"BUSN20016 RESEARCH PROPOSAL EXPECTED RESEARCH OUTPUT/OUTCOMEThe outcomes of this study will provide an analytical framework for investigating the factorsaffecting SME’s because of Recession which will ultimately help develop and analyse thestrategies used by them in order to survive the economic downturns. Though the response ofany business under Recession conditions might be highly variable, it will still help inunderstanding and providing a wholesome picture about Recession and help comprehend thefactors that drove some SME’s to perform even under Recession conditions. Small businessadaptation and performance during such times depend upon many factors like the availableresources and external influences including product, labour and capital market conditions.These factors will have an impact on the final outcome of this research. All the researchobjectives/questions as identified in the proposal will be answered based on the datacollections, findings and analysis that will be carried out for the same. These research outputswill be viewed as important academic work for the problem that has been identified for thisresearch proposal. Also, this research will benefit future owners of start-ups/new venturesbefore they embark on their enterprise.6 | P a g e BUSN20016 RESEARCH PROPOSAL SECTION IICONCEPTUAL FRAMEWORK AND RESEARCH HYPOTHESISThe financial crisis that commenced in 2007 and its aftermath popularly referred to as the“Great Recession” was responsible for the destruction of nearly $20 trillion worth of financialassets owned by U.S households alone and the unemployment rate rose from 4.7% to 10%which led to a decline the global GDP by 2% and somewhere between 50 and 100 millionpeople around the world fell into extreme poverty due to the crisis (Goodwin, et al., 2013). Thecrisis exposed the weaknesses in the financial systems worldwide and demonstrated howinterconnected and interdependent economies are today which posed vexing policy dilemmas(Nanto, 2009).The economic impacts of the crisis include unemployment and the viciousrecessionary spiral, inequality, bank size and deregulation, misguided corporate incentivestructure and globalization (Goodwin, et al., 2013). There have been several financial crises in the past ranging from the 1930’s Great Depressionto the early 1990’s Recession (Sharples, 2011). After every one of them, a speedy recovery hadbeen possible because of the SME’s which played a huge role in economic recovery byaccounting for one-third of net job growth (they helped created new job opportunities) (Brown& Lundblad, 2009). Historically, there has been proof from previous recessions that SME’shave helped usher in an era of tremendous prosperity by creating 3.8 million jobs after the1990’s recession (Lee, 2009). But, it turns out that when the 2007 Recession did happen,SME’s were the worst hit because of the following reasons (Sharma, et al., 2011):? More difficult to downsize as they are already small.? Individually less diversified in their economic activities.? Have a weaker financial structure.? Lower or no credit rating.? Heavily dependent on credit and have lesser financing options.? More vulnerable as they bear the brunt of the difficulties of the large firms.? Narrower base of customers and product lines across which to spread risk.? Less bargaining power with a variety of external actors that include customers,suppliers and financial providers. 7 | P a g e BUSN20016 RESEARCH PROPOSAL Most SME’s suffer from demand shock and there had been a drop in demand for goods andservices and a tightening in credit terms for SMEs at a global level (Bourletidis &Triantafyllopoulos, 2014). Relevant Literature articles, previous Recession-related experiencesalong with numerous researchers have come up with several survival strategies but, more soonly in the last ten years because the impact of Recession had been much severe now thanbefore. Some of these strategies are ((Sharma, et al., 2011) and (Bourletidis &Triantafyllopoulos, 2014)):? Following Lean Guidelines? Improving Vendor Support and Quality? Reducing Obsolescence? Networking and Sharing? Keeping Existing Customers Loyal? Improving Customer Communication? Improving Manufacturing Flexibility? Keeping Inventory Level to a Minimum? Making use of ICT? Avoiding Hasty Lay-Offs? Enhancing Overseas-Marketing Capabilities? Moving to Higher Value-added Products and Services? Product Reengineering Process? Emphasis to new customers with environmental worries? Price fixing in the periods of crisis? Suppliers – ‘Stock Procurement’? Information from StakeholdersIn the words of P. Drucker, “the small businesses represent the main catalyst of the economicgrowth” (Milin, et al., 2012). To be qualified as an SME, there are two things that need to betaken into account – the dimension of the business and the management unit (Milin, et al.,2012). In spite of all the previous research conducted, there have been circumstances wheresome SME’s have triumphed during the crisis and not many analyses have taken place todetermine how SME’s adapted to Recession conditions in the ways they do (Kitching, et al.,2009). Even though SME’s lack in technology and knowledge levels, they can overcome it byimitating other firms’ best practices which may help them sustain their sustainability andcounteract the negative effects of the crisis, thereby stabilizing the economy (Bourletidis &8 | P a g e "