HLS 6080 Research Paper

HLS 6080 Research Paper Why SMEs often ignore the idea of having continuity plans Name Affiliation/Institution Course Why SMEs often ignore the idea of having continuity plans Introduction Having a COOP is a good business practice. A COOP makes it possible for organizations to continue with their essential functions despite a range of hazards and emergencies (Wooford, 2015). Regardless the nature of the risk, that is, whether natural, technological or human-made, a continuity of operations plan will allow a business to keep functioning. It is essential to have one’s mind in the right place during a crisis but only a few people manage to do that, and this necessitates the presence of a continuity plan. The management of a business cannot risk getting carried away with the effects of a crisis because it is at such times that their strategic plans and thoughts are needed. Large companies embraced the idea of COOPs mainly because they have more to lose than small businesses. To them, the idea of going out of business is threatening to not only their profit margins but also their reputation and thus currently, almost all large organizations have COOPs. However, the same cannot be said for SMEs which have not embraced the idea of having COOPs. Research shows that only a few SMEs have continuity of operations plans and even the ones that do never take them seriously despite their importance to their survival. This article will address the lackluster adoption of COOPs by SMEs, provide drivers that are pushing SMEs to develop their continuity plans, and also provide a guide that explains how SMEs can build COOPs. SMEs and COOPs SMEs currently employ a significant portion of the global population and thus their importance to the world economy should not be ignored. According to Bassinger News (2015), in the UK alone, SMEs had employed a total of 15.2 million people, and they make up more than 50% of the country’s registered companies. Reports from the European Commission SME performance review estimated that SMEs’ Gross Value Added in the UK is 49.8% or more than 450 billion pounds. The above is quite huge, and their withdrawal could indeed impede UKs growth and development. However, the SME sector is often vulnerable, and despite efforts by the government and other pundits, SMEs have not fully embraced the idea of developing their continuity of operations plans (Heng and Wong, 2015). Unlike corporate businesses, SMEs are likely to file for bankruptcy or run out of business after a crisis. Albeit the obvious fact that COOPs help businesses to plan for anomalies in the business world, SMEs are still adamant on their neglect of continuity plans. However according to Vargo and Seville, it is becoming increasingly difficult for SMEs to ignore the importance of crisis management. The above is because of several reasons that will be addressed later, and this means that soon all businesses will be legally required to have COOPs to help avoid significant economic downfalls that some countries often encounter whenever the global markets are torched strained. The implication of SMEs decision not to adopt continuity plans are indeed dire and not just to the...