scholarly journals Underlying structures of risk response measures among small and medium contractors in South Africa

2020 ◽  
Vol 20 (1) ◽  
Author(s):  
Berenger Yembi Renault ◽  
Justus Ngala Agumba ◽  
Nazee Ansary
Keyword(s):  
South Africa ◽  
Factor Model ◽  
Small And Medium Enterprises ◽  
Risk Mitigation ◽  
Risk Avoidance ◽  
Risk Response ◽  
Response Measures ◽  
The One ◽  
Medium Enterprises ◽  
Structured Questionnaire

Although attention has been given to the measures used to respond to risk in the construction industry (CI), there is limited literature that scrutinizes underlying structures of risk response measures (RRMs) especially among small and medium enterprises (SMEs). This study, therefore, presents findings from an exploratory factor analysis (EFA) of RRMs. A positivist paradigm was adopted to collect empirical raw data from 181 conveniently sampled respondents in Gauteng, South Africa (SA), using a structured questionnaire. The results support the extant literature and empirically established the structural composition of risk response by two constructs. The construct with emerged measures was termed trailing measures while the one with popular measures was termed leading measures of risk response. However, the study yielded a two-factor model with all the six items supposed to measure risk response. Based on the results obtained, it seems that risk avoidance and risk mitigation are reliable measures for measuring risk response. This study could thus serve as a reference for the accurate measurement of risk response and for the development of agreed responses for each risk, including an appropriate strategy and specific responses to implement the chosen strategy. The study was limited to the CI and to a lesser extent, construction SMEs in Gauteng; hence the findings cannot be generalized to all SMEs in SA.

scholarly journals Risk management practices and the purchase of insurance by SMES

2016 ◽  
Vol 6 (3) ◽  
pp. 100-104 ◽  
Author(s):  
Kudakwashe Chodokufa
Keyword(s):  
South Africa ◽  
Low Income ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Risk Avoidance ◽  
Level Of Education ◽  
Recovery Plan ◽  
Nelson Mandela ◽  
Business Size ◽  
Medium Enterprises

The culture of risk aversion constrains the growth of the Small and Medium Enterprises (SME) sector among low-income entrepreneurs. They respond reactively to risk by using risk avoidance or by transferring the risk. The purpose of this study was to establish whether SMEs mitigate risk through the purchase of insurance. As well as to determine the influence of business size, level of education of the owner, Recovery Plan and the knowledge of insurance products on the purchase of insurance by the SME owner. A sample of 322 SMEs in the Nelson Mandela Metropolitan Area South Africa was selected and 203 questionnaires were returned. The results showed that SMEs do not to mitigate risk through the purchase of insurance. The size of the business, level of education, having a Recovery Plan and knowledge of insurance products had an influence on the purchasing of insurance by SME owners/managers for their business.

scholarly journals A Factorial Analysis Of The Barriers To Market Orientation Adoption Among Small And Medium Enterprises (SMEs) In A Developing Country

2013 ◽  
Vol 12 (11) ◽  
pp. 1331
Author(s):  
Job Dubihlela ◽  
M. Dhurup
Keyword(s):  
South Africa ◽  
Market Orientation ◽  
Business Performance ◽  
Developing Economies ◽  
Small And Medium Enterprises ◽  
Principal Component ◽  
Face To Face ◽  
Economic Progress ◽  
Medium Enterprises ◽  
Structured Questionnaire

The purpose of the study was to examine the barriers of market orientation by SMEs in South Africa. Data were collected using the personal face-to-face interviews with the use of a structured questionnaire. A total of 350 SMES were selected randomly and visited within the various municipal areas in South Africa. Exploratory factor analysis was used to identify the dimensions using the principal component analysis. A four-factor structure emerged accounting for 62% of total variance. The reliability analysis, reflected coefficient values ranging from 0.743 to 0.893, indicating satisfactory internal consistency amongst variables within each dimension. By analysing the barriers, the adoption of market orientation among SMEs, managers, and marketers are presented with recommended strategies and implications on how to embrace market orientation for effective business performance. Marketing capacities of SMEs may be strengthened through the implementing of market orientation. SMEs are vital for socio-economic progress for developing economies. Effective implementation of market orientation can assist SMEs growth and development.

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.

SME and Sustainability

2018 ◽  
pp. 112-130
Author(s):  
Cecilia Casalegno ◽  
Christian Rainero ◽  
Giacomo Büchi ◽  
Fabrizio Mosca
Keyword(s):  
Small And Medium Enterprises ◽  
Limited Area ◽  
Local Institutions ◽  
Know How ◽  
Business Partners ◽  
The World ◽  
The One ◽  
Medium Enterprises ◽  
The Relationship ◽  
Piedmont Region

The analysis and the consideration of the sustainability development throughout the SMEs has been less considered by the academic literature than the one developed by large firms so far, although small and medium enterprises represent the majority of the local businesses in many geographical areas of the world. Since small and medium entrepreneurs usually do not know how to tackle the challenges concerning internationalization and sustainability, a managerial model for underling which kind of relationships and interactions must be built is the real aim of the present chapter. In order to do that the chapter is focused of a limited area, the Piedmont Region (Italy), to deep analyse the relationship SMEs can create and improve with the local institutions, associations, and business partners.

scholarly journals Main and Interaction Effects of ‘Power Distance’ and ‘Uncertainty Avoidance’ on Innovation in Small and Medium Enterprises in Egypt

2019 ◽  
Vol 9 (3) ◽  
pp. 198
Author(s):  
Tarek A. El Badawy ◽  
Rania M. Marwan ◽  
Mariam M. Magdy
Keyword(s):  
National Culture ◽  
Organizational Innovation ◽  
Small And Medium Enterprises ◽  
Power Distance ◽  
Interaction Effects ◽  
Uncertainty Avoidance ◽  
Previous Literature ◽  
Strategic Innovation ◽  
Medium Enterprises ◽  
Structured Questionnaire

The main objective of this study was to investigate the direct and interaction effects of two of Hofstede’s cultural metrics, namely power distance and uncertainty avoidance, on organizational innovation in small and medium enterprises in Egypt. A structured questionnaire adapted from a previous study was distributed amongst employees from different managerial levels. 326 completed questionnaires were collected. Results suggested that the national culture influences the level of strategic innovation in small and medium enterprises operating in Egypt. Power distance enhances strategic innovation; however, uncertainty avoidance inhibits it. Studies on Egyptian enterprises, and Egyptian small and medium enterprises are fundamentally underrepresented in previous literature.

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