ANVESHAK-International Journal of Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Enterprise Risk Management in MSME Units–A Study on the Indian Scenario


Affiliations
1 Army Institute of Management, Judges Court Road, Alipore, Kolkata – 700027, West Bengal, India
     

   Subscribe/Renew Journal


The Micro, Small & Medium Enterprise [MSME] sector occupies a prominent position in the Indian economy. This sector offers some unique features like high employment generation capacity, significant contribution to the GDP and foreign exchange earnings of the nation as well as the power to remove regional imbalances in industrialization. The MSME units cater to markets inaccessible to or ignored by large industries. However, in spite of such benefits, the units in the MSME sector suffer from certain inherent limitations which, coupled with adverse factors external to the units, bring about business failures and hinder the development of this sector. Traditional risk management approach envisages application of advanced and complex quantitative techniques which is usually beyond the capacity of entrepreneurs of MSME sector in India. This paper aims to suggest a qualitative approach towards implementing Enterprise Risk Management (ERM) for sustainable development of the MSME units in India through the process of certain pro-active decision making.

Keywords

Pro-Active Decisions, Qualitative Approach, Sustainable Development, ERM, MSME.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Asian Development Bank. (2002), Technical assistance for the development of a framework for SME support.

  • Bhat, K. A. (2000), Modern small scale industries & industrial sickness, Anmol Publications Pvt. Ltd.

  • Casualty Actuarial Society. (2003), Overview of enterprise risk management. Available from: http://www.casact.org/research/erm/overview.pdf

  • Chittithaworn, C., Islam, Md. A., Keawchana, T., & Yusuf, D. H. M., (2011), “Factors affecting business success of Small & Medium Enterprises (SMEs) in Thailand”, Asian Social Sciences, 2011, Vol. 7, No. 5, pp. 180–190.

  • Committee of Sponsoring Organizations of the Treadway Commission (COSO). (2004), Enterprise Risk Management – Integrated Framework – Executive Summary, Available from: http://www.coso.org/documents/ COSO_ERM_ExecutiveSummary.pdf

  • Debroy, B., & Bhandari, L. (2007), Exclusive Growth – Inclusive Inequality. Federation of Indian Micro & Small and Medium Enterprises Policy Paper, Occasional Paper Series.

  • Ghatak Shambhu: Micro, Small & Medium Enterprises (MSMEs) in India: An Appraisal, Available from: http://www.esocialsciences.com/data/ eSSResearchPapers/eSSWPArticle20091126151144.pdf

  • ISO 31000, 2009, ISO Guide 73, KPMG. (2001), Enterprise risk managementAn emerging model for building shareholder value, Available from: http:// en.wikipedia.org/wiki/Risk

  • Mathur, S. B. (1999), Sickness in Small Scale Sector - Causes & Cures. Concept Publishing Co., p. 72-84, New Delhi.

  • Medrano, M. G. (2011), Key Success Factors to Set Up Business in India.

  • Meher, R. K., & Panda, R. K. (1992), Industrial sickness- a study of small scale industries. Ashish Publishing House, pp. 115, New Delhi,

  • Micro, Small & Medium Enterprises- Annual Report. (2009-10), Government of India, Ministry of Micro, Small & Medium Enterprises, p. 13–14.

  • Micro, Small and Medium Enterprises- Annual Report. (2009-10), Government of India, Ministry of Micro, Small & Medium Enterprises, p. 175.

  • Misra, R. N., Nayak, S. S. (2008), Industrial sickness in the small scale sector. Discovery Publishing House Pvt. Ltd, p. 222, New Delhi.

  • Narayanasamy, K., & Shetty, M. V. (2008), “The role of centralized knowledge development centre for success of SME sector”, Communications of the IBIMA, 2008, Vol. 2, pp. 201–216.

  • Osborne, A. (2012), Risk management made easy, Andy Osborne & Ventus Publishing ApS, ISBN: 978-87-7681-984-2.

  • Owens, I., & Beynan-Davies, P. (2001), A survey of electonic commerce utilization in small & medium sized enterprises in South Wales; Global Cooperation in the New Millenniu, the 9th European Conference on Information Systems, Bled, Slovania, June 27-29, 2001.

  • Philip, M. (2010), Factors affecting business success of Small & Medium Enterprises (SMEs), AJRBM, 2010, Vol. 1, No. 2.

  • Quick Results, Fourth All India Census of Micro, Small & Medium Enterprises, (2006-07), Government of India, Development Commissioner (MSME), Ministry of Micro, Small & Medium Enterprises, p. 37.

  • Raghavan, R. S., 2005, Risk management in SMEs, The Chartered Accountant, 2005 Oct.

  • Smith, P. G., & Merritt, G. M. 2002, Proactive risk management- controlling uncertainty in product development, Productivity Press.

  • Temtime, Z. T., & Pansiri, J. (2004), “Small business critical success/failure factors in developing economies: some evidences from Botswana”, American Journal of Applied Sciences, 2004, Vol. 1, No. 1, pp. 18–25.

  • The World Bank, Nairobi, Kenya. (2011), Transforming the Esat African ICT Sector- Creating an ICT SME Business Engine; Public launch of Key Report Findings & Recommendations, 2011 Feb.

  • Valmohammadi, C. (2010), “Identification & prioritization of critical success factors of knowledge management in Iranian SMEs: An Expert’s Views”, African Journal of Business Management, 2010, Vol. 4, No. 6, pp. 915–924.

  • Wong, K. Y., & Aspinwall, E. (2005), “An empirical study of the important factors for knowledge management adoption in the SME sector”, Journal of Knowledge Management, 2005, Vol. 9, No. 3, pp. 64–82.

  • Wong, K. Y. (2005), “Critical Success factors for Implementing Knowledge Management in Small & Medium Enterprises”, Industrial Management & Data Systems, 2005, Vol. 105, No. 3, pp. 261-279.


Abstract Views: 497

PDF Views: 0




  • Enterprise Risk Management in MSME Units–A Study on the Indian Scenario

Abstract Views: 497  |  PDF Views: 0

Authors

Rajib Bhattacharya
Army Institute of Management, Judges Court Road, Alipore, Kolkata – 700027, West Bengal, India

Abstract


The Micro, Small & Medium Enterprise [MSME] sector occupies a prominent position in the Indian economy. This sector offers some unique features like high employment generation capacity, significant contribution to the GDP and foreign exchange earnings of the nation as well as the power to remove regional imbalances in industrialization. The MSME units cater to markets inaccessible to or ignored by large industries. However, in spite of such benefits, the units in the MSME sector suffer from certain inherent limitations which, coupled with adverse factors external to the units, bring about business failures and hinder the development of this sector. Traditional risk management approach envisages application of advanced and complex quantitative techniques which is usually beyond the capacity of entrepreneurs of MSME sector in India. This paper aims to suggest a qualitative approach towards implementing Enterprise Risk Management (ERM) for sustainable development of the MSME units in India through the process of certain pro-active decision making.

Keywords


Pro-Active Decisions, Qualitative Approach, Sustainable Development, ERM, MSME.

References





DOI: https://doi.org/10.15410/aijm%2F2018%2Fv7i1%2F119879