The Impact of Brexit on Small and Medium Enterprises in UK

This project investigates the impact of Brexit on Small and Medium Enterprises (SMEs) in the UK, using a case study approach focusing on Birmingham. The introduction highlights the significance of SMEs in the UK economy and their vulnerability to Brexit-related uncertainties. The aim is to determine the impact of Brexit, analyze the role of SMEs, and recommend strategies to overcome challenges. The literature review examines existing research on Brexit's effects on SMEs, including impacts on growth, finance, raw materials, labor, and regulatory barriers. The research methodology outlines the qualitative approach, inductive research philosophy, and exploratory research design chosen for the study. Data collection involves questionnaires and a simple random sampling technique with a sample size of 30. The project concludes with a timeline for the research process, including topic identification, literature review, methodology, data analysis, and submission.

Project
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Contents
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................4
RESEARCH METHODOLOGY....................................................................................................6
REFERENCES................................................................................................................................9
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Title: To investigate the impact of Brexit on Small and medium Scale enterprises in UK. A case
study of SME in Birmingham
INTRODUCTION
The research proposal adopts UK perspective to examine the potential impact of Brexit for
UK small and medium sized enterprise. Small enterprise is core part of UK economy which
always accounting 99% of multiple firms and 60% of private sector. As per evidence, it suggests
that Small and medium scale is impacted by uncertainty that provide limited resources as well as
resilience for unexpected shocks (Wardrop, 2020). Brexit is become highly salient which always
increasing uncertainty around trading so that may Small based firms face challenges in global
world. Through human resource and financial constraints which become difficult for small,
medium scale enterprise to undertake for planning. It helps for dealing with condition and
situation of Brexit that may effects on overall business profitability in global world. For
Example- British industry which always fewer on the small enterprise and also undertaken
planning for Brexits. However, it become extent to small business that are directly impacted by
Brexit. Sometimes, it depends on the final terms in UK where how European Union handle
critical situation in business sector.
The report provides brief idea about potential impact of Brexit on UK small and medium
scale business which will arise policy issues. Especially, when it will be investigating about the
Small business concern about Brexit on the basis of geographical location, size and firm
orientation (Bhusal and Wang, 2019). The growth-related plan always affecting to small
enterprise through Brexit, scaling the overall capital investment, exports and innovation. It also
analysis the framework and support entire mechanism that suggest for post-Brexit. SME and
MSE are likely to face challenge related finance, raw materials, labour input and also increased
regulatory barriers.
Aim: To investigate the impact of Brexit on Small and medium Scale enterprises in UK. A case
study of SME in Birmingham.
Objective
 To determine the impact of Brexit on small and medium scale business.
 To analyse role of SME in UK economy
 To recommend that overcome challenges of SME and MSE through Brexit.
Research Questions
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 How can determine the impact of Brexit on small and medium scale business?
 What are roles of Small and medium scale enterprise in UK economy?
 What are recommendations to overcome challenges of SME and MSE through Brexit?
LITERATURE REVIEW
According to Hall (2020) Small and medium size are important role played in UK which
directly impact on the British economy. It will create job opportunities in terms of growth as well
as innovative in era of economic and political volatile. However, it despite making up 98% of
UK total enterprises in 2017. It has found that 60% Private sector employment where SME
account 74% of private sector in job creation. In this way, Brexit is directly impact on large
organizations. However, it relates that how Small scale and medium scale likely to be affected. It
is still ranked in the competitive economies which assured after Brexit. It is the most critical
things happen in country future while increasing uncertainty and rapid changes in business
world. As per Bhusal and Wang (2019) The SME business has dropped by 19% due to Brexit in
past decade. It is fear from uncertainty. In context of opportunities, it has increased fast growing
services and digital trade which efforts for emerging the markets. It is type of advantage in
modern technology. Afterwards, it has identified that global market for trade service is growing
more than 70% faster than actual good business. In order to explore the business growth and
development. In this way, it would be increased productivity performance.
Analyse role of SME in UK economy.
According to Barron and Boutary (2020) SME plays significant role for boosting
productivity of UK, contributing revenue to UK economy. Small and medium sized business
always support for business expansion and increase impacts in global world. The level of UK
productivity is currently lower than other European economies and their overall performance has
weakened. In this way, SME comprise with large part of UK economy and also used innovation
in the international market which are considered fundamental drivers in term of success. As per
analysis, it has found that exporting enterprise has improved the annual gross value while adding
1.15 billion. Internationally, SME become active in three time and likely to use innovative
product as well as service. Generally, it is to be consider one of most important metrics that
spring to mind when it will measure overall economic contribution. It is important for Small
business to define overall turnover of UK economy in terms of good trades. When it comes to
enterprise growth, it can be identified facts, figures that shows SME have been performing the
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better employment rate which are approximately higher. It is become positive outlook even with
uncertainty of Brexit. Berthou and et.al. (2020) said that an effective education related to small
business which are fundamental to help them in expansion for internationally and use innovative
idea. It is becoming successful support the different program such as peer to peer networks and
other type of target public funding. The long term education strategy will help for UK economy
which has developed the next generation entrepreneurs, training across global areas. It may
include placement, skill improvement and management apprenticeship through Support of Small
scale business. In this way, it is to be considered the critical factor in SME growth which
continue focus on providing the better program to help SME business in economy growth. The
British enterprise bank help to grow and enabled achieve the significant goals.
As per Mohamed (2020) SME is not just critical to UK economy but it also critical for
entire world. There are 80% companies based on SME which despite to find difficulties after
Brexit because it is largely affecting on the overall business activities. Only 30% SME export
their good and services across the world. Many potential customers are spending a lot of time,
money on the product purchase. In this way, SME will increase their performance and efficiency
in global marketplace. After recession, it has faced the challenges in global market in term of
technology, resources, experience and knowledge. It became tough for setting new enterprise so
as require to understand need of customer before selling any products. Therefore, it is
challenging to find out reliable partners which might not be used in UK and import or export
with large amount.
It has recommended that developing modern technology which enable to improve working,
drive to increase efficiencies and visibility across the world. Digital initiative is one of most
common approach which being undertaken at different level. It help for resolving any issues and
problem in trading business. Wardrop (2020) said that It would be required to remove manual
management contract by SME, which help for save significant amount of time, money and also
avoid unwanted expiries, non-compliant clauses. These are important business relation which
automatically slow down progress of new goods in marketplace. On regular basis, it always
monitor work experience of employee where providing the better training facilities so that they
can improve own skill or knowledge. Many SME focus on the revenue generation and decided to
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emphases on controlling cost and develop new goods. Furthermore, it has planned to adopt
strategic theory which provide right direction path for achieving business goals and objective. It
has not doubt that Brexit set up demand from outset with proper explanation. Sometimes, it may
engage with slow process in term of scope whereas it has possibilities for establishing a good
relationship with European Union (Bhusal and Wang, 2019). Another suggest that may adopt the
indirect approach which relates to the specific task because Brexit will be assumed as hall market
in context of management theories. It has no such policy guidelines and there is not scope of
error learning. In this way, it can be identified the different recommendation to overcome
challenges SME in global world.
RESEARCH METHODOLOGY
It is defined as activity that mainly involves for finding, in less and more systematic
manner (Ganesan, 2019). It is to be consider as framework which mainly used for conducting
research and also describe about the assumption within research project.
Research method
It is to be considered the systematic plan for conducting research, which draw different in
both quantitative and qualitative research methods.
The scholar will select qualitative research method because it is based on the pre-existing
theories which help for researcher to generate level of depth understanding towards topic or
subject. Qualitative mainly refers to non-numeric information that involves formulation and
analysis of single theory related research topic.
Research approach
It is based on the plan and procedure that consists of various steps on board assumption
effective manner. The plan involves several decisions that need to make sense for collecting
relevant data or information (Kumar, 2019). Research philosophy can be divided into different
ways: Deductive, Abductive and inductive.
The investigator will select inductive research approach that start with particular
observation and also proposed the existing theories in research process. As a result, it has found
that involves search pattern and development with proper explanations. Research use this
approach to focus on the research objective and question because it helps for generating outcome
from large data in order to identify relationship between existing theories.
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Research Design
It is a set of method, process and procedures that mainly used for gathering and analyzing
data with proper measurement through specified variables. In this way, it become easier for
researcher to identify problem during analysis (Radanliev and et.al., 2019). In another word,
research design is framework that has been develop to find answer of specific questions. There
are two type of research design such as conclusive and exploratory research design.
The scholar will choose exploratory design which is based on the research question that
will provide conclusion. This type of design is not intended to provide final conclusion but it
helps for researcher to explore depth analysis. In this way, it is useful for tackle research problem
efficiently and effectively.
Research Philosophy
It is brief about the better way in which data should be gathered, used and analyzed. It
deals with knowledge development, source and nature. Although idea may be creation and
engaged with knowledge development (Radanliev and et.al., 2019). It can be categorized into
four groups: Interpretivism, Pragmatism, Realism and Positivism.
The scholar will choose Interpretivism Philosophy that involves to interpret with different
elements of research case study. Thus, it also integrated with human interest for identifying
specific opinion. Interpretivism relates to the nature of approach for generating the specific result
or outcome.
Data collection method
It is a process of gathering and collecting information from relevant source to find out
solution of particular research problem. It is the best way to hypotheses and evaluate the result or
outcome. There are two type of data collection method used such as primary and secondary data
collection.
The investigator will choose primary data collection method by using questionnaires. The
method is not involves number mathematical calculation. It is mainly closely associated with
emotions, elements and words which are based on the non-quantifiable.
Sampling
It can be defined the specific principles which mainly used to choose members within
large population. It may include in the case study because many population interest towards data
analysis in research study. Sometimes, investigator has no as such choice in large size of target
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population. Scholar will select simple random sampling technique for selecting member. The
sample size is 30.
Timeline
S.No Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week
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Identifying
topic
Aim and
objective
Literature
Review
Research
methodology
Data analysis
Questionnaires
Conclusion
Submission
Table: 1
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REFERENCES
Book and Journals
Barron, A. and Boutary, M., 2020. The Brexit dilemma for small business: European companies
respond. Journal of Business Strategy.
Berthou, A. and et.al.,2020. Assessing the macroeconomic impact of Brexit through trade and
migration channels. Banco de Espana Ocassional Paper. (1911).
Bhusal, R. and Wang, Y., 2019. The Effects of Borrowers’ Discouragement, Perceptive
Discrimination and Risk-taking on Entrepreneurs’ Preferences for External
Financing. Perceptive Discrimination and Risk-taking on Entrepreneurs’ Preferences for
External Financing (June 28, 2019).
Ganesan, R., 2019. Research Methodlogy for Engineers. MJP Publisher.
Hall, D., 2020. Brexit and Tourism: Process, Impacts and Non-Policy. Channel View
Publications.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Mohamed, M., 2020. Trends of digitalization and adoption of big data & analytics among UK
SMEs: Analysis and lessons drawn from a case study of 53 SMEs. arXiv preprint
arXiv:2002.11623.
Radanliev, P. and et.al., 2019. The Industrial Internet-of-Things in the Industry 4.0 supply chains
of small and medium sized enterprises. University of Oxford.
Wardrop, R.H., 2020. The Role of Trust in the Divergent Development of Alternative Lending
Channels in the UK and Germany (Doctoral dissertation, University of Cambridge).
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