Title: Entrepreneurial Finance and Risk Management of SMES in Rivers State, Nigeria
Authors: Andrew Enarukakpo Ejeneha and B. Chima Onuoha
Volume: 10
Issue: 1
Pages: 146-153
Publication Date: 2026/01/28
Abstract:
This study investigates the relationship between entrepreneurial finance and risk management among Small and Medium-sized Enterprises (SMEs) in Rivers State, Nigeria. Despite the vital role SMEs play in economic development, many face financial constraints and lack structured risk management practices, exposing them to operational and financial vulnerabilities. The study operationalized entrepreneurial finance using two dimensions-access to capital and financial planning-while risk management was assessed through operational risk control and financial risk mitigation. A cross sectional survey design was employed, with data collected from 156 SME owners and managers across diverse sectors in Rivers State. Data was analysed using Spearman's correlation coefficient technique. Analysis revealed strong and significant positive relationships between the financial dimensions and risk management indicators. Specifically, both access to capital and financial planning were significantly correlated with improved operational and financial risk controls. These findings suggest that improved access to finance and proactive financial planning are critical for building SMEs resilience. The study recommends policy support for SMEs financing, enhanced financial literacy programs, and the integration of risk-based financial strategies to ensure sustainable growth and stability.