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 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 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 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 The Influence of Microfinance Institutions on Small Medium and Micro enterprises in South Africa written by Norman Tinyiko Baloyi and published by . This book was released on 2017 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book South African Banks Risk Assessment Practices when Financing Entrepreneurial Ventures written by Boitumelo Sefolo and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The development of Small, Medium and Micro Enterprises (SMMEs) contributes significantly to job creation, social stability and economic welfare. Obtaining finance for start-up and growing entrepreneurial ventures has proved to be crucial for SMME growth and is therefore the prime concern of this research. This research will specifically investigate the risk assessment practices used by South African commercial banks when providing funding to entrepreneurial ventures. In addition, the research seeks to establish whether there is consistency amongst the South African commercial banks in their risk assessments practices. Lastly to establish the impact of the global economic crisis of 2008 on the risk assessment practices of the South African commercial banks. To achieve this, a qualitative study in the form of expert interviews supported by structured research questionnaires with representatives of the four large banks was undertaken. In summary, the findings of the research demonstrated that risk assessment practices of the South African commercial banks were consistent with the integrated theoretical framework and amongst each other. Respondents ranked the character, capacity and collateral of the business as the most important criteria when assessing term loan applications. Furthermore, the impact of the global economic crisis of 2008 resulted in the lending policies of the banks being more strictly adhered to. Copyright.
Download or read book Financial Management Practices Employed by Small and Medium Enterprises SMEs in the Buffalo City Metropolitan Municipality Eastern Cape written by Mathew Marembo and published by . This book was released on 2013 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt:
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 Constraints to SMME Growth written by Nasraldin Omer and published by . This book was released on 2018 with total page 2 pages. Available in PDF, EPUB and Kindle. Book excerpt: Small, Medium and Micro Enterprises (SMME) play a significant role in an economy. SMMEs are an important source of jobs, entrepreneurial spirit and innovation. However, despite the noted contribution of SMMEs, in many countries they face serious constraints, often resulting in failure. The constraints and economic environment have significant and unequal effects on SMMEs in different industries and in different locations. Constraints have been used, amongst other growth factors, to understand why some SMMEs fail to grow. The aim of this study was to examine the effect of financial constraints on SMME growth and to investigate the moderating effect of microfinance on overcoming, avoiding or mitigating the financial constraints to SMME growth. The study found evidence that the lack of professional financial advisors, lack of access to finance and lack of awareness of financial services and assistance were significant constraints to SMME growth in South Africa. However, beyond knowing the effects or constraints, it is important that entrepreneurs know how they can avoid constraints. The study shows that microfinance provides a way to overcome or mitigate financial constraints for SMMEs that exhibit a constraint to growth. These results imply that microfinance can play a positive role in SMME growth particularly for SMMEs that experience financial constraints. The study also suggests that MFIs and government agencies should provide more information to the public in particular to SMMEs so they can reduce the negative effect of lack of awareness of financial services and assistance on SMME growth.
Download or read book Comparative Review of Microfinance Regulatory Framework Issues in Benin Ghana and Tanzania written by and published by World Bank Publications. This book was released on 2005 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: The authors investigate the microfinance regulatory regimes in Benin, Ghana, and Tanzania, with a view to identifying key issues and lessons on how the overall regulatory framework affects integration of microfinance institutions into the financial system. The authors find that recognizing different tiers of both regulated and unregulated institutions in a financial structure facilitates financial deepening and outreach to otherwise underserved groups in urban and rural areas. That environment promotes sustainable microfinance under shared performance standards and encourages regulatory authorities to develop appropriate prudential regulations and staff capacity. Case studies of the three countries raise important issues on promoting microfinance development vis-à-vis regulating them. Laws to regulate activities other than intermediation of public deposits into loans can result in disproportionately restrictive and unmanageable standards, even as dynamic microfinance sectors have emerged without conducive regulatory regimes. The authors use the three countries' regulatory experiences to highlight the importance of differentiating when prudential supervision is warranted and when regulatory oversight suffices, and to identify the agencies to carry out regulation. They address an important issue that has received scant attention, measuring and paying for the costs of regulating microfinance, and the need to build technical capacity of supervisory and regulatory staff.
Download or read book Micro finance in Rural Communities in Southern Africa written by Human Sciences Research Council and published by HSRC Publishers. This book was released on 2002 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Integrated Rural Development Program (IRDP) is a core initiative in the W.K. Kellogg Foundation Africa portfolio of programmes, which aims to reduce poverty and improve the quality of life of rural communities. A component of this programme is to help capitalise locally based enterprise development initiatives by stimulating the provision of and access to micro-finance in rural areas. Three sites have been selected to pilot the introduction of this and other IRDP activities. These are: Chimanimani (Zimbabwe), Chimoio (Mozambique) and Nyandeni (South Africa). As part of this initiative , the Human Sciences Research Council (HSRC) based in Pretoria has conducted an evaluation in three key sites of the IRDP to evaluate the implications of implementing a mico-finance scheme in these areas.
Download or read book Technology for South African Small Medium and Micro Enterprises written by Jim Mullin and published by . This book was released on 1993 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Appraisal of Risk Management Practices of Microfinance Institutions in Ghana written by Akwasi A. Boateng and published by . This book was released on 2014 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: The inherent features of microfinance institution (MFIs) afford these institutions the potential to absorb semi-skilled labour and to nurture and promote small scale enterprises. However, in the Ghanaian economy, these benefits are not forthcoming due to the high failure rate of MFIs. Relevant literatures were reviewed to bring out salient issues on the subject matter of this paper. The chief source of information for this write up is secondary method of data collection. It was discovered that the impediments to MFIs success includes numerous and varied obstacles. Studies conducted confirmed MFIs management ignorant pertaining to the risks their organizations face with risk management techniques deployed reactively and ineffectively. By embedding a structured approach to enterprise risk management within MFIs, potential benefits such as reducing the over-management of risks and organizational alignment towards the microfinance institution's vision can be realized.
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 Risk Culture Risk Governance and Balanced Incentives written by and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Informal Risk Management Practices Within SMMEs in the Vaal Region written by Niel Almero Krüger and published by . This book was released on 2017 with total page 408 pages. Available in PDF, EPUB and Kindle. Book excerpt: Small -- Micro -- Medium enterprises -- Risk -- Risk management -- Risk management system -- Qualitative methodology.
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.
