Factors Inhibiting Effective Risk Management in Emerging Market SMEs

Despite the anecdotal evidence that suggests SMEs adopt inadequate and ineffective risk management practices, only a few studies have been conducted on topic in emerging market context. Besides, existing factors inhibiting effective are devoid of any theoretical grounding. This situation implies there is still knowledge gap this area, what current paper seeks to close. In closing out gap, used Resource Based View theory interpret results obtained, order help clarify SMEs, with case South Africa being used. first step, questionnaires were distributed sample 320 FMCG Cape Metropolitan area. The revealed significance both intangible tangible resources positively impacting effectiveness within SMEs. led conclusion owner-managers must pay particular attention their resource structure, which will impact positive response towards superior performance competitive advantage by focusing more coalescing lead management.