Risk Taking nd Survival of Small and Medium Scale Enterprises in Nigeria

Abstract

The study investigated the relationship between risk-taking and the survival of small and medium scale enterprises in Port Harcourt. The cross sectional survey method was adopted. A sample size of eighty was drawn from a population of one hundred employees using the Taro Yamane formula. The questionnaire was the main instrument for data collection and data obtained was analysed using the SPSS. Spearman’s rank correlation coefficient was used to test the hypotheses. Our findings revealed a strong and positive relationship between risk-taking and the measures of organizational survival. We concluded that risk-taking ability might proportionately predict the organizational performance and success level of a firm. We recommended that due to the complacent level in risk taking as discovered in the study, government should provide current statistics to enable small and medium scaled industries take calculated risk. It will be necessary that firms be given soft loans by banks to enable them undertake more innovative and enterprising activities. Government ought to as matter of criticality help planned business visionaries to have admittance to the public purse to back them up. This could enable them identify business opportunities and take the risk of embarking on them.