Investigating Challenges and Assessing Managers’ Capabilities for Risk Management in Small and Medium-Sized Enterprises at the Time of Financial Crisis in Developing Economies

Abstract

The occurrence of financial crises in today's world has become a probable issue and no business can ever predict that it will always go on in a quiet sea without storms. This makes it binding for business managers to manage risk, especially in developing economies that are naturally more vulnerable than the advanced economies of the world. Meantime, the role of small and medium-sized enterprises (SME) as stabilizing the economy is highlighted. These enterprises, on the one hand, are more vulnerable to these storms compared to large and well-established enterprises and on the other hand can play a more important role than larger firms in creating employment and stabilizing the economy. This article aims to investigate financing challenges during the downturn for small and medium-sized enterprises and then evaluate the performance of managers in small and medium-sized enterprises with a focus on risk management.