Factors influencing the risk appetite of SMEs: an exploratory study of Greek SMEs

Georgousopoulou, M., Chipulu, M., Ojiako, U. and Johnson, J.E. (2010) Factors influencing the risk appetite of SMEs: an exploratory study of Greek SMEs (Centre for Risk Research: Working Paper Series, CRR-10-03) Southampton, GB. University of Southampton

Abstract

The management of risk within small and medium enterprises (SMEs) is complicated due to various structural and economic factors associated with the SME sector. This paper focuses on one aspect of risk management in SMEs, namely the risk appetite which underpins their investment decisions. Data is gathered, via a survey, from a sample of SMEs operating in Greece, using both questionnaires and diagrammatic probability allocations. The data is analyzed using a combination of regression models and binomial tests for differences in proportions. The results suggest that we cannot, as previous literature suggests, conclude that SMEs generally exhibit a negative risk appetite. In particular, we found that Greek SMEs risk appetite was dependent on factors such as the type of investment being considered.
Keywords: risk, appetite, SMEs, Greece

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Contributors

Author: M. Chipulu

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