Purpose: This study aims to analyze the impact of climate change on the business performance of the SMEs sector in the UK. Additionally, this study analyzes the current strategies developed by SMEs and challenges faced by SMEs to address climate changes.
Research methodology: This study uses both quantitative and qualitative research using a survey (quantitative method) and interview (qualitative method). The survey is done on 60 owners/management people of UK SMEs and an interview is done on 6 owners/management people of UK SMEs using a non-probability convenience sampling technique. Correlation and regression analysis were done to analyze quantitatively and ANOVA and Chi-Square test is done to test the hypothesis, and thematic analysis technique is used to analyze qualitative data.
Findings: The finding of this study shows that climate changes have a significant impact on the business performance of UK SMEs. Major impacts are found in disruption in production capacity/supply chain, increased operational costs, reduction of demand, and increase of capital costs. To address climate change UK SMEs are taking initiatives including climate action plans, goals and targets, carbon reduction, and energy efficiency. However, UK SMEs are facing challenges in addressing climate change due to increase CO2 and pollution.
Limitations: The key limitation of this study is it has used smaller samples, with only 60 participants for a survey and 6 participants for interviews. Additionally, the researcher faces time shortages in collecting data, and difficulties in analyzing sophistical analytical tools.
Recommendations: This study suggests the UK SMEs measure and analyze greenhouse gas emissions, reduce energy consumption, reduce waste and recycling, choose greener infrastructures and equipment, and choose sustainable suppliers for addressing climate change.
Value: the finding and suggestions of this study will support the UK SMEs address the potential impact of climate change in the future, mainly in addressing changes in resource availability and cost, changing demand, harsher working conditions, changing regulations, and increased public pressure.
Keywords: Climate change, business performance, UK SMEs,
Table of Contents
Chapter 1: Introduction.
Chapter 2: Literature Review.
2.1 SMEs in the UK.
2.2 Impact of climate change on the organizational performance of UK SMEs.
2.3 Initiatives taken by the UK SMEs to reduce the worse effect of climate change on their business.
2.4 Challenges faced by UK SMEs in reducing the worse effects of climate change on their businesses.
2.5 Future trend of climate change and its impact on the organizational performance of UK SMEs.
2.6 What strategies UK SMEs can develop to reduce the impact of climate change on their businesses.
2.7 Conceptual framework.
Chapter 3: Methodologies.
3.1 Research Philosophies.
3.3 Research Paradigm.
3.4 Types of Investigation.
3.6 Research Approaches.
3.5 Research Strategies.
3.6 Sampling Method.
3.7 Accessibility Issues.
3.8 Ethical Issues.
3.9 Data Analysis.
3.10 Research Limitations.
Chapter 4: Data presentation, evidence, analysis, and discussion.
4.1 Quantitative Analysis.
4.3 Qualitative analysis.
Chapter 5: Summary and conclusions.
Appendix A: Survey and Interview Questionnaire.
Appendix B: Participant Consent Form.
Appendix C: SPSS Report.
Chapter 1: Introduction
At present, the world is facing a serious problem related to an environment that is climate change. According to Sterman (2018), it is called climate extremes that include global warming, earthquake, storms and floods. These extremes have a direct impact on all business sectors including the SME sector. Natural calamities and disasters affect all business operations including supply chain management, financial activities, obligations and responsibilities even also reputations (Davlasheridze, 2017). Climate change has a negative reaction on the business functions of SME sectors because this sector doesn’t have enough funds or capacity to overcome or mitigate the negative impact of climate change. According to Abdullah (2018), there are two types of changes in the climate. The first one is natural changes including rainfall, hailstone, landslide, and flood and another change is artificial changes like pollution. This paper outlines all the reasons, impacts, challenges of climate change to make strategies for developing the condition of SME sectors of the UK.
1.2 Research background
The research background is the most important part of a research study that is presented by the chronological system in the research paper. In this part, the most important tools and techniques of a research study are included in short. The models and theories are also included in the research background connected with the research study. In this part, major findings, important issues, major problems and solution criteria are included regarding the research study. In this research study, climate change over the world has been focused on the SME business in the UK. The United Nations already has passed several policies to take over climate change all over the world and obtaining sustainable development goals (SDG), 2030.
The UN has formulated 17 goals and 169 targets for attaining sustainable development over the world. According to Stathakis (2017), climate change is one of the most important threats to sustainable development for nations. The anthropologists declared that climate change has a great impact on the physical and mental health of the human body as well as business activities (Firoz and Kumar, 2018). Climate change also has a great impact on SME business and sustainable development activities over the world. Climate change may occur for various reasons such as droughts, floods, increasing earth temperature, greenhouse effect, sun reflectivity effect, sun energy effect and so on. In this research, the major causes of climate change and the effect of climate change on the SME sectors in the UK are presented shortly. The solution criteria are also discussed in this research study for solving the problems.
1.3 Research problems
Already the present world is suffering from extreme weather events (EWEs) that ultimately change the climate. Mastrandrea (2017) stated that the EWEs affect the whole society and business is also a part of society. That’s why; the industrial sectors feel threatened due to increase the in global warming. The SME sector also is highly affected because of climate change. According to Linnenluecke (2019), EWEs create uncertainty for both large and SME industries because the future condition of the environment is also uncertain. Dokken (2018) noted that The EWEs of the present world affect all sectors including agriculture, forestry, energy, oil and gas, insurance, tourism and construction industries. Therefore, there is a problem of global warming in present-day business. For this reason, it is necessary to do research on the problems created for the climate changes in the business sector.
1.4 Research rationale
Research rationale is also an important part of a research study. In this part, the researcher tries to discuss the importance of the research for the selected topic. Research rationale focuses on some elements that are helped to operate other researches over the respective subjects. The rationale of a research study needs to discuss in the introduction part of the research paper. In this part, the researcher tries to focus on the importance of this research and why this research is needed to operate in this subject. The research rationale is also considered a major part of the research body as well as the significance of the research. In this research, the effects of climate change on the SME business are focused very critically. Climate change is a global problem so it has an effect on every activity operated in the global markets (Firoz and Kumar, 2018). The SME sectors in the UK as well as in the world are facing various challenges due to climate change.
The SME sectors are largely dependent on the global environment for operating the business activities smoothly all over the world. Abdullah (2018) stated that the SME sectors are the most important part of the financial markets in the UK. If the SME sectors are negatively affected by climate change, the SME business will be destroyed very soon. For this reason, it is said that the research on climate change effects over the SME sectors of the UK is very much rational. In this research, the causes and the objectives of the research are also included in the research paper.
1.5 Aims and objectives
The research aim is to find the effect of climate change on the business performance in the UK SMEs sector. Mainly, this research focuses the UK SMEs that include real estate, hotels, cloth shops, manufacturing, academic institution and travel agencies. This paper also mentions some suggestions to this sector for managing and adapting to climate change that helps to ensure sustainable development of the UK SMEs…………………..
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