Which to use: Quick Ratio or Current Ratio for Liquidity Measurement in business

Status

Just as businesses are adapting to the shock of Brexit, the global pandemic presents another disruption to businesses. These two events have created huge uncertainty for most small businesses while some have benefited . The striving small businesses are revaluating their strengths with financial metrics to enhance their sustainability as the new markets are emerging. Financial metrics present small businesses with the opportunities to increase efficiency in their operations, liquidity, profitability and stability during uncertainty period. Some commentators argue that inadequate liquidity is the major reason small businesses collapse during the uncertainty period.

The quick ratio helps the business managers to evaluate their businesses financial liquidity. This informs the business managers of how current assets excluding inventories can be quickly converted to cash to meet their current liabilities. This ignores inventory because it is not easily converted to cash. Unlike the current ratio which considers inventory value, the quick ratio is generally viewed as the conservative evaluation of business liquidity as it’s based on the business most liquid assets. For instance, a business has current assets worth £40,000 of which inventory is £10,000, and £15,000 worth of current liabilities thus the business has a 2:1 quick ratio. This indicates that the business can afford to meet the short-term liabilities twice with the short-term assets.

Money

Businesses with a 1:1 or lower quick ratio could be at risk of becoming a going concern. Thus, small businesses with limited access to funds might fire sale their non-current assets to meet the current liabilities.

Many businesses have already closed due to Brexit and the global pandemic and it has been estimated that a further approximately, 98,000 small businesses might not survive the current pandemic. Thus, small business managers that are currently struggling to survive should pay attention to their financial metrics especially the quick ratio.

Unlike the quick ratio, many commentators argue that the current ratio cannot accurately evaluate some businesses short-term liquidity power. For instance, a retail business that targets seasonal customers will stock up inventory for the season. Thus, toward this period the current ratio rises and fall after the seasonal sales. Hence, the quick ratio would be best to evaluation the liquidity ability of such businesses as it ignores the inventory value.

However, other commentators argue that excluding the inventory value from the current assets could be an inefficient way of evaluating liquidity ability for some businesses. For instance, small business such as corner shops that a large percentage of their current assets are fast-moving inventory. Thus, excluding the inventory from the current asset would relatively inflate the current liability. Hence, the quick ratio will present an inaccurate picture of the business to cover their current liability with their most liquid assets.

In conclusion, business managers need to consider both the quick ratio and current ratio, especially during the uncertainty period. This would provide a more accurate measurement of their business ability to pay their short-term liabilities without being forced to fire sale their non-current asset.

Business managers need to ensure that the quick ratio and current ratio is not too excessive compared to other competitors in their sector as this could indicate poor control of working capital. This might suggest that the business is not turning over its inventory quickly enough or is carrying slow-moving or obsolete inventory and has poor credit control practices resulting in their customers delaying payments beyond the agreed terms.

STOP PRESS: We are now recruiting for cohort 5 of the Small Business Leadership Programme (free starts 30th March).

Mayowa Akinbote FCCA
Lecturer in Accounting and Finance
Staffordshire Business School
Staff Page: https://www.staffs.ac.uk/people/mayowa-akinbote
LinkedIn: http://linkedin.com/in/mayowa-akinbote-33448895

Awareness and Corporate Social Responsibility

Storm Barratt, Course Director, Staffordshire Business School


Almost never a day goes by, when we aren’t reminded that “today” is National, International or even Global “something” awareness day or week or month. From the ever-popular Christmas Jumper day to my own particular favourite – National Squirrel Appreciation Day (!), from National Allotment week to Fairtrade fortnight to National Bed month.

All of these campaigns are designed to raise awareness and/or funds for some serious and not so serious issues. So, why as a business, would you want to know this?

Firstly, all businesses have basic ethical and legal responsibilities; however, the most successful businesses establish a strong foundation of corporate citizenship, showing a commitment to ethical behaviour by creating a balance between the needs of shareholders and the needs of the community and environment in the surrounding area. These practices help bring in consumers and establish brand and company loyalty.

It is considered normal for businesses to balance the other stakeholders’ needs with those of the shareholders during the decision-making process. Corporate Social Responsibility (CSR) goes even further, making the general public a stakeholder and shows that the business wishes to actively improve things for everyone.

Image Source: www.growthbusiness.co.uk

For any business making a profit is still key and, of course, the needs of employees, customers and suppliers must be satisfied if the business is to survive. However, Corporate Social Responsibility has become far more important over the last few decades with consumers worrying about how the products they buy were made and how companies that they buy from are run. On many company websites there will be narratives of how they look after the environment and all the CSR initiatives of which they are a part.

Corporate social responsibility comes in many forms. Even the smallest company impacts social change by making a simple donation to a local food bank. Some of the most common examples of CSR include:

  • Reducing carbon footprints
  • Improving labour policies
  • Participating in Fairtrade
  • Charitable giving
  • Volunteering in the community
  • Corporate policies that benefit the environment
  • Socially and environmentally conscious investments

The growing popularity of National Awareness Days can tap into these initiatives helping a company both internally and externally.


One internal perspective is if your employees can see that the business is taking a caring approach, by raising funds for charity for instance, involving the staff may mean that they become more motivated to engage with each other working towards a common goal. In fact, whilst “Wear a Christmas Jumper to Work” day seems an opportunity to raise a smile amongst colleagues as we approach the long dark winter months, the serious aspect is that the jumper wearers are raising money for a great cause.

Another perspective is using “Awareness Days” to help a business promote their product or service (all the better if this can also highlight the CSR approach taken by the company). The issues can make an ideal marketing tool for a business, providing inspiration for marketing content.

By adding context to an awareness day, a business can plan their content by linking a day to their product or service, so for example an artisan baker could showcase their expertise and knowledge during Real Bread Week, or a nutritionist could use National Allotment Week to encourage healthy and organic eating whilst promoting their own healthy eating programme.

It’s not just about direct promotion though. Awareness days can provide a great opportunity for a business to engage in conversation with future consumers via social media using hashtags associated with the cause, on Facebook, Instagram and Twitter. This will allow people to find and contact you, consequently building your audience.

From engaging with employees to good PR to corporate social responsibility, supporting a national awareness day is a great way to show which values are important to you and your business. It can differentiate you from your competitors and allow you to build partnerships with charities and organisations that share your beliefs. With the potential to build trust as well as give a little back, it’s a win-win situation for all.


Become a responsible leader of global business.

Do you want to be at the forefront of modern enterprise? Our BA (Hons) Business Management and Sustainability course challenges the traditional interpretations of enterprise and will open your mind to a broad range of contemporary themes in business.

Our emphasis on ethical business and sustainability will position you to create long-lasting value for your organisation and you will learn the practical skills needed to become a responsible business leader.

How COVID-19 Exposed The Ethnic Poverty and Enterprise Rift (Participate in Our Research)

Dr Tolu Olarewaju, Lecturer, Staffordshire business School


The British Academy (the United Kingdom’s national academy for the humanities and the social sciences) has tasked us with investigating the specific challenges that UK business owners faced during the COVID-19 pandemic and lockdown, the strategies that they used to keep their businesses afloat, and how they engaged with financial and regional support.

We are also interested in how best to support members of the Black Asian and Minority Ethnic (BAME) business community.

To participate in our study, kindly fill the survey below and/or please share the URL with your networks if you know any other business owners:

URL: http://staffordshire.qualtrics.com/jfe/form/SV_50kNUNYOKJFFQNM

Photograph: benjamin lehman | URL: https://unsplash.com/photos/gkZ-k3xf25w | Unsplash

Ethnic minorities were particularly affected by the COVID-19 pandemic in the UK and US, as in some other countries. In particular, the risk of death for some ethnic minority individuals who contracted COVID-19 in these countries was two to three times more compared to white individuals.

This disparity was a result of the underlying social and economic risk factors that ethnic minorities face, such as living in overcrowded and urban accommodation, being employed in riskier lower-skilled jobs, reduced access to healthcare, and structural racism. In other words, ethnic poverty in developed countries is driving higher infection and consequently death rates for ethnic minorities.

Drivers of Ethnic Poverty

Underlying the drivers of poverty for ethnic minorities in many developed countries are several socio-economic factors which include historical factors, discrimination, educational and entrepreneurial variations, and employment and pay disparities between ethnic groups.

Despite facsimile policies that emphasize equal access to education and employment in many developed countries, discrimination remains a critical barrier to equal employment. Several studies have found that both ethnic minorities are called back for interviews 50% less frequently than comparable whites, hired less often for high-skill jobs, and once hired are paid less. Thus, despite the increasing educational gains made by ethnic minority individuals, many are overqualified for the jobs that they do. Ethnic minority workers also often report not being given pay rises and being passed over for promotion.

Another very important driver for the disproportionately high poverty rates among ethnic minority groups is the concentration of such workers in low-paid work. Ethnic minority workers are more likely to work in low-paid sectors with limited progression opportunities and lower wages. Lack of movement out of low-paid work increases the risk of poverty among ethnic groups. In addition, there is generally a lower percentage of ethnic minority workers who are managers, directors, and senior officials.

Photograph: Maria Oswalt URL: https://unsplash.com/photos/qFkVFe9_d38 | Unsplash

Business Ownership Disparities

Before the pandemic, BAME business owners were less likely than non-BAME business owners to obtain mainstream business support and in the early days of coronavirus, nearly two-thirds of BAME business owners felt unable to access state-backed loans and grants, leaving many on the brink of financial ruin.

BAME-owned businesses are traditionally concentrated in the sectors worst hit by lockdown such as retail, health and social care, education, restaurants and accommodation.

The economic crisis facing these businesses is aggravated by the fact that they are more likely to hire a considerable number of BAME employees and attract more BAME customers. The significantly higher risk among such groups from COVID-19 implies that these businesses would have had to incur considerable costs to protect their staff and customers.

Solutions

Ethnic minorities consistently report reduced access to education, lack of social and financial capital, unemployment, low-pay, and poor progression from low-paid sector work. This suggests similar solutions for all groups, which would lead to better-quality jobs and higher pay. However, given that some of the drivers of poverty, such as higher unemployment and inactivity rates disproportionately affect ethnic groups, specific forms of outreach activity and drawing on local knowledge may be needed in these contexts.

Similarly, government solutions to reduce ethnic poverty in developed country contexts include interventions that ensure that education, training and apprenticeships are provided for ethnic minorities as well as schemes that help tackle low pay among ethnic minority workers. There is a need for policies that focus the on education, skills and training for ethnic groups particularly digital, literacy, and numeracy skills. Moreover, policies should also be encouraged that monitor the workforce in relation to ethnicity, which should include the recruitment, retention and progression phases of jobs.

Authorities need to work with employers to provide better-paid jobs and they should do more to listen to and encourage employers to hire a diverse range of skills and experiences. It is advisable to consider putting targets for ethnic minority representation on boards, something that has proven successful in the case of gender. It is also important to recognise the benefits of positive discrimination in the labour market, rather than view legislation to combat ethnic inequality as red tape or political correctness. Mortgage market discrimination needs to be eliminated as this would allow ethnic minorities to take advantage of the benefits that come with owning a home.

State-backed grants and loans should be made more accessible as an incentive to business owners who have incurred additional costs to protect customers and staff. Crucially, the process to obtain them should not be too onerous and the criteria should be fair. Regional governments should also take care to plug BAME businesses into the supply chains of local projects in response to the pandemic.

Source: Author

All these should reduce ethnic poverty and the economic and health inequalities that the COVID-19 pandemic has highlighted.

Don’t forget to participate in our research if you a business owner: http://staffordshire.qualtrics.com/jfe/form/SV_50kNUNYOKJFFQNM

Notes: Excerpts for this essay was taking from my book chapter: “Ethnic Poverty: Causes, Implications, and Solutions” available at: https://www.researchgate.net/publication/344725834_Ethnic_Poverty_Causes_Implications_and_Solutions

Financial Crimes – The Vulnerable, The Gullible, and The Culpable

Olushola Fashola, Lecturer, Staffordshire Business SChool


Nuthall (2019) asserted that the United Nations estimates that between 2% and 5% (US$800bn–US$2trillion) of global GDP is laundered. The year 2019 saw global anti-money laundering (AML) penalties going beyond £6billion (actual value was £6.2billion which is equivalent to around $8billion), with the US imposing double the quantum of fines imposed by UK authorities (Sweet, 2020). These facts suggests financial crimes is on the rise, which is a worrying development for societies, governments, organisations, and individuals. It is therefore important that some sort of reflection (collectively or individually) be undertaken by all concerned regarding how things have deteriorated to current level in terms of emerging global narrative on financial crime. Consequently, my own lived experience within a socio-economic and institutional context offers a basis for looking at financial crime through the multiple lens of three actors – “the vulnerable”, “the gullible” and “the culpable”.

THE VULNERABLE

Some years back I was looking through job advertisements on various websites, hoping to find a flexible job that will permit me to spend more time with my young children. I did not search too long before I came across one placed by a supposedly US based company. Though, the role was described as Administrative Assistant, the job description was more of a home-based funds transfer officer. Considering that I have practice experience in banking and finance, I quickly applied and was very optimistic as to my chances of eventually getting the job. Just as I had anticipated, I was offered the job. However, mode of operation triggered some curiosity – the company will pay money into my account which I shall subsequently transfer to various recipients!

THE GULLIBLE

The unusual nature of the responsibilities attached to this job role sent alarm bells ringing. I contacted the website where I found the job to let them know of my suspicion that something was not quite right about this company and the job. The website’s initial response was to dismiss my suspicion, suggesting there was nothing unusual about either the company or the job. Whilst pondering as to the genuineness or otherwise of this job offer, I listened to the BBC money box programme focused on money mules. This made the connection between this job offer and money mule operations vividly clear. I contacted the website again, now aware of the prospect of being used as a money mule based on what I have learnt from the BBC programme. This time, the response was an apology and commitment to bar the company from using the website. Prioritisation of corporate social responsibility can help reduce the chances of financial fraud occurring (Liao et al., 2019).   

THE CULPABLE

Whilst I did not allow this company the opportunity to pay any money into my bank account, I wonder how many people they had successfully persuaded into accepting such payments through their banks. The banking industry is central to economic growth and development, but also remains a vital part of the carefully orchestrated dastardly design of financial crimes’ architecture. The growing evidence against banks with respect to recurring culpability in facilitating financial crimes is a worrying trend that compounds erosion of public trust in them since the financial crisis of 2008/2009. Sanctions imposed on banks (see below) for offences with a bearing on financial crimes bears testimony to banking industry’s culpability.

Feb 2014: Standard Bank PLC fined £7.6m for failures in its anti-money laundering controls (BBC, 2014)

May 2015: Barclays fined $2.4bn for forex rigging (Financial Times, 2015)

June 2015: HSBC pays out £28m “compensation” to Swiss authorities over money-laundering claims (The Guardian, 2015)

November 2015: Barclays Bank (Barclays) was fined £72,069,400 for failing to minimise the risk that it may be used to facilitate financial crime by the Financial Conduct Authority (FCA) (FCA, 2015)

December 2019: HSBC to pay $192m penalty in US for helping clients hide $1billion dollar worth of assets for tax evasion purpose (Financial Times, 2019).

Financial service regulators may have demonstrated a commitment to ensuring banks do not act as facilitators of financial crimes through these sanctions, but the inherent culpability of the financial regulatory system in certain jurisdictions means that these fines do not address why they have become a magnet for financial crime. The public prosecutor in the HSBC/Swiss regulator case as cited in The Guardian (2015) sums up the real source of financial service industry culpability in financial crime thus:

“When we have a law that doesn’t punish financial intermediaries accepting doubtful funds then we have a problem. This problem dates from long before the HSBC affair.”

REFLECTION ON EVIDENCE

Criminals adept at committing financial crimes often targets the vulnerable. They are also very clever at deciphering individual vulnerabilities. Unemployment was a vulnerability ready to be exploited in this case. However, various other vulnerabilities can be the focus of the ploy of these criminals. For instance, search for acceptance and love (BBC 2020), desire to help others and outright greed, are a mix of vulnerabilities often exploited by advance fee (otherwise called “419”) fraudsters.

Individuals or organisations should not think they are above gullibility when it comes to financial crimes. The website involved in this case is a subsidiary to one of the major global online platforms. Yet their vetting process allowed this job advertisement to be placed; and initial response to contacting them laid bare their gullibility – a failure in their social responsibility obligation to society!

Banking industry and its regulatory framework remains an important defence line in society’s response to combating financial crime (Ryder, 2017). A basic line of defence where banks had in the past dropped their guards is with respect to “Know Your Customer” (KYC). This important anti-money laundering requirement needs full compliance for the global fight against financial crime to be successful. Specifically, a risk-based approach to KYC practice can help operators in the financial services industry balance regulatory compliance with business exigencies. Such an approach can help focus attention on potentially risky clients such as the politically exposed person (popularly referred to as PEP). The need for some sort of global regulatory alignment to ensure that there are no safe havens for illicit wealth (Nance, 2018) will require every nation to review its laws and ensure that loopholes exploited by financial criminals and their intermediaries are plugged.

CONCLUDING REMARKS

Fraud triangle comprising of opportunity, incentive/pressure, and rationalization (Cressey, 1953) had received wide scholarly attention, it is perhaps time we switched attention to actors whose moral gap facilitates financial crime. Vulnerability, gullibility, and culpability represents a collection of attributes that helps financial crime to spread like wildfire and the criminals that benefit from them to take the rest of society for granted. Hence, the need for every individual and organization to undertake a self-assessment as to whether they may be tacitly facilitating financial crime as a vulnerable, gullible, or culpable actor in a dark web that leaves society morally and economically bankrupt.


REFERENCES

BBC (2014) Standard Bank fined over lax anti-money laundering controls. Available at: https://www.bbc.co.uk/news/business-25864499 (Accessed 18/12/2020).

BBC (2020) Covid: Romance fraudsters ‘target lonely’ in lockdown. Available at: https://www.bbc.co.uk/news/uk-wales-54855321 (Accessed 04/01/2020)

Cressey, D. (1953) Other People’s Money. New York, NY: The Free Press.

Financial Conduct Authority (2015) FCA fines Barclays £72 million for poor handling of financial crime risks. Available at: https://www.fca.org.uk/news/press-releases/fca-fines-barclays-%C2%A372-million-poor-handling-financial-crime-risks (Accessed 18/12/2020)

Financial Times (2015) Barclays fined $2.4bn for forex rigging. Available at: https://www.ft.com/content/a255cd2a-fef8-11e4-84b2-00144feabdc0 (Accessed 18/12/2020).

Financial Times (2019) HSBC to pay $192m penalty in US tax evasion case. Available at: https://www.ft.com/content/e7d51ec4-1b99-11ea-97df-cc63de1d73f4 (Accessed 18/12/2020)

Liao, L., Chen, G. and Zheng, D. (2019) Corporate social responsibility and financial fraud: evidence from China. Accounting & Finance, 59(5), pp.3133-3169.

Nance, M.T. (2018) The regime that FATF built: an introduction to the Financial Action Task Force. Crime, Law and Social Change, 69(2), pp.109-129.

Nuthall, K. (2019) FATF’s new guidelines on tackling money laundering. Accounting and Business magazine, November (Chinese Edition). Available at: https://www.accaglobal.com/gb/en/member/discover/cpd-articles/governance-risk-control/fatf-cpdnov19.html#:~:text=According%20to%20the%20United%20Nations,of%20global%20GDP%20is%20laundered.&text=Accountants%20assisting%20with%20property%20purchases,been%20laundered%20into%20legitimate%20accounts. (Accessed 18/12/2020).

Ryder, N. (2017) The financial crisis and financial crime in the United Kingdom: A critical analysis of the response by Financial Regulatory Agencies. The Company Lawyer, 38(1), pp.4-14.

Sweet, P. (2020) Global anti-money laundering fines top £6bn. Accountancy Age publication of 17 January 2020. Available at: https://www.accountancydaily.co/global-anti-money-laundering-fines-top-ps6bn (Accessed 18/12/2020).

The Guardian (2015) HSBC pays out £28m over money-laundering claims. Available at: https://www.theguardian.com/business/2015/jun/04/hsbc-fined-278m-over-money-laundering-claims (Accessed 18/12/2020)


Discover how accounting and finance underpins modern enterprise in our BA (Hons) Finance and Business Enterprise.

Fail to plan, plan to fail

Angela Lawrence, Associate Dean, Staffordshire Business School


This morning I was labelled a geek. I don’t mind being called a geek (I probably am a bit of a geek) but what is interesting is that this label was awarded as a result of me sharing a plan on twitter. The plan for my allotment in 2021.

Now I don’t feel that planning makes me geeky – I’m a big believer in planning and the saying “fail to plan, plan to fail” is one that I use often. I plan a work “To Do” list at the end of each working day, a shopping list before walking down to the shops, I plan holidays months if not years in advance and yes, I plan which vegetables I am going to grow at my allotment and which beds they will go into. That way I can be sure that the soil will be right for them, the light conditions will suit them and that everything grows together in harmony to produce bountiful harvests.

This Photo by Unknown Author is licensed under CC BY-SA

Planning is a big part of business success – we create business plans, marketing plans and project plans in all aspects of our working life. Without things like business continuity planning, risk management, financial planning, many businesses fail to survive in today’s fast-moving work environment. Students are taught planning not only as part of their studies, but also as part of their own lifestyle management as a student – our students even brought together some tips to share with others in this YouTube video.

Some would say planning has been difficult during 2020 and it’s hard to plan when we don’t know what we will be able to do. I think this is actually all the more reason to plan – if plans didn’t materialise, as so many failed to during 2020, then we suck it up and plan all over again, whether it be a holiday, a birthday, a wedding or a study plan for the year. What has been bumped from the top of the list now goes back into the list again for re-scheduling.

Plans give us hope and they psychologically prepare us, they build anticipation, and they demonstrate commitment. When we plan, we mentally get organised and prepare ourselves and this is a good thing – it saves us from stressing about the unknown, relieves some uncertainty and helps us to cope better

Plans don’t have to be big, they don’t have to be impressive, they don’t have to be written down (although I do get great satisfaction from planning on paper) and they don’t have to be shared. They may not mean a thing to anybody but you, and that’s just fine. I can guarantee that you will enjoy your planned activities far more for having planned them and that you will stress less and cope better with things that challenge you.

Happy planning – you have a whole year ahead of you, LET’S GO!


Staffordshire Business School is a premier centre for business education with decades of experience in providing business courses at the forefront of industry and technological developments. Business planning is integrated into all of our new business courses – click here to find out more.

Free Leadership Programme to help businesses in 2021

Are you looking for free support, ideas and a team to talk to that will help your business through the pandemic, Brexit and beyond?

Staffordshire Business School is now delivering free training in leadership and management to help you and your business exactly when you need it most.

When does the course start?

We have two starting dates either:

 Tue 12th January 2021 starting at 3pm

Wed 13th January 2021 starting at 3pm

If you would like to have a chat about the course then please email one of our experienced Entrepreneurs in Residence with your phone number and they will call you back,

Jane Pallister email Jane.Pallister@staffs.ac.uk

Emily Whitehead email emily@staffs.ac.uk

Jonathan Westlake email j.c.westlake@staffs.ac.uk

Jonathan Westlake, Jane Pallister and Emily Whitehead ar ethree of our Entrepreneurs in Residence
Jonathan Westlake, Jane Pallister and Emily Whitehead are three of our Entrepreneurs in Residence

Two cohorts of business have already gone through the programme and here is what Kevin O’Mara of Advanced Journey Chauffeuring thought of the training

Why choose the Small Business Leadership Programme?

  • Make your business more resilient
  • Boost business performance and growth
  • Create an innovative and agile organisation
  • Recover from the impact of COVID-19
  • Build leadership confidence and effectiveness
  • Plan for the future of your business
  • Build lasting relationships with small business leaders
  • Improve risk management and efficiency

Eligibility requirements

To join the Small Business Leadership Programme:

  • Your business must be a Small or Medium-sized Enterprise (SME) based in England.
  • Your business needs to employ between 5 and 249 people and have been operational for at least one year
  • The participant should be a decision maker or member of the senior management team within the business with at least one person reporting directly to them.
  • The participant must be able to commit to attending the full programme

Your commitment

The programme is designed to be manageable alongside full-time work. Participants will attend eight 90-minute webinars across ten weeks, and complete up to two hours of independent study and peer-supported learning per week.Places are fully funded by the Government to support the resilience, recovery and growth of SMEs during and after COVID-19. The programme is free to attend, and places are limited.

Register Now

There are two ways to register. Either email one of the Entrepreneurs in Residence as listed above or follow the simple instructions below (this takes 3 minutes) and we will be in touch:

Go to https://smallbusinesscharter.org/sblp-registration/

Choose either North West (for 13th January start) OR West Midlands (for 12th January start) from the pink vertical menu on the left.

Scroll through the list of centres until you find Staffordshire University and the date you prefer & click register. There are some screen grabs in the document below if you need them

PLEASE NOTE: Your business can send up to two eligible delegates to this programme. Simply apply for each person.

Coronavirus: The Battle Axe

The coronavirus started in China and spread to Europe and America in the first quarter of 2020 with a “battle axe” on businesses. The leadership of the most affected countries have become Santa Claus with their supports to the households and businesses. Many industries have experienced the offensive side of the coronavirus battle axe while other industries benefited from the defensive opportunities it created.

Industries such as Aviation, Road haulage, Ferries, Steel, Horticulture have all taken the pain of the offensive side of the battle axe. For instance, many of the affected developed countries economies are shut down and consumers are under stay at home policy. These have serious negative impacts on these industries revenue and sustainability investments. To complicate the pain emergency loans support from financial institutions have dried up thus, there are fewer chances of survival without taxpayers interventions. Some commentators are of the view that greener pastures are not guaranteed for the industries that will survive the pain as the new world of doing business will emerge. 

The likes of the e-commerce marketplace (Amazon); pharmaceutical companies (AstraZeneca and Pfizer); video conferencing (Zoom, Teams and Skype) and entertainment streaming (Netflix) industries benefit from the defence of this deadly axe. The longer the stay at home policy takes more people and businesses start thinking of a different way to sustain their livelihood and businesses from home. Another innovative business opportunity created is the products that many governments make mandatory to be worn everywhere. Although some of these products are reusable, few concerns have been raised about the materials used in the production and the ability to recycle these materials.

This pandemic has brought difficult business operating environment. Many business leaders are worried about how to sustain productivity to increase growth by adapting to the new business environment that the pandemic created. Businesses should protect the workforce with physical and emotional support, empathetic communication, training and retraining of employees in readiness for recovery. They should review their supply chains and possibly arrange alternative sources of raw materials or services. Also, businesses should frequently review the impact of the worst-case situation on the business cash flow and the governments’ tax relief provisions and other supports. Finally, business leaders should consider their business digital transformations by increasing IT infrastructure and digital upskilling.

The Small Business Leadership Programme is provided by Staffordshire Business School and is fully funded (free). Participants will develop strategic leadership skills and the confidence to boost business performance.

The course lasts ten weeks and the next two cohort start dates are
West Midlands 12th January 3.00 – 4.30 pm
North West 13th January 3.00 – 4.30 pm

Register here https://smallbusinesscharter.org/sblp-registration

For more details see the website
https://smallbusinesscharter.org/small-business-leadership-programme/

Mayowa Akinbote FCCA
Lecturer in Accounting and Finance
Staffordshire Business School
Staff Page: https://www.staffs.ac.uk/people/mayowa-akinbote
LinkedIn: http://linkedin.com/in/mayowa-akinbote-33448895

Global Entrepreneurship Week at Staffordshire Business School #GEW2020

Hazel Squire, Head of Department Staffordshire Business School


#GEW2019

Global Entrepreneurship Week is a collection of tens of thousands of activities, competitions and events aimed at making it easier for anyone, anywhere to start up and scale a company.

This November 16 – 22, as part of GEW 2020 Staffordshire Business School together with Staffordshire University Innovation Enterprise Zone will be hosting a range of activities aimed at both local businesses and students.

As a nation, the impact of COVID-19 means we are all seeking and finding new ways of doing things. In an effort, to build resilience and come together in leveraging the power of new ideas and innovation we will be launching our Innovation Enterprise Zone https://www.staffs.ac.uk/business-services that will give businesses access to:

  • Skills development and support
  • Researchers, student talent and experts
  • Grants and business support programmes
  • Innovation infrastructure and incubation facilitates

Announced last year, Staffordshire University was one of 20 University Enterprise Zones (UEZs), launched with a £20 million investment by Research England, part of UK Research and Innovation. 

Furthermore, be inspired offers a full year of start-up support including: information, advice and guidance from an experienced team of business advisers, regular meetings with industry mentors of your choice, full business processes induction, industry-led specialist workshop sessions, networking opportunities, access to personal growth software, access to personalised legal documentation, a £3000 tax free grant and, as your idea grows, access to investment opportunities. Information detailing how to access all this help will be provided at the be inspired session on Friday 20th November.

Finally, Enterprise Education has never been more important, as it allows us to equip future generations with the skills and mindsets, they need to navigate a world of work that may not even exist yet. Through entrepreneurship activities, learners can gain key entrepreneurial skills such as critical thinking, problem-solving, communication, risk-taking and teamwork. Entrepreneurship can offer alternative pathways for young people, improving their skills, employability and life chances, while supporting wider economic and social development.

Thus, Enterprise Education is embedded in to all our courses and as part of GEW Staffordshire Business School will be providing a week of challenging enterprise activities working with guest speakers and the be inspired Graduate Start up Programme.

Here is a list of all our free and exciting activities – to book your place use the links provided in the table below:

MONDAY 16TH NOVEMBER

10-11am Being an ethical business: “Street Kids”
Presented by Dr Andrew Taylor
(Session open to all Staffordshire University students)
11-11.45am         Official Launch of the Innovation Enterprise Zone
See details below*
(Session open to all) 
11-12pm Improving the Customer Experience
Presented by Professor David Collins
(Session open to all Staffordshire University students)  
2-3pm Why SMART goals do NOT work! –
Goal setting to achieve more in challenging times
Presented by David Hyner
(Session open to all) 

*Our Innovation Enterprise Zone is one of the only 20 awards around the UK and is embedded at the heart of our campus, IEZ offers unprecedented access to specialist advanced materials, manufacturing and digital facilities, research, student talent and funding to support and accelerate innovation-led growth.

TUESDAY 17TH NOVEMBER

11-11.45am Advanced Materials Incubator & Accelerator Centre  
See details below*
(Session open to all) 
1-5pm Staffs Got Talent! – Innovation challenge  

*Introduction to our new Incubator and Accelerator facility, what it is and how it supports start-ups and SME’s. Delivered by Kelly Bradley. Programme Manager

WEDNESDAY 18TH NOVEMBER

10-11am The Pitch Competition – virtual workshop
Presented by Angela Lawrence, Associate Dean
(Session for Staffordshire Business School students in Level 5 & 6)  
11-11.45am          Advanced Manufacturing Prototyping & Innovation Demonstrator
See details below*
(Session open to all) 
11.30-12pm Digital Entrepreneurship Research and Practice
Fang Zhao, Associate Dean
(Session open to all Staffordshire University students)

*Whether you are looking for research and development advanced manufacturing techniques or process improvement – hear how we can help you succeed! Delivered by Rachel Wood. Programme Manager

THURSDAY 19TH NOVEMBER

*An outline of the programme, benefits of knowledge exchange and how to get involved. Delivered by Marc Wootton. Programme Manager

11-11.45amDigital Innovation Partnerships         
See details below*
(Session open to all) 
2-3pm Meet the Entrepreneurs: Panel with Q&A
Jane Pallister, Jonathan Westlake, Emily Whitehead
(Session open to all) 

FRIDAY 20th NOVEMBER

11-11.45am Intelligent Mobility Innovation Accelerator  
See details below*
(Session open to all) 
2-2.45pm The Small Business Leadership Programme: Meet the team & overview
Professor Jon Fairburn
(Session open to all)   

*This webinar is an introduction into our dedicated project SCIMIA and other wide support for businesses, Delivered by: Marek Hornak – Head of Employer Partnerships and Enterprise

#GEW2020      #ProudToBeStaffs     #StaffsGotTalent       #staffsinnovation

Staffordshire Business School – Research update

Staffordshire Business School aspires to be a leader in making a real impact on business and society through research and innovation. Our team have successfully delivered many industry/business and government funded research projects and have extensive experience of leading large team projects including local, UK, EU and internationally funded projects. Many of our team members combine rich industry and practitioner experience with academic rigour in conducting world-leading research in the areas of entrepreneurship and innovation, digital transformation, environmental health etc. Here are some of the exciting research projects that researchers at Business School have been doing:


Austerity, Welfare and Work: Exploring Politics, Geographies and Inequalities

In his new book, Prof David Etherington provides bold and fresh perspectives on the link between welfare policy and employment relations as he assesses their fundamental impact on social inequalities. Drawing on international and national case studies, the book reviews developments, including rising job insecurity, low pay and geographical inequalities.

Environmental health inequalities resource package

Prof Jon Fairburn is the lead author of a recent World Health Organization publication. The publication is aimed at local, regional and national policy makers hoping to improve environmental health especially for deprived and other groups. Jon has been collaborating with WHO for over 10 years on this subject.

Covid-19 and Smart Cities – What’s Changed? Getting ahead of the Game

Prof Fang Zhao and her team have been conducting research and analysis of a range of changing scenarios of smart cities in post-Covid-19 and pinpoint the opportunities and challenges for businesses, city councils and universities. Their research focuses on strategies, tactics and digital transformation.

The Impact of COVID-19 on BAME Owned Businesses in the UK

The project led by Dr Tolulope Olarewaju is investigating the specific challenges that BAME business owners faced during the COVID-19 pandemic and lockdown, the strategies that they used to keep their businesses afloat, and how they engaged with financial and regional support. The project is funded by the British Academy.

People, Place and Global Order: Foundations of a Networked Political Economy

This book co-authored by Dr Andrew Taylor explores how the convergence of technology and globalisation is shifting value creation out of products and processes and into digital networks and, in the process, leaving many people behind. He is looking into examples and models of how people and place may flourish within global networks. 

Leadership typology reveals how smart city leaders prefer to tackle inequality

The research of Associate Professor Alyson Nicholds sheds light on how leaders, operating in different organisations, roles and sectors prefer to tackle inequality differently. Her latest writing draws on organisational concepts of leadership and philosophy to show the benefits this type of understanding can reap for society.

Entrepreneurs in Residence

Business School has recently appointed Entrepreneurs in Residence providing students and staff with hands-on experience in conducting research to spot business opportunities, conduct market analysis and better understand consumer behaviour, leading to business venture creation.

For more information and collaboration and partnership, please contact Prof Fang Zhao – Associate Dean Research and Enterprise at fang.zhao@staffs.ac.uk.

Digital marketing students deliver for business

The MSc in Digital Marketing Management was developed to deliver the technical, strategic and organisation skills for this industry. As such the course includes a substantial project with an external client and this work is credited as part of the award. Carrying out a project at the height of the pandemic was even more challenging than usual with everything needing to be done remotely and ongoing changes to adapt to the new situation – so Congratulations to the students below for these excellent projects.

If you are interested in enrolling for this September we are putting on virtual course information events – 3.00-4.00pm 1st September register here or
3.00 – 4.00pm 10th September register here

Eerik Beeton carried out a project for The Waterfront Gallery, in Milford Haven, West Wales. This has involved developing the ecommerce offer on the website, creating social media channels Facebook, Instagram and helping to recruit volunteers for the gallery.

Eerik Beeton who carried out a project at the Waterfront Gallery in  Milford haven, Pembrokeshire
Eerik Beeton who carried out a project at the Waterfront Gallery in Milford Haven, Pembrokeshire

Charlotte Cunningham created a completely new website for Simply Hygiene which is already on the first page of google search due to excellent SEO optimisation. She has also started her own digital marketing company, Sharkey’s Digital Marketing and has also accepted a position as the Marketing Manager for The Aston Care Home group and The Learning College in Stone.

Charlotte has a new marketing job with the Aston Care group in Stone
Charlotte has a new marketing job with the Aston Care group in Stone

Craig Holdcroft carried out a project for the Donna Louise Trust developing the website and social media. He has also started his own marketing business, Holdcroft Digital Marketing while at Staffordshire University, completing projects for a number of Micro and SME’s.

Craig Holdcroft
Craig Holdcroft is running his own agency and part-time lecturing for business and marketing.

Grace Thomson started a student peer blog for the Staffordshire University Careers Studio and this has now been incorporated into the main careers website for the University. The project included providing guidance and training for students across the different faculties in blog writing and social media. The blog has already achieved 23,000 reads in the short time it has been up.

Grace Thomson
Grace Thomson

Amber Mottershead carried out her project for Stone Cricket Club providing a new website and turbo charging the social media channels on twitter, instagram and facebook. She now has a new job as marketing and events executive at The Retrofit Academy

Amber is now the marketing and events executive for the Retrofit group
Amber is now the marketing and events executive for the Retrofit group

Here’s a short film

If you want to find out more about the course please contact

Paul Dobson (Course leader) or Kat Mitchell or Jon Fairburn

Sign up to our virtual course information event here – 3.00-4.00pm 1st September register here or 3.00 – 4.00pm 10th September register here