HND Business Research Project: Digital Technology's Impact on SMEs

This document presents a comprehensive research proposal and project centered on the implications of digital technology on small and medium-sized enterprises (SMEs), using Black Penny restaurant as a case study. The research begins with an introduction to the evolving landscape of digital technology and its transformative effects on businesses, particularly SMEs, highlighting the benefits of increased efficiency, wider market reach, and enhanced operational capabilities. The proposal outlines the research aims, objectives, and research questions, focusing on identifying the significance of digital technology, assessing its relationship with business operations, and providing recommendations for maintaining operational efficiency. The literature review explores the positive and negative implications of digital tools, challenges faced by SMEs in adapting to digital technologies, and the growth of SMEs in the market. The research methodology section details the research philosophy, methods (qualitative), and approach (inductive), along with data sampling, analysis techniques (thematic analysis), and collection methods (primary data through questionnaires). The project includes data collection, analysis, and a reflection on the research process and outcomes.

Research proposal and
Research Project

TABLE OF CONTENTS
LO1..................................................................................................................................................1
P1 Produce a research proposal that defines research questions or hypothesis .........................1
P2 Examine appropriate research methods to collect primary and secondary data....................4
LO 2.................................................................................................................................................4
P3 Conduct primary and secondary research with using appropriate methods .........................4
P4 Appropriate analytical technique and analyse research finding and data.............................5
LO 3...............................................................................................................................................15
P5 Communicate research outcome..........................................................................................15
LO 4...............................................................................................................................................15
P6. Reflection............................................................................................................................15
P7. Alternative methodologies and lessons learnt in view of the outcome's............................17
REFERENCES :............................................................................................................................19

Title – The implication of digital technology on SME's – A case study on Black Penny restaurant
LO1
P1 Produce a research proposal that defines research questions or hypothesis
Background
The evolution of internet has transformed people lives. It has provided them tools to
communicate with each other anytime, anywhere. These tools are also being used by business to
collect data and information from them. Also, it has changed the way of doing business. Due to
this, business is able to grow and expand in different markets. Digital technology has provided
several advantages to small business. It has created a positive impact on their efficiency and
operations. Moreover, technology has given competitive advantage at global level. The reason
behind increase in number of small business is advancement in technology. They are emerging
with advanced products and services (Hess and et.al., 2016). Due to this large number of people
are attracted towards it. This is helping them to fulfil their needs. Furthermore, SME's is able to
promote services by using social media, blogs, etc. in addition to this technology has been used
by them in various operations. This has saved time and cost thus increasing profits. They are
easily able to achieve their goals and objectives.
Rationale
The present research is been conducted to find out the implications of digital technology
on small and medium size businesses. Also, it is been studied that how Black Penny restaurant is
able to use different digital tools and equipments in their operations. Apart from this, this
research will help in analysing the impact of advancement in technology on Black Penny
restaurant. It will support in giving recommendations in how software and application must be
installed so that efficiency can be enhanced.
Aims and objectives
Aim :- To analyse the impact of digital technology on different business operations of SME's –
A Case Study on Black Penny restaurant
Objectives:

 To identify significance of using digital technology in SME.
 To access the relationship between business operations and digital technology.
 To provide recommendations through which efficiency in operations can be maintained
Research questions
 What is the importance of using digital technology in SME's?
 What is the relationship between business operations and digital technology?
 What are the recommendations through which efficiency in operations can be maintained
Literature review
Every business is affected by change in its internal or external factors in which they
operate. So it is necessary for them to develop proper strategies so that impact can be minimised.
The change in technological factors has also affected business as per suggested Schön, Ebner and
Kumar, (2014). It has forced them to cope up with technology in order to remain survive in the
market for long time. Tchnology has affected small business in both positive and negative way.
It has provided a platform to grow and develop in different market.
Implications of digital tools on small business
As per the view of Taiminen and Karjaluoto, (2015) there are various implication of
digital technology on small business. This is the reason why business has to implement various
tools in operations. It has resulted in increasing efficiency. The importance of using digital tools
in SME's is that it has allowed them to enter in the market to compete with big companies. Also,
by using software and application business is able to manage operations. They are able to
develop effectively strategies to grow and develop. In the opinion of Tiago and Veríssimo,
(2014) SME's are able to evaluate factors that can affect them by using digital tools. With this
they are able to minimise its impact. However, internet has given many advantages to them. The
major benefit it has is making communication easy and effective. It has created a systematic and
proper structure of performing task and solving customers problems.

On the contrary Schön, Ebner and Kumar, (2014) said that negative implication of
technology on business is it has lead to intense competition among them. Due to this they are not
able to survive for long term. Besides this, it has increased their costs as digital tools available
are expensive. Moreover, for maintaining efficiency of tools they have to hire experienced and
qualified person. They are not able to cope up advancements. It has reduced their efficiency and
service quality. In companies are acquiring them for their benefit. It has lead to decrease in
SME's from market. Also, in every sector major market share is captured by big organisations.
This has restricted the growth of SME's.
Growth of SME' in the market
According to Morgan, (2017) it has been said that in recent times, vast number of
business has entered in the market. They are coming up with new ideas and products that has
attracted large number of people. This is only possible by using tools and equipments in
operations. As said by Mathews and et.al., (2016) the main reason behind growth of SME's is
reach of product worldwide. By using social media, blogs, etc. they are effectively promoting
their products in different markets. So this has reduced cost and time. Also, business is taking the
help of third parties for developing attractive ads. It is focusing on sales and marketing to
increase profits. It has been suggested that it is easy for business to conduct operations. It has
also enhanced their efficiency by integrating efforts of different departments. With these goals
are easily achieved. Technology has provided tools through which variety of products and
services are developed. They are cheap and fulfil customers needs. As per the view of Love and
Roper, (2015) many new small business has emerged in the market particularly in service sector.
It can be seen that SME's are highly contributing in GDP of nation. They are generating large
amount of revenues. Also, digitization has forced big companies to compete with them.
Challenges faced by SME's
As per the view of Paul, Parthasarathy and Gupta, (2017) digital technology has resulted
in various challenges that are being faced by SME's. It has restricted them to implement tools
and equipments in operation. Machines has replaced work force, this has lead to decline in their
performance. Due to this task are not completed on time. As said by Loader, (2015) the biggest

task for SME' s is to hire qualified candidates. It is because working with technology requires
high skills. Another challenge faced is rise in number of technical errors. It has created negative
impact on production and profitability. As elucidated by Musa and Chinniah, (2016) cyber
crimes is a hot topic that has diverted mind of SME's. It has forced them to take proper and
appropriate measures while providing products and services.
P2 Examine appropriate research methods to collect primary and secondary data
For present research data will be collected by using primary and secondary methods.
These both methods will help in collecting effective and relevant data through which specific
outcomes can be obtained. This will lead to accomplishing research aims and objectives. The
method is selected by researcher as per his or her requirements. Generally, in most of the
research both these methods are used. In primary method data is collected for first time through
questionnaire, interviews, etc. whereas in secondary method data is collected from previous
research, articles, journals, etc. Both these methods will help in providing relevant data.
LO 2
P3 Conduct primary and secondary research with using appropriate methods
In order to conduct research in smooth way it is necessary that several elements must be
analysed. This is because it gives an insight on how overall research activities has to be done. A
research methodology helps in identifying several methods that will be used by researcher. It is
described below :-
Research philosophy- Research philosophy is the belief through which researcher
collects, analyse and interpret the research data appropriately and systematically. Generally,
there are two types of research philosophy that are positivism and interpretive (Mazzarol, 2015).
The researcher will apply positivism approach that will help in analysing implication of digital
technology on SME's.
Research method – There are two types of research method that is qualitative and
quantitative. For present research, qualitative method will be used by researcher. It will help in
collecting and analysing data effectively so that specific results can be obtained.

Research approach- It is related to exploring research so that assumptions can be
obtained. In this inductive and deductive approach exist. Deductive approach tests the validity of
assumptions in hand whereas inductive approach contributes to the emergence of new theories
and generalisation . For present study, researcher will use inductive approach.
Population – for present research population will be employees who are working in Black penny
restaurant.
Data sampling- It refers to selecting the number of people from the population on which
research will be conducted. The researcher will select 20 employees of Black Penny restaurant.
This is done by applying random sampling method. It is used because of its flexibility and
effectiveness.
Data analysis – It refers to analysing data to obtain outcomes. It is a process of
interpreting data in proper manner. In this researcher will analyse data by using thematic
analysis. It focuses on qualitative research by examining data in step by step manner. For
example- to identify impact of digital technology on social media marketing.
Data collection – In this data is collected to get specific outcomes. For present study
researcher will collect data by using primary method. In this he will prepare questionnaire to
collect effective data.
Cost – This is the most important element. It is because entire research is based in funds
that is available. This helps the researcher to meet aims and objectives effectively. For present
study total cost that is estimated is 400 Euros (Gruber and Thompson, 2015).
Ethical issue – Researcher must focus on ethical perspective that will help in conducting
research in proper manner. For this he or she must follow all rules and regulations while
collecting data.
Access – In this researcher must have the access for collecting and analysing data. For
present study researcher will follow a systematic way for this. It will help in getting specific and
precise results.

P4 Appropriate analytical technique and analyse research finding and data
1 Do you aware about the term digitalisation within business operation ?
 Yes
 No
2 Which source and platform of digital technology mostly used by organisation ?
 Computer and Laptop
 Social media
 Customer relationship management software and application
 Internet and Wi Fi
 All of above
3 What source mostly required at the time of implement digital technology within organisation ?
 Skilled employees
 Effective capital investment
 Training and development program
 Other
4 Is there direct relationship between digital technology and business operation ?
 Yes
 No
5 Does business operation improve after implement digital technology within business
enterprise?
 Yes
 No
6 Does your organisation uses customer relationship management and hotel management
software and applications within business operation ?
 Satisfied
 Neutral
 Dissatisfied
7 Is you business entity use social media for promotion and advertisement ?
 Strongly agree

 Agree
 Disagree
 Strongly disagree
8 Do you agree that digital technology assist to Small business enterprise in improving business
growth and operation ?
 Strongly agree
 Agree
 Disagree
 Strongly disagree
9 Recommend the strategy to implement digital technology in such manner through which
growth and operation of business can improve
Theme 1: Employees aware about the term digitalisation within business operation
Do you aware about the term digitalisation within business operation ? Frequency
Yes 18
No 2

Interpretation and analysis: From this above question it has been found that in the Black Penny
restaurant, large numbers of employees are effectively known the term of digital technology.
That means, Black Penny restaurant is using various sources and platform of digital technology
within its business operation. In the survey from 20 respondents 18 employees of cited venture
are well known about digital technology and its several sources because management uses
several techniques of digital technology.
Theme 2: Source and platform of digital technology mostly used by organisation
Which source and platform of digital technology mostly used by
organisation ? Frequency
Computer and Laptop 2
Social media 1
Customer relationship management software and application 2
Internet and Wi Fi 3
All of above 12
Yes No
0
2
4
6
8
10
12
14
16
18
20
Frequency

Interpretation and analysis: On the basis of this collected data about the sources and platform of
digital technology it has been found that Black Penny restaurant uses several techniques and
resources of digital technology in its business operation. While this asked from 20 personnels of
Black Penny restaurant then 12 employees selected last option that is All of above. Thus, it can
be said that Black Penny restaurant uses computer, laptop, social media, customer relationship
management software, application, internet and Wi-Fi in its business operation and activities.
Theme 3: Source mostly required at the time of implement digital technology within
organisation
What source mostly required at the time of implement digital technology within
organisation ? Frequency
Skilled employees 5
Computer and Laptop
Social media
Customer relationship
management software and
application
Internet and WiFi
All of above

Effective capital investment 8
Training and development program 5
Other 2
Interpretation and analysis: On the basis of gather primary information in the survey it has been
analysed that for implement digital technology, effective capital investment is required within
business enterprise. In addition to this, skilled employees are also required within business entity
for implement digital technology within Black Penny restaurant. From collected information by
20 personnels, it has been found that 8 respondents said that effective capital investment is
required to implement digital technology. On the other hand 5 respondents said skilled
employees and training and development are required by organisation for implement digital
technology.
Theme 4: The direct relationship between digital technology and business operation has made
it easy to attain goals
Skilled employees
Effective capital investment
Training and development
program
Other