Risk Management Strategies in Startups and Small and Medium-sized Enterprises in Nepal
Shrestha, Shreejana (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025052616102
https://urn.fi/URN:NBN:fi:amk-2025052616102
Tiivistelmä
Startups and small and medium-sized enterprises (SMEs) play a vital role in Nepal’s economic development by driving innovation, employment, and local growth. However, they face significant challenges due to limited financial resources, infrastructural constraints, and regulatory uncertainty. Despite their importance, many of these businesses operate in a highly dynamic and uncertain environment without formal risk management systems. This study investigates how Nepalese startups and SMEs identify, assess, and manage risks, with the objective of understanding the gap between risk awareness and practical implementation.
The research applies to a quantitative cross-sectional design based on data collected from 103 respondents across various industries including manufacturing, retail, and technology. The study draws on internationally recognized frameworks such as ISO 31000 and the COSO Enterprise Risk Management (ERM) Framework. It also integrates context-specific theories including Entrepreneurial Orientation and Lean and Agile methodologies. Descriptive statistics, correlation, and regression analysis were used to interpret the data.
The findings reveal that while risk management is conceptually valued by most entrepreneurs, formal practices are limited and often confined to founders. Effective risk management was shown to positively influence business sustainability and performance. The study recommends practical, resource-sensitive strategies and training to enhance risk resilience among Nepalese startups and SMEs.
The research applies to a quantitative cross-sectional design based on data collected from 103 respondents across various industries including manufacturing, retail, and technology. The study draws on internationally recognized frameworks such as ISO 31000 and the COSO Enterprise Risk Management (ERM) Framework. It also integrates context-specific theories including Entrepreneurial Orientation and Lean and Agile methodologies. Descriptive statistics, correlation, and regression analysis were used to interpret the data.
The findings reveal that while risk management is conceptually valued by most entrepreneurs, formal practices are limited and often confined to founders. Effective risk management was shown to positively influence business sustainability and performance. The study recommends practical, resource-sensitive strategies and training to enhance risk resilience among Nepalese startups and SMEs.