Risk Management and Insurance of Small and Medium Scale Enterprises (Smes) in Nigeria

This study assessed the effect of enterprise risk management on the firm financial performance of Micro, Small and Medium-scale Enterprises in Osun state Nigeria. Precisely, the risk encountered, the adoption of risk management practices, the implementation of Enterprise Risk Management (ERM) practices, and the financial performance of micro, small and medium scale enterprises in Osun state Nigeria. Primary data was used for this study; a well-structured questionnaire was used to elicit data from 273 respondents. The study population consists of owners and managers of small and medium businesses in Osun state, Nigeria. Data were analyzed using descriptive analysis and was the inferential statistic used to test the hypotheses. The results showed that market (33.7%), strategic (57%), financial (46.9%), operational (34.2%), management (47.6%), and technological (45.4%) are risks prevalent to micro and small businesses, but most of the respondents disagreed that the relationship of their staff to the customer is poor. Risk acceptance with a mean score of (2.27 ± 1.21) is the most utilized risk management practice adopted by the MSMEs. The implementation of ERM practices shows that MSMEs more utilized setting of objectives (43.6%), risk identification (38.3%), risk assessment (36.2%), and control activities (31.2%) and the financial performance of the businesses was moderate (69.7%). The correlation analysis shows no significant relationship between the scale of business and the adoption of risk management practices. Also, the regression analysis shows that Risk identification (β = 0.388, p ≤0.01) and Control activities (β = 1.096, p ≤0.01) are the only ERM variables that significantly affect financial performance. The study concluded that the implementation of enterprise risk management practices has a significant effect on the financial performance of Micro, Small and Medium enterprises in Osun State, Nigeria.

Download Full-text

Enterprise Risk Management Practices and Survival of Small and Medium Scale Enterprises in Nigeria

Studies in Business and Economics ◽

10.2478/sbe-2020-0007 ◽

2020 ◽

Vol 15 (1) ◽

pp. 68-82

Author(s):

Ibiwoye Ade ◽

Mojekwu Joseph ◽

Dansu Francis

Keyword(s):

Risk Management ◽

Management Practices ◽

Enterprise Risk Management ◽

Cross Sectional Survey ◽

Cross Sectional ◽

Medium Scale ◽

Enterprise Risk ◽

Lagos State ◽

Business Function ◽

The Government

AbstractThe survival rate of Small and Medium Scale Enterprises (SMEs) have been found to be low despite all the effort made by the government to sustain their existence. This seems to be linked to the poor management of various risk factors confronting the operators of the sector in Nigeria. In view of this, the study is aimed at determining the influence of Enterprise Risk Management (ERM) practices on survival of SMEs in Lagos State. With the application of cross-sectional survey technique, a sample of 400 operators was selected among SMEs across Lagos State. Data which were generated through structured questionnaires were analysed using both descriptive and inferential statistical tools. Results indicate that ERM practices significantly influence the survival of SMEs in Lagos State. Based on the findings, it was recommended that SMEs owners should take ERM practices as a valuable business function that enhances survival. Also, government should continue to sensitise SMEs on the benefits of ERM and put in place mandatory ERM guidelines to compel SMEs to practice it.

Download Full-text

Factors Influencing Risk Management Decision of Small and Medium Scale Enterprises in Ghana

Contemporary Economics ◽

10.5709/ce.1897-9254.153 ◽

2014 ◽

Vol 8 (4) ◽

pp. 397-414 ◽

Cited By ~ 5

Author(s):

Anselm Komla Abotsi ◽

Gershon Yawo Dake ◽

Richard Abankwa Agyepong

Keyword(s):

Risk Management ◽

Management Decision ◽

Medium Scale ◽

Factors Influencing

Download Full-text

Credit Risk Management and Entrepreneurship Development in Nigeria: A Case Study of Small and Medium Scale Industries in Ondo State

International Journal of Small and Medium Enterprises ◽

10.46281/ijsmes.v3i1.512 ◽

2020 ◽

Vol 3 (1) ◽

pp. 18-33

Author(s):

Ogunyemi Joseph Kayode ◽

Mufutau Akanmu Popoola ◽

Adewole Joseph Adeyinka

Keyword(s):

Risk Management ◽

Credit Risk ◽

Fund Raising ◽

Government Support ◽

Small Scale ◽

Communication Link ◽

Credit Risk Management ◽

Entrepreneurship Development ◽

Medium Scale ◽

Ondo State

The paper summarizes the arguments and counterarguments within the scientific discussion on credit risk management and entrepreneurship development in Nigeria with focus on small and medium scale industries in Ondo State. The objective of the study is to examine the effect of credit risk management on entrepreneurship development. The study adopted the use of descriptive statistics and regression analysis method to test the hypothesis formulated. The results indicated that entrepreneurship development is being hampered by ineffective credit risk management. The findings has shown that Small Scale Enterprise still suffers greatly from inadequate policy on fund raising, lack of risk management personnel, lack of credit advisory unit in loan houses and Inability to determine appropriate source of funding which significantly affects their level of development. The findings of this study have also found out that the Nigerian markets are filled with numerous business opportunities. Based on the findings, it was recommended that increased government support, uninterrupted power supply and communication link, provision of skilled manpower and computer wizard in operation of payment system, collaboration among banks, provision of adequate security and fight against corruption would assists and improve the growth and development of entrepreneurship in Nigeria.

Download Full-text