Challenges Faced by SMEs in UK and Government Support during Covid-19

This essay discusses the key challenges faced by SMEs in the UK due to internal factors such as leadership, tradition, plan of action, strategy carrying out, implementing an “A” group, making the business concern stand out, putting the employees first, system and processes, productivity, and measuring performance. It also analyzes the role of the UK government in supporting SMEs during the Covid-19 pandemic. The government provided relief to SMEs with more than 10 employees and an annual revenue of more than £2m by allowing for an annual acquisition fee for a deferred installment framework and lower rates of business charges in the pandemic time frame.

Circular Flow of
Income Individual
Essay

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Explain the key challenges faced by the company from its internal environment......................3
Action of interaction with the outside environment during the Covid pandemic........................5
Investigate the role of UK Government in supporting small scale enterprises during the covid
period...........................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment of contemporary businesses are increasing the competition and
dynamic environment of the industry. These changes occur by updating the tools and techniques
of business where in the market there are many fluctuations. Thus it is difficult to account the
changes in the business environment. It is important for the business to consume and forecast the
business planning and future decision making. In the following report, it states about the
Business environment of UK which includes key challenges faced by the businesses in UK. It
investigates the internal and external surrounding of the past 2 years. It further helps in
supporting the medium and small size enterprises during the pandemic (Chartier and et.al.,
2019).
MAIN BODY
Explain the key challenges faced by the company from its internal environment.
SMEs have played an important role in the business environment in previous years. In
the UK, some SMEs are never-ending, and given the current political rigor, some of them are
clearly significant. As a result, additional difficulties have arisen affecting businesses, but from
last year, these problems are rapidly expanding as a direct result of the pandemic situation. Some
of the accompanying difficulties are described in the context of SMEs:
Leadership: SMEs don't have to bother with having knowledgeable and talented pioneers to
take control of business companies, which is why the typical talent is equally on SMEs to
manage their business and cultivate their image as business visionaries. However, this training
creates most of the difficulties in running associations and driving representatives due to lack of
information and participation in the field. During the pandemic, everyone or pioneers, whether
they know it or not, are concerned about this issue, because so far, this situation affects the well-
being of the population and weakens the financial position of the country. In any case, this period
also portrays the qualities or abilities of every forward-thinking business person, whether or not
they have adopted the right management methods (Ephraim, 2021).
Tradition: Every SME needs to follow the right way or habits to keep the business running
smoothly and all this will be done with the help of the entrepreneur. The association should have
a very clear objective in order to get the value of the management framework. These qualities

broadly fall into four categories: trustworthiness, best service to customers, progress from time to
time, and respect. Each of these values is a very hard way. At a time when business has been hit
hard by Covid, organizations should ensure that values guide as needed and progress towards
positive practices.
Plan of Action: The information level of SME pioneers is low, which affects the entire
association, on the grounds that their arrangements are not very good and there is no
arrangement. Development so far has happened on a very huge level, and these undertakings
help make great arrangements. Rather than creating an opportunity to get ideas, these improved
devices put energy into thinking about where the business is in a 3-year time frame and how to
implement those ideas.
Strategy carrying out: A superior course of action is reliable for SMEs to achieve
fundamental goals through key legal arrangements, technologies and ideas. After hitting the
goals like clockwork, the business people help keep the tiny added benefits of meeting each goal
going (Hunter and Simon, 2022).
Implementing an “A” group: This is the most appropriate and valuable test for every SME,
given that every SME is looking for competitors who have a lot of information on developing
and growing their business. These useful areas are authoring, recording, trading, and commercial
activity. In order for a business company to run smoothly, it is vital to oversee or keep up with
the movement of day-to-day activities, which will be done by entrepreneurs and leaders.
Making the business concern Stand out: Given the extraordinary breadth of the current
economic market, it is difficult for the organization to identify an advantage. This type of
training is significant for SMEs, but it often stands out as it takes a lot of time, cost and assets to
analyze and warrant. Keep market business essentials up to speed with quality, comfort, cost and
customer management.
Putting the Employees first: The business association should be done it works on agreeing
the interest of the customers and this will possibly finished by when the organization puts up-
and-comer are thoroughly prepared and experience.
System and Processes: Today, customers utilize partially web-based shopping, where they
get input components. However, in the limited scope of the business, these highlights and
frameworks are not accessible because their purpose is less radical in the organization. Assuming
the business leverages these well thought out, great, tried, worked, and tried frameworks, the

association is useful in breaking down when transfers occurred, what types of items were
transferred, and so on. Because this customer also gives the correct response and buys more
items and manages (Lazarevic and Brandão, 2020).
Fruitfulness: It relies on the quality and consistency of the program and management to
obtain the full results of organic products. It's not just a challenge, because actually seeing the
quality of each item by reducing waste is a nod to the campaign.
Measuring Performance: Execution assessment is difficult for SMEs as it cannot
differentiate between errors and the practices being executed in associations.
Action of interaction with the outside environment during the Covid pandemic.
SMEs play a huge role in the development or health of a country's currency, and
unfortunate strategic actions are seen as the clearest explanation for the lack of achievement of
SMEs. Subsequently, identifying key management areas is an important task for the association.
By means of firefighting, by means of a casual manner and natural pattern, the systematic
supervision of small and medium-scale efforts focuses attention on ephemeral causes. These
game plans are outlined and controlled by entrepreneurs and supervisory heads. Thus, it shows
and points out that the focus of SME managers and their business personnel on skilled course of
action is a fundamental evaluative determinant of long-term business focus stability and purpose
(Lee Tsz Yan and et.al., 2019).
The period of effective small and medium enterprises depends on the fundamental
performance of training, whether it is intentional or intentional or unintentional. Subsequently,
these SMEs have a significant presence in the country's economy and further consider legitimate
and important activities to be the basic key areas that SME leaders need to emphasize in order to
cope with the long-term brutal survival. During the pandemic, all national economies, as well as
business activities, are affected, as a global test is taking shape, which severely affects the power
of the people. The UK is an advanced country on the planet, but it is also affected by the current
situation, so SMEs implement the technology to keep their business without dealing with any
issues.
These methods include guaranteeing arrangements made for the persistence of the
association. The exam is taken at a critical level of preparation vital to media communications
organizations, showing that the habits of businesses, expanding companies, and new
organizations are rapidly assembled based on precision or better coordination or initiative among

executives. This numerous focus is on setting up hidden development capabilities in new spaces
that contain potential exploits in the environment, allowing the company to move easily without
encountering any global difficulties. UK public bodies or financial institutions likewise
supported 88% of SMEs during Covid-19, the majority of UK SMEs have changed their action
plans by carrying out computerization work, in addition, they have also provided their
representatives with temporary take a vacation. It further handed over work offices from home to
its representatives on the basis of their representatives' interests or by complying with public
authority rules (Lev, 2021).
Investigate the role of UK Government in supporting small scale enterprises during the covid
period.
The UK economy is heavily influenced by SMEs. They have been affected by the
country's poor economy during the corona virus. SMEs contribute almost half of all domestic
projects (GDP) and contribute a higher level of income in the UK's total. The corona virus
emergency has affected SMEs in general, as the UK economy has suffered significant disruption
during this period. As a result of this emergency, SMEs in the UK have suffered many hardships,
such as non-repayment of advances that have led to the expansion of the rankings. Advance
payment in arrears. Lack of assets, SMEs considered whether they could retain workers for the
future and questioned whether the emergency had affected their entire inventory chain. Their
store network has been disrupted due to this emergency, and it's a matter of whether SMEs really
want to reset their entire store network again once the pandemic has passed. Due to this
emergency, SMEs are concerned that ongoing development projects may be halted or the work
unskilled.
Helping every SME in the UK is essential, but the UK government has given some sort of
relief. Those SMEs with more than 10 delegates and an annual revenue of more than £2m have
received help from the UK government to allow for an annual acquisition fee for a deferred
installment framework and lower rates of business charges in the pandemic time frame. This is
equivalent to SMEs in this period and their readiness to dispose of general assets set aside a lot
of money. Hardly any SMEs will tire of their stamina to allow them to manage for a longer
period of time. The UK government provides them with debt-type monetary assistance that
sponsors the cost of loans, which will help them meet the currency of their business.
Prerequisites With this, they can choose to be practical for a short period of time, until the

pandemic passes and things become typical. We examine the different factors that contribute to
this inactivity - such as the ambiguity of the assessment structure, and our demands for more
important ways of trading reliably later in our response. In any case, agree that the measures
here, even strong ones, would show a lack of addressing client lethargy and creating an
additional special market, barring urgent difficulties starting with a free case. The store money
life estimation model and the resulting structure of both associations and buyer impulses do not
tend to be in ambiguous time (Morales and Barnes, 2018).
CONCLUSION
From the above report it can be concluded that the company is a small scale and medium
scale enterprises in UK. It mainly focuses on the external and internal factors of the business and
compare it with its competitors of the past two years. This factor creates a disruption on the
working of the business. It also analyses the support provided by the government of UK. Due to
Covid-19 many business organisations got affected due to lack of demand and fear of pandemic.

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