Managing Risks in Small Businesses in Nigeria: A Study of Kogi State.

Mathew Olasehinde FASHAGBA

Abstract

Small businesses are known to significantly play roles in any economy. The economy gains more when a conducive environment is deliberately created for small businesses to thrive. Small businesses, unlike big businesses, are exposed to more severe risks because of a number of factors which includes the size of their capitals. The objective of this study is to determine how risks in small businesses are managed. The risks examined in the study are access to funds, business stability and demand for credit sales. The method of data collection selected for the study was a questionnaire. The study employed ANOVA for data Analysis. The study found, among other things, that small businesses are exposed to risks of access to capital both to start and to expand the businesses. However, small businesses are not significantly exposed to business fluctuations, and demand for credit sales. The study concludes that small businesses are exposed to risk regarding access to capital, to start and expand the business. The study recommends that funds should be made available by governments and funding institutions for thriving small businesses.

Keywords

Small business, Risks, Capital, Management, Economy, Environment.

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