Business Research Project: COVID-19 Impact on UK SMEs and Responses

This business research project investigates the responses of small and medium-sized enterprises (SMEs) in the United Kingdom to the disruptions caused by the COVID-19 pandemic. The research explores the challenges faced by SMEs, including financial impacts, operational difficulties, and the need ...Read More

Business Research Project
(To investigate the response of small and medium
sized enterprises to COVID-19 disruption:
Implications for the United Kingdom)

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................4
About the topic.......................................................................................................................4
Research problem...................................................................................................................4
Rational of research................................................................................................................4
Aim.........................................................................................................................................5
Objectives...............................................................................................................................5
Research questions.................................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................8
CHAPTER 4: FINDINGS AND DISCUSSION...........................................................................10
Questionnaire........................................................................................................................10
Frequency distribution table.................................................................................................11
Interpretation........................................................................................................................13
CHAPTER 5: CONCLUSION......................................................................................................20
REFERENCES..............................................................................................................................21

CHAPTER 1: INTRODUCTION
Research background
COVID-19 has disrupted the whole world and in this manner all the business are facing
issues and specifically SME’s are the one those have faced the major problems due to COVID
(Oni-Egboma, 2020). In this manner these business organisations are wholly emphasised over
managing COVID disruption so as to regain their market position (Papadopoulo, Baltas and
Balta, 2020). In UK COVID has taken many lives and at the same time many businesses has
seen dark days. COVID has given severe situation to economy of every country so in order to
eradicate this challenge SME’s are taking step so that to reallocate position to their businesses
and to give benefits to public also. The research is emphasised on SME which is based in UK
and dealing in clothing named AwayToMars. The SME has won various awards due to their
tremendous performance and in current time in COVID crisis they are focusing over
maintaining sustainability within business. This is being observed that more than 80% of
SME’s have faced negative impact on their revenues due to COVID and this research is
analysing such impact on SME’s and their faced implications due to COVID.
Research problem
COVID-19 is regarded as one of the most dangerous disease which has affected the
whole world in most tremendous manner. COVID implication is providing negative impacts to
sustainability and growth of the organisation and nations as well. In the context of small and
medium sized business blockage is seen in accumulating regular resources as these businesses
are dependent over collecting resources on regular manner (Liu, Yue and Tchounwou, 2020).
SME’s are giving higher employment opportunities to people so after implication of COVID
various economic disruptions are seen and due to these disruptions these business are facing
issues in their survival(Berchin and de Andrade, 2020). Under this research response given by
SME’s to COVID has elaborated as this response is necessary in order to inhale long term
business succession.

Rational of research
This research is providing immense opportunities to understand response for COVID-19
given by various SME’s existed within UK (Chetty and et. al., 2020). Besides this, current
research is providing such aspects to researcher in which they can enhance personal and
professional aspects all together. In the terms of personal level this research is able to enhance
skills such as critical thinking and research skills (Williams and Kayaoglu, 2020).
Aim
“To investigate the response of small and medium sized enterprises to COVID-19
disruption: Implications for the United Kingdom. A study on AwayToMars.
Objective
1. To critically evaluate literature review related with response of small and medium sized
enterprises due to COVID disruption.
1.1 To analyse the challenges which are being faced by SME during COVID outbreak
1.2 To explore the ways in which SME's can recover from COVID-19 threats for ensuring
business continuity
1.3 To examine those ways which can be used by SME's in decision making so that to
minimise threat implicated by COVID-19
1.4 To investigate effectiveness of national scheme and policy interventions those are
supporting sustainability of SME's in COVID crisis
1.5 To recommend the ways in which existing threat within external environment after
COVID implication can be minimised by SME
Research questions
• What are the challenges which are being faced by SME's during crisis of COVID?
• What are the ways that can be used by SME's to start business recovery from
COVID outbreak and ensure business continuity?
• What are the policies and national schemes that can be used by SME's in order to
inhale business sustainability during COVID crisis?

• What are those practices that can be adopted by SME's for minimising threats within
external environment due to implication of COVID-19?
Overview of other chapters
This research report is associated with analysing disruption faced by SME’s due to
implication of COVID and due to this these industries are facing high negative time. This
research report is based on this basis only and providing ways to SME’s in order to deal with
these issues. The first chapter of this report is providing introduction and aims for the report.
The second chapter is associated with literature review in which views of various authors are
accumulated in respect of research topic. The third chapter is linked with research methodology
used within this research in order to frame conclusion. Chapter 4 is providing findings in
relation to research topic so that research objectives can be attained.
CHAPTER 2: LITERATURE REVIEW
What are the challenges which are being faced by SME's during crisis of COVID?
According to Stratoulias and Nuthammachot (2020), there are various challenges which
are faced by SME’s during COVID and these are elaborated as under:
Take action and move forward: One of the needs of current crisis is that business
should be quick responding and fast decision making. However, sometimes entrepreneurs are
unable to make fast decisions as there is high stake online for which they are accountable.
Inability to take decision is one of the challenges faced by SME’s.
Keeping up with legislation: Business scenarios are dynamic now a days. It has been
observed that government norms and guidelines are keep changing on day to day basis which
are mandatory for every business to be updated with and comply with. It is a challenge for
every SME to keep them updated with those changing norms regularly and avoid and legal
consequences.
Finding balance and achieving a healthy mindset: Fear, Anxiety and Hopelessness
are some of the challenging emotions that everyone is going through in these tough times. It is
necessary to keep the resources motivated during these times.

Selecting the right focus: There are numbers of problems that SME’s is facing right
now. It’s a challenge for every business to identify the area to put their focus on and deploy
their time and resources.
According to Thorgren and Williams (2020), The major environmental threat for
AwayToMars is related with sustainability as clothing brand of current age are taking
environment as their priority so AwayToMars is using various sustainable practices in order to
deal with this threat. The company is using sustainable fabric which is not providing any
adverse impact on users and environment as well. Besides this the company is using recycled
packaging which can be reused and environment can be saved from any negative impact. The
research gap within this study is that every SME has their own working pattern so this is not
possible to generalise theories on every SME. In this manner differential analysis has not been
conducted which could lead in creating research gap in existing research.
What are the ways that can be used by SME's to start business recovery from COVID
outbreak and ensure business continuity?
According to Amis and Janz (2020), there are several ways in which business can be
recovered such are elaborated as under:
Prioritize people safety and continuous engagement: One of the major needs of every
employee is to feel safe. Therefore, reshaping of every business from COVID effects can be
started with taking all the measures for employee wellbeing and safety at workplace. The
management should be open for any complaints/suggestions and grievances.
Reshape strategy for business continuity: According to Susskind and Vines (2020), Since
a lot has been changes after the pandemic, it is need of an hour for SME’s to update their
business strategies and policies. They must form short term liquidity plans, search for
alternative supplies, assess financial and operational risks and respond accordingly.
Communicate with relevant stakeholders: It’s a time where there is sense of insecurity
among every party involved. Therefore, the management should take an initiative of timely and
effective communication with their customers, employees, stakeholders, creditors, government
etc. to boost and secure a level of confidence and support from everyone.

Maximize use of government support policies: SME’s should regularly monitor all the
government policies and evaluate the way they can get benefitted from it either operations wise
or financially and keep track of how it can best serve their individual circumstances.
What are the policies and national schemes that can be used by SME's in order to inhale
business sustainability during COVID crisis
According to Hartmann and Lussier (2020), some of the policies and national schemes are
elaborated as under:
Stimulus packages: Every business is negatively affected financially with these COVID
crisis and to mitigate the same, government of most countries have come out with a stimulus
relief packages to reduce the burden of such losses on company. SME’s can evaluate those
packages and policies and get the most benefit out of that.
Health Policies: The focus has been now shifted on health of individual with arise of this
pandemic. Every government has framed new health policies and schemes for individuals and
organizations; therefore, SME’s can make sure that their employees get the benefits they are
eligible for and all the medical expenses and benefits can be claimed.
Job Retention schemes: (Hartmann and Lussier, 2020)
In this tough times, large number of people have lost their jobs and to reduce these
unemployment various job retention schemes are promoted by government to make sure new
employments occur, less jobs are lost and their pay are not revised downwards by providing
different subsidies and various tax related benefits to company.
What are those practices that can be adopted by SME's for minimising threats within
external environment due to implication of COVID-19?
According to Aday and Aday (2020), There are various external environment threats that
can be faced by every business due to implication of COVID-19. Those external environment
threats can be government laws and regulations, customer preferences, competition etc. (Craven
and et. al., 2020) Below given are some of the practices that can be adopted by SME’s for
minimizing those threats:

Being Proactive: SME’s can opt to be more pro-active and keep themselves updated with
all the changes or updates that can come in coming time to government policies and prepare an
effective plan for same. These changes can be related to business restrictions, lockdowns etc.
Identifying changing consumer needs and preferences: With the changing times,
consumer needs and preferences too are changing, and it is now necessary for every business to
be aware of those changes and prepare their products and services as per that. This will provide
them competitive edge over their competitors and reduce the risk of being out-dated.
Safety measures for employees: There are various health related challenges faced due to
this pandemic, organization can mitigate those challenges by preparing themselves so that their
employees get all the necessary services required timely.
From analysis conducted out of various researches and studies different information is
being elaborated above as they are supporting current research topic in direct and indirect
manner. So this can be said that research gap is existed here in minimal manner. Here the
research gap is related with gaining insufficient information within research and this may lead
to minimise decision making within research. This research gap is required to be investigated in
proper manner so that negative impact over research can be minimised.
Besides this the major rationale of this research is to analyse the response obtained by
disruption of COVID-19. So using this literature review information is being gathered in such
way that research objectives are attained. As stated in earlier studies, there are various
challenges which are faced by SME’s after disruption of COVID and in order to mitigate the
same there are differential methods which are being used by them such as reshaping their
business strategy and obtaining effective communication with stakeholders. In this way SME’s
can deal with such challenges and acquire their market share as before. On the other hand there
are various national policies which are being introduced for SME’s and using these can be
helpful for these businesses to uplift their sunken position and regain market share. The
research gap under this research is COVID crisis faced by SME and the same had become
rationale for conducting this research more specifically.

CHAPTER 3: RESEARCH METHODOLOGY
There are different types of research methodologies which can be used within research in order
to complete overall research in significant manner (Tan and Ma, 2020). Similarly within this
research various research methodologies are used which are elaborated as under:
Research Philosophy: Research philosophy is defined as those set of actions that can be
used within research in order to attain research objectives (Alves and et. al., 2020). These are
the assumptions which are helpful in order to develop such aspects in which overall process of
research can be executed. There are two types of research philosophy such as interpretivism and
positivism. Under this research interpretivism philosophy is used so that to align research
objectives with research efforts. By taking assistance of interpretivism philosophy this will be
easier to analyse quantitative data in effective manner.
Research Approach: This is the major aspect within research onion method which is
associated with developing such research objectives in appropriate manner. There are two types
of research approaches which can be used by researcher in order to attain research results.
Inductive and deductive are the approaches which can be used, within this research deductive
approach is used which could be helpful in eliminating errors out of research.
Research Choice: Research choice is defined as such factors which helps the research to
gather data and attain research aims and objectives in clear manner. There are two types of
research choice such as qualitative and quantitative, under this research quanlitative research
choice has been used in which statistical conclusion can be framed by researcher. By using
quanlitative research choice this will be easy for researcher to take out data in statistical form so
that research objectives can be attained as well.
Research Strategy: Research strategy is defined as those set of actions which are helpful
for researcher to get accumulation of such information which are related with research topic.
Research strategy is of different types such as case study, survey and many more (Pinshi, 2020).
Under this research survey research strategy is used in order to gather in-depth knowledge and
to frame prominent output as well. Survey is defined as such responses which are being
collected in the process of research so that to frame and attain research objectives in provided
time frame.

Data Collection: Data collection is defined as those methods by which deep insight regarding
research topic can be exerted. Data collection is of two types primary and secondary; under
these research secondary methods of data collection is used. Using secondary methods of data
collection in-depth analysis can be performed and at the same time research objectives can be
attained.

CHAPTER 4: FINDINGS AND DISCUSSION
To analyse the challenges which are being faced by SME during COVID outbreak
From the above collected data for literature review this is being analysed that SME had
faced different issues as after disruption of COVID-19 as these businesses are small in size so
major implications are seen over these businesses (Raut, Narkhede and Gardas, 2017). On the
other hand in the context of small businesses these are driven with large human capital and high
funds but due to COVID disruption human capital were not be able to use by these businesses
so this minimised their working capacities and disrupted overall functioning as well. Similarly
these businesses are associated with providing various benefits to customers by which their
needs and demands can be met. In this manner SME’s are appreciated as these are fulfilling
needs of customers and due to outbreak of COVID these functions were became tough to
manage. Due to implication of COVID the major challenge of manpower and capital and these
two aspects are most essential part of the business due to which every function is being
executed. These are the challenges due to which heavy disruption is faced by SME’s and
resultantly their management got weaken and they started to face heavy losses as well. This is
the time in which fight against survival is seen by SME’s as they do not have ample funds and
resources to manage their business and again get their old track of business (Faisal and Nirmala,
2020). These challenges are not providing any benefit to the business as these lead the business
to acquire those negative aspects through which profitability and sustainability get hampered.
SME’s are not having vast business operations and due to COVID these functions were stopped
and heavy losses faced by these businesses.
To explore the ways in which SME's can recover from COVID-19 threats for ensuring
business continuity
From the above collected data for literature review this is being analysed that there are
various ways which can be used by SME’s in order to recover the threats which were generated
through COVID-19. Using various resources SME’s get power to deal with their threats and
overcome with the same so that assurance of business continuity can be given. These efforts are
required to be exerted so that significant edge can be attained in minimal time and attention can
be rendered in most significant manner as well (Sharma, 2020). In order to execute business
functions in most appropriate manner using of various practices are necessary so that business
complexities can be tackled by SME’s along with regenerating their business in significant
manner. One of the most prominent resource for the business are their employee so by giving
meaningful trainings to employees their skills and capabilities can be enhanced and at the same
time this will be easier to get prominence as well. On the other resources and their availability
is minimum in the time duration of COVID so using these resources to optimal manner is one

of the prominent aspect by which SME’s can overcome with such threats coming over due to
COVID crisis
From the above image this can be said that there are four major actions that could be
taken in order to reshape the business in terms of SME’s. After implication of COVID the
major need of business and their employees are laying between keeping such practices by
which appropriate safety measures can be kept so that employees may remain happy and
business can be reshaped as well (Stefan and Nazarov, 2020). On the other hand involving
stakeholders as business is driven by them only so this could be helpful for SME’s to regain
their business position and minimise threats. After this reshaping of business strategy could be
another movement by which threats can be minimised. Post COVID implications are very rigid
and harsh so this takes time for the business to get over with these but with the help of
resilience SME’s can reshape their business and functions.
To examine those ways which can be used by SME's in decision making so that to minimise
threat implicated by COVID-19
From the above collected data for literature review this is being analysed that there are
various aspects which can be used in order to take decision making so that to get positive
assistance over the business and its functions as well. For SME’s their business is managed by
their employees and resources so in the process of decision making these aspects are playing
significant role as well (Obrenovic and et. al., 2020). Decision making is the process in which
various aspects are examined so that positive direction to the business can be given on the other
hand in the context of SME’s there are several huge and small decisions which are required to
be taken so that consistency can be given to the business functions. Due to COVID implications
SME’s are facing higher issues related to decision making and business shaping. In this case

decision making is one of the prominent steps which is required to be taken so that to develop
business and associate people in it. For decision making this is prominent to have such
dimensions in the business by which positive direction can be gained by SME. In current
scenario this is being analysed due to COVID disruption various issues are being faced by
SME’s and in this manner using of proper decision making is necessary so that to minimise
threats and to inculcate higher succession opportunities as well.
To investigate effectiveness of national scheme and policy interventions those are supporting
sustainability of SME's in COVID crisis
From the above collected data for literature review this is being analysed that there are
several schemes and practices which are being launched by government so that to support
SME’s and to mitigate such issues which are faced by them. SME’s are facing issues in their
logistics and supply chain management so that government has initiated such practices by
which they do not face such issues and manages their business in appropriate manner without
facing any delays. On the other hand government is giving different subsidies as well in order
to support SME’s which is advantageous for these businesses in order to get significant
assistance as well. For a SME the major proceedings can be associated with developing those
reasons by which they can explore such opportunities to expand business and to deal with
different complexities (Stephan, Zbierowski and Hanard, 2020). After disruption due to COVID
the major seriousness is related with managing logistics and supply chain management and with
the help of government support these challenges can be dealt by SME’s in desirable manner so
that business objectives can be reshaped. Besides this the major consequences within SME’s is
related with developing those circumstances by which it becomes tough to manage supply chain
so in order to regularise the same support is needed by SME’s and government of UK has
shown their courage and helped these businesses to tremendous manner.

From the above image this can be concluded that there are four major dimensions in
which government assistance is provided to SME such as fiscal rules, revenue measures,
expenditure sides and financial management. In this manner using such aspects and assistance
SME’s can overcome with their threats and manage business in most effective manner.
To recommend the ways in which existing threat within external environment after COVID
implication can be minimised by SME
From the above collected data for literature review this is being analysed that the major
threat for SME is market competition and gaining ways for survival so that in order to
overcome with these threats significant movements are required to be taken such as SME’s are
required to renovate their business and its policies so that survival opportunities can be
enhanced. In the context of developing business by SME the major role is played by services
and quality of product or service delivered (Engidaw, 2020). For mitigation of external threat
the major role is being played by business strategy so in order to mitigate external issues using
appropriate business strategy could be an advantageous measure.
CHAPTER 5: CONCLUSION
From the above research report this can be analysed that COVID has impacted business
of SME’s in very drastic manner as these organisations are facing tremendous issues related to
their business survival so this is not easy for them to manage the same (Gourinchas and et. al.,
2020). In this manner this is imperative for them to take such steps by which they can deal with
issues of pandemic and regain their business position in short span of time in order to maintain

their business and cater customers as well. In the time of COVID most of the SME’s faced
issues in running their business in effective manner so this was the biggest issue with them and
led several business to face stage of closing.
In terms of recommendation this is being analysed that AwayToMars are required to
change their focus to gain sustainability rather than putting focus on growth (Xu and et. al.,
2020). Besides this as government has given several benefits to SME’s in terms of subsidies
and many other benefits so this is recommended to AwayToMars that in beneficial manner they
take such advantage in optimal manner so that to cover business losses and regain business
position as before.

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