{"id":395,"date":"2026-07-14T09:11:56","date_gmt":"2026-07-14T09:11:56","guid":{"rendered":"https:\/\/leap-emb.org\/blogs\/?p=395"},"modified":"2026-07-14T09:11:56","modified_gmt":"2026-07-14T09:11:56","slug":"risk-management-for-msmes-from-indias-top-business-programme","status":"publish","type":"post","link":"https:\/\/leap-emb.org\/blogs\/risk-management-for-msmes-from-indias-top-business-programme\/","title":{"rendered":"Risk Management for MSMEs: Lessons from India’s Top Business Programme"},"content":{"rendered":"\t\t
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Micro, small, and medium enterprises have always been the backbone of India\u2019s economy, and in the last two decades, the number of MSMEs has witnessed a huge increase, which have been contributing nearly a third of the country\u2019s GDP and employing millions of people. Even after that, most of the\u00a0 MSME which have been growing into mid-sized companies get closed, not because of producing a bad product or having a weak market or supply chain, but because of poor risk management. In such cases, cash flow shocks, supply chain disruptions, regulatory changes, and leadership gaps can derail even a promising business overnight.<\/span><\/p>

Considering such challenges, and for exploring reliable and effective solutions, risk management has become a core focus area in India\u2019s leading executive education programmes for entrepreneurs. And one of the adequate examples is the LEAP Entrepreneurs\u2019 Mentoring Board (LEAP-EMB), an <\/span>MSME entrepreneurship development program, <\/b>which has been designed and run by the Indian Institute of Management Ahmedabad (IIMA). It has been designed especially for business owners who want to move from running a company to building a well-known institution. The programme treats risk management as a discipline that sits at the heart of sustainable <\/span>SME business growth<\/b>.<\/span><\/p>

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Why Risk Management Matters More for MSMEs Than Large Companies<\/b><\/h2>

It has been observed that large corporations already have dedicated risk committees, compliance teams, and deep cash reserves to absorb shocks and to manage such challenges. Whereas most of the MSMEs don\u2019t have the infrastructure and a chain system for better management. There are several issues, such as a single delayed payment from a large client, a sudden spike in raw material costs, or an unexpected regulatory change can threaten the survival of a small business in a way it never would for a listed company.<\/span><\/p>

This vulnerability is precisely why structured learning matters. Instead of learning risk management through trial and error.<\/span><\/p>

Financial Discipline as the First Line of Defence<\/b><\/h2>

It\u2019s one of the clearest lessons from IIMA\u2019s programme structure, which says that risk management begins with financial management. Where, the curriculum\u2019s financial and commercial management module mainly covers commercial management, investment basics, fundraising, capital structure, and risk management as an interconnected set of skills, and it is invariably related to the business model.\u00a0<\/span><\/p>

\u00a0Some specific points reflect a broader truth for MSMEs, that is, unless you understand your numbers, you cannot manage risk. For that, entrepreneurs are encouraged to build the following practical insights, and these are like<\/span><\/p>