Published Paper Details:

Small and Medium Enterprises (SMEs) have strongly grown in Ethiopia's economy especially in the manufacturing industry and have contributed greatly to the Gross Domestic Product (GDP)of the country and created a number of employment opportunities. However, many have not had a smooth course as they have faced various difficulties during their existence such as limited finance, low levels of technology, limited market for their products, natural hazards and many others and hence many have ended up failing and collapsing. The survival rate of Small and Medium Scale Enterprises (SMEs) have been found to be low despite all the effort made by the government to sustain their existence. This seems to be linked to the poor management of various risk factors confronting the operators of the sector in Ethiopia. In view of this, the study is aimed at determining the influence of Enterprise Risk Management (ERM) practices on survival of SMEs in Adama city. The major objective of the study was to research, assess and identify the influence of risk management on the survival of small-medium-sized enterprise (SME) in Adama. This paper has been conducted on about 200 randomly selected SMEs out of total available SMEs in Adama. SMEs reduce risk exposure by having proper risk management tools in place. Interview was conducted to some SMEs' owners, manager and the government body. The interview generally focuses on the risk management process and enterprise risk management practice in SMEs and examines how these risk management practices in company are used to overcome the risks. The study was conducted using primary and secondary data. A simple random method was also used. Data which were generated through structured questionnaires were analyzed using both descriptive and inferential statistical tools using SPSS 26 software. This study was also investigating the degree of impact of Enterprise risk Management practices in some selected SMEs in Adama City and effect of ERM Dimensions including Internal Environment, Objective Setting, Event Identification, Risk Assessment, Risk response, Control Activities, Information and Communication and Monitoring on the survival of SMEs. Results indicate that majority of ERM practices significantly influence the survival of SMEs. This study could be useful for policy makers to plan their activities towards risk management of Small and Medium Scale Enterprises in Adama. Based on the findings, it was recommended that SMEs owners should take ERM practices as a valuable business function that enhances survival.