Assessing the Resilience of UK Construction SMEs: A Cross-Sectional Analysis of the Effects of Covid-19 Pandemic

ABSTRACT

The Construction of small and medium size enterprises (CoSMEs) are the backbone of the UK economy, Covid-19 have affected many of this sectors. This has not only affected the construction industry negatively, but has caused many health and safety concerns on construction sites, resulting in increased unemployment, cash flow problems, and insolvencies. The research analyses the implications of coronavirus COVID-19 for UK Construction small and medium size enterprises (CoSMEs) in terms of their resilience using secondary data and information from articles and public data. Findings from the research reveal that small and medium size construction firms in the UK were adversely affected by the pandemic with many going into liquidation. The impact of government interventional measures varied across the various subsectors, overall, the measures were deemed inadequate and implemented rather late to stop many CoSMEs from insolvency. Additionally, most CoSMEs that operate largely on self-employed basis could not immediately take advantage of these measures. Mostly, it was the large construction firms that took advantage of government schemes and survived. The government concentrated on the huge and indivisible capital projects which offered a soft landing for many big construction firms, benefitting the upper end CoSMEs. The research concludes that understanding the effects of external shocks on CoSMEs will help in formulating robust strategies and policies that will enhance their resilience, and by extension, the UK economy given the pivotal role the construction industry plays in the UK economy. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.