1. Determinants of Effective Financial Risk Management in Small Business: A Conceptual Paper NURULHASANAH ABDUL RAHMAN UNIVERSITI SAINS MALAYSIA

2. DETERMINANTS OF EFFECTIVE FINANCIAL RISK MANAGEMENT IN SMALL BUSINESS: A THEORETICAL FRAMEWORK Small business is the first level of doing business worldwide. It had been globally acknowledged as instruments for achieving economic growth and development as well as employment creation Nevertheless, the expansion of small business is not a guarantee that they can survive to the end. In fact, the first five years of establishment is the crucial stage as it is where the highest failure rate occurs INTRODUCTION

3. DETERMINANTS OF EFFECTIVE FINANCIAL RISK MANAGEMENT IN SMALL BUSINESS: A THEORETICAL FRAMEWORK Not only that, among the challenges for small business are including informal financial risk management, lack of access credit, poor management, limited adoption of technology and many more Small business is inefficient because they spend a lot of money for risk solution while actually they should earn money from the same risk Therefore, this paper aims to study the determinants of effective financial risk management in small business and proposed a new theoretical framework

4. DETERMINANTS OF EFFECTIVE FINANCIAL RISK MANAGEMENT IN SMALL BUSINESS: A THEORETICAL FRAMEWORK Generally, Small and Medium Enterprise (SME) is categorized into 3: Micro, Small and Medium enterprise. In Malaysia, 99 % of the total business establishments are SMEs : Department of Statistics Malaysia (2013) Currently, SMEs contribute 31% of the nation’s GDP and share 56% of the total employment

5. DETERMINANTS OF EFFECTIVE FINANCIAL RISK MANAGEMENT IN SMALL BUSINESS: A THEORETICAL FRAMEWORK Definition of small business from SME Corporation Malaysia : Small business across all sectors, the SALES TURNOVER must be less than RM15 million or FULL TIME employees not exceeding 75 workforce. Source : SME Corporation Malaysia (2014)

6. DETERMINANTS OF EFFECTIVE FINANCIAL RISK MANAGEMENT IN SMALL BUSINESS: A THEORETICAL FRAMEWORK THEORETICAL FRAMEWORK LEADERSHIP COMMUNICATION BUSINESS CULTURE EFFECTIVE FINANCIAL RISK MANAGEMENT