This essay discusses the challenges faced by Small and Medium-Sized Organizations (SMEs) in the UK during Covid-19 and the strategies they used to interact with the external environment. It analyzes the impact of disrupted supply chain management, poor human resources management, and corporate culture on SMEs' internal environment. The essay also highlights the strategies used by SMEs to interact with the external environment, such as digitalization, entrepreneurial innovations, and resilient strategies. Additionally, it analyzes the role of the UK government in supporting SMEs during Covid-19.