. Operational risk factors and the sustainability of small and medium manufacturing enterprises in South Africa
In South Africa, the success of Small and Medium-sized Enterprises (SMEs) is essential in developing the economy as these businesses are known as drivers of economic growth. However, these SMEs have a high failure rate, mainly caused by operational risks. According to Scholarly literature, operation...
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| Format: | Article |
| Language: | English |
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UAB Sustainability for Regions
2022-12-01
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| Series: | Insights into Regional Development |
| Online Access: | https://jssidoi.org/ird/article/118 |
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| author | Urim-Tummim Shipanga Suzaan Le Roux Jobo Dubihlela |
| author_facet | Urim-Tummim Shipanga Suzaan Le Roux Jobo Dubihlela |
| author_sort | Urim-Tummim Shipanga |
| collection | DOAJ |
| description | In South Africa, the success of Small and Medium-sized Enterprises (SMEs) is essential in developing the economy as these businesses are known as drivers of economic growth. However, these SMEs have a high failure rate, mainly caused by operational risks. According to Scholarly literature, operational risk is any event that disrupts the normal flow of business processes. It generates financial loss or damage due to operational risk factors: people, process, system and external events. It was further established in South Africa that when these operational risk factors are not controlled, they can adversely impact the sustainability of SMEs. Most of these manufacturing enterprises do not implement operational risk management as they consider it a privilege of large enterprises. These Manufacturing companies must implement operational risk management to mitigate potential threats. This research study aims to investigate the operational risk factors affecting Manufacturing SMEs' sustainability in the Cape Metropole. Quantitative data was acquired from 85 respondents (managers/or owners) of Manufacturing SMEs in the Cape Metropole. Based on the results, it was found that all four of these operational risk factors still affect the sustainability of these business entities. To deal with these operational risk factors effectively, SMEs need operational risk management to identify, minimise and mitigate risks that negatively affect their sustainability. |
| format | Article |
| id | doaj-art-945b6de0f78b4e628a92b3fe4339e108 |
| institution | OA Journals |
| issn | 2669-0195 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | UAB Sustainability for Regions |
| record_format | Article |
| series | Insights into Regional Development |
| spelling | doaj-art-945b6de0f78b4e628a92b3fe4339e1082025-08-20T01:58:15ZengUAB Sustainability for RegionsInsights into Regional Development2669-01952022-12-014412613910.9770/IRD.2022.4.4(7). Operational risk factors and the sustainability of small and medium manufacturing enterprises in South AfricaUrim-Tummim Shipangahttps://orcid.org/0000-0002-7989-868XSuzaan Le Rouxhttps://orcid.org/0000-0002-3511-429XJobo Dubihlelahttps://orcid.org/0000-0001-6228-6524In South Africa, the success of Small and Medium-sized Enterprises (SMEs) is essential in developing the economy as these businesses are known as drivers of economic growth. However, these SMEs have a high failure rate, mainly caused by operational risks. According to Scholarly literature, operational risk is any event that disrupts the normal flow of business processes. It generates financial loss or damage due to operational risk factors: people, process, system and external events. It was further established in South Africa that when these operational risk factors are not controlled, they can adversely impact the sustainability of SMEs. Most of these manufacturing enterprises do not implement operational risk management as they consider it a privilege of large enterprises. These Manufacturing companies must implement operational risk management to mitigate potential threats. This research study aims to investigate the operational risk factors affecting Manufacturing SMEs' sustainability in the Cape Metropole. Quantitative data was acquired from 85 respondents (managers/or owners) of Manufacturing SMEs in the Cape Metropole. Based on the results, it was found that all four of these operational risk factors still affect the sustainability of these business entities. To deal with these operational risk factors effectively, SMEs need operational risk management to identify, minimise and mitigate risks that negatively affect their sustainability.https://jssidoi.org/ird/article/118 |
| spellingShingle | Urim-Tummim Shipanga Suzaan Le Roux Jobo Dubihlela . Operational risk factors and the sustainability of small and medium manufacturing enterprises in South Africa Insights into Regional Development |
| title | . Operational risk factors and the sustainability of small and medium manufacturing enterprises in South Africa |
| title_full | . Operational risk factors and the sustainability of small and medium manufacturing enterprises in South Africa |
| title_fullStr | . Operational risk factors and the sustainability of small and medium manufacturing enterprises in South Africa |
| title_full_unstemmed | . Operational risk factors and the sustainability of small and medium manufacturing enterprises in South Africa |
| title_short | . Operational risk factors and the sustainability of small and medium manufacturing enterprises in South Africa |
| title_sort | operational risk factors and the sustainability of small and medium manufacturing enterprises in south africa |
| url | https://jssidoi.org/ird/article/118 |
| work_keys_str_mv | AT urimtummimshipanga operationalriskfactorsandthesustainabilityofsmallandmediummanufacturingenterprisesinsouthafrica AT suzaanleroux operationalriskfactorsandthesustainabilityofsmallandmediummanufacturingenterprisesinsouthafrica AT jobodubihlela operationalriskfactorsandthesustainabilityofsmallandmediummanufacturingenterprisesinsouthafrica |