SME Financial Management

2013 ◽  
pp. 1107-1119
Author(s):  
Edna Stan-Maduka
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Financial Management ◽  
Business Processes ◽  
Small And Medium Enterprises ◽  
Risk Mitigation ◽  
Simplified Approach ◽  
Medium Enterprises ◽  
Operational Processes

Regulators’ efforts to create awareness of risk management in Small and Medium Enterprises (SMEs) have heightened since the 2008 recession which affected many economies. The objective has been to stress the fundamental role of risk assessment and mitigation in the protection of business processes and profitability of SMEs. This has been hard to achieve due to the inadequate financial and operational processes within small and medium enterprises. This chapter presents an exploration of risk management in SMEs and a simplified approach to SME risk assessment and operational risk mitigation.

SME Financial Management

2013 ◽  
pp. 330-342 ◽  
Author(s):  
Edna Stan-Maduka
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Financial Management ◽  
Business Processes ◽  
Small And Medium Enterprises ◽  
Risk Mitigation ◽  
Simplified Approach ◽  
Medium Enterprises ◽  
Operational Processes

Regulators’ efforts to create awareness of risk management in Small and Medium Enterprises (SMEs) have heightened since the 2008 recession which affected many economies. The objective has been to stress the fundamental role of risk assessment and mitigation in the protection of business processes and profitability of SMEs. This has been hard to achieve due to the inadequate financial and operational processes within small and medium enterprises. This chapter presents an exploration of risk management in SMEs and a simplified approach to SME risk assessment and operational risk mitigation.

scholarly journals RISK MITIGATION FOR SMALL AND MEDIUM-SIZED ENTERPRISES (SMES) IN THE MIDDLE OF VOLATILITY IN THE WORLD’S ECONOMY CONDITION

2021 ◽  
Vol 4 (1) ◽  
pp. 34-39
Author(s):  
Gresika Bunga Sylvana
Keyword(s):  
Business Processes ◽  
Small And Medium Enterprises ◽  
Risk Mitigation ◽  
The Great Depression ◽  
The World ◽  
National Leaders ◽  
World Economic ◽  
Economy Condition ◽  
Medium Enterprises ◽  
The Impact

ABSTRACT Indonesia's economic growth in the first quarter of 2020 of 2.97% was released by the Central Statistics Agency (BPS). It is undeniable, that number is the lowest growth rate in the last 19 years. We understand that the economic disruption caused by the COVID-19 pandemic did occur in various parts of the world. A significant economic slowdown is a big task for many national leaders. Some world economic experts even mention that the disruption of the economy due to this pandemic can resemble the effects of the Great Depression of 1930 ago. If we review the impact of the COVID-19 pandemic which has caused extraordinary disruption in the economic field, it is seen that Micro, Small, and Medium Enterprises (MSMEs) are a sector that is quite severe. Basically, the concept of risk management is not commonly used in SMEs business processes. This is because, in general, the resources owned by SMEs are quite limited. However, in this paper I want to illustrate at least there are simple concepts that can be applied by SMEs.

scholarly journals The Impact of Internal, External and Enterprise Risk Management on the Performance of Micro, Small and Medium Enterprises

2019 ◽  
Vol 11 (7) ◽  
pp. 2172 ◽  
Author(s):  
Dewi Hanggraeni ◽  
Beata Ślusarczyk ◽  
Liyu Adhi Kasari Sulung ◽  
Athor Subroto
Keyword(s):  
Risk Management ◽  
Financial Management ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
West Sumatra ◽  
Management Factors ◽  
Managing Risk ◽  
Medium Enterprises ◽  
Additional Value ◽  
The Impact

This paper aims to develop the role of internal factors, external factors, and risk management variables on MSMEs’ business performance. This research was conducted in underdeveloped regions of five provinces, which includes 14 cities in Indonesia—East Java, West Sumatra, North Sumatra, West Nusa Tenggara, and East Nusa Tenggara. The Resource-based view and Market-based view methods were chosen to measure 1401 data of MSMEs. The data was collected using offline questionnaires then processed using SPSS. This paper demonstrates a remarkable outcome for MSMEs, showing the significant result of risk management factors that includes risk assessment of marketing and financial management. Other independent variables of internal, external, and risk management factors also show important outcomes on MSMEs performance. This paper offers additional value of the implementation of ERM in MSMEs, which are spread in underdeveloped regions in Indonesia. The findings shown that the activity of the enterprises in identifying and managing risk would bring up the significant effect on operational business performances.

scholarly journals LINKING BALANCED SCORECARD MEASURES TO SMES’ BUSINESS STRATEGY: ADDRESSING THE MODERATING ROLE OF FINANCIAL RESOURCES

2015 ◽  
Vol 3 (12) ◽  
pp. 92-99
Author(s):  
Mahshid Lonbani ◽  
Saudah Sofian ◽  
Mas BambangBaroto
Keyword(s):  
Performance Measures ◽  
Balanced Scorecard ◽  
Business Strategy ◽  
Business Processes ◽  
Small And Medium Enterprises ◽  
Financial Resources ◽  
Financial Measures ◽  
Medium Enterprises ◽  
Moderating Role

Using financial and non-financial measures, the Balanced Scorecard (BSC) approach evaluates different aspects of firms’ performance: financial, customer, learning and growth, and internal business processes. Resource flexibility and availability of financial resources are basically highlighted as separate antecedents of company’s performance. Grounded on resource based view, the role of financial resources on business strategy has been addressed numerously in previous studies.  However, there is limited study to evaluate the role of financial resources on relationship between business strategy and BSC performance measures. Especially there is no study addressing this issue according to the moderating role of financial resources among small and medium enterprises (SMEs). It is worth mentioning that such relationships and models can be more highlighted in a developing countries since financial resources has been debated to be weak in theses context. Grounded in contingency theory, an evaluation of the moderating role that financial resources plays in the relationship between SMEs’ business strategy and balanced scorecard performance measures in SMEs points to the value of providing enough resources for SMEs. External fund providers such as banks and loan providers can help SMEs in this regard since firms could pass the way from business strategy to superior BSC performance measures more successfully.

scholarly journals THE ROLE OF RECORDING AND REPORTING PROCESS OF BASIC ACCOUNTING IN SMALL MEDIUM ENTERPRISES OF OMAH DUREN SURABAYA

2018 ◽  
Vol 15 (01) ◽  
pp. 35
Author(s):  
Lucya Erlinda Sonia ◽  
Stefanie Gianto
Keyword(s):  
Business Process ◽  
Financial Management ◽  
Small And Medium Enterprises ◽  
Data Sources ◽  
Transaction Data ◽  
Know How ◽  
Reporting Process ◽  
Small Medium Enterprises ◽  
Medium Enterprises

Financial management is a problem that is quite difficult for Small and Medium Enterprises (SMEs) in Indonesia. The lack of awareness and knowledge of SMEs owner regarding the accounting process considered as the root causes of their financial management difficulties. Based on that, researcher aims to help one of SMEs in Surabaya which is Omah Duren Surabaya, in order to know about the process of recording and reporting a SME, then find a way to improve it in a diligent way. Researcher uses interviews, observations and documents sheets to analyze and know-how Omah Duren business process. The information that gained from Omah Duren owner and transaction data, as well as direct observation in recording and reporting activities is one of researcher data sources. Researcher concluded that Omah Duren SME’s still not performing the simple accounting process in accordance with generally accepted. Therefore, researcher provide a recommendations in helping them in recording and reporting their financial effectively and efficiently. This research will also discuss the role of recording and reporting that is generally accepted for SMEs.

scholarly journals Managing Risks through Mitigation Strategies: Evidence from Cameroonian Small and Medium Enterprises

2016 ◽  
Vol 12 (1) ◽  
pp. 219
Author(s):  
Mbiki Mamai ◽  
Song Yinghua
Keyword(s):  
Higher Education ◽  
Risk Management ◽  
Small And Medium Enterprises ◽  
Risk Mitigation ◽  
Mitigation Strategies ◽  
Limited Attention ◽  
Perception Of Risk ◽  
Risk Mitigation Strategies ◽  
Medium Enterprises ◽  
Selection Of

While SMEs are widespread and largely influence the economy of nations, its risk management is little known and has received limited attention. With regards to the importance of the managers in these types of companies; the purpose of this paper will be to investigate the relationships that may exist between the profile of the managers of the SMEs and the choice of risk mitigation strategies. By so doing, it turns out that the perception of risk, the managers and their levels of higher education influence the adoption of risk mitigation strategies in SMEs. In addition, the strategies used to manage risk are diversification, cooperation, selection of suppliers and insurance.

scholarly journals Internal Control and SMEs’ Sustainable Growth: The Moderating Role of Multiple Large Shareholders

2019 ◽  
Vol 12 (4) ◽  
pp. 182 ◽  
Author(s):  
Liangcheng Wang ◽  
Yining Dai ◽  
Yuye Ding
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Small And Medium Enterprises ◽  
Sustainable Growth ◽  
Sensitivity Tests ◽  
Large Shareholders ◽  
Medium Enterprises ◽  
The Relationship ◽  
Moderating Role

Small and medium enterprises (SMEs) face more risks for sustainable growth due to a lack of resources than large firms in emerging economies. Hence, it is more likely for SMEs to look to risk management for survival in turbulent markets. As a tool of risk management, whether internal control indeed has contributions to the sustainable growth of SMEs, particularly conditional on multiple large shareholders, is empirically unexplored. Using a sample of SMEs listed in China, this study examines the relationship between internal control and sustainable growth, and assesses a moderating role of multiple large shareholders. The results show that effective internal control significantly promotes SMEs to achieve sustainable growth, and the effect is moderated by multiple large shareholders, suggesting that the role of internal control is more prominent in SMEs with multiple large shareholders. These results are robust to a battery of sensitivity tests. This study extends the literature by providing empirical evidence on the role of internal control in SMEs’ sustainable growth.

scholarly journals Operational Risk Assessment and Management in Small and Medium-sized Enterprises

2015 ◽  
Vol 16 (2) ◽  
pp. 140-148 ◽  
Author(s):  
Viktorija Stasytytė ◽  
Loreta Aleksienė
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Small And Medium Enterprises ◽  
Value Added ◽  
Operational Risk ◽  
Business Environment ◽  
Enterprise Risk ◽  
Uncertain Future ◽  
Medium Enterprises ◽  
Risk Assessment And Management

Modern organizations have raised a need to actively and quickly react to the changes in external business environment, as well as in internal processes considering not only the present situation, but also evaluating possible changes and forecasting the future. Enterprise risk assessment and management, which is strongly related with foreseeing the uncertain future, becomes topical not only scientifically, but also practically seeking to reveal new and unique solutions. Operational risk management in small and medium enterprises, creating the largest part of value added in the whole European Union, demands a separate attention and coordinated decisions and means. The objective of the paper – to analyse the process of enterprise risk management in small and medium-sized enterprises, as well as to propose adequate risk management solutions for these companies. After performing a research, it was found out that small and medium enterprises more than big organizations require a risk management strategy and methodology, need to distinguish activity objectives and events influencing them, and they can efficiently apply a risk portfolio method to manage risk. In small and medium enterprises it is recommended to incorporate a risk management system based on COSO ERM model that can be modified depending on company needs and possibilities, turning it into less formal and structured and easily applicable.

Does supply chain finance improve SMEs performance? The moderating role of trade digitization

2018 ◽  
Vol 26 (1) ◽  
pp. 150-167 ◽  
Author(s):  
Zulqurnain Ali ◽  
Bi Gongbing ◽  
Aqsa Mehreen
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Small And Medium Enterprises ◽  
Risk Mitigation ◽  
Content Type ◽  
Supply Chain Finance ◽  
Using Data ◽  
Medium Enterprises ◽  
The Relationship

Purpose A growing need for financing in small and medium enterprises (SMEs) has become a significant obstacle to the development of firms. To remove this barrier, the purpose of this paper is to examine how supply chain finance (SCF) assists the firms to improve their performance by utilizing the resource-based view (RBV). Furthermore, the present study also pursues to test the effect of trade digitization as a moderating variable in the relationship between SC finance and the firm performance. Design/methodology/approach Using data from the textile sector, the authors run confirmatory factor analysis in AMOS 24 and hierarchical linear regression model in SPSS 23 to measure the proposed model and hypotheses, respectively. Findings The study suggests that SCF significantly improves the SMEs performance. Moreover, trade digitization strengthens the relationship between SCF and SMEs performance. Thus, the current study significantly describes the firm RBV through SCF and trade digitization to predict the SMEs performance. Practical implications SMEs entrepreneurs or executives can optimize the working capital through SCF and enhance the visibility of transactions through digitization for improving SMEs performance. Moreover, SCF protects the SMEs due to its nature of risk mitigation strategy. Originality/value This study covered the unexplored gap in the previous literature of supply chain management by establishing the relationship between SCF and the firm performance empirically while identifying the role of trade digitization as moderating variable in the context of textile SMEs by employing RBV theory.

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