International Journal of Accounting Research

Abstract

Enterprise Risk Management and the Survival of Small Scale Businesses in Nigeria

Kehinde A*, Opeyemi A, Benjamin A, Adedayo O and Abel OA

Small scale enterprises are catalysts and engine room for economic growth and development as demonstrated by the achievements recorded by Chinese industrialists and other developed nations. Over the years, the rate at which small scale businesses are collapsing in Nigeria is quite alarming due to poor approach to risk management. The economic development of any nation most especially developing economies is instituted on the survival of small scale industries. Small scale industries in Nigeria are fundamentally different from other nations of the world in terms of nature and structure. Many researchers have identified various risks such as financial, strategic, hazard etc. risks militating against the growth of small scales industries which the implementation of enterprise risk management has helped in addressing without due consideration to risk oversight of an appointed risk expert. This paper which employed secondary data sourced from various journals and other publications and used Ordinary Least Square (OLS) in the analysis and testing of hypotheses identified and advocated for the implementation of risk oversight as panacea for enduring and survival of small scale businesses in Nigeria. It has been recommended that in order to appropriate the full benefits of risk oversight concept, the SMEs managers must embrace transparency, adequate maintenance of proper books of account and readiness to implement all the recommendations of the professional or risk experts.