Impact of Climate Changes on Business in The UK SME Sector (GC02029)
Table of Contents
Introduction and research question.
Literature awareness.
Empirical content
Coherence and logic between sections of outline/action plan.
Methodology.
Conclusions and findings.
Bibliography and Referencing:
Introduction and research question
In this global world, the main alarming concept is climate change. The changes in climate indicate global warming, earthquake, cyclone, droughts and floods. These natural calamities have a great influence on all business sectors including Small and Cottage enterprises. The operating, production and distribution activities of SME sectors are affected by natural changes (Luo et al., 2017). Due to changes in temperature, the regular smooth flow of the environment can be disrupted which affects negatively the smooth functions of the SME sector. According to Abdullah (2016), natural calamities like rainfall, hailstone, landslide, soil erosion also affect the sources of raw materials of SME business.
This study will aim to critically analyze the effect of climate change on the business performance in the UK SMEs sector. The main objectives of this study are a) to analyze how climate change is affecting business performance in the UK SMEs sector; b) to find out the challenges that the businesses in the UK SMEs sector are facing to deal with the worse effect of climate change; c) to find out strategies that the businesses in UK SMEs sector can develop to reduce the worse effective effect of climate change. Research questions are outlined as follows:
- How is climate change affecting business performance in the UK SMEs sector?
- What challenges the businesses in the UK SMEs sector are facing to deal with the worse effect of climate change?
- How strategies the businesses in the UK SMEs sector can develop to reduce the worse effective effect of climate change?
Literature awareness
UKCIP (2010) stated that the term climate change indicates the growing sea levels, wetter winters and an increase in the rate of drought and floods as well as cyclones. It is the extreme level of climate that is not suitable for human beings as well as animals and plants. Due to the increase in carbon dioxide, the new term is emerged named the greenhouse effect. The rate of greenhouse gas has increased more and more that considered the main reason for climate change. David (2016) stated that climate change brings uncertainties about the future activities of every section of business including SMEs. The main cause of climate change is the emission of greenhouse gases at an extreme level. Masum and Fernandez (2018) mentioned that the SME sector has used natural resources to produce goods and products. Therefore; climate changes affect the sources of raw materials of SME sectors and increase the cost of production that decreasing profits. Normally, SME business depends on the rate of turnover and the number of employees. In the UK, the numbers of SME businesses are nearly 5.7 million that represents 99% of all business organizations. Here, 5.4 million micro-businesses (0-9 employees). This SME sector covers 33% of employment opportunities and the turnover rate is 21% (Ritz, 2013).
The rate of small businesses is nearly (10-49 employees) 4% and covers 15% employment opportunity and the turnover rate is 15%. Finally; the medium-size business (50-249 employees) is 1% that covers 13% of employment opportunities and the turnover rate is 15% (Prime-c.net, 2015). However, at present, it is one of the biggest problems for the UK SME business sectors to run the business successfully because of climate changes. Some businesses can survive in the market with the best effort but most of the SME businesses can’t be survived in the market due to changes in the climate. In the UK, the SME business faces difficult climate changes in the coastal areas and dangerous areas (Droge et al., 2014). The SME businesses have less capability than the larger business firm in the climate change environment. (David, 2016) stated that SME businesses have to understand the factors of climate change and take corrective and strategic decisions to survive in the market.
Empirical content
This study will use both primary and secondary data sources. As a primary data source, the study will apply both survey and interview techniques. For the survey structured and semi-structured questionnaire will be developed, where the sample size of the survey will be 50 randomly chosen SME entrepreneurs in the UK. In this case, a non-probability sampling technique will be chosen, where a convenience sampling technique will be applied. The participants will be selected from different places in the UK. On the other hand, for interview an unstructured questionnaire will be developed, where 5 respondents will be focused on who are the experts/experienced in the UK SMEs sector. Here, a non-probability sampling technique will be chosen, where a convenience sampling technique will be applied. The participants will be selected from different places in the UK. In terms of secondary data sources, the study will focus on at least 10 reports and about 50
recent journal articles that focus on the impact of climate change on business performance in the UK SMEs sector.
Coherence and logic between sections of outline/action plan
This report will be developed by following 5 chapters. Firstly, it contains a preliminary explanation of climate change with its impacts on UK SMEs. Here, study aims and objectives, and research questions are demonstrated. Secondly; it contains a literature review that relates to the research topic. Thirdly, it will describe the specific methodology of this report. Fourthly; it will contain the findings and analysis of the research subject matter. Here, primary and secondary data will be evaluated using various types of tables, charts and figures. Finally, this research will conclude the whole outcomes and recommend several issues to SME sectors of the UK.
Methodology
The pragmatism philosophy along with abductive research approach and both descriptive and explanatory research design will be the best suit to analyze the effect of climate change on business performance in the UK SMEs sector. That is why the study will focus on both primary and secondary data sources along with mixed methods including both quantitative and qualitative. For collecting qualitative data, an interview technique will be used and for collecting quantitative data survey technique will be used. For analyzing the qualitative data thematic analysis tool will be used by developing a number of themes focusing on the research objectives and goals. On the other hand, for analyzing the quantitative data come through survey, both Excel Sheet and SPSS applications will be used. SPSS will be used to manipulate data and define frequencies and develop statistics. MS Excel Sheet will show finding through graphs and charts. As ethical consideration, participant consent will be taken, participants’ private and personal data will be kept confidential and anonymous, and participants will be provided the authority of data withdrawal.
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