Impacts of Covid-19 on Performance of Small Business in UK

This literature review examines the impacts of Covid-19 on the performance of small businesses, focusing on Marshfield Bakery in the UK. It discusses the positive effects such as increased demand for confectionery products and the adoption of digital platforms, as well as the negative effects including revenue decline and talent management challenges.

Literature Review

Table of Contents
TOPIC: ............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
Definition of Covid-19.................................................................................................................1
Positive effects of Covid-19 on performance of Marshfield Bakery...........................................2
Negative impacts or effects of Covid-19 on performance of Marshfield Bakery........................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

TOPIC:
“To study the impacts of Covid 19 issues on performance of small business in UK. A study on
Marshfield Bakery.”
INTRODUCTION
There are changes which are analysed by small sized businesses because of Covid-19
issues. It is a pandemic situation which changed the ways small businesses operate in local area
or at global level (Bartik and Et. Al., 2020). In UK, small businesses sustained huge economic
impacts from issues associated to Covid-19. At onset of this, this type of businesses have adapted
certain operations along with processes with the aim of keeping with fast changing guidelines.
The literature review focuses towards Brexit issues and its impacts on small businesses within
UK. The aim behind literature review is to investigate positive addition to negative impacts of
Covid-19 on performance of a small business that is Marshfield Bakery.
LITERATURE REVIEW
Definition of Covid-19
In accordance to World Health Organisation (2021), Coronavirus Disease 2019 is also
named as Covid-19 which is delineated as an infectious disease that is caused through a newly
identified coronavirus. There are ample of people and businesses that are infected or impacted
with Covid-19. The viruses which causes the disease spreads generally at the time when an
individual infected is close to other one. Small droplets addition to aerosols that contains the
virus spread from nose and mouth of one person as they breathe, sneeze, speak, cough or sing.
Moreover, there are chances of spread of the virus through contaminated surfaces.
As per Greene and Rosiello (2020), about Eighty Eight percent of small businesses in UK
have exhausted their operations and existence. At same time, government of the country
supported and supports through contributing assistance to small businesses for keeping
workforce employed in the pandemic. In context to Marshfield bakery which is a small sized
business that operates in Food Wholesalers industry. It manufactures quality of handmade
biscuits, cakes and many types of seasonal confectionery commodities. Spread of Coviid-19 have
and is emotionally challenging daily activities of business in unprecedented manner. Changes in
government regulations puts huge impact on performance of Marshfield Bakery as it have to
open shops for some durations due to which its revenue generation are impacted widely. It is also
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analysed that small businesses are widely disappointed because of decline in income or making
profits. The company have deal with almost overnight shift to remote work environment and
steeped up for supporting communities, searching innovate ways to serve customers in the light
of pandemic circumstances.
Positive effects of Covid-19 on performance of Marshfield Bakery
Covid-19 outbreak is causing impacts of performances of small business in positive
manner. In context to Marshfield Bakery, Covid-19 have brought innovative meanings to
advantages that have improves demand for confectionery handmade products in the market and
lowered priority list of employees that is income protection resource. In accordance to statements
of Chetty and Et. Al. (2020), it is determined that approx one among five employees says that
working with less income is more importance in the pandemic outbreak. This reduces certain
number of costs that are related to employees and benefit the organisation in keeping talent with
it. Moreover, owner of the institution have dropped their personal spending because of which
revenues are improved that impacted positively on performance of Marshfield Bakery.
Mykytyn (2020) says that fewer small businesses have closed their outlets and shops in
their locality. By taking it as an advantage, employees and administrators of Marshfield Bakery
have made certain changes in their business processes together with practices through which
demand for handmade confectionery commodities that are offered by the entity have improved.
In the pandemic situation, the company have improved its product line that have helped in
establishing loyal customer base, meeting variant requirements of customers and supplying
relationships which leads to building a image in market that contributes in positive impacts on
performances.
Managers of small businesses have started using digital platforms in order to carry out
operations and achieving objectives in situation of Covid-19 (Ambrocio, 2021). In association to
Marshfield bakery, the company have adopted certain digital techniques that are updating
Google My Business Profile, developing Google posts, creating relevant blog posts, Hoping on
Facebook Live, Using Covid-19 hashtags and so on to communicate and remain in touch with
larger audience. This have improves customer base of the company and their number of online
orders. Furthermore, the entity have engrossed its family members for producing and delivering
products in safe and secure manner that impacted positively on performances carried out by
Marshfield Bakery in Covid-19 issues.
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Negative impacts or effects of Covid-19 on performance of Marshfield Bakery
Covid-19 is a serious situation that have disrupted businesses and their performances in
devastating manner. In accordance to Loayza and Pennings (2020) results shows that around
86% of revenues of small businesses have significantly dropped because of negative impacts of
the outbreak. The pandemic gave effected whole food industry and laid bare on its fragility. For
Marshfield Bakery, it is seemed that every minute the managers are inundated with relentless
flood of information related to Covid-19. Through having access for latest news to close shops
and many more, information overloaded is major thing which effected existence of the business
negatively and adversely. Continuously exposing towards upsetting news, managers of
Marshfield Bakery have faced anxiety at great heights that disrupted the business performance at
huge level.
As per Akpan, Udoh and Adebisi (2020), Covid -19 issues have put financial uncertainty
pressures for small businesses, this brought tough decision which impacted negatively on
performances. For instances, there was situation when employers of the company have left and in
this managers of Marshfield Bakery have to recruit right workforce. However, recruiting and
selecting people was not tough but to train them and getting work smartly done was main issue
which impacted negatively on business performance as whole focus was on recruit and selection
rather than carrying out practices.
CONCLUSION
From the literature review, it is concluded that Covid-19 is an issue that is caused by
novel coronavirus. It is effecting all types of businesses and whole economy as whole. In
relevance to small business, Covid-19 issue impacts positively on performance as it resulted in
adoption of digital means to promote and develop business, expansion of product line and
decreasing personal business spending. In contrary, negative effects of Covid-19 on performance
of business includes decline in revenue, improper talent management and closing of outlets.
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REFERENCES
Books and Journals:
Bartik, A. W. and Et. Al., 2020. The impact of COVID-19 on small business outcomes and
expectations. Proceedings of the National Academy of Sciences. 117(30). pp.17656-
17666.
Greene, F. J. and Rosiello, A., 2020. <? covid19?> A commentary on the impacts of ‘Great
Lockdown’and its aftermath on scaling firms: What are the implications for
entrepreneurial research?. International Small Business Journal. 38(7). pp.583-592.
Chetty, R. and Et. Al., 2020. The economic impacts of COVID-19: Evidence from a new public
database built using private sector data (No. w27431). National Bureau of Economic
Research.
Mykytyn, P. P., 2020. COVID-19 and Its Impacts on Managing Information
Systems. Information Systems Management. 37(4). pp.267-271.
Ambrocio, G., 2021. Euro Area Business Confidence and Covid-19. Bank of Finland Research
Discussion Paper, (4).
Loayza, N. V. and Pennings, S., 2020. Macroeconomic policy in the time of COVID-19: A
primer for developing countries.
Brown, R. C. and Cowling, M., 2021. The geographical impact of the Covid-19 crisis for pre-
cautionary savings, firm survival and jobs: evidence from the UK’s 100 largest towns
and cities. International Small Business Journal.
Online:
World Health Organisation. 2021. Coronavirus. [Online]. Available through:
<https://www.who.int/health-topics/coronavirus#tab=tab_1>
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