Download or read book Influence of Risk Management Practices on the Performance of Small Micro Enterprises in Eldoret Town Kenya written by Judith Jebichii Tuwei and published by GRIN Verlag. This book was released on 2018-09-03 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (postgraduate) from the year 2018 in the subject Business economics - Miscellaneous, , language: English, abstract: Risk management focuses on adopting a systematic and consistent approach to manage all of the risks confronting organization. Risks distinctiveness applicable to SMEs in Kenya include: uncertain risk, a chance of loss, normally accidental, sudden and unforeseen. This uniqueness makes entrepreneurs to seriously think about risk, its impact on their businesses and how risk can be managed. It is therefore important to investigate the influence of risk management practices on performance of small micro enterprises. Five specific research objectives guided the study i.e. to identified the Components of risk in small and medium enterprises (SMEs, to examine the various kind of risk connected with SMEs, to identified risk management methods and techniques used to determine and monitor risks within SMEs, to determine the effect of risk management practices on SMEs performance and to identify impediment associated with risk management of SMEs in Eldoret. The descriptive research was employed in the study. The target population comprises of SME operators mainly drawn manufacturing, services and processing within Eldoret CBD. The sample for the study was selected using stratified random and simple random sampling methods. The research instruments were questionnaire, observation and interview. The data was analyzed using descriptive statistics (frequency tables), while correlation and regression analysis were used to test the hypotheses. The finding of the showed that very few SME owners, managers, entrepreneurs or key designated employees make use of risk management tools and techniques within their businesses, to achieve growth and sustainability. However, the majority agreed to the high importance of risk management in the success of a business enterprise. The findings of the study furthered revealed that leverage on financial structure, issue of collateral security, incapacity to go for technological advancement; tough competition and inadequate margin are among the risk associated with SMEs. The findings of the study furthered suggest that the risk management practice has a lot of effect on SMES performance. This study is significant since it is hoped the findings and recommendations of the study will assist the policy makers in the Ministry of Trade and Industry in making appropriate decisions.

Download or read book Risk Management Practices of SMEs written by Thomas Henschel and published by Erich Schmidt Verlag GmbH & Co KG. This book was released on 2008 with total page 460 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Risk Management in Small and Medium Enterprises written by Chiara Crovini and published by Routledge. This book was released on 2019-02-13 with total page 99 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers a fresh method of assessing and managing risks in SMEs, by adopting a multidisciplinary approach. In small and medium companies, the risk management process cannot be often formalised and procedures are usually integrated unconsciously into the decision-making process. Therefore, to enhance the flexibility of these companies, increase their market share and allow them to grow and manage risks more effectively, the first step is to improve the way decisions are made. Consequently, it is fundamental for those companies to improve the awareness about the way reasonable decisions are made, which can be achieved only through a proper knowledge and the definition of the Risk Appetite Framework. Therefore, by improving knowledge, the risk appetite and awareness in the decision making, companies will implicitly start developing a risk consciousness, which can be translated into a sound risk approach. SMEs need to understand the importance of an effective internal control system. Hence, the central point is the necessity to start reconsidering the company as a unique entity, by adopting a holistic approach. The book explores whether small and medium companies should adopt a formalised risk management process and, more importantly, the role that the development of an appropriate risk mindfulness and approach to expand existing functions plays in these entities. It suggests an appropriate way of thinking about risk, starting with the amalgamation of both past and present theories, and enabling SMEs to find a solution to improve the effectiveness of their risk management strategies.

Download or read book Risk Management in Small medium Enterprises SMEs written by Candice Lim and published by GRIN Verlag. This book was released on 2010 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (postgraduate) from the year 2010 in the subject Business economics - Operations Research, grade: A14, University of Wolverhampton, language: English, abstract: This paper is proposing to research the influence of risk management on the financial performance of small-medium-sized enterprise (SME) in West Midlands, UK. SMEs expose many risks in their ordinary course of business, such as interest rate risk and foreign exchange risk, natural disasters and so on, that could minimize their profit by increasing their financial loss. This paper shows that how could SMEs reduce its financial loss from risk exposure by having proper risk management tools in place, by interviewing the SMEs' risk managers. The interview generally focuses on the risk management process in SMEs accompany with their annual spending on it, and examines how these risk managements in company are used to overcome the risks. In addition, different perspectives on the impacts of the risk management to company's financial performance, research methodology, research limitations, and research timescale are discussed and presented.

Download or read book Influence of Credit Risk on the Growth of Microfinance Organizations in Eldoret Municipality Kenya written by Irene Cheptumo and published by GRIN Verlag. This book was released on 2018-05-30 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (postgraduate) from the year 2018 in the subject Economics - Finance, Moi University (Moi University, Kenya; Department of Accounting and Finance), language: English, abstract: The Microfinance Institutions (MFIs) lend small amounts of unsecured loans to poor clients which signify their objectives of improving the social status of the poor while also trying to maximize their returns. Yet, lending by MFIs is a risky venture especially in developing countries because of the susceptibility of their poor clients. This study therefore determined the extent at which strategic credit risk management affect growth of MFIs in the Eldoret Municipality, Kenya. This study used probability clustered random sampling of 12 MFIs in Eldoret municipality to collect primary data and various reports and published work on MFIs between 2010 to 2015 formed the basis of secondary data. The effect of loan default, risk coverage and credit policy on growth of MFIs was measured by profit and outreach respectively. The relationship between of loan default, risk coverage and credit policy and growth was measured using multiple linear regression models. Hausmann test of endogeneity was employed to validate the results. We demonstrate that profit was significantly (p

Download or read book Perception of Risk Management in Small and Medium Enterprises SMEs written by Qays Sbaih and published by GRIN Verlag. This book was released on 2019-05-24 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (postgraduate) from the year 2017 in the subject Business economics - Miscellaneous, grade: 90%, Birzeit University, course: MBA, language: English, abstract: This article provides an empirical evidence of risk and risk management in SMEs in Palestine and the effect of RM on its performance using several method for assessing risk, RM and performance for (N=330) SMEs participant in Ramallah. Most of SMEs in Palestine do not have a written and formal risk management plan. They mostly concern about Financial and Strategic risks, while Hazard and operational are the least concerned respectively. Performance in SMEs considered medium according to Performance Comparison Approach. SMEs with highest degree of written risk management plan have better performance. There is a positive correlation between the prospective of the owner/ manager of risk analysis and SMEs’ performance. Strategic and hazard risk analysis is positively associated with performance. The high level of risk mitigation the more SMEs tend to have better performance.

Download or read book Enterprise Risk Management Practices in Slovenia and Their Impact on Performance written by Ales S. Berk and published by . This book was released on 2011 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Article deals with percei ...

Download or read book Risk Management written by Céline Bérard and published by John Wiley & Sons. This book was released on 2018-01-04 with total page 324 pages. Available in PDF, EPUB and Kindle. Book excerpt: Risk management practices are growing both in number and complexity in businesses, notably driven by new regulatory standards that feature risk management at their core. Although large businesses are more likely to adopt a formal, holistic approach to risk management, the stakes are just as high for SMEs. Risk management in SMEs can contribute to a certain organizational, entrepreneurial and partnership dynamic which constitutes a real opportunity to evolve practices and improve performance. This book offers varied responses to this question by combining conceptual approaches, empirical illustrations and the associated managerial implications.

Download or read book The Effectiveness of Risk Management Practices of Small Medium and Micro Enterprises SMMEs which Provide Microfinance in the Cape Metropole South Africa written by Oscar Chakabva and published by . This book was released on 2015 with total page 348 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Mediating Effect of Enterprise Risk Management Practices on Risk Culture and Organizational Performance written by Azreen Roslan and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book An investigation into the factors influencing the graduation of women owned micro enterprises written by Tabitha Karanja and published by GRIN Verlag. This book was released on 2012-04-25 with total page 81 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2011 in the subject Business economics - Business Management, Corporate Governance, grade: -pass, , course: Enterprenuership, language: English, abstract: The importance of Micro and Small Enterprises (MSEs) in contributing to job creation and output growth is widely accepted in both developed and developing countries, of particular interest is the process of expansion from micro to small that growth oriented make their most tangible contribution to economic growth and job creation. .Women-Owned micro enterprises are a powerful force for growth and development thus making important contributions to the economy as workers and as entrepreneurs to the welfare of their families. The researcher investigated why Women-owned enterprises remain the same way year in year out without, an increase in number of employees or any other sign to indicate graduation from one level to another. The researcher wanted to find out why enterprises owned by women operate under significant constraints which greatly inhibit realization of their full potential. Many developing countries have attempted to put in place various intervention programmes to address factors that affect the graduation of women owned micro-enterprises; unfortunately many of them are policies yet to be implemented. Through the assistance from Nyeri municipal-council, the researcher acquired the target population of Micro-Enterprises within Nyeri town which was the survey under study. The research design that the researcher used was the descriptive survey research design. Variables, for instance financial accessibility was looked at among others and their influence on graduation of micro-enterprises. The instruments that the researcher used was the Questionnaire and Interviews. The researcher came up with comprehensive results that can be useful to women in micro-enterprises and the Government at large. Pre-testing procedure was carried out to ensure the validity and reliability of the data to be collected. A descriptive statistic procedure was used to carry out the data analysis. Bar-charts, tables and pie-charts are used for data presentation. Some of the major findings in this research include the fact that many women operating micro-enterprises started their enterprises with personal savings as they could not access loans from formal institutions due to lack of collateral- Due to their low level of education, majority of them exhibited challenges in record keeping as well as marketing which are very essential for graduation of an enterprise from micro to small.

Download or read book Factors Influencing Risk Management Decision of Small and Medium Scale Enterprises in Ghana written by Anselm Komla Abotsi and published by . This book was released on 2015 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research seeks to study the factors that enhance or preclude owners of SMEs in Ghana in making risk management decisions. The study was conducted with managers of SMEs in four regions in Ghana. The researchers adopted a quantitative approach and employed STATA 10 and SPSS version 20 in the analysis. Stratified and simple random sampling techniques were used to select the sample units. The probit model was used in the analysis of data. A total of 447 SMEs were sampled for the study, with at least 111 from each of the selected regions. The probit results show that the demographic factors indicate a positive influence on the likelihood that managers will take risk management decisions. All of the business related demographic factors are significant at various levels and positive, except for risk-loving. The economically related factors, such as the estimated amount at risk, the estimated cost of risk management and the estimated total monthly income after tax all have a positive influence on risk management decision making. However, government and tax policies are perceived to negatively influence risk management decisions by managers. We recommend that institutions working closely with SMEs acquire the expertise to train the managers of SMEs on risk management practices.

Download or read book Enterprise Risk Management Practices in Slovenia and Their Impact on Performance written by Aleš Berk Skok and published by . This book was released on 2005 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Risk Management in Micro Small and Medium Enterprises MSMEs in India written by CMA(Dr.) Ashok Panigrahi and published by . This book was released on 2013 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: Risk Management, a term often linked to major corporations as a corporate governance requirement, is a useful process that MSMEs can adopt to improve their chances of sustained and successful longevity. Over the years, risk management has been identified as a vital process in the business institutions. It is further believed that risk management is less developed within the small business sector where strong enterprise culture can only help in managing risk in a professional and structured way. This study focuses to investigate the risk management practices small and medium enterprises in India. The attitudes of the owner managers and their knowledge towards risks play an essential role in how systematically risks are handled. Therefore, this study stresses the need of improving current planning system within the MSMEs together with enhancing the owner managers' knowledge and awareness regarding risks management through proper training and development. Risk management highlights the fact that the survival of a business entity depends heavily on its capabilities to anticipate and prepare for the change rather than waiting for the change and then react to it. It should be clearly understood that the objective of risk management is not to prevent or prohibit taking risk, but to ensure that the risks are consciously taken with complete knowledge and clear understanding so that it can be measured to help in mitigation.

Download or read book Effect of Enterprise Risk Management Practices on Firm Performance of Food Beverage and Tobacco Sector in Sri Lanka written by P. A. S. S Madushanki and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The effect of enterprise risk management (ERM) practices on the firm performance of Food, Beverage, and Tobacco sector companies listed on the Colombo Stock Exchange (CSE), is a main concern in Sri Lanka. When investigating the studies done in the international context about this concept, there are many contradictory results. However, no evidence found about investigations done on this concept in the Sri Lankan context. The primary purpose of this study is consistent with investigating the ERM practices on firm performance of Food, Beverage, and Tobacco sector companies listed on the Colombo Stock Exchange in Sri Lanka. This research adopted a quantitative research approach. Twenty-four companies are selected based on the availability of the data in the financial statement of Food, Beverage, and Tobacco sector companies listed on the CSE. As the study's dependent variables, firm value and return on assets are used. ERM is the independent variable, while the control variables are firm size; revenue and leverage. Secondary data are used for the analysis of the study. The fixed effect model was run to test the hypothesis. There is still a growing trend of ERM in firms in Sri Lanka. The study found that overall ERM had a significant impact on firm performance measured by the firm value and ROA of the sample firm. The findings are helpful for decision-makers of the companies to mitigate risk and increase financial performance. Further, this kind of risk management system builds good interactions in invertors' minds.

Download or read book Impact of Credit Risk Management Practices on Micro Financing the Poor for Poverty Alleviation in Africa written by Victor Yawo Atiase and published by . This book was released on 2017 with total page 594 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although Africa has experienced encouraging economic growth over the past decade, the livelihood and living conditions of most on the continent does not reflect this trend. Ghana is no exception. Even though Ghana has made modest gains in economic growth and productivity, livelihoods, unemployment, diseases and above all the number one enemy poverty among the Ghanaian population continue to soar above acceptable limits. In most developing countries like Ghana, microfinancing the poor for them to engage in entrepreneurial activity has been used to fight this number one enemy, poverty. To protect their investment, microfinance institutions (MFIs) apply credit risk management. Although credit risk management is essential to safeguarding the credit portfolio, deposits and improve loan recovery, it is essential that MFIs adopt pro-poor credit risk management practices in order to provide access to entrepreneurial finance to these ‘bottom of the ladder’ who are often marginalised from access to finance from mainstream banks. The problem is that, when credit risk management practices are too stringent, it creates the potential of denying the poor access to entrepreneurial finance, with consequences for poverty reduction. In fact, some commentators strongly suggest that financing the poor to engage in entrepreneurial activity is hampered by less than pro-poor credit risk management practices of lending institutions. This assertion has yet to be tested on MFIs in the developing country context including Ghana where microcredit has become a flourishing business. A knowledge gap therefore exists insofar as the impact of credit risk management practices on poverty alleviation through microfinancing the poor to engage in entrepreneurship is concerned. To bridge this gap, this study investigated the microfinance credit risk management practices of MFIs operating in the Greater-Accra Region of Ghana to assess the extent to which such practices hinder the poor from accessing entrepreneurial finance and impact thereof on poverty alleviation/ reduction. In the study, the Greater Accra Region is used as a test case for Ghana by involving respondents from purposefully selected 141 MFIs in the region comprising of 378 officers of MFIs and 1,235 MFI loan beneficiaries. The results reveal that stringent credit risk management practices exist among MFIs. It was also found that most of the poor who are willing to engage in entrepreneurship are unable to obtain finance due to credit risk management practices that they perceive as are too stringent. Furthermore, it was found that MFIs that adopt pro-poor credit risk management practices attract more poor clients, and such clients become successful in their businesses. Based on the above and other findings, recommendations are made which if carefully implemented can make microcredit risk management pro-poor, while minimising credit risk for MFIs. Recommendations are also made for further research.

Download or read book Financial Management for Hospitality Decision Makers written by Chris Guilding and published by Routledge. This book was released on 2007-08-22 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial Management for Hospitality Decision Makers is written specifically for those 'decision makers' in the industry who need to be able to decipher accountant 'speak' and reports in order to use this information to its best advantage and achieve maximum profits. The area of accounting and finance is a vital but often inaccessible part of the hospitality business. However, having the knowledge and the ability to use it properly makes all the difference to the turnover and success of a business. Financial Management for Hospitality Decision Makers is written specifically for those industry executives who need to be able to decipher, appreciate and utilise valuable financial management tools and techniques in order to realise maximum profits. Highly practical in its scope and approach, this book: · Outlines the procedure and purpose behind various financial activities - including budgeting, year-end financial statement analysis, double-entry accounting, managing and analysing costs, working capital management, and investment decision making · Demonstrates how an appropriate analysis of financial reports can drive your business strategy forward from a well-informed base · Clearly highlights the key financial issues you need to consider in a host of decision making situations · Includes a range of problems to help readers appraise their understanding of concepts - with solutions provided for lecturers at http://textbooks.elsevier.com. At all times, the book rigorously applies itself to the specific needs of the hospitality decision-maker, contextualising and explaining financial decision making and control in this light. Combining a user-friendly structure with frequent international cases, worked examples and sample reports to illuminate the theory, Financial Management for Hospitality Decision Makers is ideal for all students of hospitality, as well as being a vital source of information for practitioners already in the industry.