COVID-19 and SMEs in the UK: assessing impacts on the tertiary sector and their responses

Abstract

The aim of the research was to look into how SMEs in the UK dealt with the COVID-19 catastrophe. Given the importance of obtaining valid data for the research, many case studies were used, with the businesses remaining anonymous. During the process of collection of data, six semi-structured interviews involving senior management in the worst afflicted tertiary sector firms were undertaken. The findings of this research revealed that following the beginning phases of COVID-19 waves, a variety of coping techniques were used. Retrenchment or reduction of costs, persistence or enterprise as normal, and innovation or developing new products and/or processes were among the techniques adopted. Because there were so many uncertainties and restrictions imposed by the government, participants originally used retrenchment coping technique. Persistence was less obvious, and survival or continued existence was considered as more important than the capability to function normally. Lastly, when it came to decreasing the negative consequences of COVID-19 pandemic, innovation coping technique was deemed the most effective by the participants. Moreover, a better knowledge of COVID-19 pandemic's negative consequences on enterprises and the policy responses of the government is of significant importance to both enterprises and public. Whereas SMEs have little control over the negative consequences that emerge during a crisis, a mindset of continuity and expansion is associated with a lower damage. Also, government policy responses have significant effects on SMES, both increasing and delaying the effects of negative consequences of a crisis. According to this research, SMEs should aim to adopt an innovation coping technique as much as doable, which includes a mindset and a priority on long-term objectives of the business. Consequently, this entails developing new revenue streams whenever appropriate. Furthermore, seeking external assistance and seeking for support such as subsidies and affordable borrowing may be beneficial. Keeping costs down, unsurprisingly, may seem unpleasant at first, yet it can give chance to explore a more innovative method in the future. Ultimately, because information/news were changing fast and government policies were unclear, this research demonstrates that it would not be effective wasting precious time planning/preparing and anticipating how to respond to a crisis.