1.2 Problem Statement
Many articles and government publications are focusing on the devastating effects of Covid-19 on health, economy, job loss, and livelihoods. However, there is limited coverage of how SMEs survived the unconducive business environment which resulted from the Covid-19. Forced with changes in external environments brought in by Covid-19, many SMEs have resorted to innovation as the solution to changing the business landscape. According to Juergensen, Guimón, and Narula (2020), SMEs are embracing digital operations to enhance the continuity of their operations and also improve the quality of their services. SMEs are integrating virtual management systems to ensure effective coordination of remote workers; SMEs are also modifying their supply chain models to automate the acquisition of raw materials and delivery of finished products to consumers (Juergensen, Guimón, and Narula 2020). Therefore, the current economic environment shows that Covid-19 brought extreme challenges to business, but entrepreneurs are transforming their misfortunes to their advantage. In the current study, the researcher is planning to identify SMEs which have performed exceptionally well during the Covid-19 pandemic, use their case studies to analyse the key concepts of changing business strategy and operating models and provide recommendations for other SMEs.
1.3 Aim
The main aim of this research is to
Explore how the devastating effects of the Covid-19 pandemic have led to positive impacts for SMEs in the UK. That is, the research investigates how SMEs in the UK have transformed the unfavourable business environment caused by Covid-19 to achieve profitability.
1.4 Objectives
To determine how Covid-19 impacted SMEs in the UK
To analyse how SMEs are recovering from economic contractions
To study how SMEs are using digital innovations to sustain their performance
1.5 Research Question
How did Covid-19 impact industries and demand for goods or services?
How have innovative SMEs responded to challenges brought by Covid-19?
What strategy and tactics have they applied, and what type of transformation have they gone through to meet changing market conditions?
