Determinants of Risk Management in Small Café Businesses in Battambang, Cambodia: Assessing Financial, Market, Operational, Reputational, and Economic Risks

Small café businesses in Battambang, Cambodia, are flourishing thanks to the city's increasing tourism and the emergence of a middle class with financial freedom. These cafes range from traditional Khmer cafés to modern Western styles. However, they encounter several management risks, especially during and after the Covid-19 pandemic. This study focuses on the major risk factors affecting small café businesses in Battambang and analyzes the effectiveness of strategies designed to mitigate these risks. Based on 80 cafés that were selected, in-depth interviews were conducted with 15 café owners, covering five key risk areas: financial, market, operational, reputational, and economic. Through surveys and in-depth interviews with café owners, the research aims to gain a comprehensive understanding of the major challenges faced by these businesses and the approaches implemented to address them. The results indicate that market risk is the primary concern for café owners, followed closely by economic risk. Additionally, regression analyses of various risk factors and the quantity of café cups sold highlight several significant factors affecting small café businesses. To achieve the study's objective, the researchers conclude with strategic recommendations aimed at strengthening the risk management frameworks of café businesses in Battambang, thereby ensuring their long-term sustainability in a competitive and unpredictable market.