Cover Image


Fungai Ngoma Mauchi, Veena Rawjee, Nisha Ramlutchman


In view of the significance of risk management in all businesses, this study was conducted to establish the influence of culture on the risk management practices of Small and Medium Enterprises (SMEs) in Zimbabwe. The study was motivated by the need to ensure small and medium businesses survive under certain risks. The purpose of this study was to examine the influence of culture on the SMEs risk management practices. The study was conducted among SMEs who reside in two provinces of Zimbabwe namely Harare Province and Mashonaland Central province. In order to achieve the main purpose of the study, a mixed method research design was used. The target population of the study include Small to Medium Enterprises from all sectors in Zimbabwe’s ten provinces. The study’s target population was around 780 684 and the sample was 278 respondents. The study used a combination of cluster sampling and simple random sampling methods to select the sample. Data was collected using structured-questionnaire and semi-structured interviews to SMEs in Harare and Mashonaland Central provinces. The findings of the study show that culture influences SMEs risk management practices. Cultural factors such as social complexity, fate control and religiosity were found to influence SMEs risk management practices in Zimbabwe whilst social cynicism and reward for application were found not to influence SMEs risk management practices in Zimbabwe. The study concludes the introduction of risk management education for SMEs, increase awareness campaigns, and also increase access to information on risk management by the SMEs.


Small and Medium Enterprises, Culture, Mashonaland Central Province, Harare Metropolitan province

Full Text:

 Subscribers Only


Abe, M., and Dutta, M.K. 2014. A New Policy Framework for Myanmar’s SME Development. ARTNeT Working Paper Series, 142.

Abeyrathna, G. M. and Kalainathan, K. 2016. Financial Risk, Financial Risk Management Practices and Performance of Sri Lankan SMEs : Special Reference to Anuradhapura District. Research Journal of Finance and Accounting. 15(7), 16-22.

Acar, E. and Goc, Y. 2011. Prediction of risk perception by owners’ psychological traits in small building contractors. Construction Management and Economics. 29(8), 841-852.

Adu, J., Andrews, P., Polytechnic, T., Akosah, N. B., and Polytechnic, T. 2016. Small and medium sized enterprises (SMEs) accessibility to public procurement. SMEs entity perspective in Ghana. 8(3), 28-44.

Airmic, Alarm, and Irm. 2010. A structured approach to Enterprise Risk Management (ERM) and the requirements of ISO 31000 Contents. Risk Management. 7(1), 20.

Angeline, Y.K.H. and Teng, Y.S. 2016. Enterprise risk management: Evidence from small-medium enterprises. Management and Accounting Review. 15(2), 151-170.

Aon Risk Solutions. (2017). Global Risk Management Survey 2017. [Online] Available at: (Accessed 10 October 2018)

Ashby, S., Palermo, T. and Power, M. 2013. Risk culture in financial organisations: an interim report. The London School of Economics and Political Science, 1–103. [Online]. Available at: (Accessed 17 July 2019).

Barnabei, M.D. 2008. Risk Management Psychology and Practice, Doctoral thesis, University of Pennsylvania.

Bayaga, A. and Flowerday, S. 2010. A conceptual operational risk model for SMEs: Impact on organisational information technology. [Online] Available at: (Accessed 27 January 2020).

Boblingen, J. G. 2008. The Risks of Financial Risk Management. Ph.D Thesis, Zeppelin University.

Bond, M. H., Leung, K., Au. A., Tong, K. K. and Chemonges-Nielson, Z. 2004. Combining social axioms with values in predicting social behaviors. European Journal of Personality. 18, 177–191.

Bouazza, A. B. 2015. Small and Medium Enterprises as an Effective Sector for Economic Development and Employment Creation in Algeria. International Journal of Economics, Commerce and Management. 3(2), 1–16.

Brooks, D. W. 2010. Creating a risk-aware culture. [Online]. Available at: (Accessed 20 November 2019).

Brustbauer, J. 2016. Enterprise risk management in SMEs: Towards a structural model. International Small Business Journal. 34(1), 70-85

Chakreeyarat, V. S. 2015. Cultural, Demographic, and Environmental Influences on Risk Perception and Mitigation in the Wildland-Urban Interface. [Online]. Available at: (Accessed on 20 May 2019).

Chiwara, O. M. 2016. An Evaluation of the Factors Affecting Growth of Small and Medium Enterprises (SMEs) in Zimbabwe: A Case Study of SMEs in Harare. Doctoral Thesis, University of Zimbabwe.

Cudjoe, G.A., Omusu-Ansah, W. and Poku, K. 2017. The Effect of Non-Financial Support Services on Small and Medium Enterprises (SMEs) Development in a Developing Economy. International Journal of Business, Humanities and Technology. 7(1), 20-30.

Dorresteijn, F.V., 2017. Which socio-demographic factors determine risk taking of Investors?

Duong, L. 2013. Effective Risk Management Strategies for Small-Medium Enterprises and Micro Companies: A case study for Viope Solutions Ltd. [Online] Available at:

Falkner, E.M. and Hiebl, M.R.W. 2015. Risk management in SMEs: a systematic review of available evidence. The Journal of Risk Finance. 16(2), 22-144.

Fan, J. X., and Xiao, J. J. 2006. Cross-cultural differences in risk tolerance: A comparison between Chinese and Americans. Journal of Personal Finance, 5(3), pp.54.

Ferkolj, A., 2010. Enterprise risk management analysis with suggestions for improvements for the selected company. Master's degree thesis, Slovenia: University of Ljubljana.

FinMark Trust, (2013). Zimbabwe - FinScope MSME survey 2012. Washington DC: World Bank Group. Available at:

Fjose, S., Grünfeld, L.A. and SQW, C.G., 2010. SMEs and growth in Sub-Saharan Africa: Identifying SME roles and obstacles to SME growth. Available at:

George, G. and Zahra, S.A. 2002. Culture and its consequences for entrepreneurship. Entrepreneurship theory and practice. 26(4), 5-8

Goriwondo, W.M. 2011. An evaluation of Risk Management Practices in SMEs in the Manufacturing Sector of Gweru Zimbabwe. GE International Journal of Management Research. 2(9).

Gorzeń-Mitka, I. 2015. Risk management in small and medium-sized enterprises: A gender-sensitive approach. Problems of Management in the 21st Century. 10(2), 77-87.

Gwangwava, E., Manuere, F., Kudakwashe, G., Tough, C. and Rangarirai, F. 2014. An Assessment of Risk Management Practices in SMEs in Zimbabwe : A Review and Synthesis. Journal of Humanities and Social Science, 19(8):6–14. Available at:

Hayton, J.C., George, G. and Zahra, S.A. 2002. National culture and entrepreneurship: A review of behavioral research. Entrepreneurship theory and practice. 26(4), 33-52.

Henschel, T. 2008. Typology of SME’s risk management practices. International Council for Small Business World Conference. [Online]. Available at: [Accessed 19/07/2009]. .

Hobohm, S. 2001. Small and medium-sized enterprises in economic development: The UNIDO experience. Journal of Economic Cooperation. 22(1), 1–42.

Hofstede, G. 1980. Culture’s consequences: International differences in work related values. Beverly Hills, CA: Sage.

Hofstede, G. 2011. Dimensionalizing Cultures: The Hofstede Model in Context. Online Readings in Psychology and Culture. 2(1), 1–26. Available at:

Islam, A. and Tedford, D. 2012. Risk determinants of small and medium sized manufacturing enterprises (SMEs) - an exploratory study in New Zealand. Journal of Industrial Engineering International. 8(12),1-13. Available at:

Jadi, D.M., Manab, N.A. and Ahmad, S. 2014. Insurance as a Risk Transfer Mechanism in Small and Medium Enterprises (SMEs). [Online] Available at:

Jayathilake, P.M.B. 2012. Risk management practices in small and medium enterprises: Evidence from Sri Lanka. Zenith International Journal of Multidisciplinary Research. 2(7), 226-234

Keith, J.L., 2014. Enterprise risk management: Developing a strategic ERM alignment framework-Finance sector. Doctoral dissertation, Brunel University London. Available at:

Leung, K. and Bond, M. H. 2004. Social axioms: A model of social beliefs in multi-cultural perspective. In M. P. Zanna (Ed.), Advances in experimental social psychology. San Diego, CA: Academic.

Leung, K. and Bond, M. H. 2008. Psychologic and ecologic: Insights from social axiom dimensions. In F. van de Vijver, D. van Hemert, and Y. H. Poortinga (Eds.), Individuals and cultures in multilevel analysis. Mahwah, NJ: Erlbaum.

Leung, K. and Bond, M. H. 2009. Psychological Aspects of Social Axioms: Understanding Global Belief Systems. Springer, New York.

Leung, K., Bond, M. H., Reimel de Carrasquel, S., Muñoz, C., Hernñndez, M., Murakami, F., Yamaguchi, S., Bierbrauer, G. and Singelis, T. 2002. Social axioms: The search for universal dimensions of general beliefs about how the world functions. Journal of Cross-Cultural Psychology. 33, 286-302.

Loke, Y. J. 2017. The influence of socio-demographic and financial knowledge factors on financial management practices of Malaysians. International Journal of Business and Society. 18(1), 33–50.

Mamman, A., Kanu, A.M., Alharbi, A. and Baydoun, N. 2015. Small and Medium-sized Enterprises (SMEs) and Poverty Reduction in Africa: Strategic Management Perspective. Cambridge Scholars Publishing.

Mir, S. Z. 2014. Towards Understanding the Impact of Organizational Culture and Risk Management in Banking Sector in Developing Countries. [Online] Available at:

Mugozhi, F. and Hlabiso, G. 2017. Determinants of Small to Medium Enterprises’ Success or Failure : An Ex-post Appraisal of Startup Business by Young Entrepreneurs in Zimbabwe. The International Journal of Humanities & Social Studies. 5(3), 39–46.

Napp, A.K. 2011. Financial Risk Management in SME: The Use of Financial Analysis for Identifying, Analysing and Monitoring Internal Financial Risks. Journal of Risk Management, 2(1).30–35.

Nyakang’o, E.O. and Kalio, A.M. 2013. Effect of Financial Risks on Performance of Small and Medium Enterprises in the Hotel Industry in Nakuru Municipality, Kenya. International Journal of Innovative Research & Development. 2(11), 257-263

Nyamwanza, T., Carter, S. and Chu, Y. 2014. Strategy Implementation for Survival and Growth among Small to Medium-sized Enterprises (SMES) in Zimbabwe. [Online]. Available at:

OECD. 2004. Promoting SMEs for Development. 2nd OECD Conference of Ministers Responsible For SmallaAnd Medium-Sized Enterprises (SMEs). 3-5. Available at:

Otieno, J.J.A. 2016. Credit risk management practices on loan portfolio of Barclays bank of Kenya. Master's Thesis, University of Nairobi.

Panigrahi, A. K. 2012. Risk Management in Micro, Small and Medium Enterprises (MSMEs) in India: A Critical Appraisal. Asia Pacific Journal of Marketing & Management Review. 1(4), 2836.

Pashkova, O. 2016. Credit Risk Management of SMEs through Financial Ratio Analysis. Bachelor's Thesis, JAMK University of Applied Sciences. Available at:

Peprah, J. A., Mensah, O. A. and Akosah, N. B. 2016. Small and Medium Sized Enterprises (SMEs) Accessibility to Public Procurement : SMEs Entity Perspective in Ghana. European Journal of Business and Social Science. 4(11), 25–40.

Santori, L., Bevan, K., and Myers, C. 2007. Summary of Standard & Poor's Enterprise Risk Management Evaluation Process for Insurers. New York: Standard & Poor's.

Sarkodie-Poku, I.S.A.A.C. 2019. Analysis of Risk Management Practices of Small and Medium Enterprises (SMEs) in the Construction Sector of Ghana. Doctoral thesis, University of Ghana.

Schwartz, S. 1994. Beyond individualism/collectivism: New cultural dimensions of values. CA: Thousand Oaks. Available at:

Senturk, C., Keskin, H., Kiris, Y., Turkoz, P. and Kiris, H. 2013. Can SMEs in developing countries resist crisis? An analysis on Turkish and Albanian cases. International Conference on Balkan Studies. 208-234.

Singelis, T. M., Hubbard, C., Her, P. and An, S. 2003. Convergent validation of the Social Axioms Survey. Personality and Individual Differences. 34(2), 269-282.

Smit, Y. and Watkins, J.A. 2012. A literature review of small and medium enterprises (SME) risk management practices in South Africa. African Journal of Business Management. 6(21), 6324–6330. Available at:

Sunjka, B.P. and Emwanu, B. 2015. Risk management in manufacturing SMEs in South Africa. International Association for Management of Technology. 1-18. Available at:

Verbano, C. and Venturini, K. 2013. Managing Risks in SMEs : A Literature Review and Research Agenda. Journal of Technology Management & Innovation. 8(3), 186–197. Available at:

Virdi, A.A. 2005. Risk management among SMEs: Executive report of discovery research. The Consultation and Research Centre of the Institute of Chartered Accountants in England and Wales, London.

Wijekoon, W. M. M. G. D., Amaratunge, S. P. P., and Sisira Kumara, M. H. A. 2016. Effects of Demographic Factors on Risk Management in Community Driven Development Projects in Sri Lanka: A Preliminary Study Based on “Gemidiriya” Project. SSRN Electronic Journal. 3, 6–324. Available at:

Wong, S. P. 2012. The impact of culture on risk management disclosures : An exploratory study of international banks. Unpublished DBA Thesis, Southern Cross University. Available at:

Yusuf, T.O. and Dansu, F.S. 2013. SMEs, business risks and sustainability in Nigeria. European Journal of Business and Social Sciences. 2(9), 76-94.

Zou, P.X., Chen, Y. and Chan, T.Y. 2010. Understanding and improving your risk management capability: Assessment model for construction organizations. Journal of Construction Engineering and Management. 136(8), 854-863


  • There are currently no refbacks.

ISSN 15849422, 12211249