A Study on UK SMEs: COVID-19 Implications and Business Responses

This business research project investigates the impact of COVID-19 on small and medium-sized enterprises (SMEs) in the United Kingdom. The study examines the challenges faced by SMEs, including financial constraints, market disruptions, and operational difficulties, while also exploring potential opportunities for business recovery and growth. The project delves into the immediate responses of SMEs to the pandemic, the decision-making processes they employed, and the effectiveness of government policies and national schemes in supporting these businesses. Through a comprehensive literature review, the research identifies key themes related to SME resilience, market dynamics, and the role of external factors. The methodology includes a descriptive research design, utilizing both qualitative and quantitative research methods to gather and analyze data. The findings highlight the critical need for SMEs to adapt their strategies, leverage technological platforms, and seek government assistance to navigate the post-COVID-19 landscape. The research concludes with recommendations for SMEs and suggestions for future research in this area, emphasizing the importance of proactive measures and strategic planning for sustainable business operations in the face of economic uncertainties.

Business Research
Project
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TITLE
The research is to investigate about the take of Small and Medium Size business upon the
implication of COVID-19 in United Kingdom.
SUMMARY
Chapter 1: Introduction: The title and the purpose of the research project is being
introduced along with the general discussion of the topic.
Chapter 2: Literature Review: in this chapter, previously published articles or journals are
being refereed in order to have deeper understanding about the project.
Chapter 3: Research Methodology: Here, the method and other related components of
conducting a research is being underlined with a combination of research onion.
Chapter 4: Findings and Research: In this chapter, the data and information is being
analysed and their results are being founded in relation to the relevance of project.
Chapter 5: Conclusion and Recommendations: This is the last chapter of the project where
the whole report is being summarized or concluded with what all mentioned in report along
with certain recommendations that can be utilised for further research.
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Chapter 1: INTRODUCTION
With effect to Pandemic called COVID-19, the whole production units become zero
as there was a whole lockdown in the whole world including UK. Most of the losses were on
the small and medium scale industries which run at a small scale and also earns quite low
margins of profits. This small and medium scale organization contributes a lot to the growth
of UK economy. For reference purpose this report has taken an example of a small scale
company, CafePod Coffee Co. The company is originated in UK. CafePod Coffee engages in
the business of producing the coffee for the people who loves drinking it. They always try to
produce new and adventurous variety of coffee for the customers. This research is on the
impact of COVID-19 upon the operations and activities of CafePod Coffee and the measures
the company took after COVID-19 to make their business operations and working back on
track (Belghitar, Moro and Radic, 2020). The investigation is about the steps or the decision a
small or medium scale industry must take to deal correctly with the after COVID-19
situation. The present report comprises of a research upon the title “Investigation about the
take of Small and Medium Size business upon the implication of COVID-19 in United
Kingdom”. For this a research has utilized both primary as well as secondary sources of data
in a form of questionnaire, previously published journals, articles as well as other published
material which all are relevant to the report. Further, from the whole analysis findings and
conclusions are being made with respect to the area of research and also certain
recommendations are mentioned which would help upcoming researchers to assist in their
report or can be considered for the effective preparation of research in related field for small
and medium enterprises.
AIM
The aim of this investigation is to determine the actions which small scale companies should
adopt to make their business back like it was before COVID-19.
RESEARCH PROBLEM
The small and medium scale companies are the great contribution for the success of UK
economy. They have helped in increasing the government tax, increase in technology,
employability, GDP and much more. But right after the COVID-19 it has become a challenge
for these companies to survive as their production went to zero during the lockdown. This has
highly impacted the operations of Small and Medium Scale companies (Belghitar, Moro and
Radic, 2020).
OBJECTIVES
The objective for the research is as follows:
• To identify the immediate actions or steps for small and medium scale organization so
their business performance can get back at the track.
• To find out the major challenges which these SME’s are facing due to COVID-19 in
UK.
• To identify the possible external market which can cause the threat and the
opportunities which are faced by SME’s along with the government policies to make
these businesses a sustainable one.
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RESEARCH QUESTIONS
• What can be the actions or steps which SME’s should take to face the challenge of
COVID-19 so that they can make the operations of business back as earlier?
• What can be the major challenges of SME’s due to COVID-19 in UK?
• What can be the possible threats and opportunities of SME’s along with the
government policies to make the business sustain in the market.
CHAPTER 2: Literature Review
Literature Review is the narrative views or the opinions of the writer and author about a
particular topic. Through the literature review the view points of the author is consider and
then an analysis is made. The review helped us in knowing the deep insights about the topic
so that it can be critically analyzed. From which includes in literature review are books,
articles, newspapers, blogs and much more. It provides the synopsis about the topic and also
about the take of author on topic. Through the collection of different types of literature
review the deeper analyses can be made as the investigator has more sources for collection of
data (Fabeil, Pazim and Langgat, 2020).
Covid-19 and its impact on SMEs
According to Ferdaus, (2020), as the SME’s have the biggest challenge to survive in
this COVID-19 scenario, they can survive through properly deep analyses of the situation.
Through the deep analyses an insight can be developed by the organization which can
provide the worst capable case or scenario that can take place. The deep and proper analyses
of the situation or scenario will help the organization to get them prepare for the worst
possible loss they can suffer and accordingly they can also make their strategies. When an
organization is known about their worst possible situation, they will also develop the insights
about how they can come out from these scenarios. All these analyses and insights are the
part of replanning, reorganizing and modelling of the process. Apart from this, through these
deep insights the company can also access the business impacts. The forecast about the
demand and cashflow should also be developed by the organization. This will help them in
knowing about the profits and cash they will be able to get in a particular time period so that
accordingly the sources can be arranged. This will help in saving the cost which may get
incurred from getting the more resources without any analyses. The organization can also
cancel the non-essentials costs. This can be done through the identification of the areas of
cost reduction levers. If the organization is facing the problem of funds and they must apply
for government funding. The reason to which why an organization must apply for
government funds because these funds are safe, the rate of interest will be also low as
compared with the interest of private’s fund givers, the extension period for paying up the
amount can be provided in government funding, apart from this also the government provides
some rebates, concessions and much more to these SME’s. Meanwhile, the organization
should also do a research upon the customers needs and wants. Due to that analyses the
company should get to know about the current needs which are running among the customers
so that the company can provide the products and services accordingly. This will help them in
gaining an increase in their cash flows. When it comes to handling the workforce, the
organization must try to engage their employees at the remote areas of work so that they can
working. The organization also must handle this problem by taking the help from government
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schemes like CCFF, CLBILS, CJRS and etc. In this critical time communication plays a
major role in binding up the employees and the organization. Through proper communication
the organization must understand the type of situation the organization is suffering and also
the organization must try to understand the situation from which the employees are going
through. All the strategies and the tactics must be formed in regard to that.
Major challenges faced by the SME’s due to COVID-19
According to Fernandes, (2020), there are various problems through which the SME’s
suffered. The greatest among the all was money management. These small and medium scale
business does not have that much liquidity to bear their future cost and expense. They are
lack of money and funds as they require it to restart their business one again. Balancing with
the revenue and expense for an organization in COVID time is a tough task to perform. Due
to this majority of companies have to decrease their number of employees as they did not
have much funds and money to pay for their salaries. Client dependence is another major
challenge faced by the SME’s. As they receive the work from other clients, there all revenue
were based upon these projects which they receive from these clients. In COVID when all the
production and work was shut down, the work which SME’s gets from their clients also got
stopped which unbalanced the source of income for the companies. Also, the stores or the
business which were offline had zero business due to lockdown. The business which can get
performed Online had some chance to earn money but the businesses which were offline
were totally shut.
Possible threats and opportunities of SME’s along with the government policies to help
these businesses in sustaining
According to Hong, (2020), the major threat of survival comes for SME’s. it will be
very hard for the small-scale business to stand up again. The creditability of these businesses
will get decline to a great extent. Also, there creditability in the market will also be very
much low causing them hard to take money from the market. It will be very hard for the
companies to earn revenue which they used to earn like earlier. But they can cope their
business from some of the opportunities which they can access. These opportunities may
include getting their operations shifted to technological platform. This will help the business
in performing their operations irrespective to the place the employees are working from. The
government has also given some of the policies to help business in sustain in this tough time.
For example, government has given relaxation to the people who have taken the loans from
bank to repay their money or installment after 4-5 months when everything gets better. From
this relaxation the business is not in burden to pay the money to bank and can operate freer
mind. The government has also released some of the schemes for these small and medium
scale industries so that they can sustain in the market. Like the government has given the
relaxation to the SME’s in terms of providing them the loan at low interest. They also have
helped the companies in sustaining the employability in the organization so the employees do
not kick out from the office. Apart from this the government also had provided the business
consultancy to the organisations so that they can survive in the market place.
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CHAPTER 3: RESEARCH METHODOLOGY
Research design
Resign design is the strategy which the investigator uses to conduct its investigation. The
design of research helps the investigator in framing the layout for their studies. In this report
desriptive research design has been used. In this the current situation about the research.
Types of investigation
It is the deliberate exhaustive and moment endeavor to become familiar with current realities
about something which is covered up and complex. There are essentially two kinds of
examination being utilized in exploration which is-
•Qualitative Research: It is that sort of examination which is unmistakable in nature and is
viewed as the marvel which might be noticed yet not be estimated. It tries to address the
inquiries concerning how and why the individuals act as it were. It gives the top to bottom
data with respect to the human conduct.
•Quantitative research: It includes gathering the information which is in mathematical
structure which can be investigated utilizing the techniques for numerical based. It includes
utilizing more respondents with the goal that information can be gathered in a simple way.
In setting to this exploration, qualitative examination will be utilized so that answers
can be kind of the inquiries which are useful in accomplishing the effective examination
destinations.
Research approach
It is fundamentally a strategy or an arrangement which comprises of steps of the wide
suppositions to the point by point techniques for the information assortment, translation and
the examination. There are two kinds of research approach which is examined beneath (Ji and
Liu, 2020)
•Inductive-It starts with a perception and the hypotheses which are proposed towards the
finish of research measure as the consequence of the perceptions. It is planned to build up the
hypotheses. The cycle includes at first the social affair of data and afterward searching for the
example to dissect it with the goal that hypothesis can be created.
•Deductive-It is for the most part the one that the individuals commonly partner with the
logical examination. The researcher in this approach examines what others has done and
perused the current speculations and afterward test the theory which arose out of those
hypotheses.
In setting to this research, deductive approach is being utilized so that research points and
destinations can be achieved.
Research Philosophy
It is the conviction about a manner by which the information about the marvel should be
assembled, utilized and dissected. It is mostly of two sorts which is shown underneath
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•Positivism- It is guaranteed that a social world might be perceived in the goal way. This
research is put together and subordinate with respect to what is the researcher's advantage
(Kamal, 2020).
•Interpretivism- It includes the researcher to decipher the components of an examination
and furthermore incorporate the human premium in the investigation. This way of thinking
underlines on the subjective researcher as opposed to quantitative one.
In setting to this research study, interpretivism research theory will be utilized which will
help in deciphering the subjective information which is assembled to accomplish the research
goals.
Research onion
It is the general arrangement to direct the research study. The research methodology
predominantly directs the researcher in arranging, checking and executing the examination.
There are three sorts of research technique which is talked about underneath
Saunders, Lewis, & Thornhill introduced the onion research model in their book Research
Methods for Business Students. The model proposes to underline the various stages of
writing a thesis to assist researchers making a more structured methodology.
 Philosophy: Refers to a set of guidelines regarding the position on which the
worldview or investigation is based. It usually conducts research from the aspects of
ontology & epistemology. Here, ontology denotes to the authenticity of data & the
understanding of its existence, while epistemology mentions to the effective
information needed for research & how to obtain it.
 Approach: Once the researcher has selected the adequate method, Research Onion
will suggest that the proper survey should be selected. The deductive method begins
with the development of a specific hypothesis dependent on the literature review
analysed by the researcher, & gradually attempts to test the hypothesis & verify
whether it is correct in a specific relation.
 Strategies: After this, researchers should develop learning strategies. Research Onion
suggested strategies may involve experimental research, action research, surveys,
interviews, case studies, or systematic reviews of the literature.
 Method Selection: Research onion recommends the use of single method, mixed
method & multiple methods as possible options for having research. A single
procedure includes only one research method.
 Time frame: Refers to the study time frame. Commonly, observations could be
divided into 2 types dependent on the time frame, like cross-sectional & longitudinal.
When all observations are for a single point in time (as in most surveys), cross-
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sectional data will be used. In contrast, longitudinal data means looking at a specific
variable, which can be used for years, months, quarters, or days.
 Data Collection & Analysis: This is the last layer of onion research & consists of the
techniques as well as procedures utilized. It is applied to easily explain the method &
objective of the research being carried out.
 Questionnaire: It is the principal part for gathering a lot the data. It is the
arrangement of normalized questions which follow the fixed plan with the goal that
singular data can be gathered about the particular subject.
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Figure 1: Sample of Questionnaire
•Interview-It primarily includes the open finished inquiries so that inside and out data can be
gathered from the respondent. It helps in clarifying and better understanding the research
subject's assessment.
• Authentic sources: In this the data or the information is collected from the books,
newspapers, websites and much more. It is a form of secondary data in which already
researched data has been used.
Figure 2: Data Sources
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Sampling
It is a cycle which is utilized in the factual analysis so pre decided perceptions can be brought
from the bigger populace. It is alluded to as the cycle which includes choosing the units from
the number of inhabitants in revenue so that outcome can be created reasonably from the
populace which have been decided for gathering the data. For this research, the example size
is 3 respondents whose meeting will be led to gather the subjective data for accomplishing
the points and destinations of the research (Korankye, 2020).
Data collection
It is alluded to as the cycle which includes assembling and estimating the data on the factors
of the interest in the set up precise structure. It includes gathering, estimating and breaking
down the data and furthermore includes the assessment of speculation which depends on the
gathered data. There are basically two kinds of data collection which is shown beneath
•Primary data collection-It is such a data which is gathered as the direct and unique
research. It is gathered coordinated from the populace through the research technique for
meeting, review or trials. Collecting the primary data or information is very time consuming
as the researcher himself went for performing the investigation. It is also very costly as all the
cost for conducting the research needs to bear by the investigator himself. But in this type of
research the degree of manipulation is very less as the data is collected by the investigator
himself and it is totally fresh to use.
•Secondary data collection-It is alluded to as the data which is as of now gathered by
another person before. It implies that the data is as of now accessible and investigated by
another person. It incorporates books, diaries, magazines and numerous other. In the
secondary data, the less amount of time gets consumed as all the data or information is
already available. It also does not cost much as compared with primary data. But in the
secondary data the degree of reliability is much less when compared it with primary data.
For this research, secondary data has been used. all the data and infomation are collected
from various books, articles, jounals and etc.
Data analysis
Data analysis is the cycle of the deliberately use of the factual or the sensible strategies to
depict, outline and assess the data. For this research, Thematic analysis is being utilized so
that research goals can be accomplished effectively. It is the strategy which is utilized to
investigate the subjective data. It is applied to the arrangement of text like meeting records.
The research in this analysis, intently look at the data with the goal that it can recognize the
regular topic which includes designs in the data which are fascinating and significant (Lai and
et. al., 2020). For analysing the whole data qualitative research has been used. The qualititive
research is the one where the information presented in non numercial form.
CHAPTER 4: FINDINDS AND RESEARCH
Action or steps should be taken by SME’s to face the challenge of COVID-19
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From the deep investigation performed with this respect, it can be concluded that the
small-scale companies need to analyses all the situation with more deeper understanding.
Through the analyses of this the company can found out the worst possible situation which it
can go in the situation. This is suggested that the organization must undertake all the situation
and must form the future strategies accordingly. It will also help them in knowing the actual
impact on business. The future forecast about the cashflows will help the business to some
extent. A deep insight must also be taken about the further demand and supply for the
products and services among the customers. Knowing the customer better and serving them
in the same way will help the company in earning more revenues. So, conducting a market
research for knowing the trends and preferences which are running among the customers will
help the companies to sustain in the market.
Major challenges for SME’s due to COVID 19
The organization faced various problems due to COVID-19. The money problem is
the major among them. To handle this problem the organization should reduce their cost as
much as possible. They can do so by avoiding the unnecessary expenses or costs so that they
can save the money. These businesses also were not getting any kind of work from their
clients even which has stopped their productivity to zero. If the organization does not have
any money from where they would be able to pay their expenses. The company also have to
lose some of their employees as the company was not in position to pay their expense
(Masago and et al., 2020).
Possible treats and opportunities along with the government policies
Apart from the threats the SME’s has to gone through, the government policies also
are helping the organization to sustain in the market place. The government has tried its best
to not sunk these SME’s. There policies were made in a motive to support these small and
medium scale businesses in this hard time. Government always has a great role to play to
sustain the business. The government gave many relaxations to the SME’s so that they can
cope up with the loss. They also have relaxed some tariffs for them so that they can bring
their operations back. Giving the loans was one of the major policies which was developed by
the government.
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
From the research performed above, it can be concluded that the COVID-19 has put
an immense impact upon the small and medium scale businesses. These SME’s has to form
their strategies in such a manner which gives revenue and sustainability to them. This can be
done through the proper analyses of the both external and internal environment. Through the
proper analyses of both the environment, the organization can be able to make the proper
strategies for themselves. The SME’s can take the help of these government policies and
schemes which are made with a view to sustain these small and medium scale businesses.
This also can conclude that the SME’s can survive in the market to proper analyses of
customers and their needs. Through this analysis the company can satisfy the customers in a
more appropriate manner. When the company gets to know about the actual need or want
which the customers are looking for, they produce that product or service only. This will help
the company to make more profits and revenue which will make more chance for their
sustainability
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Recommendations
The research which has been performed here is secondary search. It is bit time consuming
process as the investigator has to research about a lot of things from a lot of sources available.
To form the layout for research is a huge task to perform. It not only consumes a lot of time
but it also consumes a lot of energy of a person. The sources which are collected from the
secondary data can have more chances for manipulations. It worked as a limitation for the
organization as they have to search for the information or data which is authentic and people
can relay upon that information. The time within which the project or the research work
needs to get undertake was very short because of that the research was performed in a hurry.
It is recommended that a proper time for the research needs to be given so that the research
can be performed properly. The authentic sources of information or data needs to get
collected so that the report or the research is reliable enough to use by the other people also.
Apart from that the research cost also must be such that the all activities could be performed
within that.
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