Rethinking insurance and risk management practices for SMEs: A qualitative Inquiry

Small and Medium Enterprises (SMEs) are crucial contributors to global economic growth; however, they remain particularly susceptible to a range of risks, including financial instability, natural disasters, regulatory changes, and cyber threats. Despite this vulnerability, many SMEs have limited access to formal risk management solutions, such as insurance. This article examines the challenges and opportunities related to insurance and risk management for SMEs through a qualitative research approach. Based on interviews with SME owners, insurance providers, and policymakers, the study identifies behavioral, structural, and contextual factors influencing insurance adoption and risk management practices. The findings highlight the limitations of standardized insurance models and underscore the importance of developing flexible, context-specific strategies tailored to the unique needs of SMEs. Rooted in Contingency Theory, the study advocates for collaborative, adaptable, and inclusive frameworks aimed at strengthening SME resilience in an increasingly unpredictable global environment.