To Investigate Challenges Faced by Micro Businesses in Birmingham

This research proposal investigates the challenges faced by micro businesses in Birmingham, UK. The study identifies the problems and proposes solutions, focusing on financial and resource constraints. The report includes a literature review, aims, objectives, and research questions to guide the investigation. It also outlines the research methodology, including qualitative methods, an inductive approach, and interpretivism philosophy. Data collection involves primary and secondary sources, using questionnaires, surveys, and interviews. The sampling strategy employs random sampling, with a sample of 20 managers from different micro businesses. Data analysis will be conducted using thematic analysis to identify key findings. Ethical considerations are addressed to ensure the respondents are not subjected to any harm and full consent is obtained. The study aims to provide insights into the challenges and develop effective strategies for overcoming them, contributing to the understanding of micro businesses in Birmingham.

Research proposal

Background..................................................................................................................................3
Aims and objectives.....................................................................................................................3
Rationale......................................................................................................................................4
Research questions.......................................................................................................................4
Literature review..........................................................................................................................4
Research methodology.................................................................................................................5
REFERENCES................................................................................................................................8

Title- To investigate challenges faced by the Micro businesses in the Birmingham: A study on
support for micro businesses
Background
Micro businesses in the UK are seen as poor performing in terms of their profitability,
growth and competition. The current trend of the UK in respect of micro business states or
reflects that the growth of such business is hampered because of the resource and the financial
constraints. The present report provides a deeper insight towards the challenges and problems hat
micro businesses in Birmingham are facing and its impact on the smooth functioning of its
operations and the processes. Furthermore, the study presents a detailed review with regards to
the topic or the problem along with appropriate aims and the objectives. Moreover, the report
includes an application of appropriate research methodologies for making the study more reliable
and useful for the other scholars and an investigator in understanding and finding out adequate
results specific to this research study.
Aims and objectives
Aim
To identify the challenges that micro businesses in Birmingham are facing: case study on
providing support for the micro businesses
Objectives
 To understand the meaning of Micro business in Birmingham, UK
 To assess the current trend of micro businesses in UK
 To determine the problems or the challenges faced by Micro businesses in Birmingham
 To recommend corrective measures for overcoming challenges that the micro business
are facing
Rationale
The reason behind conducting this study is it is been seen as the major and the current
issue or problem that is faced by all the micro businesses in Birmingham. This study will helps in
analyzing the challenges and in developing effective strategies for overcoming such challenges
for the micro businesses. This report is been prepared for gaining a better understanding in
relation to the condition of the micro businesses in Birmingham, UK.
Research questions
How micro business faring in present economic climate?
What is an impact of the local and the national program on an economic potential of the micro
business?

Literature review
As per Iammarino, McCann and Ortega-Argilés, (2018), a business organization is said
as micro if it is having lesser than 10 employees. Using ONS stats on size of the UK businesses,
it means 94.46% of the business within UK must match with the definition of the micro business.
Turnover of micro business is seen as less than and equals to 2 million Euros in its balance sheet.
As per evidence provided by a Cabinet Member for the development, skills and the jobs set out
key statistics that micro enterprise consist of approx 79% of total business in Birmingham city.
With respect to an employment, data from the year 2011 suggested that contribution of this
business to an employment is counted as smaller as micro business accounted for the 79% of the
business but only a 13% of an employment in the Birmingham. Since 2008, number of the micro
in the Birmingham city has been fallen by around 6% and no. of the small and medium sized
organization has decline by 4%. Nonetheless, Birmingham does have large no. of an active
company than other core cities.
Asfiah, Anshori and Mawardi, (2018), reviewed that micro business in Birmingham are
facing many of the challenges that involves difficulty in using the finance, lack or shortage of an
information infrastructure, low level of the research and development within the business and
inadequate use of an information technology. With reference to difficulty in access of finance
means that most of the banks preferred for allocating their respective resources to a larger
enterprises instead of micro enterprise. The main motive is that the large organization having
lower level of the default risk & its final reports are seen as clear. On the other hand, micro firms
majorly are found as riskier from viewpoint of the lenders and such businesses does not have a
clear understanding of accounting information.
Kakabadse and et.al., (2019), analyzed that poor infrastructure ad lack of an information
is also a counted as the main challenge that is been faced by micro businesses in Birmingham
city. Most of the micro businesses in the city are not having connection with the capital markets.
Financial or banking institution could closely and constantly observe the borrowers but is seen as
costly in doing so for the borrower of the small loans. This challenge reflects a problem of
asymmetry information where in the collateral basis lending, prerequisite of the collateral is the
easiest way for SMEs and the financial institution in reducing risk premium in formulation of the
loan. On the other note, government expanded policy on the basis of finance for micro business
in order to mitigate constraints on micro finance in form of urgent countermeasure. In such type
of situation, effective and the lower cost of the credit risk evaluating tools were been essential for
financing of micro business, particularly for the transaction basis lending. For the purpose of
addressing serious credit related constraints on the micro business for conforming to the Basel II
needs on the management of risk, comprehensive kind of infrastructure is required.
In view of Cooper and et.al., (2017), expenditure by business organization on the
research and the development seems as very important driver of an economic growth and an
innovation. However, research and development requires large amount of the money and the
time which micro businesses cannot afford and this leads to lower level of the R&D in micro

business. Information technology has been developed on a quick basis where household
ownership of the smart-phones, mobile phones and the tablet computers spreading rapidly in
recent years. Due to this more and more customers have prefer for internet sales to an over the
counter sales and an e-commerce markets for an individual is seen as expanding. However,
micro business is unable in sufficiently utilizing these opportunities as majority of the micro
enterprises does not have its own websites.
Research methodology
Type- There is mainly two types of the methods that can be adopted by the scholar in
conducting the research study that includes quantitative and the qualitative method. Quantitative
method refers to the numerical analysis of the data and focuses on the mathematical, numerical
and the statistical analysis of the data (Taherdoost, 2016). However, qualitative method reflects
study of qualitative elements like feelings, emotions and attitude with regards to convergence of
the modern technology in an automotive segment. Referring to this study, scholar will make use
of qualitative study that helps in understanding detailed assessment of the qualitative elements.
Approach- The two major approaches could be used for making the research report that
are inductive & deductive approach. The former approach begins with an observation and the
theory are been projected towards an ending of research process as the result of observation. It
involves investigate for the outline from the observation & development of an explanation &
theories for such pattern throughout the series of the hypotheses. On the other side, the latter
approach means as develop hypothesis based on existing theory and thereafter designing the
research strategy for testing a hypotheses (Ørngreen and Levinsen, 2017). In this study,
researcher will use inductive approach that helps in determining specific observation towards the
broad generalizations in relation to converging modern techniques in the automobile companies
within an overall industry.
Philosophy- It is divided into 2 segments that include interpretivism & positivism.
Interpretivism philosophy refers to an interpretation of the human interest components into a
report. It indicates he philosophical position of an idealism and is been grouped together as the
diverse approaches with an inclusion of social constructivism. Positivism philosophy is mainly
on basis of natural phenomenon & their relations & property. This an information derived from
the sensory experience, forms exclusive sources, interpreted through the logic and the reason of
the knowledge. In this report, scholar will be adopting interpretivism type of philosophy as it is
the most suitable method that focuses on qualitative analysis of the research problem that is
bringing the modern techniques in the automobile company.
Collection of data- There are two main sources for gathering data that are first hand and
the published sources. First hand sources means where the data is collected in direct connection
with the participant (Cuervo‐Cazurra and et.al., 2017). On the other side, published sources
means where information is obtained from the available articles, books & journals. In this report,
researcher will be using both primary and the secondary sources by way of structuring the

questionnaire, conduct survey, internet, journals, interview and the articles. These sources help in
gathering accurate data and there exist very less chances of manipulating the data.
Sampling- the two main methods for conducting sampling includes probabilistic & non-
probabilistic sampling tool. Probabilistic sampling refers to where an entire population is
provided the same chance of being selected (Taherdoost, 2016). However, non-probabilistic
sampling means where the sample is been chosen based on subjective judgment and not on equal
basis. In this report, scholar will use random sampling which is classified as probabilistic
sampling and is on the basis of probability theory where an overall population is been given
equal possible chance of being selected. The sample of 20 managers has been chosen of different
micro business as the participant for answering research questions.
Analysis of data- For assessing data there are two main tools that includes SPSS and
thematic analysis. Former tool is the software that is been used for making quantitative study as
it involves application of various statistical or numerical test in order to generate adequate results
(Page and et.al., 2017). On other state thematic method means the method under which a variety
of themes are prepared based on responses of participant for the purpose of framing the study in
a presentable manner. In this study, an investigator will use thematic analysis that assist in
creating themes in a set pattern for generating critical findings relating to the responses of the
participant with regards to the research problem.
Ethical consideration- In preparing for the research report, it is very important for the
scholar to consider all the ethical aspects within the study. Researcher will ensure that the
respondents are not been subjected to any harm and are not been pressurized in any way. Full
consent must be obtained from participants in order to reflect their voluntary participation. An
investigator will avoid using of any misleading or offensive language and also show respect
towards the participants. Adequate level of the confidentiality is been ensured with full
protection of privacy. Anonymity of an organization and the individual within the research will
be ensured by the scholar.
Reliability and the validity- It means as an extent up-to which same answers or results
could be obtained by making use of same instruments for more than a single time. In simple
means, in case the research is been attached with the higher level of the reliability other
researchers need to develop same results with use of the similar research methods under the
similar circumstances (Ørngreen and Levinsen, 2017). Validity means an extent to which the
requirements of employing scientific methods have been followed during a process of generating
the research findings. An investigator will ensure highest level of validity by using appropriate
timeline and appropriate methodology in formulating the study.

REFERENCES
Books and journal
Asfiah, N., Anshori, M. and Mawardi, I., 2018, July. An Analysis of Women Empowerment on
Micro Business with Social Entrepreneurship Concept. In 2018 3rd International Conference on
Education, Sports, Arts and Management Engineering (ICESAME 2018). Atlantis Press.
Cooper, S. C. L. and et.al., 2017. Sustainability and organizational behavior: A micro‐
foundational perspective. Journal of Organizational Behavior. 38(9). pp.1297-1301.
Cuervo‐Cazurra, A. and et.al., 2017. Research methodology in global strategy research. Global
Strategy Journal. 7(3). pp.233-240.
Iammarino, S., McCann, P. and Ortega-Argilés, R., 2018. International business, cities and
competitiveness: recent trends and future challenges. Competitiveness Review: An International
Business Journal.
Kakabadse, N. and et.al., 2019. Business Incubator Managers’ Perceptions of their Role and
Performance Success: Role Demands, Constraints, and Choices. European Management Review.
Ørngreen, R. and Levinsen, K., 2017. Workshops as a Research Methodology. Electronic
Journal of E-learning. 15(1). pp.70-81.
Page, D. and et.al., 2017. Optimising early neonatal nutrition using translational research
methodology. Nutrition & Dietetics. 74(5). pp.460-470.
Taherdoost, H., 2016. Sampling methods in research methodology; how to choose a sampling
technique for research. How to Choose a Sampling Technique for Research (April 10, 2016).