Risk Management as a Factor Supporting SME Growth
Journal Title: International Journal of Contemporary Management - Year 2010, Vol 9, Issue 4
Abstract
The article is a contribution to the discussion – how to mobilize small and medium-sized companies to work towards the risk reduction in the economic activity. Small and medium-sized enterprises develop differently, they pass through successive stages of a life cycle. Their action is associated with the entrepreneurship and growth. The growth is accompanied by changes in the management process. The risk taken by entrepreneurs should be controlled. Risk management is a broad concept. Therefore the study focuses on one of its dimensions. It presents the conditions of the usage of insurance services by SME entrepreneurs. An entrepreneur, that is, a small business owner is responsible for the identification and protection of existing risks. Research shows that although insurance is an essential element in the process of risk management, and it is especially important in the case of small and medium-sized enterprises, insurance is rarely used by these companies. Small- and medium-sized enterprises should act in accordance with the rules of risk management regardless of their development profile. A fundament of activities in favour of the continuous operation of an enterprise and its growth is to secure resources and selected risk situations. All competences of entrepreneurs can be involved in risk management process. These tasks can be also delegated to managers in charge of particular fields. Insurance brokers can play the role of risk managers in the case of small- and medium-sized enterprises too. The aim of the article is to reflect upon the conditions of the usage of an insurance method in SME management as a one that supports the growth of enterprises.
Authors and Affiliations
Aniela Mikulska
Keywords
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