Risk Management of Start-up Business for SMEs: A Review Paper

Abstract

Nowadays, SMEs plays a vital role in economic growth in Malaysia because it is the largest category of business in Malaysia. Therefore, many Malaysians, especially young generations, are involved in this area as they believe that entrepreneurship can help them improve their living standard and income level. Besides, the government support become one of the factors why young Malaysian people want to be an entrepreneur. However, many successful entrepreneurs in Malaysia struggled to survive because of some risks and challenges that they need to face. Therefore, this paper aims to study previous papers regarding the importance of risk management in start-up businesses. This paper found that protection of insurance/takaful and mathematical risk index is an essential tool that can help the entrepreneur manage and measure the risk in entrepreneurship.