Volume 7

Enterprise risks pose threats to the capability of an organization to accomplish business processes and create value. This research sought to add to studies done in the area of enterprise risk management (ERM) by focusing on the moderating effect of intellectual capital on the relationship between ERM governance practices and organizational performance of state corporations in Kenya. This study was guided by resource-based theory. The study used explanatory cross-sectional survey design. Primary data on ERM practices, intellectual capital and organizational performance was collected from structured questionnaires. A survey was carried out on 218 state corporations in Kenya. Data collected was analyzed by use of descriptive and inferential statistics. The research hypotheses were tested using multiple regression analysis. ERM governance practices were also found to significantly (β=0.412, p lower than 0.05) influence organizational performance. Furthermore, the study found that intellectual capital had an enhancing and significant moderation effect on the relationship between ERM governance practices (β=0.658, ρ lower than 0.05) and organizational performance. This study contributes to the body of knowledge by positioning intellectual capital on the empirical testing of resource-based theory as well as the impact of intellectual assets on the relationship between risk governance practices and organizational performance. Further, the study recommends that SCs need to define and document strategies for managing risks, in addition to ensuring that sufficient resources are availed towards the attainment of risk management.

The study investigates specific characteristics of the venture capital market: opportunity selection, monitoring, capital rationing, as well as deal flows and channels, in greater depth. It covers a developing market (South Africa) and uses qualitative methodology. Quality of opportunities is generally low, impacting industry efficiency through increased opportunity costs. Markedly about the assessment of applications, is the degree of structure to the process, and intuition involved. At the post investment stage, portfolio companies are managed in a variety of ways, including providing strategic and operational structures and insight, as well as shared services to enhance business functions. In certain cases, capital rationing prevails in the VC market. Deal referral is an important source of opportunities, underscoring the importance of a network and strong reputation. Overall, the VC market is still in its infancy, with a lack of awareness of both its existence as well as its operation. Key recommendations include: 1) improving entrepreneurs' investment readiness, to increase VC market efficiency; 2) considering the use of technology to automate opportunity screening and selection; 3) placing even greater emphasis on the entrepreneur when managing aspects at a post investment stage; 4) the effective use of entrepreneur incentives; 5) more efficient use of online platforms to efficiently source opportunities; 6) further investigating potentially untapped VC market growth potential due to capital rationing; and 7) increasing VC market awareness and attractiveness.

Saving is a crucial component for the economic health of a country and can act as a shield for international capital movements. Low savings behaviour of households in South Africa and in particular that of Midrand, is of great concern. High levels of unemployment, financial illiteracy and debt, contribute negatively to the level of savings. This research study investigates the savings behaviour of households in the Midrand using quantitative methods from data collected from 191 households which participated in the study. The results revealed that many households in Midrand are not financially literate and have a poor savings culture. The inability to budget and lack of financial planning are some of the factors that hinder households from saving. The study shows that households in Midrand are aware of the importance of saving, despite not saving enough. These households earn higher than the average household in South Africa and are more educated. Poor saving behaviour is a result of financial illiteracy. The study recommends that financial education should be part of the curriculum at schools; programmes by both the private and government sectors should be put in place to educate their employees; withdrawal from pension funds should be strictly monitored; parents should encourage their children to start saving from an early age; tax rebates could be a tool to improve savings, and a compulsory saving platform should be introduced to all people earning an income.

Financial literacy may be defined as the ability of an individual to identify how money may be utilized, managed, so that he/she earn and grow it to improve his financial status and that of others which in the long run improves the economy as a whole. Statistics from FinAccess Kenya indicate that close to 76 per cent Kenyan adults do not adequately understand key financial concepts. The purpose of the study was to establish the moderating effect of financial literacy on the accounts receivable management practices and growth of SMEs. The findings revealed that financial literacy moderates the relationship between ARM practices and growth of SMEs. This can be supported by the regression results which revealed a positive and significant moderating effect. The magnitude of the effect was significant and illustrated that the interactive factor increased the way accounts receivable management practices affected growth of SMEs. The findings would form a basis for government and policy makers to formulate strategies and policies that would help reduce the levels of financial literacy among the adult population.