Effect of Entrepreneurial Environment’s Risk Management on Business Sustainability: A Study of Dangote Cement PLC, Nigeria

Peter Elaigwu Oteh; Akeem Olarenwaju Salami

Abstract

This paper investigates the pivotal role of risk management and its impact on business sustainability. It delves into the strategies and approaches entrepreneurs use to identify, assess, and mitigate risks, which in turn improves their ability to seize opportunities in a dynamic and uncertain entrepreneurial landscape. The methodology employed is a combination of desk review and content analysis, involving the systematic collection, evaluation, and synthesis of existing data from various sources. By reviewing existing literature and conducting a brief case study of Dangote Cement's risk management practices, the paper highlights the challenges entrepreneurs face and provides practical recommendations for effective risk management. While entrepreneurship inherently involves risk-taking, effective risk management is essential for long-term success. Entrepreneurs can protect their businesses from potential threats and take advantage of opportunities by identifying, assessing, mitigating, monitoring, and controlling risks. The findings confirm that financial, market, operational, technological, regulatory, and legal risks all influence business sustainability. The study highlights those various risks— including financial, market, operational, technological, regulatory, and legal—play a crucial role in shaping business sustainability. Entrepreneurs who implement proactive risk management strategies, such as identifying, assessing, mitigating, monitoring, and controlling risks, can effectively safeguard their enterprises from potential threats while also capitalizing on growth opportunities. The case study of Dangote Cement reinforces the significance of a well-structured risk management approach in ensuring business resilience. This paper offers practical recommendations for entrepreneurs, advocating for the adoption of a comprehensive risk management framework that incorporates strategic planning, innovation, and adaptability. By prioritizing risk management, businesses can enhance their long-term sustainability and maintain a competitive edge in an increasingly dynamic economic landscape.