A Research Dissertation to be Submitted for Approval to Partial Fulfillment of The Requirements for the Degree of Master of Science in Accounting and
Finance (MSc. A&F) of Mzumbe University
This study was done to investigate the risk management practices used by Small and
Micro enterprises at Mwanakwerekwe market. The main objective of the study was to
investigate risk management practices used by Small and Micro enterprises. The study‟s
specific objectives were: (i) to identify the sources of risks that traders face; (ii) to
examine the negative effects of risk in small and micro enterprises ; (iii) to investigate
how the small and micro enterprises mitigate risk in their daily activities.
This study used descriptive research design. The sample of 65 small traders was
selected as data collection method. The major methods used in data collection were
questionnaires, interview, field observation and documentary reviews.
Data was analyzed using Statistical package for social sciences (SPSS) version 16 and
Microsoft excel programme .The collected data was summarized into frequencies and
percentages, which were later presented in tables and graphs for easier interpretation and
clear understanding of the study.
In summary, it was found out that the main sources of risk were fire outbreak, poor
government support and bad environment, low level of knowledge and poor security. It
was also found out that these risks had the negative effects to the traders which included
failure to return loans in time, loss of assets and ultimate bankrupt.
The study suggested that, several strategies should be used to mitigate the risks in small
traders such as, to ensure that risk management policies within the small and micro
enterprises are implemented, monitored to be effectiveness and efficiencies for risk
management programs, the Government to create conducive micro economic
environment, to restrict all cooking activities in the market, education is required to
educate top level, small traders and training new employees in regard to the risk
management process, as well as to use the resource economics, effectively and
efficiently to be sustainably developed and achieve the goals and objectives. Finally, in
order to reduce negative effects in the market, business owners should use insurance
policy in business to cover the costs for emergence events like fire outbreak.