Strategic Risk Management among Small Enterprises in the Construction Industry

The purpose of this study is to develop knowledge around the practice of risk-management by small enterprises in the construction sector. The study will discuss the shortfalls in practice, and possible risk-management strategies suggested. This research is a literature review based study. An integrative review of a purposive sample of literature was used to generate articles discussing SMMEs and their business challenges. The search narrowed down to risk management articles with a specific focus on strategic risk management. The significant limitation to the study is the theoretical nature at this stage. Findings, however, suggest that non-systematic risk management in business operations by small enterprises and lack of innovative strategies that accommodate for market competition, hinder their transition to medium enterprises. However, small enterprises that practice strategic risk management stand a better chance of transitioning into medium enterprises because of their better understanding of risks and resource organization.