Factors Inhibiting Effective Risk Management in Emerging Market SMEs

Chakabva, Oscar; Tengeh, Robertson K.; Dubihlela, Job

doi:10.3390/jrfm14060231

Cited by 10 publications

(5 citation statements)

References 29 publications

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“…The authors state that SMEs are less resilient to risk, which weakens their sustainability. Similar conclusions are also reported by Chakabva et al (2021). The authors highlight that SMEs adopt inadequate and inefficient risk management practices.…”

Section: Literature Review and Theoretical Frameworksupporting

confidence: 83%

SMEs sustainability: The role of human resource management, corporate social responsibility and financial management

Belas,

Jan,

Hlawiczka

et al. 2024

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Research background: The sustainability of small- and medium-sized enterprises (SMEs) represents a significant scientific and professional problem in the current turbulent period because these enterprises play an important role in any country’s economic and social systems. Purpose of the article: This paper aimed to define the significant sustainability factors of small and medium-sized enterprises and to quantify their impact and importance on the sustainability of SMEs. The areas of Human Resource Management, Corporate Social Responsibility, and financial management were defined as significant sustainability factors. Methods: Empirical research, on which the scientific hypotheses were formulated and evaluated, was conducted in June 2022 in V4 countries (Czech Republic, Slovak Republic, Poland, and Hungary) using a structured questionnaire. The study accumulated a sample of 1398 respondents. Data collection was conducted through an external agency, MN FORCE, operating in Central European countries. The Computer Assisted Web Interview (CAWI) method was used to record respondents’ perceptions. Descriptive statistics, correlation analysis, and linear regression analysis were used to evaluate the hypotheses. Findings & value added: The research showed that all defined factors in the areas of Human resource management (HRM), Corporate social responsibility (CSR), and financial management of the firm had an impact on defined sustainability attributes. The greatest impact was found on the firm’s financial management, followed by CSR and HRM. The empirical results confirm that the intensity of the independent variables varies across the V4 countries. These results also show that the intensity of the selected HRM, CSR, and financial management factors of a firm is higher in the integrated models than in the models for individual V4 countries. The research results have shown that a range of factors determine the right attitude towards the sustainability of companies. In this context, economic policymakers and entrepreneurs must perceive sustainable growth as complex and apply a systemic approach to its design and implementation.

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Section: Literature Review and Theoretical Frameworksupporting

confidence: 83%

SMEs sustainability: The role of human resource management, corporate social responsibility and financial management

Belas,

Jan,

Hlawiczka

et al. 2024

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“…Several authors state that the level of risk management in the SME segment is not sufficient. SMEs have relatively little adoption of enterprise risk management approaches (Syrova & Špička, 2023), adopt inadequate and ineffective risk management practices (Chakabva et al, 2021), risk is not formalized and structured through standards, which increases their vulnerability in the business environment (Krüger & Meyer, 2021).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…They include lack of intangible resources (knowledge, experience, absence of risk management frameworks, inadequate record keeping, employee rejection, etc.) as well as tangible resources such as capital and cash (Chakabva et al, 2021).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Financial management of the company. Are there differences of opinion between owners and managers in the SME segment?

Belas,

Rahman

2023

JOBS Journal

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Research background: Financial management of small and medium-sized enterprises is an important area of corporate governance. The quality of financial management has a significant impact on the sustainability and development of these enterprises. In this context, there is a scientific interest to investigate how aspects of financial management are perceived by business owners and how they are considered by business managers. Purpose of the article: The aim of the article is to define and quantify the important attitudes in the field of financial management and to make a comparison of the attitudes of owners and managers of SMEs in this area. Methods: In order to achieve this objective, an empirical research was conducted to investigate the attitudes of small and medium-sized firms in the area of financial management, was conducted in June 2022 in the Czech Republic and Slovakia. In the Czech Republic, the total number of respondents was 347, of which 170 (49.0%) were owners and 177 (51.0%) were managers in senior management positions. In the Slovak Republic, the total number of respondents was 322, of which 179 were owners and 143 were managers. Findings & Value added: The attitudes of owners and managers in understanding the most important aspects of financial management are relatively high in both countries, and these attitudes were similar. Perceptons of financial risk differ between owners and managers in the Czech Republic. Financial risk is better perceived in the category of managers than in the category of SMEs owners. The correct perception of financial risk in Slovakia is at a slightly higher level than in the Czech Republic, while the perception of owners and managers is very similar. Business owners in both countries confirmed that they are better able to manage financial risks in the firm than managers (however, these differences were not statistically significant). Managers in Czech firms were more positive about financial performance compared to owners (statistically significant difference). Similarly in Slovakia (however, this was a statistically insignificant difference). These findings may be inspiring for the scientific field and also for economic policy in these countries.

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“…Probability in terms of risk is the occurrence likelihood of an incident. The term impact refers to the effect of an incident on an organization (Chakabva et al, 2021;Ellegaard, 2008;Bodicha, 2015). On the other hand, limits must be well defined and understand in order to manage risks.…”

Section: Introductionmentioning

confidence: 99%

Investigation of Risks and Risk Management Practices in The Fast-Moving Consumer Goods Sector in Turkey with an Interview Study

Şababoğlu,

Özden

2024

OPUS Toplum Araştırmaları Dergisi

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In this study, it is aimed to examine the risks and risk management practices in the fast-moving consumer goods sector in Turkey through an interview study. In the study, semi-structured interviews were conducted with managers of businesses that produce and market fast-moving consumer goods. Five participants were interviewed from the audit unit, 15 from the finance-financial affairs unit, 10 from the general responsibility unit, three from the risk management, six from sales and one from the production unit. The risks that are considered critical for companies, the management of these risks, the risks posed by the pandemic, and the positions taken by companies regarding insurance, which is a risk management tool, were analyzed. 23 company officials who participated in the research stated that they had no risks that were not insured and that the necessary insurance was made for all risks. 29 company officials participating in the research stated that they received insurance brokerage services. 18 of those who receive insurance services work with one or more agencies, and 11 companies receive brokerage services. Representatives of 8 companies participating in the study stated that they did not know whether intermediary services were received or did not want to answer.

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Factors Inhibiting Effective Risk Management in Emerging Market SMEs

Cited by 10 publications

References 29 publications

SMEs sustainability: The role of human resource management, corporate social responsibility and financial management

SMEs sustainability: The role of human resource management, corporate social responsibility and financial management

Financial management of the company. Are there differences of opinion between owners and managers in the SME segment?

Investigation of Risks and Risk Management Practices in The Fast-Moving Consumer Goods Sector in Turkey with an Interview Study

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