"BUSN20016 RESEARCH PROPOSAL Triantafyllopoulos, 2014). There is empirical evidence that shows export-oriented SME’s arebetter able to adjust to crises (Sato, 2000). The performance of a firm/business during the crisisis relative to others with whom they compete for resources and markets and such strategies arelikely to be context-specific varying with sectoral and spatial setting (Kitching, et al., 2009). There can be two set of views regarding how SME’s are affected by recession which are‘vulnerability’ and ‘resilience’ views. SME’s are much likely to cease trading than largerenterprises (Storey, 1994). When small firms try adjusting to external conditions, there was aneffect of time-lag which first affected sales, then profitability and finally their ability tosurvive (Smallbone, et al., 2012). The performance of a business does not map onto thebusiness size in a simple and direct way as Recession impacts unevenly on industries, regionsand related businesses that shape the diversity of experience of recession and related businessresponses (Smallbone, et al., 2012). The two view-sets put the focus on the adaptive capabilityof small firms and therefore, it becomes important to explore a firm’s ability to respond tochanges in the external environment in order to retain competitive advantage (Smallbone, etal., 2012). The following diagram (Figure 1) provides a conceptual framework to understandthe relation between the global financial crisis, effects of the crisis in different countries,recession-related experiences of the firms and their performance (Smallbone, et al., 2012). Firms' Performance: Output canbe either: Effect of crisis in different• Firms' are Vulnerablecountries: Inputs are based on: • Firms' are Resilient • Size and Structure of theEconomy • Banking and Finance • Global Financial Crisis Firms' Performance: Inputs arebased on: Recession Related Effects on• Firm's ResponsesFirms: Inputs are based on: • Firm Size and Sector • Effect of crisis in different• Recession Related Effects oncountries Firms • Firm Size and Sector • Policy Figure 1: Conceptual Framework (Adapted from: (Smallbone, et al., 2012))9 | P a g e BUSN20016 RESEARCH PROPOSAL Figure 1 summarizes the key external influences on an SME’s business performance,emphasising on the interaction between SME’s and their external environment and how thistriggers strategic adaptation in small firms (Smallbone, et al., 2012). When a firm has to make responsible decisions during such crises, they need to manage thetrade-off between benefits and costs of short-term crisis reactions (Bourletidis &Triantafyllopoulos, 2014). Based on the problem statement and the research objectives, the following ResearchHypothesis’s can be proposed that would be tested in this study:? H (1): Null Hypothesis: Recession does not have any impact on SME’s.? H (2): Alternate Hypothesis: Recession does have an impact on SME’s. 10 | P a g e BUSN20016 RESEARCH PROPOSAL METHODOLOGYThe following methodologies will be undertaken in order to effectively analyse the aims of thisresearch proposal. They are: ? Literature Review: An in–depth study and analysis of relevant literature andinformation available from various sources which include Google scholar, ScienceDirect and journal articles by various authors. A thematic content analysis of thesedocuments will be undertaken to examine the extent to which the repercussionshave/have not affected SME’s. (Sharples, 2011)? Data Series and Surveys/Questionnaires (Data Collection Methods): ? Numerous information collected from series of data and surveys will bescrutinized to give an idea about gross job flows (job gains and losses) duringthe times of recession, decomposition of job creation and loss, balance-sheetand income statement items, business and economic conditions and changes inlending practices and the changes’ effect on the credit markets. (Sahin , et al.,2011) ? In addition to the above, questionnaires will be prepared and handed out toSME’s in order to gauge how they reacted during Recession, what were the keyimpacts felt by them and what strategies they undertook to overcome andsurvive it. For example, respondents can be asked determine to what extenttheir businesses had experienced recession-related effects. Eleven items canbe used to measure finance as well as non-finance related effects using a five- point Likert scale (where 1 = ‘strong positive effect’ to 5 = ‘strong negativeeffect’) where in finance related effects include late pay by customers, bad debtsor uncertainty over customer payments, level of cash at the bank, creditperiods/terms from the suppliers and the availability of bank loans or overdrafts(Smallbone, et al., 2012). Whereas, non-finance related effects include transportcosts, costs of supplies, changing value of the relevant currency, energy costs,level of staff motivation and ability to recruit staff (Smallbone, et al., 2012). ? Observing Key Indicators of Recession: Examining critical information from theNational Bureau of Economic Research that focusses on the study and communication11 | P a g e "