RT Vol XX: Chap 2: Effective Risk Management Strategies for Retail Business Sustainability
From the Book: The Refractive Thinker: Vol XX: Crisis Management: Effective Business Solutions for Emergency Situations


Summary

According to the Small Business Administration (SBA) (2020), 50% of businesses fail within the first year, and 95% fail within the first 5 years. The reasons have nothing to do with the business's product or service but rather a lack of risk management strategies to sustain the businesses. The contribution of small retail businesses to the U.S. economy, and local economies, in particular, creates a need for retail business owners to develop strategies to sustain their business. In this chapter of the Refractive Thinker®, the author presents an overview of creative strategies that might improve sustainability. The author shares findings to enhance profitability, productivity, and sustainability from 10 qualitative interviews conducted with retail business managers in the United States who worked in the retail business for a minimum of 2 years. The data analysis findings indicated that effective communication with suppliers, effective marketing strategy, adequate cash flow management, and risk management training enhanced sustainability.
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