This report examines the impact of the COVID-19 pandemic on small and medium-sized enterprises (SMEs) in the UK, focusing on the challenges faced by these businesses regarding the availability of raw materials, workforce, and funding, as well as increased prices. It discusses the role of the UK government in supporting SMEs through schemes like the Coronavirus Business Interruption Loan Scheme and the Bounce Back Loan Scheme, which aimed to provide financial assistance and job opportunities. The report also explores the strategies SMEs adopted to interact with the external environment, including technological advancements, adapting to customer expectations, managing supplier requirements, and responding to regulatory and economic factors. The conclusion emphasizes the importance of considering both internal and external factors in business strategies and highlights the government's efforts to help SMEs overcome the challenges posed by the pandemic, with the Desklib platform offering further resources for students.