Abstract:
After a decade of reforming policy, building and developing the multi-sector market
economy, Small and Medium Enterprises (SMEs) in Ghana have developed strongly
and contributed to creating employment, increasing GDP, and raising the nation’s
volume of exports. However, SMEs have found difficulties on the way to development
due to lack of risk management practices, and uncertainty within the business
environment. As a result, SMEs often faced obstacles during their operations. This
dissertation examines the relationship between risk management practices of SMEs in
Sekondi-Takoradi Metropolis to determine whether absence of risk management
practices impact on SME survival. Objectives of the dissertation are; to investigate risk
management practices of SMEs in Sekondi-Takoradi, and to contribute to knowledge
of risk management practices of SME survival. The study was conducted using the
simple random sampling method, a total sample of fifty (50) SMEs owner/mangers in
the metropolis were selected for the study. The main source of data collection was a
primary data, through the use of descriptive research design a well – structured
questionnaire was designed and administered on the fifty (50) SMEs owner/managers
selected. The result of the study revealed that most of the SMEs do not efficiently
manage their business risk due to inadequate knowledge of basic accounting records
keeping and insurance policies as a measure to militate against any eventualities which
threatens their survival and growth. The study recommended that there is the need to
organized workshops and training seminars and also formation of chambers for SMEs
to adequately equip them on the need to keep proper accounting records and to cover
their business with insurance policies as a measure of mitigating risk and ensuring
stability in the SMEs business operations.
