Risk Management Strategies and Performance of Small Scale Agribusiness Firms in Kiambu County

Ondiek, Samson; Muathe, Stephen M. A.

doi:10.47672/jsm.150

Cited by 4 publications

(3 citation statements)

References 5 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Ondiek and Muathe's [16] strategies specified in their study are financial, operational, human resource, regulatory, and disaster risk management strategies, as cited in a study [17]. They claimed that a company's productivity is affected by how it manages these strategies.…”

Section: Introductionmentioning

confidence: 99%

Risk Management Strategies of Micro-agribusiness Firms in Benguet

2023

IJFMR

View full text Add to dashboard Cite

An increasing speed of change in the food and agribusiness industries is causing more risk and uncertainty. In order to assist agribusiness firms and other relevant businesses, this study provides a general overview of risk sources and ways to manage them. It aimed to identify the risk management strategies of micro-agribusiness firms. Quantitative research was employed, specifically a descriptive survey. A structured survey questionnaire was the instrument used for the 33 micro-agribusiness owners in the selected municipalities of Benguet. Results indicated that most respondents are mostly in their middle age, most are college graduates, and most have been managing and operating a business for 2–5 years with few employees. The respondents' level of awareness and their implementation of the different types of risks in agribusiness firms are both high. Risk awareness and the implementation of risk management strategies have a moderately positive but significant relationship. When respondents are compared according to their profiles, there is no significant difference both in their level of awareness and their implementation of the different types of risks. Through thematic analysis, there were common themes derived from the challenges they encountered in the implementation of financial, operational, human resource, regulatory, and hazard risk management. These were: lack of supplies; it should be on a cash basis; regular and close supervision of employees; high regulatory fees; difficulty going to regulatory bodies; and lack of information on insurance. The results of this study will hopefully provide a framework for helping micro-agribusiness firms manage risks.

show abstract

Section: Introductionmentioning

confidence: 99%

Risk Management Strategies of Micro-agribusiness Firms in Benguet

2023

IJFMR

View full text Add to dashboard Cite

show abstract

“…Berry-Stolzle and Xu (2016) shows that risk management can reduce a firm's tax liability, transaction costs of bankruptcy, regulatory costs and mitigate the underinvestment problem in financially constrained firms, thus leading to higher profits. Ondiek and Muathe (2017) used multiple linear regression models to test the significance of the influence of the independent variables on the dependent variable risk management strategies and performance of small agribusiness firms in Kiambu County. The study indicated that financial risk management strategy, operational risk management strategy, human resource risk management strategy, regulatory risk management strategy and disaster risk management strategy affected organizational performance.…”

Section: Introductionmentioning

confidence: 99%

Risk Management Strategies of Micro, Small and Medium Agribusiness Enterprises in North-West, Nigeria

Magaji¹,

Oladimeji²,

Hassan³

et al. 2021

JASD

View full text Add to dashboard Cite

The study identifies the common risk management strategies (RMS) used by micro, small and medium scale enterprises (MSMAEs) in North-west, Nigeria. A sample of 334 MSMAEs were selected using multi-stage sampling procedure. Data were collected in 2020 with the use of structured questionnaire. Both descriptive statistics and principal component analysis (PCA) were employed to describe and analyse risk management strategies of MSMAEs. The result revealed that there were three categories of RMS namely, investment, budgeting and marketing. The investment RMS were the most used strategies with a mean score ( of 3.73 and a standard deviation ( of 2.85. This is followed by the marketing RMS with a mean score of 2.98 and a standard deviation of 2.08, irrespective of the business status. The least important RMS were the budgeting RMS with a mean score of 1.91 and a standard deviation of 1.52. The PCA results also revealed that RMS factor under micro agribusinesses had the highest and smallest correlation in terms of maintaining accurate and up-to-date financial record (0.93) and savings (0.66), respectively. Similarly, under the small agribusinesses, RMS factor had the highest and smallest correlation with timing or type of sales modification (0.95) and Borrowing (0.54). Furthermore, in medium agribusinesses, RMS factor had the highest and smallest correlation with timing of sale of output (0.92) and keeping of business record (0.68). In conclusion, MSMAEs managed their risk through investment, budgeting and marketing strategies. It was recommended that regular capacity building especially in the area of record keeping, maintaining accurate and up-to-date financial record, budgeting cash flow and outflows and conducting basic financial analysis couple with effective marketing management system should be given priority in risk management strategies in the sector.

show abstract

“…The study used Value at Risk to measure market risk. Ondiek and Muathe (2017) noted that organization must keep previous records about risks to enable them to forecast future risks. Financial distress affects financial performance of organization therefore keeping informed of various risks reduces the risk of poor performance.…”

Section: Introductionmentioning

confidence: 99%

Market Risks, Firms’ Size and Financial Performance: Reality or Illusion in Microfinance Institutions in Kenya

Karugu¹,

Muturi²,

Muathe³

2020

IJEF

View full text Add to dashboard Cite

The purpose of the study was to investigate on Market risk, Firms’ size and financial performance, Reality or illusion in microfinance institution. The study employed positivism philosophy and used explanatory non–experimental research designs. The targeted population was all the thirteen registered Deposit Taking microfinance institutions in Kenya and census approach was used. The study used secondary data which was collected from MFIs annual audited financial reports for the period between 2014 and 2018 using data collection instruments. The study was anchored on two theories namely Dynamic Capabilities theory and Modern Portfolio Theory. Diagnostic tests were applied to test on multicollinearity, autocorrelation, heteroscedasticity, normality test, and stationarity. Panel data multiple regression analysis was used to analyze the collected data and the results presented using figures and tables. The results indicated that firm’s size has a significant moderating effect on the relationship between market risk and financial performance of microfinance institutions. The study recommended that the CEOs of microfinance Institution should employ mechanism of identifying the optimal firm size that organization needs to operate in to achieve better financial performance.The purpose of the study was to investigate on Market risk, Firms’ size and financial performance, Reality or illusion in microfinance institution. The study employed positivism philosophy and used explanatory non–experimental research designs. The targeted population was all the thirteen registered Deposit Taking microfinance institutions in Kenya and census approach was used. The study used secondary data which was collected from MFIs annual audited financial reports for the period between 2014 and 2018 using data collection instruments. The study was anchored on two theories namely Dynamic Capabilities theory and Modern Portfolio Theory. Diagnostic tests were applied to test on multicollinearity, autocorrelation, heteroscedasticity, normality test, and stationarity. Panel data multiple regression analysis was used to analyze the collected data and the results presented using figures and tables. The results indicated that firm’s size has a significant moderating effect on the relationship between market risk and financial performance of microfinance institutions. The study recommended that the CEOs of microfinance Institution should employ mechanism of identifying the optimal firm size that organization needs to operate in to achieve better financial performance.

show abstract

Risk Management Strategies and Performance of Small Scale Agribusiness Firms in Kiambu County

Cited by 4 publications

References 5 publications

Risk Management Strategies of Micro-agribusiness Firms in Benguet

Risk Management Strategies of Micro-agribusiness Firms in Benguet

Risk Management Strategies of Micro, Small and Medium Agribusiness Enterprises in North-West, Nigeria

Market Risks, Firms’ Size and Financial Performance: Reality or Illusion in Microfinance Institutions in Kenya

Contact Info

Product

Resources

About