FINANCIAL RISK MANAGEMENT IN SMALL AND MEDIUM ENTERPRISES (SMES): A STUDY OF RETAIL AND SERVICE SECTORS
DOI: https://doi.org/10.65725/JCMCE/2/1/004
JOURNAL OF CONTEMPORARY TRENDS IN MANAGEMENT, COMMERCE AND ECONOMICS (JCMCE) 
ISSN: 3108-3501
Volume 1 Issue 1, Jan-Mar 2026

Abstract:
Small and Medium Enterprises (SMEs) play a vital role in economic development, employment generation, and innovation. However, SMEs in retail and service sectors face significant financial risks such as liquidity constraints, credit risks, market volatility, and operational inefficiencies. This study investigates financial risk management practices among 100 SMEs (retail and services) and examines their impact on business sustainability and performance. Primary data were collected using structured questionnaires and analyzed using descriptive statistics and percentage analysis. The findings reveal that most SMEs lack formal risk management systems, rely heavily on personal judgment, and face challenges in accessing institutional credit. The study suggests strengthening financial planning, improving credit management, and adopting digital financial tools to enhance resilience and sustainability.

Authors: Prof. (Dr.) Vellayan Srinivasan , and Dr. Viji R

Keywords: Financial Risk Management, SMEs, Retail Sector, Service Sector, Liquidity Risk, Credit Risk, Sustainability.