Title: Financial risk management and financial performance of new small business ventures: evidence from Indian survey data

Authors: Amarjit Gill; Léo-Paul Dana; John D. Obradovich

Addresses: School of Business, The University of Saskatchewan Edwards, 25 Campus Drive, Saskatoon, SK, S7N-5A7, Canada ' Montpellier Research in Management, Montpellier Business School, 2300 avenue des Moulins, Montpellier, France ' Liberty University, 1971 University Blvd., Lynchburg, VA, 24502, USA

Abstract: This study examines the perceived association between financial risk management and beliefs of small business owners about the financial performance of their new small business ventures in the service and manufacturing industries of India. The survey shows that the perceived valuation of financial risk management positively affects the beliefs of small business owners about the financial performance of their new small business ventures in both the service and manufacturing industries of India. Results show that financial performance is significantly higher among new small business ventures with adequate internal financing sources relative to new small business ventures without adequate internal financing sources. This study contributes to the literature on the relationship between financial risk management and financial performance of new small business ventures. The findings may be useful for financial managers, production and service firm owners, investors, consultants, and other stakeholders.

Keywords: financial risk management; financial plan; financial performance; new small business ventures; service industry; manufacturing industry; India.

DOI: 10.1504/JIBED.2018.091205

Journal for International Business and Entrepreneurship Development, 2018 Vol.11 No.2, pp.75 - 95

Received: 08 Sep 2016
Accepted: 08 Jan 2017
Published online: 16 Apr 2018 *

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