Impact Of The Covid Pandemic On Businesses In The UK

Impact of the COVID-19 Pandemic on Businesses in the UK: Challenges, Responses, and Recommendations

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Impact Of The Covid Pandemic On Businesses In The UK


The lives of people are being saved by the Governments of the World by slowing down the spread of the corona virus. For economic activity, dramatic measures with big implications have been taken by them. The government of the UK declared on 23 March 2020 for the lockdown to manage the COVID-19 pandemic. It is taking a toll on the economy instead of helping in the crisis of health civilians. Their activities of an economy can be tracked as low up to 30 per cent in May 2020 from February of 2020 levels.

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9 per cent shrunk is expected by UK GDP during the time of the lockdown the jobs of 7.6 million are at risk ( 2022). Places and people with minimum incomes are at high risk for job losses. Significant job losses anticipate the knock-on consequence of the lockdown. Government starts to withdraw their support so that abilities businesses' can be employed continuously and civilians working for per day payment seem to be in fear. According to Islam (2021) significant anxiety is created by joblessness. Seven million workers in the UK that are around 30 per cent are worried about their health in their job place.

A minor part of workers can work from home, but they find difficulties in their work. People around 40 per cent say that this situation affects their work (, 2021). Schools, colleges and universities are also closed but the workers in this sector do not lose their jobs. Local and small businesses are affected during this time because people prefer to buy anything online. Everybody is scared of the threat of the Covid 19. People are afraid to go out of the house, they even do not keep in contact with their relatives and close people. The COVID pandemic situation also affects the economic system of any country by decreasing the values of different shares in stock markets. The annual turnover of many famous companies is also decreased for the pandemic situation.

Project Objectives

  • To analyze the effects in the business world around the globe
  • To determine the impact of COvid-19 in the UK on local business
  • To explore challenges in supply chain management of the business organisation of the UK
  • To integrate the effects of governmental remedies to the downfall of business in a pandemic

Research Questions

  • What are the effects of the COVID Pandemic on businesses around the world?
  • Write about the impact of COVID-19 in the UK on local businesses.
  • Write down the challenges in supply chain management of the business organisation of the UK.
  • What are the effects of governmental remedies to the downfall of business in the pandemic?

Problem statement

The covid-19 pandemic has trembled the economy of the whole world, and it has been observed that since World War II, it is the most terrible disaster. This virus has closed many small factories, and firms, businesses and people were suffering from unemployment, and a lack of money and food for this virus (, 2021). Many difficulties are found by the workers even the companies have provided work-from-home services causing a total decrease in revenue.

Literature review

Effect of Covid-19 on business globally

The corona virus has spread across the whole world and caused economic and trade disturbances. Covid-19 affects every workplace, business and company for almost a year. As per the opinion of Nundy, (2021), the full lockdown of many countries attacked the global economy. The disease forces close down the production of many factories, and direct manufacturing of many countries. Travel, tourism and hospitality have hit the economical system of many countries. The economical situation is getting worse day by day because of the strict restriction and quarantines and job losses. In contrast of Flynn (2020), the impact of the corona virus pandemic situation has been seen around the globe that has been affecting the UK population, economy, health system and business. Along with that the death rate of the UK population has increased rapidly through the causes of Covid-19 and the death rate is almost 46,706 respectively. Another major disaster is food insecurity has shown in the whole world at this time.

As per the argument of Islam (2021), shelves of many supermarkets across the world are empty and people are scared due to lack of food, even people are facing difficulties to get the things for their essential and daily needs. Many people from different countries have faced problems with medical treatment and getting pharmaceutical products. In this situation, online businesses made more profit than other businesses and people depend on online services for everything (Islam, 2021). Companies which can change their business policy can make a profit. The losses of many firms and companies' production cause economical disaster. Economic downfall and decrease in revenue have been shown because of quarantine and curfews by the governments of different countries.

The ways the supply chain of different industries has been affected by the pandemic in the UK

As per the opinion of Nikolopoulos (2021), it has been observed that the Brtexiut and Covid pandemic has b been contributed to the blockage of the supply chain by further reducing the mobility of labour. Its effects have been seen in the inflation of shipping costs, production costs, and labour shortages (Nikolopoulos, 2021). The supply chain disruption has been increasing due to the causes of inflation and labour challenges during the pandemic situation. The generous fiscal support has been improving the demand for the consumption product during covid, but the production of the industry has not been adjusting enough to fulfill sharp increase demand of the consumers. This kind of imbalance has been affecting the demand and supply around the countries and has led to high inflation.

In contracts, the corona virus is still a live threat to the economical system. Economies are in lockdown, and the disordering of supply chains continues to be severe. Rapid decisions and immediate actions are made by business leaders to serve their customers and they do the same as well to protect their workers. Resilience and responsibility characterize the reshaping and repurposing of supply chains of the future. With the help of these communities can manage the crisis around their customer and can help in rebounding the economies. During the time of pandemic supply chains and fundamental changes are knocking companies off. Due to the global lockdown, the supply chain of different countries has got affected a lot, and the delayed delivery of raw materials or limited availability of labour can be the reason.

As per the argument of Farooq (2021), most human beings were aware of the spreading effect of the virus, thus they preferred not to stay outside and get in contact with others. This causes a shortage of labour supply and influences the supply chain of any company at a vast rate. Depletion inventory levels can be counted as another major effect of the pandemic that can cause a huge difference in a company's revenue balance (Farooq et al. 2021). The lack of labourers, and inventory level depletions caused delayed delivery of raw materials resulting in late delivery of finished products. Therefore resisting balancing the demand and supply levels caused a huge rift during the time of the pandemic.

Challenges that have been faced by the local business in the UK during the pandemic

As per the opinion of Papadopoulos (2020), there are different challenges that have been faced by small and medium enterprises due to the causes of the covid-19 pandemic in the UK. They represent the hardest sectors such as hospitality, retail, entertainment services, food services, and construction (Papadopoulos, 2020). Due to the COVID-19 pandemic i.e. corona virus, 3% of the workforce was estimated as not working or on sick leave. This 3% is the highest figure that has been estimated in June 2020. Other activities related to the service industry like hairdressing or beauty treatments have the highest level of absence at 7% (, 2022). Last month businesses reported a one-fifth which is a 21% rise in cancellations from customers with a 64% increase in the service industry, and a 44% increase in the food service and accommodation industry.

In contrast, more than half of the businesses reported implementation of safety measures followed an increase in operating costs. Four-fifth of current trading businesses announced to face challenges and exporting business reports 66% which is increased from 75% to 79% and 65% to 66% respectively. Food service industries and accommodation industries reported no cash reserves or fewer cash reserves in January 2022 and December 2021. The corona virus pandemic has had a serious impact on the revenues of small and medium enterprises and the support of the UK government has been the solution for businesses.

Covid-19 enhancing the economic crisis through different sectors of business in the UK

The economic crisis occurring from COVID-19 limitations has been focused on among different businesses. The GDP of the UK economy reduces by 19.8% from April to June 2020 followed by the first lockdown on 23rd March (, 2021). GDP was still down in September 2020 is 8.2% as compared to February. Service industries such as hotels, restaurants, and pubs reported almost no return in April as well as May. Most staff could work from home in communication and information industries, a little change as compared to the month of February. However, it has been noticed that due to the causes of the corona virus the economic crisis has been rapidly increasing in different sectors of global businesses.

As per the opinions of O'Connell (2021), online shopping rises far more as compared to the pre-pandemic trend during the first wave of the pandemic closure of retail shops or non-essential item shops. It resulted from a booster impact in the online retail industry and other industry. The online purchases have been improving from 20.1% in February to 28.5% in October reported by the "ONS Office for National Statistics" results in an increase in sales over the pandemic. It has been observed that the online preaching system has been improving due to the causes of the pandemic through the use of technology. It has been increasing the number of customers in online purchasing that enhanced flexibility in different presenting items without the restrictions of a physical store.

In contrasts, chemists sold more regularly furthermore since the pandemic started than they did earlier. This is the most essential type of shop permit to open during the first wave, their revenue increased forcibly in March 2020, they continue growing even after the first wave (, 2021). After restrictions or after the first wave non-essential shops are allowed to reopen. Retailers that depend on customers to visit their stores reported a big fall after they were reopened. For furniture retailers, customers came back in summer and grew further. Retail sales of footwear, clothing, and leather products go down in March as well as April 2020 as people were not able to visit the non-essential shops. Social restrictions decrease due to a lot of restrictions also a big reason to buy new clothes.

Measures the business and the government has been taking to mitigate the challenges

During the start of the pandemic very less amount of knowledge was known about the risk factors of the COVID-19 pandemic. Vaccines were also unavailable, so the UK government took preventive measures and advised groups to follow shielding advice (Barrett and Cheung, 2021). These measures had a significant impact on individual lives and their physical and mental well-being, describing that people as well as their families made substantial sacrifices. Vaccines become the major and effective way to protect themselves and others becoming dying or are seriously ill from the virus. Vaccines have constructed a wall of protection around people over the country saving more lives and allowing them to return to normality. Support for individuals was reported at the beginning of the crisis in March 2020.

“Corona Virus Job Retention Scheme” provided to workers or laborers and businesses were lacking cash reserves and facing liquidity issues (, 2022). The government provides loans either in full or in part to fill this gap in the businesses. Near about 10000 pounds to 25000 pounds of cash was provided during the first wave to small businesses and firms in the hospitality, retail, and leisure sectors The Government also waived business rates for retail businesses and hospitality. Cash grants of 25000 pounds for businesses with a rateable value between 15000 to 51000 and cash grants of 10000 pounds for businesses with a rateable value less than 15000 pounds.

As per the opinion of Mitha (2020), relief from business rates for ground operations and airports was renewed from 1st April 2021 to 30 September 2021. Eligible business gets full relief of business from business rates for six months period, capped at 4 million pounds. It represents a fifty percent discount on business rates. The government provides 102 million pounds as extra funding to local authorities to expand “Additional Restrictions Grant” schemes. Museums, Theatres, and other cultural entities can apply for additional funding from the “Cultural Recovery Funds” to Arts Council (, 2022). The Chancellor announced a detailed scheme of Self-Employed Income Support Scheme on 26th March.


T Research Onion

Research Onion bySaunders

Figure 1: Research Onion bySaunders

(Source: Saunders et al. 2007)

The research onion has been given by Saunders that has been providing the appropriate data for the research methodology (Saunders et al. 2007). It helps to create the different stages within the different methods of gathering information that has been providing the proper information and data regarding the overall research methodology. The research onion has been used the different steps such as research philosophy, research approach, research design, research methods, data collection strategy and data analysis. This research onion has been helping to illustrate and understand the different methods of collecting data through the series of steps for overall methodology.

Research Philosophy

There are different kinds of research philosophy but this research study has taken "Interpretivism Research Philosophy" that helps to better interact with the research (Alharahsheh and Pius, 2020). The interpretivism philosophy has been providing better methods of data collection for developing an understanding of the different impacts of Covid-19 on the UK business. This philosophy has been providing a better understanding of the overall research effectively and efficiently.

Research Approach

This research study has been utilizing the "Inductive Research Approach" that has been helping to analyze and determine the overall research methodology (Woiceshyn and Daellenbach, 2018). The inductive research has been in this research approach, the interpretivism research philosophy helps the inductive approach to analyze the existing data effectively. This research approach has been analyzing the impact of the corona virus in the UK's different business sectors such as retail, non-retail, tourism and hospitality organization.

Research Design

This study has been conducting the "Descriptive Research Design" that has been providing a systematic and accurate description regarding g the existing data (Atmowardoyo, 2018). This research design has been providing a better outcome by describing the effective phenomenon of the study.

Research Method

In the research method part, the research has used the "Secondary Research Method" that has been analyzed and describes the overall research methodology through the use of "Qualitative and Quantitative research methods". The use of qualitative and quantitative secondary data collection methods has been providing better results for the research (Adams and McGuire, 2022). It has been analyzing and describing the different issues and challenges of the covid in the different business sectors in the United Kingdom.

Data Collection Strategy

The data collection strategy of this research has been based on the secondary method of data collecting strategy that has been providing a better result for the overall research methodology. This study has been using qualitative and quantitative methods for gathering or obtaining the information and data for the research (Coe et al. 2021). The data has been obtained through secondary sources such as journals, articles, newspapers, research papers, books and different websites. The UK government websites have been providing authentic data for research. The researcher has been considering the qualitative research methods; the data has been collected through the theories, articles and journals on the specific topic for the research and analyzed the research separately for a better outcome (Ryan, 2018). The researcher also focuses on the quantitative research method that helps to explore the real information through the statistical data from different websites such as "" or "". The quantitative research method has been helps in analyzing the actual facts and existing data through figures and graphs. Different statistical information regarding GDP, business rates downfall, rise in online purchases, etc are collected from different government organizational websites.

Data Analysis Methods

The secondary method of data collection helps to analyze the research method of data analyzing through the previous data research. The secondary data collecting methods have used different themes to analyze the data collection through the different journals and different authors (Fellows and Liu, 2021). In order to analyze the impact of the covid 19 pandemic situation on the UK Business sectors, the secondary methods of data collection have been beneficial for the overall research procedures.

Ethical Consideration

Ethical consideration is the most significant tool for managing the ethical issues in the research as deals with the m minimizing and avoiding the aims and objectives of the research, and avoidance of error. It helps to promote ethical norms, prohibitions against fabricating, misrepresenting research data or falsifying and minimize the error and promote the truth.

Findings and Analysis

There are vast effects of Covid-19 pandemic on business globally

It has been observed that Covid-19 has been a large impact on businesses in the UK. There has been a marked advancement in sales documented by approximately 30 per cent relative to the absence of the pandemic in 2020, the Decision Maker Panel has represented that 17 per cent of sales have decreased due to the causes of the pandemic (, 2021). There are different impacts that have been seen in the UK business especially in retail business due to the causes of local and national restrictions or lockdowns that impacted retail expenditure (, 2021). The retail sale total volume in the UK fell almost 1.9 per cent in 2020 as compared with the previous years, a wider fall since the record started.

Coronavirus: impact on business turnover in the UK March 2021.

Figure 2: Coronavirus: impact on business turnover in the UK March 2021.

(Source:, 2022)

The above statistic has represented the Covid impact on the UK business turnover in March 2021. According to the survey of March 2021 in the UK, the retailers of the UK in the footwear,textile clothing, and fuel sectors have been hit the most challenging by the pandemic situation. Almost 91 per cent of the retail fuel business started to experience reduces in its business turnover from 22nd February to 7th March 2021 (, 2022). It has been noticed that the non-store retailer has been the least impacted business sector almost 55 per cent has experienced business turnovers has been decreasing.

The above statistic has demonstrated that due to the causes of the coronavirus the share of businesses has been closed in the United Kingdom. It has been noticed that around one-quarter of all aspects of business sectors have been temporarily having been shut down or closed trading due to the causes of the Covid-19 pandemic across the UK in 2020 (, 2022). It has been observed that in these sectors. The highest business share has been closures including recreation, entertainment and arts sectors with almost 82 per cent of this sector currently closed, as compared with almost 3.5% of social work and human health businesses.

There are different ways the supply chain of different industries has been affected by the pandemic in the UK.

The above statistics have represented the impact of corona virus on the UK supply chain management in 2020. Almost 20% of logistic sectors or industries professional have been reported that their operation management of the supply chain has been affected due to the causes of the pandemic in 2020 (, 2022). The rate of supply chain interruption is almost 19.9 per cent, experiencing a reduction in sales is almost 19.1 per cent and also increasing the need for certain items is almost 15.7 per cent in the market. Along with that, the demand curtailing revenue and sale and lack of business is almost 15.5 per cent and most orders have been cancelled nearly 10.7 per cent in the UK business sectors.

The above Statistic has been represented by the cumulative cases of coronavirus worldwide from 22nd January to 8th December 2022 (, 2022). It has been observed that approximately 192 thousand people have died due to the impact t of the pandemic in the United Kingdom as the wider numbers in Europe. The "National Health Service's (NHS)" tireless work has been applauded (Shang et al. 2021). It has been noticed that the health system across the globe has been devastated by the increasing number of cases of Covid-19 and even the most prepared and richest countries have been struggling.

It has been observed that the most vulnerable countries do have not access to the proper and critical life-saving suppliers including respirators, face masks and test kits. However, there are different vaccines has been provided for the use and almost 13 billion coronavirus vaccine dose has been already administered globally as of 9 December 2022 (De Lyon and Dhingra, 2021). The United Kingdom has been slow to begin the widespread testing and the development of contact tracing applications for the covid-19 that has been delayed by months. It has been noticed that the rapid vaccine rollout in the UK has been successful and almost 53.7 million people have been received only one vaccine dose was 13 July 2022.

Recommendations and Conclusion

The recommendation has been based on the impact of the coronavirus on the UK business that affects business operations in the UK effectively. Big data analytics and advances in IoT have been already revolutionizing as an effective way that helps to collect data during the pandemic (Jibril et al. 2021). it has been observed that during covid most retail and non-retail businesses prioritize health and safety by taking different precautions such as wearing masks, washing hands, using sanitization and many more. Along with that, promote wiping with disinfectant regularly in the business sector through hand washing by employers, employees and also customers (Taylor et al. 2021). The company has managed the accelerate production cycles, streamline processes, quality of products and enhance the consumer experience through the use of integrating digital solutions.

The business has used advanced digital platforms such as social media to assist their business in upgrading their effective communication with both remote teams and in-house. This kind of solution has been to allow the workers, staff or employees to share and access information in real-time (Nnaji, et al. 2022). Therefore it helps to increase collaboration and transparency among the workers or employees. It has been observed that superior communication tools help to manage their remote team by enabling distant employees or workers to receive urgent matters, important messages and significant information to obtain the immediate attention or engagement that they require.


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