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This Through all discussion and finding it has

 This article is about
the risk management practices of SME in context to south Africa. SMEs operates
in same environment like larger counter parts but without human resource and
adequate capital . The SME success involve numerous and various barriers. SMEs
confront increasing rivalry pressure , globalization , legislation and technology
advancement. The SME owner- manage are ignorant to risk management techniques
and feedback system towards enterprise deployed reactivity and ineffectiveness.
The objective of the study is to identify the importance of SMEs in accordance
with south Africa , to identify the reasons of risk management failure which is
the obstacle in SME success, to indicate the SME  owner- manager ignorant behavior towards management
of risk. For this study sample of 1000 entrepreneurs was taken to respond and
information was collected about SMEs risk aversion factors. The finding of SMEs
is confront by 90 percent of sample of 1000 entrepreneurs believe that SMEs
failure is for the reason of lack of managerial skills. There is economic based
problems and enterprise based problems such as poor human resource ,high
employee turnovers and difficulty in hiring quality.  According to Rogerson(2008) availability pf
less credit facility is the major downfall face by African SMEs entrepreneurs.
One of the major finding is that risk management is not align with SMEs vision.
We conclude that the SME is the important part of south African  major part of economy and its success factor embedded
generic barriers such as lack of managerial skills, education, trainings ,
industry related problems ,entrepreneur inability to understand market anticipation
, economy base barriers , lack of awareness and interest rate swings. SMEs
managers are mainly responsible for management of  enterprises activities. By creating a
structured approach to SMEs the risk factor can be avoid, potential benefits
can be taken such as cost reduction., lessen over -management of risk and
organization strategic alignment towards the SMEs vision, mission and objectives
realization. As per future implications and recommendation SME s empowerment in
south Africa can be attain by strategic risk management strategy which results
into industry best practices and legal protections. Proactive approach should
be use which link to organization success. Through all discussion and finding
it has been experience that positive organization culture can be attain by
right identification of risk and planning to mitigate that risks. SMEs owner
managers must be aware of organizational needs and joint negotiation of risk
with SME employees which will include feedback from them .Management policy to
averse the risk must be revise to tackle more effectively towards external
forces. Through proactive approach and holistic risk management issues can be
deal in best manners. Irrespective of risk tendency a structure approach to
risk mitigation can provide a alignment with goals and consistent risk  management process.


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