Examining COVID-19's Impact on Small Businesses: Home Bake Case Study

This dissertation investigates the impact of the COVID-19 pandemic on small businesses in the UK, with a specific focus on the Home Bake company. The research aims to understand how COVID-19 affected small businesses, the ways in which Home Bake was impacted, and the strategies employed to mitigate the negative effects. The study includes a literature review exploring the consequences of COVID-19 on UK small businesses, changes in the food industry, and strategies for overcoming the pandemic. The methodology outlines the research methods used to collect and analyze data, and the results section presents the findings, potentially through statistical analysis, graphs, and charts. The discussion section interprets the results, and the conclusion summarizes the key findings and limitations. The research provides insights into the challenges faced by small businesses during the pandemic and offers potential strategies for recovery and resilience.

Dissertation
Title: To examine the impact of COVID 19 on the small businesses: Case study on Home
Bake
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Table of Contents
INTRODUCTION...........................................................................................................................3
Research aim................................................................................................................................3
Research objectives.....................................................................................................................4
Research questions.......................................................................................................................4
Significance of the Dissertation...................................................................................................4
The Research statement...............................................................................................................5
Structure of research....................................................................................................................5
Research problem........................................................................................................................7
Rationale of for conducting research...........................................................................................7
LITERATURE REVIEW................................................................................................................8
Consequences of COOVID-19 on small business forms in UK......................................................8
Influence of COVID-19 in changing the food industry.............................................................10
Strategies for facing COVID-19 for eating establishments.......................................................11
Primary plans of small businesses firms in successfully overcoming negative effects of
COVID-19.................................................................................................................................13
RESEARCH METHODOLOGY..................................................................................................15
CONCLUSION..............................................................................................................................19
REFERENCE LIST.......................................................................................................................21
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INTRODUCTION
In current coronavirus pandemic situation, the entire business world is highly affected in
unfavourable manner. COVID 19 and the resulting economic volatility have had an important
influence on small business crosswise the UK. The pandemic threatens the mental wellbeing of
the small businesses owners and self-employed which make up the backbone of the nation’s
economy in unprecedented forms (Bartik et. al, 2020). This matters on more than just a personal
level, as when small businesses’ owner feel well, they are more persistent, productive and
innovative as well as their business perform and operate in effective manner. Small business
makes an effective contribution in the economic development of UK which is account for 50%
of the total profit generated by UK businesses (How the COVID-19 crisis is affecting UK small
and medium enterprises, 2020). However, the current pandemic situation, causing a crisis that
highly affects the small businesses. The current dissertation will also cover information about the
impact of COVID 19 on the small businesses. For the completion of this research, Home Bake is
considered as organisation. The company is associated with providing baking gifts, online baking
kits in UK. This was incorporated in 2016, with a view to helping others create delicious baked
goods at home. It is situated in Queen St in the stunning historic town of Southwell,
Nottinghamshire. They offer a range of goodies, from ready to roll icing in a rainbow of colours,
to cake toppers and edible glitter. Also, they are always on hand to provide advice and direction
with any project from piping to a tiered wedding cake. This organisation is selected for
conducting this report as Home Bake is such SME which has faced higher impact of COVID.
Along with this, the current research assessment will consider information about the
research aim, objectives and research questions, background, significance of the dissertation and
the research statement. Furthermore, the report will explain about the research framework,
research problem and the statement of the study. In the last, a brief summary will explain about
the specific area and theme of the research in an appropriate form. COVID has given high impact
to the business of Home Bake so this research will be helpful in developing major insight related
to enhancing business operations.
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Research aim
The main purpose of this research is determine the information about the influence of the
current pandemic situation on the small businesses in UK which are situated as high street,
particularly focusing on investigating the impact of COVID-19 on Home Bake.
Research objectives
· To understand the impact of COVID 19 on small businesses and Home Bake.
· To investigate the different ways in which Home Bake has been affected by the impact of
COVID 19.
· To explain the different strategies and plans that can be considered by Home Bake in
order to overcome the impact of COVID 19.
· To evaluate the effective strategies that can be used by small businesses in order to
recover from the COVID 19 impact.
Research questions
· What is the impact of COVID 19 on small businesses, particularly focusing on Home
Bake?
· What are the different ways through which Home Bake was affected by the impact of
COVID 19?
· What are the different strategies that can consider by Home Bake in order to overcome
the impact of COVID 19?
· What strategies have been effective strategies which small businesses have used to
overcome the impact of COVID-19?
Significance of the Dissertation
The key essentials of this research study is that it will provide deep and brief information
about COVID 19 and the impact of it has been seen on small businesses and their operational
activities as well. The purpose of the project is to test the independent research abilities that
investigator have obtained during their time of performing regarding project (Bartik and et. al.,
2020). Additionally, this dissertation is significant as it provide the exploration, discretion and
explanation about the chosen area of research. As well as this study is crucial because it provide
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detailed information about the impact of pandemic situation which highly affect the small
business like Home Back, this is significant for the researcher because it enable in developing
research skills of individual and offering knowledge about different area which helps researcher
to develop major aspects as well. Along with this, it will be beneficial for the investigator in
future when the individual will perform regarding similar kind of research project. Then it will
provide an effective support to researcher in meet the research requirement in developed manner.
The main significance of this research is to offer information about the research problem so that
further research can be conducted in effective manner (Fairlie, 2020). Also, it is important
because the research can discuss the implications of the potential outcomes that based on the
research questions and problem statements or the phenomenon of research. This research is
significant as it will enable businesses to look at strategies on how they have recovered the
global pandemic.
The Research statement
This current research and dissertation is outlined the information and study about the area
of impact of COVID 19 pandemic on the small business of UK. With the use of effective tools
and techniques, information has been collected about the research topic that how this pandemic
situation affect the business of Home Bake, Along with this, the key statement of it is the to
explain the information about the measures and strategies which are considered by the small firm
in order to deal with the challenges of epidemic. In order to collect data in order to meet the aim
and objectives of the research, the individual set goals. For example, to collect information
regarding the deigned objectives by using effective methods and tools as well as techniques of
research and data collection so that appropriate findings can be collected in appropriate form.
Along with this, the goal of this investigation is to briefly monitor and examine the impact of
existing pandemic situation which imposed the unfavourable impact on small businesses in
different manner like reducing profits, consumer base, sales and many more (Humphries,
Neilson and Ulyssea, 2020). Along with this, the research statement is crucial because it offers
some guidance in setting up a research questions and serves as an introduction to the resultant
dissertation. Additionally, this statement of research will support the research in structuring the
research as per the designed aims and objectives in more significant manner.
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Structure of research
The research framework supports theory of the research study which in the case is impact
of COVID-19 on small business firm. This current research project will consider different
sections like Introduction, Literature review, methodology, results, discussion, result and
discussion, conclusion and limitations. Within the introduction part, the investigator will explain
information regarding research aims, objectives and questions on the basis of research title and
topic. Moreover, this segment considers information about background of the research by
explaining the COVID 19 and its impact on business as well as the selected business which
suffer the issues of this pandemic. Additionally, the description is also provided about the entire
research framework (Cavallo and Forman, 2020). The introduction part is also covering different
topics like rationale of research, significance of research, statement of study, research problem
and brief summary. The rational segment demonstrates about the reason behind conducting
research about the particular area of investigation. Whereas the significance area explain the
usefulness and essentialness of the research and how can be useful in context of researcher.
The literature review section will provide a brief explanation about the selected area of
research. The literature review focuses on identification of effect of COVID-19 on small
business organisation in the UK with information related to the impact of strict trade restrictions
imposed by the British government on the small and medium enterprises in UK. In addition to
this the literature review looks at the impact of COVID-19 on small business organisation
operating in the food industry with specific focus on eating establishment. This is the specific
industry as the selected organisation Home Bake is small enterprises which is a part of the
British food industry. The strategies for reducing negative impact of COVID-19 on small
business enterprises is also provided in this section of the research. Main strategies covered here
are suitable for small business enterprises. Evaluation of success of these strategies is also
provided in this section with the aim of identification of their contribution in helping small
business enterprises recover from COVID-19 .Methodology section considers information about
different research methods and tools which are considered by the researcher in order to collect
information with the aim of meeting the requirement of research objectives. The result section
will consider information in statistical, graph and charts form. The results from this section are
helpful in understanding the effects of COVID-19 on small business enterprises operating in the
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British food industry with specific focus on eating establishment. Objective data a out various
strategies adopted by small and medium-sized sized eating establishment of UK to survive in the
pandemic is provided through this part of the investigation. This is helpful in understanding
effectiveness of various strategies. Discussion describe about the interpretation of the elements
which mention in the results section. Results and discussion will cover information of findings
and discussion in accumulation form. In the end, conclusion of the whole project will present and
limitations of the research will explain that face by the investigator in order to meet the
expectations of the research or dissertation.
Research problem
In current project or dissertation, the research will present information about the impact of
COVID 19 on the small business of UK. In addition to this includes description of the impact of
COVID-19 on various business aspects of small firms in UK, the steps taken by surprise small
firms and the impact of financial aid provided by the government to small businesses firms. Food
industry in particular is selected for understanding the changes created by COVID-19 on the food
industry. The eating establishment sector in particular is the focus of identification of change
made by COVID-19 on food industry. Strategies for small business enterprises from food
industry in particular to survive in the pandemic is also provided in this section. Furthermore,
strategies assisting small business organizations in financially recovering from the negative
impact of COVID-19 are also provided in this part of the research. Within this study, the
research will further to get more information about the research topic and problem. In addition to
it, this section also consist the information about the issues which are faced by the researcher in
order to organize and conduct investigation in more appropriate form. So within this current
project, the surveyor can face issues regarding time, cost and collection of data (Ferneini, 2020).
This research is based on an important topic which requires more and detailed information to
meet the objective of it. So in context of it, the individual can face lack of time issue because the
person can be required more time to present an appropriate study. Apart from this, the researcher
can need more cost so that the data can be collected in efficient manner with the support of
appropriate equipment.
Rationale of for conducting research
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The reason behind the organizing this research is to get brief information about the impact
of COVID 19 and analyses the influence of corona virus pandemic over small business firm. By
conducting this research, the barriers faced by small business organisation can be determined, the
impact of COVID-19 on small business forms operating in the food and confectionery industry
can be understood in profound manner. Also reason is that the person can assess the strategies
and plans which are used and opted by small business in order to deal with influence of current
epidemic (Tkach and Kurpayanidi, 2020). With the organisation of this study, investigator can
monitor the significance the strategies which are imposed by small businesses to deal with its
impact in long run. It is also beneficial for the research at personal level, because working
regarding this research project, the individual can make development and enhancement in
knowledge and information about particular topic. Moreover, this also beneficial for the
individual to make improvement in different skills like research ability, time management,
technical skills and many more. This research is useful in gaining an understanding about
process of completing a research in a timely manner which will assist in effective completion of
the any future research.
LITERATURE REVIEW
Consequences of COOVID-19 on small business forms in UK.
According to Dimson and Sharma (2021) many small business forms in Britain had been
struggling to make enough money to cover daily expenses. The strict trade restrictions imposed
by the UK government had demotivated small business owners last year as they feared that their
business might not be able to recover from the pandemic. 52% of the 653 small business owners
surveyed by the authors stated that if the conditions remain the same, there firm will have to
wind up their business in less than timespan of twelve months. This has direct effect on the
British economy as SME account for 50% of the total revenue generated by UK based
organizations. According to Zacher and Rudolph (2020), The November 2020 survey depicted
improvement in revenue of SME but the pandemic has been for certain industries as the
respondent stated no sign of financial recovery. One of the worst hit industries suffering
financially from the spread of COVID-19 is the food and accommodation industry. The survey
respondents from this industry stated that there were no improvements in revenue generated in
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November as compared to May 2020. The education and wholesale industries showcased similar
pictures as small business owners from these sectors faced unimproved situation in terms of
increased revenue. According to Sikder, Zhang and Ahmod, (2020), The November 2020 survey
depicted that small business owners are optimistic about future of their business as they fell that
the economic conditions of the country will recover after reduction in COVID-19 cases. The
main impact of the COVID-19 pandemic has been on the economic situations of the small
business owners.
According to Wang and et. al., (2020), Mutation of virus to form a new variant large
amount of cases lead to imposition of strict business restriction which created dire situation for
UK small business owners. This resulted in some industries such as the food and accommodation
industries not being able to make enough earnings to repay loans or leases. The optimism
surrounding the better future of the lockdown will either be elevated by effective distribution of
COVID-19 and financial assistance from the government government or decreased by extended
lockdown and spread of the new variant of the virus. According to Dahlberg and e. al., (2020),
Employment opportunities at small business organisation in UK is also affected by the spread of
COVID-19 virus. This impact is faced by both small and large scale organisation by small scale
organisation. It is found that many small business firms are aiming to furlough some of their
staff as a measure for reducing the loss the economic adversity created by the spread of the virus.
According to Barkalov, Averina, Avdeeva and Lavrova, (2020), In addition to this
respondents of the survey have stated that by November on an average 23% of their staff had
been laid off because of low revenue of their enterprise. Low economic activity in Britain due to
the pandemic has affected the growth strategies of many small business organisation. Instead of
seeking growth opportunities, small business firms are currently focusing on ensuring that the
earn enough income for completing their daily business activities. According to Ratten, (2020)
They have to postpone various growth prospects in order survive such adverse conditions and
recover from the negative effects of such conditions as soon as the British corporate world
returns to normalcy (UK small and medium-sized enterprises: Impact of the COVID-19 crisis,
2021). According to Park and et. al., (2020), Financial aid provided by the government is helpful
for many business owners to keep their business running during such low economical
environment. Many small business organisation are aiming to apply for the furlough plan of the
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British government while others are planning to get a loan to secure financial resources for an
uncertain future. The furlong scheme of the British government provides financial aid to cover
some parts of the employee remuneration of workers on temporary leave (furlough). According
to Sharma, (2020), This is also known as employee retention and is implemented in order to help
firms affected by the COVID-19 pandemic. The uncertainty related with the COVID-19 virus is
another factor which has demotivated small business organisation about future development.
Deferral of tax payment is another type of government assistance which is helping small and
medium businesses survive in the current situation.
Influence of COVID-19 in changing the food industry
As per the view of Nunn (2020), the COVID-19 pandemic has affected the British food industry.
It is because of the widespread virus infection that the food industry is facing transformational
change which includes restaurants, eating establishment and confectionery. The impact of this
pandemic has made a long lasting impact which will be seen even after the pandemic is over.
According to Boelens (2020), During the lockdown, imposed by the UK government restaurants
and eateries all across UK were closed down. This effect of the lockdown can be directly seen on
the food industry as London which is the food metropolis of UK had all of the restaurants closed
down because of the restrictions of COVID-19 lockdown. According to Al‐Thaqeb, Algharabali
and Alabdulghafour (2020), COVID-19 has shown various defects in the British food industry
and primary the eating establishment located across the country which makes this sector
vulnerable to sudden environmental change. Tight cash flows, high overhead and reliance on
tourism are some of the aspects of small restaurant and eating establishment in London which
have led to decrease in profitability during the pandemic (Restaurants will never be the same
after coronavirus- but that may be a good thing, 2020). According to Etemad (2020),
Confectionery, bakery, restaurants, eateries, coffee shop and other small businesses rely on
income from tourism to gain profitability. This source of income completely stopped after global
spread of the pandemic which had negative impact on small eating establishment of UK. The
pandemic has resulted in closing of sit down service in restaurants, eateries and confectionery.
This has affected restaurant which use this service as main source of income and establishments
which are able to provide delivery services are seeing huge increase in influx of consumers. The
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pandemic has created work from home situation for many consumers which has affected time at
which online deliveries and orders are made. According to Gigauri, (2020), Consumers are
ordering on weekdays and weekends by a similar amount which has increased orders at
establishment with online ordering throughout the week. In addition to this another change in the
consumer behaviour created by the pandemic is that consumers are taking more time weighing
alternatives in order to select the most affordable and high quality eating establishment.
According to Zaman and et. al., (2020), This change in consumer behaviour is attributed to the
pandemic as the work from have given consumers more time while the deteriorating economic
condition all over the globe has encouraged consumer to spend their time looking at options to
purchase high quality services at affordable price. According to Chohan (2020), This consumer
thinking towards finding value for money has affected the eateries sector as the most firms aim
to provide high quality products at competitive pricing in order to attract consumers. According
to Timmis and Brüssow (2020), Another factor impacting the food industry and primarily the
eating establishment sector is that as consumers have more time on their hands , home cooking
seems the most affordable option for many consumers which were not able to purse home
cooking due to busy schedule. According to Dolton (2020), These types of consumers have
increased competition for eating establishment which only offer cooked meals. In the other hand
organisation which offer ingredients rather than cooked meals such as meal kit firms and
confectionery businesses which provide baking equipment and ingredients Most small eating
establishment in UK do not have sustainable business model which was showcased during the
pandemic and was another reason behind restaurants and eateries closing up. According to
Priyono, Moin and Putri (2020), It is essential for eating establishment to change their ways and
adapt to online ordering so that they can survive the pandemic and recover from financial losses
in a swift manner. This economic and social crisis has changed the English food industry and
will result in evaluating the fundamentals of an eating establishment. A change in the food
industry in Britain which is caused by COVID-19 is that business are focusing on creating
business models which are suitable for eating at home. According to (Pickup (2020), It is
essential for members’ of the food industry to understand reasons behind their vulnerability and
take action to adapt with envious changes in the external environment.
Strategies for facing COVID-19 for eating establishments
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According to Roberts (2020) COVID-19 has created a business environment which is hostile
towards every industry. The food industry and particularly the eating establishment and dining
sector is one of the main industries facing harmful consequences of the COVID-19 pandemic. In
case of small and medium-sized businesses from this sector, the pandemic has created frightful.
circumstances. According to Ajzenman, Cavalcanti and Da Mata, (2020), Small eating
establishment which provide online ordering face high influx of consumers while enterprises
which have limited delivery and online payment options are struggling to survive in this already
competitive sector. It is important for business firms to create and utilize an effective strategy for
surviving such difficult times. According to He and Harris (2020), The primary strategy for a
small business in the eateries business is to utilize technology to gain competitive advantage. In
the digital age consumer expects to order and pay for their food products, cooked meals,
ingredients and equipment with the help of digital medium. Small business firms need to
construct user friendly website which is updated regularly is a necessity to operate in an
environment which does not facilitate in store visitation. According to Pantano and et. al.,
(2020), In addition to this small business owners need to provide navigation facility on their
website which enables consumers to track the progress of their order in real time ( 5 Strategies to
survive the COVID-19 Business environment, 2020) Facilities which assist in contactless
payment, self ordering systems and customer followed engagement loyalty programmes
application which increase consumer visitation are essential pieces of technology for eating
establishment such as confectionery and restaurants.
According to He and Harris,(2020), Usage of digital technology for online payment and
ordering allows small business firms to gain access to consumer contact information such as
phone number and e-mails. This can be used by small business firms to stay in contact with the
consumer. Small and medium-sized eateries need to communicate with the consumer about
special offers and built personalized interactions to gain loyal consumer base. According to
Kuckertz and et. al., (2020), In addition to this the focus of such establishment needs to be on
using communication channels to promote safety and hygiene measure taken at the store. This
will increase consumer confidence in the company and ensure increased revisits by consumers
after dining services are opened. According to Obrenovic and et. al., (2020), Cost reduction is
another suitable strategy for small and medium-sized enterprises operating in the confectionery
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