Small Business Entrepreneurships: Managing Related Risk for Financing

Kassim M. Mohammed

Abstract


Small business entrepreneurships (SBEs) offer key contributions to economic growth and development, as well as to employment. However, SBEs are described as a high-risk sector. Relative risk measurement in SBEs is varied and diverse and involves genuine challenges, specifically in obtaining the necessary finance required. These types of businesses are usually constrained by restricted access to fair funding when compared to public and big enterprises. The financial institutions, which have ethical and social undertakings beside commercial objectives, confront two dilemmas: whether to support SBEs through facilitating the accessibility of SBEs’ entrepreneurs to financial services, or to be more cautious in dealing with them. This qualitative descriptive-theoretical analysis paper aims to examine the risks and challenges SBEs face in obtaining financial facilitation from banks, and factors that obstruct financial institutions to finance SBEs. This includes identifying SBEs’ financial-related risks, addressing initiatives that may improve the capability of SBEs to meet their financial obligations, access equity funds and proper financing.

Keywords


: Small Business Entrepreneurships (SBEs), Finance, Risk Management, Financial Related Risk

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