Analysis Of Risk Management Practices Of Small And Medium Enterprises (Smes) In The Construction Sector Of Ghana

ABSTRACT The importance of assessing the risk management practices by the small and medium scale enterprises (SMEs) in the recent times has been underscored by research. In this study, an analysis of risk management practices of the SMEs in the construction sector of Ghana is assess to determine the level of awareness, the extent of its application and the potential impact on the construction business. This study is a follow up to previous studies risk management practices in the construction industry as the study specifically considers the SME contractor. In the study, data was obtained Owners and Directors of D2/K2 – D4/K4 contractors as certified by the Ministry of Works and Housing (MWH). The data was analyzed using descriptive statistics and frequencies. The findings suggest that risk management practices application is still at reduced concentrations in SMEs operations. It can also be found that risk management in small and medium-sized enterprises is primarily focused on owners / managers beliefs that seriously hamper sustainable business development. The level of awareness is well documented, however the application of the practices is far less than the awareness level The finding of the study provide the basis for policy interventions aimed at building the capacity of the SMEs in the construction space and the Continuous Professional Development (CPD) agenda for owners and directors. It again provides for use by training institutions towards the development of training manuals for training of entrepreneurs.