SMALL MEDIUM SIZE BUSINESS IN THE UK

“Priority Tactics in Response To The Economic Crisis And Confronting Economic Recession: A Case Of Small & Medium Size Business in the UK”

Table Of Content

Introduction5

Aims & Objectives of the research7

Research question & hypothesis8

Chapter II: Literature Review10

Recession10

The United Kingdom is in recession11

Compare recessions15

The Phases of the Business Cycle16

How vulnerable is an industry?18

Cyclical Industries19

Credit Impairment and Bankruptcy22

Employee Lay-offs and Benefit Reductions23

Cuts to Quality of Goods and Services24

Reduced Consumer Access24

Recession's Impact on Small Businesses:25

Recessions Roll26

Success Tactics During Economic Decline27

Going on the offensive is a restricted option30

A Solid defense: Protecting the core business30

What to Do During Tough Economic Times33

Retrenchment35

Keep cash flow healthy37

Tightening Credit38

Maintaining Advertising Budgets39

Maintaining Prices40

Increasing Liquidity41

Reducing Debt41

Deferring Capital Expenditures42

Pursuing Selective Growth42

Chapter III: Methodology44

Quantitative and Qualitative method44

Deductive and Inductive methodology46

Research strategy47

Research philosophy48

Data type and data collection48

Primary & secondary data48

Quantitative & qualitative data50

Sampling & Sampling frame51

Sampling error53

Questionnaire Design53

Action Research55

Reliability, Validity and Generalizability57

Ethical code of practice61

Chapter IV: Discussion63

The culture of small entrepreneurial ventures63

Small entrepreneurial ventures and trade unions66

Size as a factor in restricting change72

Learning and training74

Low take-up of new employment practices76

Worker welfare80

Generic and specific management behaviors85

Age and Size of the Firm87

Overall Levels of Significance for the Models88

Discussion of Individual Variables in the Reduced Model90

Success92

Failure94

Factor Analysis Results of Small Business Failure95

The Relative Importance of Factors101

Managerial Orientation: Owner's Involvement103

Managerial Goals: The Product Mix103

Current Business Strategy: Diversification104

Operating Policies: Human Resource Management105

Limitations of the Study106

Chapter V: Conclusions and Further Research108

Future direction112

References116

Bibliography135

Appendix 1: The Survey questionnaire157

Appendix 2: List of recessions in the United Kingdom162

Chapter I: Introduction

Introduction

Recession is a phenomenon of decreasing demand for raw materials, products, and services. Technically, its beginning, progress, and ending depend on the operational measures used by different researchers and national agencies. Recession requires managers to modify their strategy and action in order to stay both profitable and consumer-responsive. However, the response of managers to recession depends on how they perceive its meaning and impact on their businesses. As a result, it is possible that a recession on the national level may affect different companies differently and may, in fact, indicate different economic environments, including those of growth and inflation. Specifically, an objectively measured and determined recession on the national level may affect companies of different size and different sectors and regions differently, hence requiring that managers take different tactical and/or strategic measures to adjust to or even exploit changes in the economic environment.

Many companies emerge from a recession as more efficient operations. They have laid-off surplus workers, closed inefficient plants, bought productivity enhancing equipment, and become more globally competitive. According to a survey of industry experts and executives, a recession also produces a newly committed workforce, better communications in the office, faster response to the market, opportunities for those who stay, and a premium for talent (Dusky, 1991). Recessions play a vital role in an economy. From a national perspective, short-term pains of individual industries or companies often result in long-term gains for the economy from increased productivity. Recessions encourage organizations to wring out under-performing resources and to find innovative solutions to competitive ...