RELATIONSHIP BETWEEN RISK ASSESSMENT PRACTICES AND SUSTAINABILITY OF SMALL AND MEDIUM ENTERPRISES IN KITUI COUNTY, KENYA

Macklower Abisai Akoolo, Dr. Anthony Alexis

Abstract


Despite their socio-economic value, Small and Medium Enterprises (SMEs) often operating on limited resources and margins, confront a dynamic and unpredictable business environment. The specific objectives of the research were to establish the influence of Risk hazards assessment, to determine the influence risk probability assessment and to evaluate Risk impact assessment on sustainability of small and medium enterprises in Kitui County, Kenya. The study's target demographic was all registered small and medium firms in Kitui Township, Kitui County, Kenya. The study specifically will target a single owner, staff, or employee of each of the township's 179 registered SMEs. The study used a sample size of 179 potential respondents using census as the sampling technique. The data acquired in this study was analysed quantitatively as well as qualitatively and the results and interpretations will be assembled. The quantitative data acquired from numerous close-ended items was categorized and evaluated. Coding constituted the assigning figures, numbers, or other indicators. The major statistical aid tool for estimating the predicted advising metrics outcomes was the SPSS version 22.0 program and excel sheets. Statistical tests such as regression, correlation was used to understand the in-depth association between the variables. The study concluded that the approach to risk assessment aims at gathering of relevant data and information and hence cannot be avoided nor underrated, risks probability assessment and risks impact analysis to understand how changes in specific assumptions or uncertainties affect the enterprise's risk exposure and performance, risk assessment in the firm begins by documenting the assumptions that underpin our enterprise's operations, strategies, and plans. This study recommends that the government and other policy actors as well as the managers in the sampled SMEs to collaborate or even find ways in which they can get training on risks assessment processes to as to correct the menace and leap benefits from their businesses.

Key Words: Risk Assessment, Risk Probability Assessment, Risk Impact Assessment, Risk Hazards Assessment, Smes Sustainability


Full Text:

PDF

References


Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.

Jones, D., & Brown, S. (2019). Resilience, Risk Management, and SME Sustainability. International Journal of Production Economics, 222, 107490.

Martinez, C., & Lopez, M. (2017). Integrating Sustainability Practices and Risk Assessment in SMEs. Business Strategy and the Environment, 26(8), 1069-1083.

Smith, A., & Johnson, B. (2015). Risk Hazards Assessment and SME Sustainability. Journal of Small Business Management, 53(1), 207-227.

Ahmed, S., & Ali, S. (2016). Risk Probability Assessment and SME Sustainability. International Journal of Economics, Commerce and Management , 4(12), 20-29.

Wang, W., & Liu, Z. (2018). Risk Probability Assessment and Financial Performance of SMEs. Frontiers in Finance and Economics, 15(1), 84-97.

Chen, Y., & Li, W. (2019). SME Sustainability through Risk Probability Assessment and Innovation.Journal of Management , 6(3), 245-256.

Lim, J., & Tan, W. (2018). Risk Impact Assessment and Financial Performance of SMEs. Journal of Entrepreneurship, Business and Economics, 6(1), 49-71.

Wu, H., & Zhang, M. (2019). SME Sustainability through Risk Impact Assessment and Supply Chain Management. International Journal of Production Economics, 213, 124-134.

BartoÅ¡, P., KljuÄnikov, A., & Doležal, J. (2015). Risk perception differences between micro, small and medium enterprises. Journal of International Studies, 8 (3), 20-30.DOI: 10.14254/2071-8330.2015/8-3/2

Chacko, H, Tufano, J and Verter, C. (2011). Corporate risk management: Theory and practice. The Journal of Derivatives, 2(4), 21-30.

Eniola, A. A., Entenbang, H. & Sakariyau, O. B. (2015). Small and medium scale business performance in Nigeria: Challenges faced from an intellectual capital perspective. International Journal, 5(1), 212-245.

Ferreira, A., Lima, P., Crema, M., & Verbano, C. (2019). Risk Management in SMEs: a systematic literature review and future directions. European Management Journal. 5(3), 20-38.doi:10.1016/j.emj.2019.06.005

Grace, M. F., Leverty, J. T., Phillips, R. D., & Shimpi, P. (2015). The value of investing in enterprise risk management. Journal of Risk and Insurance , 82(2), 289-316.

Idemobi, E.I. (2012). The problem of sustaining the growth of small and medium enterprises in a typical Sub-Saharan African context. African Journal of Social Sciences, 2, 15-24.

Kinyua, E., Ogollah, K. &Mburu, D. K. (2015). Effect of risk management strategies on project performance of small and medium information communication technology enterprises in Nairobi, Kenya. International Journal of Economics, Commerce and Management, 2(3),1-30.

Rejda, G. E. (2011). Principles of risk management and insurance . Pearson Education India.

Smit, L. (2012). The dynamics of micro and small enterprises in developing countries, World Development, 26: 61-74 Stulz, R.M. (1984). Optimal hedging policies. Journal of Financial and Quantitative Analysis, 19, 127-140.

Smit, Y. and Watkins, J.A. (2012). A literature Review of Small and Medium Enterprises (SME) Risk Management Practices in South Africa. Africa Journal of Business Management ,6,6324-6330.

Torres, K. (2010). Risk as a strategic decision factor for the competitive bidding process in contract manufacturing, Proceedings of the IFIP Conference, Aalborg, Denmark, 100- 107.

Verbano, C. and Turra, F. (2010). A human factors and reliability approach to clinical risk management: Evidences from Italian cases. Safety Science, 48(59), 625

Verbano, C., & Venturini, K. (2011). Development Paths of Risk Management: Approaches, Methods, and Fields of Application. Journal of Risk Research, 14(5-6), 519550.


Refbacks

  • There are currently no refbacks.