Abstract:
Small and Medium Enterprises (SMEs) play an important role in income generation as well as employment creation around the globe. They however face various kinds of business risk which if not well managed could affect their profitability and sustainability. The study sought to understand the extent to which SMEs in Kumasi understand business risks, how they assess risks and the measures that they use to manage risks. The main method used for data collection was a survey. Questionnaires were administered to a total of 37 respondents sampled from five categories of SMEs in Kumasi: Financial institutions (FI), Food and beverages (FB), wholesalers and supermarkets (WS), saloons and tailors (ST) and Manufacturers (MN).
Description:
It is now increasingly recognized that the Small and Medium Enterprises (SMEs) play an important role in income generation as well as employment creation around the globe. Small and medium-sized enterprises (SMEs) are considered to be one of the principal driving forces in economic development. They stimulate private ownership and entrepreneurial skills, they are flexible and can adapt quickly to changing market demand and supply situations. They also generate employment, help in diversifying economic activities and make a significant contribution to exports and trade Szabo (1996). SME are the core or basis for the future of developing countries as well as developed countries in creating jobs and competitiveness.
