Research Report: UK SMBs Impacted by COVID-19 (May 2020-Feb 2021)

This research report investigates the impact of the COVID-19 pandemic on small and medium-sized businesses (SMBs) in the UK, spanning the period from May 2020 to February 2021. The report begins with background information and outlines the research aim, which is to identify the specific ways in which UK SMBs were affected by the pandemic. It includes a literature review that synthesizes existing research on the topic, comparing and contrasting various sources to provide a comprehensive overview. The methodology section details the research approach, including the research question, the primary research methodology (surveys and questionnaires), and the project timeline. The findings, based on survey data, reveal the extent of the pandemic's impact, including business losses, and the anticipated long-term effects. The report concludes with an evaluation of the chosen research method's success and a reflection on the overall research process, providing valuable insights into the challenges faced by UK SMBs during the pandemic.

How were small and medium
businesses in the UK affected
during the pandemic May
2020February 2021

Table of Contents
Background Information..............................................................................................................3
Report aim....................................................................................................................................3
Topic area....................................................................................................................................3
Literature Review........................................................................................................................3
Literature comparison..................................................................................................................5
Methodology................................................................................................................................5
Research question........................................................................................................................5
Research Methodology................................................................................................................5
Project timeline..........................................................................................................................13
Discussion of the findings and results.......................................................................................13
Conclusions................................................................................................................................14
Evaluation of the success of the chosen Research Method.......................................................14
Reflection...................................................................................................................................15
REFERENCES...................................................................................................................................16

Background Information
The topic which has been selected for this research report is How the small and medium
businesses in the UK affected during the pandemic May 2020- February 2021. Therefore, the
analysis of this particular topic is essential for the purpose of ensuring that the overall
understanding of the way in which the pandemic has created an impact on the businesses is
analyzed. This will be quite helpful in ensuring that the right approaches are undertaken so that
the research can reach the appropriate conclusions which can be useful for the future (Açikgöz
and Günay, 2020).
Report aim
The main aim of this report is to identify the ways in which the small and medium
businesses in the UK were affected during the pandemic from May 2020 till February 2021.
Topic area
The pandemic has forced the business to close down and reduced their earnings. As the
pandemic affected lives of various people and affected various areas of economy. A bad hit was
also on the small and medium businesses of UK during the pandemic. Many of the small and
medium businesses get dependent upon the UK government for their living and earnings. Also
this pandemic has forced many small and medium businesses to get shut down as they were not
able to even cover their costs. All these tough times have forced people to change the ways of
living and operating the businesses. From their traditional methods of operating the small and
medium businesses have to shift to more advanced and technology driven systems (Altig and
et.al., 2020).
Literature Review
How the COVID-19 crisis is affecting UK small and medium-size enterprises. Sharma, R.,
Mladenov, Z. and Albonico, M (2020)
According to Sharma, R., Mladenov, Z. and Albonico, M (2020) The small and medium
enterprises of UK comprises larger part in the UK economy and due to the pandemic, small and
medium businesses are greatly affected and a decline in the revenues has seen in the same. The
small and medium businesses were seen to do default on loans and also were facing problems in

retaining the employees. As per the survey it was found that the major small and medium
business that were negatively impacted were hospitality sector, logistic, construction and
agriculture as they were encountered with lower revenues. While the small and medium
businesses that were impacted little less were scientific, education etc. Also, the UK government
have launches a programme names Furlough program in which some small and medium
businesses have planned or are planning to take advantage under this program.
Coronavirus (COVID-19): SME policy responses. (2020 )
As per the article it was found that around 37% of the firms have made or considering
redundancies in May 2020. around 35% of the firms are scared that their businesses will not
reopen and some also fears that they have to close their businesses temporarily. As per the
survey there are certain small and medium businesses that were impacted majorly such as
construction, retail, accommodation, food services etc. also the earning of the employees in
small and medium businesses were impacted negatively as compared to the large businesses.
Due to the pandemic there was a widening of liquidity gap in the small and medium businesses.
Brown,R (2020)
According to the article the small and medium businesses in Scotland have been heavily
impacted by the pandemic in financial and economic terms. The capital investment in into the
small and medium businesses have been fallen immensely and also these businesses saw a
liquidity problems due to which the SMEs were not able to pay their debts. The savings and
financial resources are at verge of emptiness and also some businesses are at the stake of shutting
down. Internal sources are very important for running the small and medium businesses and due
to pandemic there have been crisis for the same. The major hit of pandemic was on retailers or
the restaurants but the delivery companies are showing good process as people in UK are
preferring to order online.
How UK SMEs can weather the impact of Covid-19. (2020)
From the article it is found out that as the UK's small and medium businesses were
overcoming the impact of Brexit, the businesses got again hit by the pandemic and the sales of
small and medium businesses started declining. There were many issues that the small and

medium businesses were facing such as these businesses have to manage their cash flows even
when their sales have declined and have to pay different costs such as rent, salaries, inventories
etc. Also these businesses have to cope up with the disrupted supply chain. This pandemic have
influenced the small and medium businesses in using the technology and software to carry on
their businesses in the odd situations. The pandemic have forced these businesses to allow their
employees work from home and some schemes were also designed to prepare these small and
medium businesses for long term and to reduce the negative impact of pandemic on these
businesses.
Literature comparison
All the articles and sources shows that there was great impact of pandemic on the small
and medium businesses and the sales of these businesses declined during this period. And
sources 2.1, 2.2 and 2.3 highlights that there were certain small and medium businesses that were
negativity impacted such as retailers, accommodation and construction but the education and
delivery services had little impact as they have to change their way of operating. As per the
sources of 2.1 and 2.4 the UK government have also introduced certain schemes and
programmes to help these small and medium businesses (Bahl and et.al., 2020).
Methodology
Research question
How were small and medium businesses in the UK affected during the pandemic from
May 2020 to February 2021?
Research Methodology
For collecting the relevant information regarding the research project, primary research
will be carried out. For carrying out the primary research firstly the survey will be conducted and
questionnaires will be used to collect information from the small and medium business owners.
Further, analysis will done by using thematic technique (Bambra and et.al., 2020). The
information which is there in articles and books will be compared, confirmed and contradicted
with the collected information. There are various types of research methods which can be used.
An analysis of these research methods is provided as follows-

Experiments- In this method, the use of different types of experiments is made so that
the overall conclusions and recommendations can be drawn in the right manner. Therefore, it can
be said that it can be used so that the results are obtained by experimenting.
Surveys- This method makes the use of a Survey form in which the people are required
to provide information about themselves so that they are able to ensure that they can provide
their required contribution in conducting the research in a proper manner. Thus, in this way they
can help in ensuring that the analysis and interpretation of the given set of information is done
appropriately which can be quite useful for the future (Cavallo and Forman, 2020).
Questionnaires- In this method, there are different types of questions which are set up
and thus in this way it can be said that it can be used so that the different types of people are
asked a range of questions and their answers are recorded appropriately which will be helpful in
the drawing of the conclusions and recommendations. Therefore, in this way it can be said that
through the use of this method the results which are obtained can be analyzed in an appropriate
way which will help a lot in ensuring that the level of efficiency and effectiveness can be
obtained.
Interviews- This method makes sure that a face-to-face interaction can be done and
therefore the questions can be asked directly. Thus, in this way it can be said that the use of this
method is helpful in ensuring that the respondent is able to provide an answer to the questions
and thus the answers which have been provided for the questions are used as a base through
which the research can be conducted appropriately.
Case studies- Using this method is necessary in order to ensure that a particular case is
effectively and efficiently analyzed which can be quite helpful in ensuring that the research can
be conducted in a smooth manner. Therefore, this method is very useful for the purpose of
carrying out a research in a right manner.
Participant and Non-participant Observation- In Participant observation, the
researcher who is conducting the research becomes a part of the observation group. This is
helpful in ensuring that the study can be conducted in a proper way and the appropriate
conclusions and recommendations can be drawn effectively and efficiently. However, In Non-
Participant observation, the researcher conducting the research is not the part of the group which
is being studied. Thus, the collection of the all the required data, facts and information is done
from outside and therefore the conclusions and recommendations are formed in this manner.

Observational trials- Here, the health issues in large groups of people are studied in the
natural settings. Such a method is useful in conducting the research appropriately which can be
quite helpful in ensuring that the overall level of conclusions and recommendations can be drawn
in the right manner effectively and efficiently. Thus, in this way it can be said that the use of the
observations which are made here can be made in effectively and efficiently completing the
research (Grubaugh, Hanage and Rasmussen, 2020).
Delphi method- This method is useful for the researchers because they can use it to
determine the different types of opinions on a particular subject which will be quite helpful in the
investigation of issues of policy or clinical relevance and deriving a consensus on the various
types of controversial issues.
Justification- The use of Questionnaire method will be made for the purpose of
conducting a research on the selected research topic. This is so because through the use of this
method, the respondents can be asked a range of questions to which they can provide their
answers and thus this will help in deriving conclusions and recommendations which can be quite
useful.
Questionnaire-
Question 1- Have you felt that an impact has been created by the COVID-19 pandemic on your
business?
Answer-
Yes- 80 respondents
No- 20 respondents

1 2
0
10
20
30
40
50
60
70
80
90
Series1
Interpretation- According to the graph, 80 respondents state that an impact has been created by
the COVID-19 pandemic on the Businesses. However, 20 respondents state that no impact has
been created by the COVID-19 pandemic on the Businesses.
Question 2- Has the COVID-19 pandemic resulted in losses for your business?
Answer-

Yes- 90 respondents
No- 10 respondents
1 2
0
10
20
30
40
50
60
70
80
90
100
Series1
Interpretation- According to the graph, 90 respondents state that the COVID-19 pandemic has
resulted in losses for the Businesses. The remaining 10 respondents state that the COVID-19
pandemic has not resulted in losses for their Businesses.
Question 3- Will the impact of COVID-19 pandemic will be felt on the Businesses in the long-
term?
Answer-

Yes- 95 respondents
No- 5 respondents
1 2
0
10
20
30
40
50
60
70
80
Series1
Interpretation- As per the graph, 95 respondents state that the impact of COVID-19 pandemic
will be felt on the Businesses in the long-term. The remaining 5 respondents state that the impact
of COVID-19 pandemic will not be felt on the Businesses in the long-term.
Question 4- Has the Government taken appropriate steps to control the pandemic?
Answer-
Yes-75 respondents
No- 25 respondents

1 2
0
10
20
30
40
50
60
70
80
Series1
Interpretation- As per the graph, 75 respondents are of the opinion that the Government
has taken appropriate steps in order to control the pandemic. The remaining 25 respondents state
that the Government has not taken appropriate steps to control the pandemic.

Question 5- Do you see the situation improving in the future for the Businesses?
Answer-
Yes- 95 respondents
No- 5 respondents
1 2
0
10
20
30
40
50
60
70
80
90
100
Series1
Interpretation- As per the graph, 95 respondents are of the opinion that they see the situation
improving in the future for the Businesses. The remaining 5 respondents state that they do not
see the situation improving in the future for the Businesses.

Project timeline
Creation of research questionnaire: 2nd March - 9th March
Conducting the surveys of the 20 business owners : 9th March - 16th March
Analysis of data : 16th March - 23rd March
Gathering additional information: 23rd March - 30th March
Comparison of the research: 6th April - 15th April
Writing the Research project: 15th April - 22nd April
Revision of research project : 22nd April – 29th April
The date of submission : 14th May, 2021
Discussion of the findings and results
From the Questionnaire, it has been identified that the different types of questions were
asked to a wide range of the respondents and thus the answers which they gave were recorded for
the purpose of performing Analysis & Interpretation later on. Therefore, it can be said that the
Questionnaire is highly useful in ensuring that the information is used in a proper way effectively
and efficiently (Haleem and Javaid, 2020).
Therefore, it has been found out that most of the respondents feel that the COVID-19
pandemic has impacted their Businesses. They are of the opinion that the impact of the pandemic
will be felt in the long-term on the Businesses. Thus, On the basis of the Questionnaire it can be
said that many Small Businesses were impacted in UK during the pandemic from May 2020-
February 2021.
The research which is being conducted can be used by the Government in the future so
that it is able to ensure that it is able to ensure that it finds out the appropriate steps which can be
taken by it to bring a considerable improvement in the condition of the Small and Medium

Businesses effectively and efficiently in a right way. Thus, in this way it can be said that the
Government can make sure that it can help in controlling the impact which is being created on
the Businesses so that the attainment of a wide range of goals and objectives can be done in the
future quite effectively and efficiently in a right way.
Conclusions
The Conclusions from the Analysis & Interpretation of the Questionnaire are that the
Small and Medium Businesses in the UK were impacted due to the pandemic from May 2020-
February 2021. Therefore, in this way it can be said that these businesses were impacted because
of the pandemic as they faced losses during this period (Ludvigsson, 2020).
Therefore, it can be said that the impact which has been created by the COVID-19
pandemic will be felt for some time and thus it is quite important for the Businesses that they are
able to ensure that they are able to bring the required improvements in themselves which will be
helpful for them in being able to ensure that the increase in the overall level of efficiency and
effectiveness can be carried out which will help in earning potential profits in the future in a right
way.
Therefore, it is important for the Small and Medium Businesses in the UK that they are
able to make sure that through the use of appropriate methods and techniques they can attain
their wide range of goals and objectives in the future which will be quite helpful for them in
ensuring that the level of profitability is maintained in a right way. This will help them in
ensuring that their Business remains profitable even during the impact of the pandemic.
Evaluation of the success of the chosen Research Method
The chosen Research Method for this report was Questionnaires. The use of
Questionnaires can be made so that a wide range of Questions can be asked to the respondents
and their views can be recorded. The use of the Questionnaire method is very useful in ensuring
that the observations and views of the respondents can be recorded through the answers which
are provided by them to the Questions which were asked to them (Mahmud and et.al., 2020).
This Research Method is successful because it involves low cost. Therefore, in this way it
can be said that the chosen Research Method also resulted in saving of time. Further, the
questions which are asked in it and the answers which have been received from the respondents
can be used appropriately so that the analysis & interpretation of the data is done effectively and
efficiently to derive the conclusions and recommendations which are quite necessary. Thus, in

this way it can be said that the Questionnaire method is quite successful in recording the views
and observations of the people which will help a lot in ensuring that the various types of
conclusions and recommendations can be drawn (Sim, 2020).
Reflection
I am a student studying in a university. In our university, we are given regular
assignments and projects to work on which help in testing knowledge, skills and abilities.
Therefore, I was given a project to work on by my teachers. This was a research project which
was given to me. The topic which was selected for this research report is How were small and
medium businesses in the UK affected during the pandemic from May 2020-February 2021.
As I had never worked on a research project before it was an entirely new experience for
me. Therefore, Initially I made a lot of mistakes and therefore I had to contact my classmates to
learn the way in which they were approaching the project. After talking with them I was able to
learn the right way of approaching this particular project. Therefore, I will make sure that in the
future I approach such a research project quite carefully which will be helpful for me in ensuring
that the attainment of the goals and objectives related with the research project can be attained in
the right manner effectively and efficiently in the future (Zangrillo and et.al., 2020).
Therefore, In the future when I am given such a project to work on I will make sure that I
am able to understand the particular way in which the project has to be completed. I will take a
different type of approach and I will ensure that I can complete the project within the set time-
frame.

REFERENCES
Books and Journals:
Açikgöz, Ö. and Günay, A., 2020. The early impact of the Covid-19 pandemic on the global and
Turkish economy. Turkish journal of medical sciences. 50(SI-1). pp.520-526.
Altig, D. and et.al., 2020. Economic uncertainty before and during the COVID-19
pandemic. Journal of Public Economics. 191. p.104274.
Bahl, S. and et.al., 2020. Telemedicine technologies for confronting COVID-19 pandemic: a
review. Journal of Industrial Integration and Management. 5(4).
Bambra, C. and et.al., 2020. The COVID-19 pandemic and health inequalities. J Epidemiol
Community Health. 74(11),.pp.964-968.
Cavallo, J. J. and Forman, H. P., 2020. The economic impact of the COVID-19 pandemic on
radiology practices. Radiology. 296(3). pp.E141-E144.
Grubaugh, N. D., Hanage, W. P. and Rasmussen, A. L., 2020. Making sense of mutation: what
D614G means for the COVID-19 pandemic remains unclear. Cell. 182(4). pp.794-795.
Haleem, A. and Javaid, M., 2020. Medical 4.0 and its role in healthcare during COVID-19
pandemic: A review. Journal of Industrial Integration and Management. 5(4).
Ludvigsson, J. F., 2020. Children are unlikely to be the main drivers of the COVID‐19
pandemic–a systematic review. Acta Paediatrica. 109(8). pp.1525-1530.
Mahmud, E. and et.al., 2020. Management of acute myocardial infarction during the COVID-19
pandemic. Journal of the American College of Cardiology.
Sim, M. R., 2020. The COVID-19 pandemic: major risks to healthcare and other workers on the
front line.
Zangrillo, A. and et.al., 2020. Fast reshaping of intensive care unit facilities in a large
metropolitan hospital in Milan, Italy: facing the COVID-19 pandemic emergency. Critical Care
and Resuscitation. 22(2). p.91.
Online
Brown, R., 2020. The Impact of Covid-19 on Scottish Small and Medium- Sized Enterprises
(SMEs): Prognosis and Policy Prescription. [Online]. Available through:<The Impact of
Covid-19 on Scottish Small and Medium- Sized Enterprises (SMEs): Prognosis and
Policy Prescription>. [Accessed on 24 February, 2021].
Coronavirus (COVID-19): SME policy responses. 2020. [Online]. Available
through:<http://www.oecd.org/coronavirus/policy-responses/coronavirus-covid-19-sme-
policy-responses-04440101/>. [Accessed on 24 February,2021].
How UK SMEs can weather the impact of Covid-19. 2020. [Online]. Available
through:<https://www.iod.com/news/news/articles/How-UK-SMEs-can-weather-the-
impact-of-Covid-19>. [Accessed on 24 February, 2021].
Sharma, R., Mladenov, Z. and Albonico, M. 2020. How the COVID-19 crisis is affecting UK
small and medium-size enterprises. [Online]. Available through:
<https://www.mckinsey.com/industries/public-and-social-sector/our-insights/how-the-
covid-19-crisis-is-affecting-uk-small-and-medium-size-enterprises>. [Accessed on 24
February, 2021].