The relationship between SMEs and insurance providers in Nelson Mandela Metropolitan area, South Africa

Date
2014
Authors
Chodokufa, K
Chiliya, N
Journal Title
Journal ISSN
Volume Title
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Abstract
Media reports on the effects of climate change on Small Medium Enterprises (SMEs) in South Africa has increased over the past decade. The amount of loss in terms of assets and infrastructure suffered by SMEs is disturbing. Yet insurance providers are not eager to insure SMEs and prefer to deal larger organisations. An empirical study of 203 SMEs was done, structured questionnaires were administered to SME owners. Data was analysed and the results illustrated factors such as the reliability of an insurer, staff knowledge and brand name of the insurer have a great impact on the decision made by SMEs to build a relationship with insurance providers. The respondents, who had been approached by an insurance broker and received training, had a business relationship with an insurance provider. This helps to reach the conclusion that any form of interaction between SMEs and insurance providers helps to facilitate a business relationship
Description
Keywords
SMEs, Insurance and Business Relationship
Citation
Chodokufa, K., & Chiliya, N. (2014). The Relationship Between SMEs and Insurance providers in Nelson Mandela Metropolitan Area, South Africa. Mediterranean Journal of Social Sciences, 5(14), 84-96