Reducing the Risks Faced by Small Businesses:The Lifecycle Concept

Abstract : The deployment of a comprehensive risk management approach within an SME (Small or Medium-sized Enterprise) requires reconsideration of enduring preconceptions. However, it also calls for a description and explanation of their idiosyncrasies, in relation to their specific needs and expectations, which change over time. It is therefore appropriate to use the lifecycle concept to study the various phases of development of SMEs. The concept highlights the modifications and changes in configuration that this type of organization experiences during its development. This article aims to define and legitimize the use of the lifecycle concept as a basic component of a global risk management approach in an SME. It describes an operational approach to reducing vulnerability based on the level of organizational maturity.