Risk Management as a Tool to Enhance the Sustainability of Fast Moving Consumer Goods SMEs in South Africa
Despite Small and Medium Enterprises (SMEs) being numerically predominant and the most vulnerable role players in the economy of many countries, little research has been conducted on risk management and sustainability of SMEs operating in the Fast Moving Consumer Goods (FMCG) sector of South Africa. This paper fills in this gap in knowledge by investigating the extent to which risk management processes of SMEs operating in the FMCG sector of South Africa incorporate robust analysis of the sustainability factors. To achieve this, questionnaires were distributed to a sample of 320 FMCG SMEs in the Cape Metropolitan area. Qualitative data was then gathered by interviewing 2 risk experts in order to validate the quantitative data gathered through a survey questionnaire. The results show that the risk management processes of FMCG SMEs do not incorporate a robust analysis of the components of sustainability and this have a negative bearing effect on their survival. Apart from filling in the gap in knowledge, the paper has also important implications for FMCG SME owner-managers and policymakers while revealing future research avenue.
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