote safety and hygiene measure taken at the store. This will
increase consumer confidence in the company and ensure increased revisits by consumers after
dining services are opened.
Cost reduction is another suitable strategy for small and medium-sized enterprises operating in
the confectionery and restaurants industry. The harsh economic conditions have forced
consumers to look for the most affordable options and slightly higher prices can lead to loss of
consumers. This strategy is less of an option and more of a necessity to stay ahead of the
competitors in the current pandemic infested world. It is important for business firms to utilize
competitive pricing strategy as it helps the company survive in turbulent corporate world.
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Confectionery and meal kit firms which offer uncooked food items and ingredients can gain
success with the adoption of this strategy as many consumers are focusing on home cooking due
to work from home situation.
Providing consumers unconventional offers and creative services is another strategy which is
suitable for this time. This could include offering confectionery products as a batch for baking
particular dish as a combo offer. This will help the company attract consumers and stand out
from their competitors. This is essential for surviving in an uncertain time. In addition to this,
gaining financial aid from the government for technological improvements or conducting daily
operations need to be considered by small business organisation so that they are able to compete
with global firms. Businesses which are able to swiftly utilize new operational strategies as a
response to changes in the external environment will emerge successful from the current
pandemic and make recovery from frightful financial conditions as soon as possible.
Theme: Primary plans of small businesses firms in successfully overcoming negative effects of
COVID-19
As per the view of Holloway (2021), in order to overcome the negative effects of the COVID-19
pandemic small business firms need to divert their focus from pondering about the barriers of the
past year to evaluate business operations and formulate an effective strategy for the future. The
primary focus of small businesses organisation is to create strong online presence. The reason for
using this strategy is to attract large amount of consumers to the company and drive online sales.
The adoption of this strategy involves creation of an attractive and easy to access online website.
The focus of this strategy is to ensure that clicks are converted into sales in an effective manner.
SEO is an important strategy as it effectively directs potential consumers to the company
website. Social media content of the company needs to be used in a way which helps the
company stand out from the competition and connect with possible consumers of the firm. Small
businesses need to identify cost effective ways of social media marketing such as boosted
advertisement and posts in order to gain popularity on social media sites. This strategy is
effective for small business organisation as it is a cost effective method for connecting with the
consumer. In addition to this the increased online purchase is another factor contributing to
increasing effectiveness of this strategy. The pandemic has created an environment where
consumer and business firms are dependent on digital technology to communicate with each
other. It is important for small business owners to build a strong online presence in order to
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survive in an environment where consumers seek and pay enterprises with the help of online
mediums.
Connecting with the local community is another useful strategies which is suitable for small
business enterprises (Covid-19 Survival Guide: 4 Strategies for Small Businesses in 2021, 2021)
This strategy revolves around reaching out to the local community and helping them in various
ways. The charity conducted need not be huge donations but small efforts for betterment of the
community are part of this strategy. In case of small enterprises struggling with making
survivable earnings, community engagement is specifically effective. The reason behind this is
that local community recognises these efforts and are inclined towards helping small business
firms stuck in dire situations. In context of small business enterprises which are considerably
well off compared to struggling business firms need to utilize this strategy as it increases positive
reputation of the company. The goodwill generated from this type of community engagement
during turbulent times go a long way and will be recognised by consumers for a long time
period. This strategy is effective as it creates bonds with local community which not only help
the small business firm survive the pandemic but also contribute to recovery of the organisation
as corporate state of the world returns to normal.
Expansion of services or products is another strategy which involves creation of new service to
meet changed consumer demand and priorities. Adaption is the key for surviving in such times
and it is important for business firms to change their offerings according to tight economic
situation. Small business owners need to focus on providing affordable offering to their
consumers and focus on up-skilling so that new and unique offerings can be given to the
consumers.
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Humphries, J. E., Neilson, C. and Ulyssea, G., 2020. The evolving impacts of COVID-19 on
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WELCOME TO HOME BAKE OF SOUTHWELL. 2020. [Online]. Available Through: <
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