The risk management practices in the manufacturing SMEs in Cape Town

Sifumba, Clinton Mbuyiselo; Mothibi, Kevin Boitshoko; Ezeonwuka, Anthony; Qeke, Siphesande Rodaiber; Matsoso, Mamorena Lucia

doi:10.21511/ppm.15(2-2).2017.08

Cited by 9 publications

(2 citation statements)

References 36 publications

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“…His research confirms that effective risk management is essential for capital management. Be that as it may, Sifumba et al (2017) have found that the managers of SMEs are generally unaware of what makes risk management effective and that this hinders the development of SMEs, perpetuating the problems they face. Notwithstanding reports of lack of management or limited expertise and CG practice at SMEs, Arslan & Alqatan (2020), Hooghiemstra (2012), Hove-Sibanda et al (2017, Ledwaba (2017), Phiri (2011, p. 25) and Sarah (2017) have found that a solution is possible in the application of CG practice at the SMEs to enhance managerial competence.…”

Section: Lack Of Expertise In Cg Risk Management and Management Of Au...mentioning

confidence: 99%

Effect of Corporate Governance Practices on the Performance of an Established Medium-Sized Enterprise in the Mining Industry in South Africa

Mokalapa,

Oyedokun,

Fowokan

2024

SBAMER

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It is evident that SMEs have formed a significant part of the broader South African mining industry, faced their fair share of constraints and challenges, and often experienced a high failure rate. In light of this, the research objective of this study is to identify the CG practices followed by an established medium-sized enterprise in the mining industry. The study explored ethical culture, good performance, effective control, and legitimacy as CG outcomes in this particular SME, aiming to determine whether these practices have effectively addressed the challenges faced by SMEs. The study employed a qualitative research approach with two stages. First, a review of previous research regarding SME challenges. Second, a case study research design with a single medium-sized enterprise mine in the North-West province will be used as the unit of analysis. Data were collected using MS Teams, telephonic, and semi-structured interviews. The transcribed interviews were analyzed using Microsoft Excel. The SME demonstrated a strong ethical culture, achieved good performance through regular performance reporting and evaluation of the company’s core purpose, aligned to the effective control theme since the SME has a unique governing body and addresses the challenges of their size by implementing a governance structure and delegating authority and holds regular meetings with internal and external stakeholders to maintain a good relationship with stakeholders in order to fulfill the legitimacy theme. The study, therefore, concluded that CG outcomes are well understood and practiced by SMEs in the mining industry, affirming the effectiveness of these practices in addressing the challenges faced by SMEs.

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Section: Lack Of Expertise In Cg Risk Management and Management Of Au...mentioning

confidence: 99%

Effect of Corporate Governance Practices on the Performance of an Established Medium-Sized Enterprise in the Mining Industry in South Africa

Mokalapa,

Oyedokun,

Fowokan

2024

SBAMER

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“…In turn, (Sifumba et al, 2017) states that risk management is one of the most important issues being the key for business success, but can negatively affect the profitability if not realized properly. (Klimenko, 2013) believes that industrial enterprise risk management should be implemented by using a cumulative approach based on the bifurcation nature of industrial development.…”

Section: Literature Reviewmentioning

confidence: 99%

Risk optimization of industrial interprise

Hroznyi

Tymoshyk

Malevski

2019

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Industrial enterprise risk management must take into account the conditions of the activities that are carried out and the goals that are set out under these conditions. To solve this problem, a scientific and methodological approach to targeted risk optimization of an industrial enterprise was developed based on a set of models of comparing the goals of the enterprise under operation conditions, matching the available resources with the needs and choosing the methods of risk management according to the limitations by goals and resources. The use of the developed scientific and methodological approach enables the enterprise to choose the most effective methods of risk management.

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Regression analysis of the influence of demographic characteristics using risk management practices within South African small and medium construction enterprises

Renault

Agumba

Ansary

2021

JEDT

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Purpose Demographics are perceived to influence risk management practices (RMPs) in construction. However, empirical evidence supporting this perception is lacking in the South African Construction Industry (SACI), especially within small and medium enterprises (SMEs). This study, therefore, aims to investigate the influence of demographic characteristics on RMPs. Design/methodology/approach This study followed a positivist research philosophy, using a questionnaire survey for data collection. In total, 225 questionnaires were distributed, of which 187 were returned from conveniently sampled respondents, which included owners and senior managers of construction SMEs organizations in Gauteng province in South Africa (SA). In total, 181 questionnaires were usable, yielding a response rate of 80.44%. Data from the survey were analyzed using descriptive and inferential statistics i.e. multiple regression analysis (MRA). The outputs were represented using percent and regression coefficients values, respectively. Findings In total, 42 practices were established from the literature review and grouped into 9 major RMPs. The data analysis suggested that understanding the organizational environment, defining objectives, resource requirements, risk measurement, risk identification, risk assessment, risk response and action planning, communication and monitoring and review are reliable and valid practices. Findings from MRA established that demographic characteristics i.e. experience in the construction industry (CI), education level and the number of employees in the organization are not good predictors to determine the use of RMPs. Research limitations/implications The study was limited to the data acquired from the SACI and to a lesser extent, construction SMEs in Gauteng. Therefore, the findings cannot be generalized to all SMEs in SA. Though neighboring and developing countries can use the RMPs identified in this study, the results cannot be directly used in developed countries without adequate substantiation. Practical implications The current study provides useful information to assist construction organizations to pay more attention to risk management implementation. The RMPs established in this paper are reliable and valid in projects undertaken by SMEs, and therefore, may be used by top management and/or the risk task team of these enterprises for effective project risk management. Originality/value The study presents findings of an investigation of the influence of demographics on RMPs from the perspectives of construction SMEs, an area less explored. This work advances knowledge of RMPs in the SME sector. It, therefore, adds value to researchers and industry practitioners on the theme where no agreement has been attained relating to key factors and practices that should constitute a risk management model.

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The risk management practices in the manufacturing SMEs in Cape Town

Cited by 9 publications

References 36 publications

Effect of Corporate Governance Practices on the Performance of an Established Medium-Sized Enterprise in the Mining Industry in South Africa

Effect of Corporate Governance Practices on the Performance of an Established Medium-Sized Enterprise in the Mining Industry in South Africa

Risk optimization of industrial interprise

Regression analysis of the influence of demographic characteristics using risk management practices within South African small and medium construction enterprises

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