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Loss Control and Loss Control Strategies in SMMEs Operating in a Developing Country: A Literature Review

Author

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  • Juan-Pierré BRUWER

    (Graduate Center of Management, Cape Peninsula University of Technology, Cape Town, South Africa)

  • Luyolo SIWANGAZA

    (Cape Peninsula University of Technology, Cape Town, South Africa)

  • Yolandé SMIT

    (Higher College of Technology Abu Dhabi Women’s Campus, United Arab Emirates)

Abstract

A large proportion of South African Small, Medium and Micro Enterprises (SMMEs) make use of customised internal control initiatives and customised risk management practices to mitigate and/or manage risks, to provide reasonable assurance regarding the attainment of objectives in the foreseeable future. According to research studies however, the aforementioned internal control initiatives and risk management practices are deemed to be inadequate and/or ineffective. This is especially the case as these business entities are predominantly focused on preventing generic risks in relation to the safeguarding of assets and independent checks, while ignoring key risks which may be detrimental to the attainment of their objectives. Since approximately 70% of South African SMMEs fail after being in existence less than four years it is highly probable that these business entities are not paying enough attention to mitigate and/or manage key risks (potential loss events) and controlling actual loss events. Hence, this exploratory study places emphasis on theoretically investigating loss control and sound loss control strategies evident in South African SMMEs.

Suggested Citation

  • Juan-Pierré BRUWER & Luyolo SIWANGAZA & Yolandé SMIT, 2018. "Loss Control and Loss Control Strategies in SMMEs Operating in a Developing Country: A Literature Review," Expert Journal of Business and Management, Sprint Investify, vol. 6(1), pages 1-11.
  • Handle: RePEc:exp:bsness:v:6:y:2018:i:1:p:1-11
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    References listed on IDEAS

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    1. Sime Curkovic & Thomas Scannell & Bret Wagner & Mike Vitek, 2013. "Supply Chain Risk Management within the Context of COSO¡¯s Enterprise Risk Management Framework," Journal of Business Administration Research, Journal of Business Administration Research, Sciedu Press, vol. 2(1), pages 15-28, April.
    2. Geoffrey J. D. Hewings & Michael Sonis & David Boyce (ed.), 2002. "Trade, Networks and Hierarchies," Advances in Spatial Science, Springer, number 978-3-662-04786-6, February.
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    5. Juan-Pierré BRUWER & Luyolo SIWANGAZA, 2016. "Is the Control Environment a Basis for Customised Risk Management Initiatives in South African Small, Medium and Micro Enterprises?," Expert Journal of Business and Management, Sprint Investify, vol. 4(2), pages 105-117.
    6. Guilhoto, Joaquim José Martins & Marjotta-Maistro, Marta C. & Hewings, Geoffrey J. D., 2002. "Economic landscapes, what are they? An application to the Brazilian economy and to sugar cane complex," MPRA Paper 54229, University Library of Munich, Germany.
    7. Joaquim J. M. Guilhoto & Marta C. Marjotta-Maistro & Geoffrey J. D. Hewings, 2002. "Economic Landscapes: An Application to the Brazilian Economy and to the Sugar Cane Complex," Advances in Spatial Science, in: Geoffrey J. D. Hewings & Michael Sonis & David Boyce (ed.), Trade, Networks and Hierarchies, chapter 6, pages 99-118, Springer.
    8. Ian Fraser & William Henry, 2007. "Embedding risk management: structures and approaches," Managerial Auditing Journal, Emerald Group Publishing, vol. 22(4), pages 392-409, April.
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    Cited by:

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    2. Ashwin Petersen & Juan-Pierré Bruwer & Suzaan Le Roux, 2018. "Occupational Fraud Risk, Internal Control Initiatives and the Sustainability of Small, Medium and Micro Enterprises in a Developing Country: a Literature Review," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(4), pages 567-580, AUGUST.

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    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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