How has the 2020 corona virus outbreak affected SME business in the UK

This research report analyzes the effects of the 2020 corona virus outbreak on small-medium enterprise businesses in the UK. It examines the challenges faced by SMEs, the impact on the economy, and recommends strategies to mitigate the effects.

MANAGEMENT
RESEARCH

TABLE OF CONTENT
Title:.................................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Aim..............................................................................................................................................3
Objectives....................................................................................................................................3
Research Question.......................................................................................................................4
Literature Review........................................................................................................................4
Research Methodology................................................................................................................6
Ethical Issues...............................................................................................................................7
Timeline.......................................................................................................................................8
REFERENCES................................................................................................................................9

Title:
“To evaluate how has the 2020 corona virus outbreak affected SME business in the UK”
INTRODUCTION
It is research report that is based on the 2020 corona virus outbreak which has affected
small-medium enterprise businesses in the UK. Currently Covid-19 becomes major issue for
everyone because it causes lots of people suffer globally. As know Covid-19 is disease which
gives injurious impact on human body across the world. It is not only giving impact on human
being but also SME businesses. UK country still comes in early stage of the corona virus
outbreaks due to this many SME has affected because Business Interruption Loan Scheme has
reductant. It causes numerous small business unable to sustain in the market. Due to the corona
outbreak, UK has lockdown for few months that decreses GDP rate of country. While small
business losses it’s customer due to pandemic situation. Customer also avoids to go outside in
the market and prefer to stay in the home which causes SME businesses unable to attract
customer to buy products that leads economic loss (Fernandes, 2020). UK’s government also
strict for the pandemic situation so they have imposed some rules for the companies such as
SME cannot import products or raw material from other countries. Gathering of people or
employees are prohibited in the single place that causes SME businesses unable to influence high
turn over of employees as result gets negative impact on the business performance. Supply chain
of the SME companies also has impacted due to corona virus because supplier can not import
and export products to small industries on time. Inefficient availability of the raw material or
products unable to retail large number of products by SME business to the customer as result loss
in the profit margin. The report includes qualitative and quantitative method which is represented
in research work for studying and analysing effectively. The brief study provides understanding
about effective tools which applies for gathering information.
Background: This report is based on the SME businesses which are affected by the 2020 corona
virus outbreak in the UK, Europe and China. This project contains aims and objectives of the
SME businesses and includes literature reviews as well.
Aim
“To analyse how has the 2020 corona virus outbreak affected SME business in the UK”
Objectives
 To understand the concept of the 2020 corona virus outbreak.

 To evaluate how corona virus impact on the SME businesses in the UK.
 To determine challenges that arises while executing business in the UK’s market.
 To recommended effective strategies for SME businesses based on the identified
challenges.
Research Question
 What do you mean by the 2020 corona virus outbreak?
 How corona virus impacts on the SME businesses in the UK?
 What challenges faced by SME businesses while executing business in UK’s market?
 Which strategies can recommend for SME businesses while identifying challenges?
Literature Review
According to Mohajan,(2018) business is very vast industry which helps the nation’s
economy to grow and increase if potential in the global market. Due to corona virus is declared
pandemic it has affected global business organisation and reduced productivity of the business
organisation. Government has imposed lockdowns in the nation to avoid the further spread of the
virus to people which has reduces the efficiency of the management strategies of the business
organisations negatively. Covid19 is contagious human to human transferrable virus which
increased the threat in the world as the death toll of the virus increases. Panic situation is created
in the nation as all the businesses are closed except very essential businesses like, agriculture
products and grocery businesses. Healthcare business is also permitted to be running in the
nation and provide all the support to improve the efficiency to reduce the number of cases
globally. This reduces the profit margins of many multinationals and SME to survive in the
market and they have cut down much employment to survive in the market. Many countries have
not permitted any resident to come out of their house as the virus can be carried with any object
and spread vigorously. In this condition work from home situation is followed where
organisation is not able to manage their employees and implement any management strategies
due to lack of proper information and working from their personal zones. This also reduces the
efficiency of employees due to lack of motivat6ed working environment which affect missing
deadlines in companies. Pandemic increases the risk of economic crisis as many employees is
suffering from deduction in salaries which is impacting their work due to lack of proper
information and uncertainty. However, internet bases business are still having less impact due
to their digital presence which helps to increase the efficiency of those businesses to gain better

market share and innovate different services to increase their profit margins effectively. Corona
virus has cut down the disposable income of customer due to shortage of increase which reduces
the global demand which helps the company to compete in the global market effectively. There
are also many factors which have resulted in reduced effective management practices as man y
potential employees are not able to adjust in the environment and this is impacting their
performance to achieve objectives effectively. This pandemic has increased the threats in the
European Union as many corporate companies are not able to repay to their investors which is
also decreasing their goodwill in the market.
As per the view of Holmes and et.al., (2020) China was one of the major affected nation
and corona virus is affecting all the manufacturing units and reducing the supply in against the
demand of the customers. As the pandemic is very new and there is no vaccine found as per the
current information it is very essential for business to develop effective management strategies to
manage the entire available workforce to reduce the loss. Businesses are not able to recruit new
employees as all the activities are closed in major affected countries. Europe has the most
affected countries after USA. This has affected the quality of business operation to achieve the
objectives. Virtual communication is the support system of business organisation to
communicate and provide all the information to their teams to work on a project. Video
conferencing is increasing in the business organisation to follow the orders of government and
also increase the efficiency of the business to survive in the economic crisis effectively.
In opinion with McKibbin and Fernando, (2020) businesses has to improve their
efficiency to attain better strategies which can help to increase the potential of the improve the
quality of products with the digital presence and innovation of technology. It is very essential for
business to gain better information to develop technology increase the management to increase
the potential to reduce their risk. Business organisation is using risk management strategies to
ensure the safety of financial performance of the company in the market. With the change in the
process and culture company can improve the efficiency to manage the existing employees to
increase their job satisfaction and retain them in the organisation effectively. Author also states
that business management practice is very essential in the organisation as it helps the business to
understand the issue and challenges which are faced by the internal and external factors. Coronal
is the external factor and unavailability of employees is internal factor which helps the
organisation to formulate effective policies to attain core competency effectively. There are

many cases which has very impacted the management activities to compete in the market pay
salaries to their employees. Corona virus has impacted mostly every business globally.
Hospitality industry is not able to operate in this environment as it is mostly based on the tourism
which is restricted by the government of different nations. International and domestic
transportation are closed to reduce the spread of virus.
Research Methodology
Research Philosophy
To increase the efficiency there is a requirement of using this method of research. There
are two philosophies which make this research which are positivism and interpretive philosophy.
Positivism focuses on the truth and the facts and figure and interpretive philosophy is focused on
understanding the reality of the environment. It is very important for businesses to use both of
the philosophies in their organization so that there is a better functioning.
Research Type
To have better frequent activities and development there is a need of having a research
type in the organization which helps the company to have new ideas and information. There are
two types of research which are qualitative and one is quantitative. Qualitative focus on the
services and the products performance in the market so that it can be improved and quantitative
focuses on the statistic aspect of the organization so that the organization can plan strategies
effectively.
Research Approach
To get better results there is a requirement of different process and methods of data which
is known as research approach. There are three kinds of research approaches which are
exploratory, explanatory research and descriptive (Ozili and Arun, 2020). To find the answer so
specific few question there is a use of exploratory research. To get information base
understanding of taste preference, behaviour of population there is a use of descriptive research.
And to understand the influence of other factors in business environment there is a use of
explanatory research.
Research Design

There is developing of methods which can be conducted for researches in market are by
this framework called research design (Kumar, 2019). To get accurate information there is a use
of different methods and linking of them in this research which is going to be effective. There are
three types of research designing which are deductive, abdicative and inductive. This research
project has used inductive research design so that there is a better functioning.
Sampling
Data sampling is the analytical process of understanding the information in of a particular
population. Sample data is the information which is collected from the population to understand
the overall behaviour of the population. There are two types of sampling probability and non
probability. This project will use non probability sampling.
Data Collection
Data collection ski the systematic process of accumulating and measuring information of
the sample population to gain better perspective and find an effective conclusion to the research
effectively (Liu and et.al., 2020). There are two types of data collection methods primary and
secondary. Primary collection is the fresh data which is collected by the researcher and
secondary is the data which is already available and closely related to the research subject.
Report will just primary data.
Data Analysis
Data analysis is the process of filtering the collected data from the sample population to
gain information which can be used by researcher to develop effective theories. There are two
types of analysis thematic and statistical which helps to develop effective hypothesis of the data.
Ethical Consideration
It is very essential for researcher to follow all the legal procedure in order to collect data
from the environment. As they are liable of anyone is harmed in the process (Boon and at.al.,
2020). Ethical consideration is very essential to protect the rights of every person while
researching.
Ethical Issues
Corona virus is human to human spread disease which affects lungs of a person and also
causes risk of death. Due to wild spread of pandemic disease business are in ethical dilemma as

they have to survive from the economic slowdown and also understand the sentiments of
employees in this situation. Companies are not getting proper funding which is also an ethical
issue as company cannot afford to lose any employee as there can no0t be any new recruitment at
the time of lockdowns and virus spread in the world. Talent outsourcing is also not possible as
every nation as suspended international flights to avoid this pandemic disease. Many employees
are also suffering from the disease and according to insurance contract company has to pay all
expenses for employees which increase the issue due to shortage of funds (Bartik and et.al.,
2020). Lockdown is also affecting the management strategies as employees are not obeying the
instructions of their managers.
Timeline
Objectives Week 1 Week 2 Week 3 Week 4
To understand the concept of the
2020 corona virus outbreak
To evaluate how corona virus
impact on the SME businesses
in the UK
To determine challenges that
arises while executing
business in the UK’s market
To recommended effective
strategies for SME businesses
based on the identified
challenges

REFERENCES
Books and Journal
Bartik, A.W and et.al., 2020. How are small businesses adjusting to COVID-19? Early evidence
from a survey (No. w26989). National Bureau of Economic Research.
Boon, G.J and at.al., 2020. The COVID-19 Pandemic and Business Law: A Series of Posts from
the Oxford Business Law Blog.
Holmes, E.A and et.al., 2020. Multidisciplinary research priorities for the COVID-19 pandemic:
a call for action for mental health science. The Lancet Psychiatry.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Liu, Y and et.al., 2020. The reproductive number of COVID-19 is higher compared to SARS
coronavirus. Journal of travel medicine.
McKibbin, W.J. and Fernando, R., 2020. The global macroeconomic impacts of COVID-19:
Seven scenarios.
Mohajan, H.K., 2018. Qualitative research methodology in social sciences and related
subjects. Journal of Economic Development, Environment and People. 7(1). pp.23-48.
Ozili, P.K. and Arun, T., 2020. Spillover of COVID-19: impact on the Global
Economy. Available at SSRN 3562570.
Fernandes, N., 2020. Economic effects of coronavirus outbreak (COVID-19) on the world
economy. Available at SSRN 3557504.