Risk Management in Entrepreneurship

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 Risk management is an important process for all companies, especially small and medium-sized enterprises (SMEs). It involves detecting, assessing, and minimizing risks that may affect the organization's objectives. To improve risk management practices, entrepreneurs must expand their theoretical knowledge and become familiar with the various risk management approaches and tools available (Robert, 2020). These tools may include planning, accounting, and control methods, which are critical for risk management in small business investment projects (Bondarenko et al., 2021). Furthermore, risk management techniques such as Failure Mode and Effect Analysis (FMEA) and Failure Reporting and Corrective Action System (FRACAS) can help with both proactive and reactive risk analysis (Xia et al., 2020). 

Entrepreneurs can benefit from learning how to successfully recognize, interpret, and manage risks. According to research, risk-taking, independence, and motivation are important determinants of business success (Ncokazi & Mpiti, 2023). Furthermore, incorporating Buddhist principles into entrepreneurial risk management might give a unique framework that prioritizes ethical considerations in risk identification and mitigation (Lufina, 2022). 

In the context of high-tech SMEs, having strong risk management capabilities is critical for survival, particularly during difficult times such as the COVID-19 pandemic (Huang, Baruah & Ward, 2022). Understanding and assessing market hazards, as well as finding new growth prospects, are critical components of risk management for entrepreneurs in these areas. 

​​References 

​Bondarenko, S., Shlafman, N., Kuprina, N., Kalaman, O., Moravska, O., & Tsurkan, N. (2021). Planning, Accounting and Control as Risk Management Tools for Small Business Investment Projects. Emerging Science Journal, 5(5), 650-666. 

​Huang, Y., Baruah, B., & Ward, A. (2022). How founder-entrepreneurs from Chinese high-tech SMEs assess market risks and explore new opportunities for growth and survival during COVID-19. Small Business International Review. 

​Lufina, M. (2022). Entrepreneurial Risk Management of Buddhist Entrepreneurs. International Journal of Business Studies, 6(3), 206-224. 

​Ncokazi, A., & Mpiti, P. T. (2023). Critical Evaluation of the Relationship between the Need for Achievement and Entrepreneurship Performance: Risk-Taking Propensity, Entrepreneurial Independence and Motivation. IntechOpen. 

​Robert, D. (2020). The attitudes of entrepreneurs of the small and medium-sized enterprises sector in Poland to key business risks. Equilibrium. Quarterly Journal of Economics and Economic Policy, 15(3), 511-536. 

​Xia, Y., Wang, X., Yan, C., Wu, J., Xue, H., Li, M., . . . Ji, L. (2020). Risk assessment of the total testing process based on quality indicators with the Sigma metrics. Clinical Chemistry and Laboratory Medicine (CCLM), 58(8), 1223-1231. 

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