Risk Taking and the Performance of Small and Medium Enterprises (SMEs) in Nigeria
- July 15, 2019
- Posted by: RSIS
- Category: Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue VI, June 2019 | ISSN 2454–6186
Risk Taking and the Performance of Small and Medium Enterprises (SMEs) in Nigeria
Sunday Baba1, Mary Njeri Thiong’o2
1,2Jomo Kenyatta University of Agriculture and Technology, Kenya
Abstract: – The objective of this study was to look at the relationship between risk taking and performance of SMEs in Nigeria. On average, the findings of the study revealed that majority of the respondents agreed with the statements on risk-taking as shown by a mean of 3.68. The responses given by the respondents were varied as indicated by a standard deviation of 1.30. The study also recommends the SMEs to borrow heavily so as to invest in new business products, technologies, markets and services. Moreover, the study recommends the SMEs to employ a brave and open minded approach so as to achieve business goals.
Key Words: Risk – Taking, Performance of SMEs, Nigeria
I. INTRODUCTION
SMEs are known to improve the economic growth base on its importance on the economy across the globe, and this has properly been documented, and because of this, its performance is properly connected with the financial performance of these countries (Moses, 2015).The accountability of SMEs and its importance on economies across the globe cannot be overemphasized. Small and Medium Enterprises are seen as a means for economic growth in most the underdeveloped economies of the world. All this while, it has been noted by Muritala, Awolaja and Bako (2012) and were of the opinion that SMEs are known for better likelihood using labour intensive technologies as a result of reducing joblessness that is witnessed in most economies of the third world countries. From advanced countries of the world for instance, the SMEs in these developed economies have been in the knowing of encouraging job creation, promoting innovation and occupying and being in the front line in creating jobs in developing countries of the world. In advanced economies, many governments internationally, have come to the realization of establishing SMEs so that they can impact or influence the growth and development of their respective economies.
