Ethics in Research: Ensuring Professionalism and Objectivity in Data Collection

This research proposal explores the relationship between banks and small to medium-sized enterprises (SMEs) in the UK, with a focus on lending perspectives. The study aims to investigate the decision-making process of the UK government regarding SME lending and identify factors that influence this perspective. To ensure the research is conducted ethically and professionally, the researcher will consider sampling movements, respondent feedback, and data collection strategies. The study will also review relevant literature and gather primary data through various methods. The findings are expected to contribute to a better understanding of the relationship between banks and SMEs in the UK.

University
THE RELATIONSHIP BETWEEN BANKS AND SMALL TO MEDIUM SIZE
BUSINESSES IN UK FROM SME LENDING PERSPECTIVE
By
Date
Name
Lecture’s Name

THE RELATIONSHIP BETWEEN BANKS AND SME IN THE UK
Table of Contents
Introduction.................................................................................................................................................3
Literature review.........................................................................................................................................4
Small and medium enterprise and their importance in social and economy in the UK............................4
Banking support for the small and medium business and its effect..........................................................5
Social and economic conflict...................................................................................................................6
Research questions......................................................................................................................................7
Research methodology................................................................................................................................9
Research approach...................................................................................................................................9
Research design.....................................................................................................................................10
Data collection method..........................................................................................................................10
Sampling method...................................................................................................................................11
Research Equipment..............................................................................................................................11
Data analysis..........................................................................................................................................11
Access and Ethical issue............................................................................................................................13
Conclusion.................................................................................................................................................14
References.................................................................................................................................................15
Appendix...................................................................................................................................................17
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THE RELATIONSHIP BETWEEN BANKS AND SME IN THE UK
Introduction
In order to provide help small and medium size enterprise, the government of UK declared that
these SMEs had rejected for loan approval with challenger banks. In addition, according to
Budget 2014, substitute financial providers also cannot provide funds to small and medium size
enterprises who are looking for finance. On the other hand, in this research, various types of
research methods will be utilised by the researcher to conduct a successful research. Also, the
government strongly feels that through encouraging banking sectors, an affirmative action would
be taken to improve access to finance. The government rejected a large number of application of
small and medium size enterprises, and it is the first time SME borrowers rejection rate is around
50%. Apart from that, alternative finance providers with individual models of business and often
challenger banks both are willing to lend to these SMEs. Moreover, this research includes an
appropriate literature review with significant arguments and justification which can be measured
as concrete evidence. Furthermore, research methods like research design, data collection
method, sampling and the ethical issue also are explained in this study(Florio, 2007).
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Literature review
Literature review comes with the previous researchers that already been conducted. To support
the discussion of the paper literature review is vital for any researcher. However, to understand
the relationship between banks and small to medium business for SME Lending appropriate
literature reviews are given below.
Small and medium enterprise and their importance in social and economy in the UK
Small and medium size company stands for an independent business that has been established in
a small office or at home. The main feature of this business are like; employees are less than 500
and more than 200. However, this statistic stands for the medium size business (Clementina and
Kelvin, 2015). In small firms, the employee count stands on less than 100 and more than 50
employees. In microenterprise the employee, size is less than 50 and more than ten employees. In
the UK, the SME is categorised in three different aspects depending on the employee count. As
mentioned above, in the UK it is also classified in medium, small and micro enterprise
(Clementina and Kelvin, 2015).
The UK somehow depends on the small and medium business to improve their economic and
social growth. It is also suitable to call SMEs the “backbone of UK economy." Small and
medium business are generating growth in the economy by opening a new market and market
opportunities for many starts up entrepreneur. Thus, they are delivering a great scope for those
who are unemployed and also searching for any job. However, it is also visible that the
businesses are also very much encouraged by UK government (Mukwasi and Seymour, 2012).
Apart from these all, it is also noticed that many small and medium businesses got dissolved in
the UK because of lack of financial support by challenging banks and also due to less support.
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THE RELATIONSHIP BETWEEN BANKS AND SME IN THE UK
This is evident for any country to support theses all industries to make their economic growth
and also to reduce the unemployment. In recent century, much small business is not affiliated
with the government and they are also asking for financial support from banks. Due to
governmental interruption, the banks are bound to help only those SMEs who are affiliated with
the governments (Mukwasi and Seymour, 2012). In this way, many small businesses have
stopped their activities in the UK industry. The government has advised these businesses to be a
part of the government to lend from banks.
Banking support for the small and medium business and its effect
From the researchers, it is proved that the banks are the primary lending source for the small and
medium firms in the UK. British bankers association have displayed that £33bn overdraft for the
SMEs have been allocated and it is also increased to £9bn in the year of 2005 September. Is, it is
visible that the banks are encouraging the businesses. 25% of firms are taking help from the
banks to meet their financial need. Due to more support, the small businesses were seeking help
from another source of finance in the UK. The rise of overdraft was increased due to taking help
from other sources (Irwin and Scott, 2016).
However, it is noticed that many small businesses are asking for more funds from the banks
which could not be met by the banks due to administrative supervision. The government has
raised a limit to the overdraft and also have set a limit of using banking support. In this way,
many small businesses are not getting such support that they are willing to have from the banks.
Another aspect where the banks are not providing financial assistance to the small and medium
businesses is the risk of dissolving. From the year of 2005 many small and medium businesses
have stopped their operation due to lack of finance. For some inconvenience small medium
enterprise, many firms are being neglected from getting loans from the banks. From current
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THE RELATIONSHIP BETWEEN BANKS AND SME IN THE UK
research, it is accounted that the banks have approved less than eight application of 10 due to
regulatory supervision and the risk factors. Thus, many organisations are stopping their business
in the half way. So, this is a significant problem in the UK economy and social environment
where many young are unemployed (Irwin and Scott, 2016).
Another important aspect of deprived of the banking support is the renowned business who are
spreading substitute of these firms in the market. So, many companies are losing their
importance in the field of same industry. This is another reason why the banks are not willing to
accept their applications.
Contrary, the pecking order theory only stands for the large-scale American corporate venture.
Not for the small scale business. The theory says that if a person is starting his business then he
will first take help from his family, friends, and his funds and after that, the excess resource will
be made by the banks (Irwin and Scott, 2016). Indeed the personal resources are very much
necessary, but it is also noticed that if a small business takes a loan from the bank after these all
resources, he fails to close the loan. It is evident that small loans take much interest than a large-
scale loan.
Social and economic conflict
According to recent government documents, the economic value and exchange rate of the UK
depends on the business profit of small, medium enterprises (Eunni, Brush and Kasuganti, 2007).
On the other hand, there are many small, medium enterprises influence the social value of the
UK by satisfaction local customers. Besides that, small medium enterprises provide services and
products to the local region, and they have enough customer base. So, a large number of satisfied
customers have to lose their favourite companies due to lack of financial support. Aside from
that, the customers are also got angry on the behaviour of banks when small, medium enterprises
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applied for the loan. Apart from that, banks have to other option to provide financial help to
these small, medium businesses in order to expand their business. Many significant reports
proved that the banks also refuse many legal and license holding small medium enterprises for a
lending purpose. The government has apparently notified that with the help of Credit Reference
Agencies (CRA), the banks require sharing the information about their existing small, medium
enterprises customers with other lenders(DiIulio, Garvey and Kettl, 2008). Also, the government
also provides a better understanding of the small medium enterprises sectors to stimulate
competition and innovation in small, medium enterprises lending. As a result, the cost and
quality of products and services will also be measured by the decisions of the UK government.
Besides that, the owner of the small medium enterprises has to suffer for adequate funds and
forced to close the business. So, the total economic status of the UK would become unbalanced,
and it strongly affects the exchange rate. Moreover, in terms of socials culture which also
affected by the conflict of small, medium enterprises and banks regarding lending purpose.
Research questions
The research questions are playing a significant role in the research. In other words, with the help
of the research questions, the researcher can analyse the collected primary and secondary data to
get proper answers to the research questions. The topic of this research is the relationship
between banks and small medium size enterprises (SME) in lending perspective. So, the research
question would be based on the research topic and above-discussed literature review. Apart from
that, these research questions will be asked to the respondents during the primary data collection
process. The researcher would conduct a suitable questionnaire which is an essential element of
the survey method. In simple words, the researcher would ask the research questions to the
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employees of small and medium size enterprises and gather the information for the further
research process.
 What is the importance of SME in relation to UK’s economic and social growth?
 What are the factors influence banks to reject all loan applications of small medium size
enterprises?
 How an economic and social culture of the UK are affected by the decision of the UK
government?
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THE RELATIONSHIP BETWEEN BANKS AND SME IN THE UK
Research methodology
Research requires suitable data which initiated from the different kinds important strategy of
research methodology, and those remains include strong systems and practices to make a
research powerful. Research methodology is the essential part of the research to lead the study in
the fitting and genuine way and helps the researcher to get a productive conclusion. On the other
hand, the research methodology incorporates some factual components or parts which are
measured as presentation suggestion, considering, and conclusions. Though, the researcher will
get the ability to examine every part of the subject to make a deliberate research through
fundamental components, which are determined in as of late distributed studies (Jha, 2008).
Research approach
Research approaches combine numerous hypotheses also individual approaches for data
collection, analysis, and transformation. Also, two types of research approaches are identified
such as qualitative and quantitative research approach (Malhotra and Birks, 2007). Consequently,
the inductive approach includes methods of qualitative research while deductive approach
oversees quantitative research data. Along with this side, it is comparable basic as research
theory, in the wake of, expanding necessities in respected of examination assurance. Aside from
that, it is notable for the researcher to pick a discerning research approach with a particular
factual objective to first the research effectively. Though, inductive approach, which will analyse
the collected data and these data is assembled from the daily newspaper, magazines, and the
internet. Furthermore, the researcher will give careful about the consideration to deductive
approach, which will be more appropriate to varnish individual’s opinions and record their
response. Apart from that, the deductive approach is more sensible to isolate the most required
data from the profitable issues than inductive approach (Schwarzenberger, 2002).
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Research design
The research design is a kind of entire structure that includes entirety about of the research by
usage of changed procedures, for example, data collection, methods, accessibility, and data
analysis in a successful and ideal way. Aside from that, the parts of research configuration
connected as a piece of various researchers, for example, exploratory research, logical research,
and illustrative research.
Data collection method
There are two classes of data collection method watched and connected, for example, Qualitative
data collection and Quantitative data collection. On the other hand, data collection is an efficient
and all around measured procedure to accumulate the most obligatory data from a scope of
external sources to get the appropriate information and stretches the description of the study
(Mixed method data collection strategies, 2007).
Quantitative data collection: This type of data collection is known as primary data collection
method, and additionally this data collection method is arranged around the interview, meetings,
media transmission, and email discussion to collect the strong data to convey a finish of given
research questions. Quantitative data collection method incorporates the use of a numerical and
sensible number to analyse the contracted data. Moreover, this primary data collection method is
a flexible portion or assumption of an inductive approach.
Qualitative data collection: On the other hand, this sort of method focusses on congregations,
overview, perception, observation and focus gathering on gathering data or data so as to convey
the estimation to the accepted research subject. Besides that, this sort of data collection method is
perceived as secondary data collection handle. In addition, qualitative data collection method is a
fundamental part to improve the method of quantitative data (Vogt, 2010).
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Sampling method
Probability sampling: The Probability sampling occurs where random sampling strategy can be
connected, and it is known as likelihood sampling method. In its place, there four classifications
of probability sampling are discovered, for example, Simple random examination, Stratified
unpredictable assessing, Cluster examination and Systematic investigating.
Non-Probability sampling: The Non-Probability sampling method where random sampling
system is not abused, as non-Probability sampling. On the other hand, there are three courses of
sampling method, for example, Convenience investigative, Purposive Sampling, Quota
Sampling. Moreover, in this research extend, both data as primary and secondary data will be
gathered from the specimen size of individuals (Hart, 2008).
Research Equipment
There are remarkable programs of programming formation required as the equipment of
research, for instance, Microsoft Office; Microsoft surpasses desires, Microsoft control point.
Certainly, this quantifiable data empower profitability and increase the level of accuracy to the
research. Apart from that, the overview has an astoundingly fundamental effect on the research.
In other sense, re-try programming like SPSS which can investigate the static reference from the
gathered data. Moreover, this fundamental data would permit the administration to give careful
consideration to the reaction of the person. In addition for this circumstance, the review would be
considered with a distinct cause to gather an extensive variety of confirmation through the
survey.
Data analysis
With a specific end goal to execute the research profitably and record the data, the researcher
will use SPSS programming, ANOVA test, and MS Excel. On the other hand, the researcher
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must apply reasonable programming and system to make appropriate data suitable. Apart from
that, the responses that are deduced is not exact than the decision that must be taken will not be
right. Therefore the outcome will be poor which can impact the management or the association
(Govaert, 2009).
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Access and Ethical issue
The researcher must be while taking care of the disparate issues on the unprofessionalism of
individual people. Aside from that, the researcher will ensure some notable perspectives, for
example, sampling movements, the destructive response of individuals, less thought given by
points or erroneous data from the respondents. Along with this side, the researcher needs to
perform it legally to gather data from the person. Besides that, the research incorporates a
concerned communication and arrangement which should be executed in an ethical way of the
study. Other than that, the researcher must be straight forward in the amazingly ethical way, and
he should give careful consideration to every last part of the research. On the other hand, the run
of the mill classes of moral thought has been considered while driving the research to
achievement and the study has been set up with no somewhat predispositions and the example
arrange has been chosen sensibly(Neuman, 2009).
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Conclusion
This research is based on the relationship between banks and small medium size enterprises
regarding lending perspectives. In this paper, various types of justification are managed by the
researcher regarding the decision of the UK government. Moreover, in the literature review
section, various types of factors are discussed which influence lending perspective in the UK.
However, this research proposal is an assumption for a future dissertation of the relation between
banks and small, medium enterprises in the UK.
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References
DiIulio, J., Garvey, G. and Kettl, D. (2008). Improving government performance. 1st ed.
Washington, D.C.: Brookings Institution.
Eunni, R., Brush, C. and Kasuganti, R. (2007). Small to medium enterprises in emerging
markets. 1st ed. Bradford, England: Emerald Group Pub.
Florio, M. (2007). Cost-benefit analysis and incentives in evaluation. 1st ed. Cheltenham, UK:
Edward Elgar.
Govaert, G. (2009). Data analysis. 1st ed. London: ISTE.
Hart, H. (2008). The Method of Comparative and Continual Sampling. Communications, 4(2).
Jha, N. (2008). Research methodology. 1st ed. Chandigarh: Abhishek Publications.
Malhotra, N. and Birks, D. (2007). Marketing research. 1st ed. Harlow: Prentice Hall/Financial
Times.
Mixed method data collection strategies. (2007). Choice Reviews Online, 44(12), pp.44-6909-
44-6909.
Neuman, W. (2009). Understanding research. 1st ed. Boston, MA: Pearson/Allyn and Bacon.
Schwarzenberger, G. (2002). The inductive approach to international law. 1st ed. London:
Stevens.
Vogt, W. (2010). Data collection. 1st ed. Los Angeles: SAGE.
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Clementina, K. and Kelvin, C. (2015). Title: Financial Exclusion of Small and Medium
Enterprise and Poverty Alleviation: Nigeria Experience. ABR, 3(4).
Irwin, D. and Scott, J. (2016). Barriers faced by SMEs in raising bank finance. 1st ed. [ebook]
UK: Institute for Small Business and Entrepreneurship. Available at:
http://tees.openrepository.com/tees/bitstream/10149/121415/2/121415.pdf [Accessed 30
Nov. 2016].
Mukwasi, C. and Seymour, L. (2012). Enterprise Resource Planning Business Case
Considerations: A Review for Small and Medium-Sized Enterprises. Journal of Innovation
Management in Small and Medium Enterprise, pp.1-15.
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Appendix
Particular 1st week 2nd week 3rd week 4th week
Identification
of problem
Carrying out
literature
review
Analysing the
data collected
Research gap
Objectives
framed for the
study
Collection of
primary data
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Analysis of
data
Interpretation
Drawing out
valid
conclusion
Final
Submission
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