Examining Financial Business Risks: A Case Study Of Cali'S Dynamics
Dr. Juan Carlos Morales
Faculty of Economics and Business Administration, University of Caldas, Colombia
Dr. Andrea López
Faculty of Economics and Business Administration, University of Caldas, Colombia
Abstract
Small and medium enterprises (SMEs) play a pivotal role in economies worldwide, comprising a significant majority of business networks. In Colombia, for instance, SMEs constitute approximately 94% of the enterprise system, driving economic activity. However, despite their importance, these enterprises often lack the necessary support to thrive. Recent governmental policies have sought to address this issue by promoting SME development through loans and assistance programs.This research addresses the pressing need to understand the risks faced by SMEs, a topic that has received limited attention. Additionally, many SMEs lack dedicated financial departments, making it challenging to monitor risk indicators effectively and make informed decisions to mitigate risks. Our study aims to provide evidence-based insights to help SMEs internalize processes for balancing risk indicators and achieving better risk control.
The study also recognizes the impact of globalization, financial volatility, and uncertainty on SMEs, emphasizing the importance of continuous improvement in various sectors of the economy. Furthermore, it highlights the role of consultants in diagnosing organizational issues and optimizing indicators, potentially leading to product/service diversification and enhanced profitability