The Role of Enterprise Risk Management on SMEs Performance: A Review Paper

Abstract

SMEs have proved their ability to contribute to economic growth and become Malaysia's most prominent business economy. As a result, many Malaysians, particularly the younger generation, are involved in this field because they believe that entrepreneurship will help them improve their living standards and income level. Furthermore, government support is one of the reasons why young Malaysians want to be entrepreneurs. However, many Malaysian entrepreneurs have struggled to survive in the first five years of business operation due to the risks and challenges. As a result, using comprehensive literature review, this paper aim to review some of the previous papers on the importance of risk management in SMEs and find gaps from these papers. This review paper can help grasp new research opportunities that can be conducted in the future. Thus, this paper suggested implementing an enterprise risk management index to help entrepreneurs measure their readiness before entering the entrepreneur field.