The Impact Of Risk Management On Small And Medium Enterprises: The Case Study Of Hyderabad, Pakistan

Research plays a pivotal role in the development of any economy, and during research, these developed risk management factors impact small and medium enterprises, specifically SMEs in Hyderabad, Pakistan. The main objective is to provide awareness to SMEs’ CEOs, owners, and top-level management about financial, operational, hazard, and strategic risks.

This research design is based on quantitative research using a 7-point Likert Scale closed-ended questionnaire. A total of 400 questionnaires were distributed to the top-level management of SMEs operating in Hyderabad, Pakistan, of which 357 were received. Finally, 344 collected questionnaires were analyzed in SPSS Version 25 and SmartPLS Version 3 with the help of MS Excel.

The results show that financial, operational, hazard, and strategic risks have an impact on SMEs’ performance. Therefore, three hypotheses were accepted and one hypothesis was rejected.

The research will benefit future researchers, small business entrepreneurs, and policymakers in the Small and Medium Enterprises sector. It is stated that this research is limited to only four types of risk, and its targeted population area was Hyderabad, Pakistan. Future research is suggested for other cities of Pakistan as well as other developing countries.