Impact of Risk Taking Skill as a Mechanism for Resilience in the Sustainability of MSMEs in Anambra State, Nigeria

Abstract

This study investigates the impact of risk-taking skill as it relates to resilience in the sustainability of MSMEs in Anambra State. The key objective of the study is to ascertain the extent at which risk-taking skills contribute to the resilience and sustainability of MSMEs in Awka, Onitsha and Nnewi. The study measured risk-taking by evaluating how often business owners engage in risky decisions, their confidence in managing those risks, and their belief in the importance of risk-taking for business growth and sustainability. Business resilience was also measured through the ability to adapt quickly to market changes, having strategies to handle economic downturns, confidence in recovering from setbacks, and maintaining a positive outlook during difficult times. It employs a quantitative approach, utilizing primary data collected through a structured questionnaire administered to MSME owners and managers in Anambra State and interviews conducted. 331 management teams were purposively selected from registered MSMEs in the Anambra State. Data were gathered using a structured questionnaire, and the respondents' bio data were presented through simple frequency and percentage tables. Hypotheses were tested employing simple regression analysis, utilizing the Statistical Package for Social Sciences (SPSS version 27). The study reveals that calculated risk-taking strategies positively and significantly influence the resilience of the business in Anambra State of Nigeria. Based on the findings, it is recommended that government agencies, business development service providers, and non-governmental organisations should organize regular training sessions and workshops focused on risk management and strategic decision-making to enhance the risk-taking skills of MSME owners.