Impact Of Covid On Small Business in UK Assessment Answer

Introduction

1. The majority of small and medium-sized enterprises (SMEs) have been actively engaged in cost reduction efforts throughout the previous year.
2. The observed phenomenon can be attributed to the alteration of business conditions and the subsequent decrease in demand across various regions.

Impact of SME's

However, businesses have implemented various strategies to ensure their sustainability and continuity.

Small and medium-sized enterprises (SMEs) have demonstrated their resilience and adaptability in mitigating financial losses and minimizing job cuts through strategies such as introducing novel products, exploring untapped markets, and leveraging emerging technologies.

Key Findings

1. The findings of our latest unequivocally demonstrate the adverse consequences experienced by individuals engaged in self-employment during the preceding year.
2. The projected economic impact of Covid-19 on small and medium-sized enterprises (SMEs) is estimated to be £126.6 billion, which represents a twofold increase compared to the initial cost estimations provided by business owners one year ago.
3. SME’s were badly affected and many of them shut down
4. They were required to adopt quick changes in order to mitigate the external threats imposed by Covid 19.
5. The COVID-19 pandemic has served as a crucial source of support for numerous small enterprises; however, our research findings indicate that a significant majority of self-employed individuals, specifically 81%, perceive this assistance to be insufficient.
6. This is due to the fact that a significant number of small and medium-sized enterprises (SMEs), exceeding two million in count, are unable to access any form of financial assistance.
7. The severity of the effects varies across different geographical areas. Given the prevailing financial challenges and pervasive uncertainty, it is unsurprising that the mental well-being of a significant majority of individuals who are self-employed has been deteriorating.
8. The majority of small and medium-sized enterprises have modified their business strategies in response to the global pandemic.
9. A prevalent alteration observed was the heightened prioritization of cost reduction, a customary approach adopted by businesses across various industries.
10. Small and medium-sized enterprises (SMEs) have also altered the prioritization of new goods and processes, alongside the adoption of novel digital technologies

Strategies

1. Organizations have employed these novel strategies to facilitate the identification of alternative approaches in addressing customer demands and transitioning to novel business frameworks.
2. Of particular interest is the observation that small and medium-sized enterprises (SMEs) experiencing a decline in sales during the year 2020 exhibited a higher propensity to prioritize the development and adoption of novel products, procedures, and technologies
3. Anticipated persistence of concerns regarding COVID-19 is expected in the near future.
4. According to the findings of our survey, a significant majority of small and medium-sized enterprises (SMEs) expressed difficulties in managing their business operations due to the economic uncertainty stemming from the COVID-19 pandemic
5. Specifically, nearly three-quarters of the respondents acknowledged the adverse impact of this uncertainty on their business operations.
6. However, this issue is not the sole challenge that businesses are currently encountering. Growing apprehension regarding Brexit is increasingly becoming a prominent issue of concern
7. Despite the presence of isolated instances, it is anticipated that the overall economy will experience a deceleration in the year 2020.
8. In response to the evolving patterns of viral transmission towards the conclusion of the previous year, policymakers effectively curtailed any nascent indications of economic recuperation.

References

Brown, R., Rocha, A., & Cowling, M. (2020). <? covid19?> Financing entrepreneurship in times of crisis: exploring the impact of COVID-19 on the market for entrepreneurial finance in the United Kingdom. International Small Business Journal, 38(5), 380-390.

Belghitar, Y., Moro, A., & Radić, N. (2022). When the rainy day is the worst hurricane ever: the effects of governmental policies on SMEs during COVID-19. Small Business Economics, 58(2), 943-961.

Belitski, M., Guenther, C., Kritikos, A. S., & Thurik, R. (2022). Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses. Small Business Economics, 1-17.

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