Risk Management Strategies of Micro-agribusiness Firms in Benguet

Abstract

An increasing speed of change in the food and agribusiness industries is causing more risk and uncertainty. In order to assist agribusiness firms and other relevant businesses, this study provides a general overview of risk sources and ways to manage them. It aimed to identify the risk management strategies of micro-agribusiness firms. Quantitative research was employed, specifically a descriptive survey. A structured survey questionnaire was the instrument used for the 33 micro-agribusiness owners in the selected municipalities of Benguet. Results indicated that most respondents are mostly in their middle age, most are college graduates, and most have been managing and operating a business for 2–5 years with few employees. The respondents' level of awareness and their implementation of the different types of risks in agribusiness firms are both high. Risk awareness and the implementation of risk management strategies have a moderately positive but significant relationship. When respondents are compared according to their profiles, there is no significant difference both in their level of awareness and their implementation of the different types of risks. Through thematic analysis, there were common themes derived from the challenges they encountered in the implementation of financial, operational, human resource, regulatory, and hazard risk management. These were: lack of supplies; it should be on a cash basis; regular and close supervision of employees; high regulatory fees; difficulty going to regulatory bodies; and lack of information on insurance. The results of this study will hopefully provide a framework for helping micro-agribusiness firms manage risks.