The influence of culture on SMEs risk management practices in Zimbabwe

Abstract

In view of the significance of risk management in all businesses, this study was conducted to establish the influence of culture on the risk management practices of Small and Medium Enterprises (SMEs) in Zimbabwe. The study was motivated by the need to ensure small and medium businesses survive under certain risks. The purpose of this study was to examine the influence of culture on the SMEs risk management practices. The study was conducted among SMEs who reside in two provinces of Zimbabwe namely Harare Province and Mashonaland Central province. In order to achieve the main purpose of the study, a mixed method research design was used. The target population of the study include Small to Medium Enterprises from all sectors in Zimbabwe’s ten provinces. The study’s target population was around 780 684 and the sample was 278 respondents. The study used a combination of cluster sampling and simple random sampling methods to select the sample. Data was collected using structured questionnaire and semi-structured interviews to SMEs in Harare and Mashonaland Central provinces. The findings of the study show that culture influences SMEs risk management practices. Cultural factors such as social complexity, fate control and religiosity were found to influence SMEs risk management practices in Zimbabwe whilst social cynicism and reward for application were found not to influence SMEs risk management practices in Zimbabwe. The study concludes the introduction of risk management education for SMEs, increase awareness campaigns, and also increase access to information on risk management by the SMEs.