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A holistic assessment of the risks encountered by fast moving consumer goods SMEs in South Africa

Author

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  • Oscar Chakabva

    (Cape Peninsula University of Technology, South Africa)

  • Robertson K. Tengeh

    (Cape Peninsula University of Technology, South Africa)

  • Jobo Dubihlela

    (Cape Peninsula University of Technology, South Africa)

Abstract

Fast moving consumer goods (FMCG) small and medium-sized enterprises (SMEs) play an indispensable role in the emerging economies by selling products that are often classified as necessities. This paper argues that the traditional classification of risks into mainly operational, strategic, financial, and compliance risk, exposes FMCG SMEs to sustainability issues today. Focusing on sustainability and the associated factors, this paper seeks to offer a broader perspective on the risks that are crucial to the survival of FMCG SMEs in a fast-paced changing environment. The empirical investigation relied on the mixed research methods with the survey questionnaire and personal interviews as tools of interest. Two expert interviews were held to complement the quantitative data that was collected from 289 respondents. The research findings highlight the necessity for FMCG SMEs to look beyond the traditional risk types by incorporating social, economic and environmental risks, which are essential elements of the sustainability framework today. By combining these three components of sustainability into risk assessment, the paper seeks to introduce a more holistic view of risk sources that include evolving risk areas that are of growing importance in a rapidly changing global environment.

Suggested Citation

  • Oscar Chakabva & Robertson K. Tengeh & Jobo Dubihlela, 2020. "A holistic assessment of the risks encountered by fast moving consumer goods SMEs in South Africa," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 3321-3338, June.
    • Handle: RePEc:ssi:jouesi:v:7:y:2020:i:4:p:3321-3338
    DOI: 10.9770/jesi.2020.7.4(49)
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    References listed on IDEAS

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    1. Hans-Jörg Schlierer & Andrea Werner & Silvana Signori & Elisabeth Garriga & Heidi Weltzien Hoivik & Annick Rossem & Yves Fassin, 2012. "How Do European SME Owner–Managers Make Sense of ‘Stakeholder Management’?: Insights from a Cross-National Study," Journal of Business Ethics, Springer, vol. 109(1), pages 39-51, August.
    2. Makomborero Bure & Robertson K. Tengeh, 2019. "Implementation of internal controls and the sustainability of SMEs in Harare in Zimbabwe," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(1), pages 201-218, September.
    3. Shantanu Banerjee & Sudipto Dasgupta & Yungsan Kim, 2008. "Buyer–Supplier Relationships and the Stakeholder Theory of Capital Structure," Journal of Finance, American Finance Association, vol. 63(5), pages 2507-2552, October.
    4. [WEF] World Economic Forum, 2016. "The Global Risks Report 2016: 11th Edition," Working Papers id:10737, eSocialSciences.
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    Cited by:

    1. Inga Sityata & Lise Botha & Job Dubihlela, 2021. "Risk Management Practices by South African Universities: An Annual Report Disclosure Analysis," JRFM, MDPI, vol. 14(5), pages 1-22, April.

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    More about this item

    Keywords

    risks; business survival; sustainability; traditional view; expanded view; Fast moving consumer goods (FMCG); Small and Medium-sized Enterprises (SMEs); South Africa;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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