Risk Management’s Techniques In Gaza Strip Small Businesses

Abstract

Small businesses present new employment opportunities and serve as the building blocks of any community. Risk management and risk management techniques have become a vital and core component for business enterprise. The management of risk is an essential part of any organization. This study aimed to determine the role of risk management variables (Managerial, financial, procedures, legal, political & economic, capacity building and technological risk) in the likelihood of small businesses success. Design/methodology/approach: Descriptive analytical approach was used using a case-control study. Study population was 881 beneficiaries from INGOs and Incubator' grants for small businesses start up and the sample was 300 beneficiaries with 93.4% response rate (280 out of 300). SPSS package version 22 was used in data analysis. Findings: The main results showed that risk management, economic & political risk and technological risk were the determinants of likelihood of small business success after adjustment to confounders, in addition to some of socio-economic & demographic factors (age category, qualification, grant amount and number of courses received. Before adjustment to confounders, capacity building & innovation, consultation visit, business age, and competition had also an important role in business success. Financial risk and business type had an important trend on likelihood of business success despite absence of significance. Practical implications: Risk management techniques have crucial influence on the likelihood of small business success. Ongoing and periodically monitoring and follow up should be conducted along small business lifespan. Finally, the government should establish a shared data base system to link small business owners and enable stakeholders to obtain and update that information.