A Report on the Quantitative Analysis of COVID-19 Impact on UK SMEs

This report investigates the impact of the COVID-19 pandemic on small and medium-sized enterprises (SMEs) in the UK, utilizing official statistics and secondary data to assess the adverse effects on business operations. It highlights the pandemic's contribution to increased unemployment rates due to company downsizing and reduced customer demand resulting from economic downturn. The analysis reveals a negative impact on business performance during and after the pandemic, affecting overall company outcomes. The report further explores various challenges faced by SMEs, including decreased turnover and export/import activities, and the role of government grants in aiding their recovery. The data, presented through thematic analysis and visualizations, demonstrates the pandemic's significant influence on the UK's SME sector.

QUANTITATIVE DATA ANALYSIS REPORT

EXECUTIVE SUMMARY
The entire report shed a light upon different ways through which pandemic affected the
small businesses in UK. For that, official statistics has been taken that determine in how many
ways Covid-19 affected the entire business operations in adverse manner. Such that it highly
affected unemployment rate of a country because range of companies force employees to leave
the business. Also, the demand of a customers also affected adversely such that customers do not
spend to buy anything because of lower down the economic rate of a country. Further, it has
been identified that there is a negative impact upon the business operations and that is why, it
affected the overall performance of a company during and post covid-19.

Table of Contents
INTROUCTION .............................................................................................................................3
Aim..............................................................................................................................................3
Literature review.........................................................................................................................3
Data analysis ..............................................................................................................................6
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

Topic: To identify the impact of covid-19 upon small and medium businesses over the UK
sector
INTROUCTION
Pandemic affect the entire business in opposite manner because it leads to shut down the
businesses and this in turn affect the performance of company adversely. Similarly, the present
study is also shed a light upon its impact over the trade and businesses. Further, the report is
based upon secondary data collection methods only where authentic sources considered in order
to meet the defined aim. The chosen business problem for this report is to determine the impact
of pandemic over the SME sector in UK because it is affected the most and for that government
also offer range of grants in order to improve the business operations. Moreover, the report will
also assist to determine different ways through which businesses affected and this in turn causes
direct impact over the company as well. Further, with the help of official national statistics
sources, the report will determine ways through which small businesses affected negatively and
this in turn affected the demand of customers as well. Also, report uses secondary data
collection method in order to develop brief thesis that assist to determine the impact of covid -19
upon business performance in which data is supported through different authors and with the
help of findings, study will determine range of ways through which the data can be presented.
Aim
The aim of the study is to determine the impact of pandemic upon UK small and medium
businesses by considering different elements within a study.
Literature review
According to Victor and et.al. (2021) SME sector of UK contribute to 47% to the
economy of UK and that is why, it can be stated that it is a key role in boosting the productivity
of UK that increases the brand image at global level. From the results generated through
McKinsey survey, it has been analyzed that the sector has thrive due to tough trading restriction
which imposed during covid-19. This in turn reflected that there are major areas which are highly
affected due to pandemic and this in turn worrying the owner because they do not have any
options that can be used to improve the business performance. However, Juergensen, Guimón
and Narula (2020) critically analyzed that the revenue of SME fallen in May 2020 whereas they
also gain their market from November 2020.

According to the secondary data, the above image clearly reflected that the sales is
improved from November and this is because there were no restrictions imposed during these
days and that is why, the company increases their sales by contributing their part towards a UK
economy (UK small and medium size enterprise: Impact on COVID 19, 2021).
In the opinion of Melnyk and et.al., (2021) there are many sectors that affected negatively
and they also took enough time in order to recover from the same that helps to improve the
business performance. The resource also reflected that unemployment rate also arose by 5% and
this in turn indicate that there was loss of jobs that also consider negative impact over UK
economy. Not only this, most of the SME sector also faces range of challenges due to pandemic
which includes that travel and tourism sales fall due to banned of tourism and this affect their
performance in negative manner. Also, Hurley and et.al., (2021) argued that the trend in SME is
completely changed after pandemic because the turnover and employment decreases quickly that
affect the business performance in negative manner. This in turn affect growth of a companies
and also experienced a decline in turnover than employment where government also support to
provide grants.
Belghitar, Moro and Radić (2021) investigated in their study that nearly half of the UK
manufacturers recover soon at the end of 2020 and this is because government offer range of
grants to the businesses in order to revive them back to their original position. It is so small

businesses contribute 50% to the UK economy and that is why, government focuses upon this
area so that the business can earn profit. During the pandemic, government offers range of
facilities however, stockpiling is consider one of the major issue in other countries. It is nit
highly affected in the areas of UK because government makes enough preparations in order to
improve the business performance. The survey conducted from the Lumina intelligence stated
that 34% of UK consumer either have or considering the food and drinks before the end of 2020
and this in turn lead to increases stockpiling. Brown and Cowling (2021) critically evaluated that
this challenges lead to increases the product shortage and lack of lorry drivers also increases the
issue among UK SME.
Overall, it has been reflected that there is a major negative impact identified upon SME,
but with proper grants from government, the sector recovered soon. This in turn reflected that
there was a great loss of skilled employees and this contribute to increase the unemployment
rate. Along with this, it has been identified that the demand of customers also decreases and that
is why, it affected the supply rate of SME as well.
Research Methodology:
Research type: For the present study, quantitative research type has been adopted that
helps to meet the defined aim of a research. Here, numbers, facts and figures has been used in
order to determine the results pertaining to chosen aim.
Data collection: There are two types of data collection i.e. primary and secondary where
only secondary data collection methods has been adopted. In this, only official sites considered
and relevant books and journals chosen in order to generate the best outcomes regard to chosen
aim.
data analysis: In order to present the data collected from ONS, thematic data analysis has
been used where different graphs and charts used to present the findings that helps to meet the
defined aim. Through this, data can be interpreted according to themes so that impact of covid -
19 can be determine upon SME sector of UK.

Data analysis
Question: Are you expecting to temporarily or permanently close any sites in the next two
weeks?
Interpretation:
The majority of the business houses are expecting to close the site temporarily or
permanently in the next two weeks. This is a common perception of all the business houses due
to covid pandemic situation. As the crisis could drag the business venture to suffer in delivering
the business operations which will result into closure of sites.
Question: In the last two weeks, how has the coronavirus (COVID-19) pandemic affected
your business's turnover, compared to what is normally expected for this time of year?
0 - 9 10 - 49 50 - 99 100 -249
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
6.2% 9.0% 9.6% 9.9%
68.0%
75.7% 78.8% 79.0%
15.9% 12.1% 9.2% 9.0%9.9%
3.2% 2.4% 2.2%
Yes
No
Not sure
Not applicable
Illustration 1: No stites to be closed UK small and medium size enterprise: Impact on COVID
19. 2021

Interpretation:
As per the views given by majority of respondents it can be stated that in the pandemic
turnover of the company do not got affected. This is indicating one aspect or fact that the
pandemic situation could not affect and influence the turnover situation of the business house.
Question: Has your business exported goods or services in the last 12 months?
*
*
*
*
0 - 9
10 - 49
50 - 99
100 -249
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4
1.0%
2.1%
1.5%
2.4%
2.8%
4.2%
4.5%
6.5%
33.9%
30.7%
36.3%
34.0%
14.6%
17.7%
20.3%
22.6%
17.1%
21.5%
17.2%
15.4%
19.7%
16.4%
11.6%
9.9%
Turnover has increased
between 20% and 50%
Turnover has increased by up
to 20%
Turnover has not been affected
Turnover has decreased by up
to 20%
Turnover has decreased
between 20% and 50%
Turnover has decreased by
more than 50%
Not sure
Illustration 2: Turnover not affected in covid UK small and medium size enterprise: Impact
on COVID 19. 2021

Interpretation:
The majority of business venture did not find it able to export in the last 12 months. This
is clearly indicating about the downfall of business houses witness in the previous one year. The
pandemic situation could completely demolish the economic activities at the international level
which also resulted into downfall in business operations.
Question: How has your business’s exporting of goods or services been affected by the
coronavirus (COVID-19) pandemic in the last two weeks?
0 - 9 10 - 49 50 - 99 100 -249
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
11.7%
18.0%
29.6% 32.9%
84.3% 80.3%
69.0%
63.6%
4.1% 1.7% 1.4% 3.6%
Yes
No
Not sure
Illustration 3: No export made in last 12 months UK small and medium size enterprise:
Impact on COVID 19. 2021

Interpretation:
The majority of opinions of the respondents did disagree that the pandemic situation cold
get influence due to the pandemic or covid situation. This is a key feature associated with the
business entity to not to get affected due to the pandemic situation.
Question: Has your business imported goods or services in the last 12 months?
0 - 9 10 - 49 50 - 99 100 -249
0
0.1
0.2
0.3
0.4
0.5
0.6
48.1% 47.6%
52.0% 49.7%
25.7%
33.4% 35.7% 36.6%
5.7% 2.6% 4.0% 2.4%
5.7% 6.7% 4.5%
8.7%
Not been able to export in the
last two weeks
Exporting has not been
affected
Exporting, but less than normal
Exporting more than normal
Not sure
Illustration 4: UK small and medium size enterprise: Impact on COVID 19. 2021Exports not
affected

Interpretation:
In the last 12 months business has not imported good from outside.
Question: How has your business's importing of goods or services affected by the
coronavirus (COVID-19) pandemic in the last two weeks?
0 - 9
10 - 49
50 - 99
100 -249
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
12.0%
21.3%
31.9%
40.0%
82.5%
76.2%
65.6%
55.7%
5.4%
2.5%
2.5%
4.3%
Yes
No
Not sure
Illustration 5: No important in last 12 months UK small and medium size enterprise: Impact
on COVID 19. 2021

Interpretation:
The effect of the pandemic do not include the reduction in the import for the small
business houses in the last two weeks. This is denoting that the important has been constantly
active for the small business venture to deliver the regular operations. Import is usually occur to
channelises the regular operation activity of companies.
0 - 9
10 - 49
50 - 99
100 -249
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7
13.4%
4.4%
1.3%
32.5%
56.0%
61.3%
57.5%
30.9%
29.9%
31.9%
30.6%
4.9%
1.6%
3.1%
3.1%
18.3%
8.2%
3.1%
7.5%
Not been able to import in the
last two weeks
Importing has not been
affected
Importing, but less than normal
Importing more than normal
Not sure
Illustration 6: UK small and medium size enterprise: Impact on COVID 19. 2021 import not
affected in last two weeks