EFFECT OF RISK MANAGEMENT PRACTICES ON PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES IN BIDA METROPOLIS OF NIGER

Abstract

The primary purpose of this study is to examine the effect of risk management practices on performance of micro, small and medium enterprises in Bida metropolis. However, this study explored the relationship between risk management practices and performance of micro, small and medium enterprises in Bida metropolis of Niger State. A survey research design was adopted. The population of the study is 3,168 MSMEs owners/managers in Bida metropolis, 355 was gotten as sample size. The researcher administered 355 questionnaires in which 335 were dully filled and returned. To collect primary data, a standardized questionnaire with a five-point Likert response scale was used. To assess the research questions and test the hypotheses, descriptive and inferential statistics were utilized, respectively. From the hypotheses tested, the result indicated that there is significant relationship between internal control and micro, small and medium enterprises performance; there is a positive and significant relationship between Process documentation and sales growth of MSMEs performance. The study concluded that risk management is a process of identifying, measuring risk, and forming strategies to manage it through available resources. Risk management and internal control have the same material and components, and are interrelated with one another. Furthermore, this study also recommended that Every Micro, Small and Medium business owners/managers should identifying all potential risks that could affect their businesses Finally, the study also suggested that all business owners/managers should continuously monitor to ensure that the risk management strategies are affected. As a result, they should conduct audits and reviews to assess the risk mitigation effectiveness and adjust as needed.