Risk Management Assessment and Success Rates of Small and Medium Enterprises

Abstract ―​

Managing SMEs' risk had become crucial considering the role they play in the economy. Some risk-taking was inevitable in an organization to achieve its objectives. These organizations that were more risk aware appreciated that actively managing not only potential problems but also potential opportunities and provide them with a competitive advantage. Taking and managing risk was the very essence of business survival and growth. SMEs were becoming increasingly aware of the importance of risk and its management, but it still remained a challenge for them. The primary purpose of this research is to assess the level of internal and external risk management and success rates in terms of type of employment, risk perceives, sources of funds, marketing styles and key success factors. The instrument used in the collection of the data was questionnaire which includes ninety (90) SMEs. Data collected was analyzed using descriptive statistics. The results showed that there is “no significant effect of the profile, financial and operational concerns and risk management assessment to the success rate of the small and medium enterprise” at 0.05 level of significance. The null hypothesis stating that “There is no significant effect of the profile, financial and operational concerns and risk management assessment to the success rate of the small and medium enterprise” is accepted, it can infered that there is “no significant” effect between them. Is it recommended that SMEs to consider other determinants like customer loyalty, marketing strategies and sales performance for future growth and keep abreast of latest development.