Effect of fraud risk management on revenue growth in Women-Owned Small and Medium Sized Enterprises in Starehe Sub-County, Kenya
Date
2025
Authors
Warui, C.
Journal Title
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Volume Title
Publisher
Strathmore University
Abstract
Fraud continues to be a significant challenge for SMEs, particularly women-owned enterprises, as it directly affects financial stability and revenue growth. This study examined the impact of fraud risk management on the revenue growth of women-owned SMEs in Starehe Sub-County, focusing on four key areas: fraud risk assessment, fraud detection, fraud deterrence, and anti-fraud policies. A descriptive correlational research design was employed, using a quantitative approach to analyse the relationships between these factors and revenue growth. Stratified random sampling was utilised to select SMEs from Starehe Sub-County, targeting business owners and financial decision-makers, resulting in a total sample of 236 respondents. Data were collected using structured questionnaires with a five-point Likert scale. Findings revealed that fraud risk assessment, fraud detection, and anti-fraud policies had strong and statistically significant positive effects on revenue growth. In contrast, fraud deterrence showed a statistically significant but negative effect, suggesting that overly punitive deterrence strategies may inadvertently hinder business performance. Correlation analysis demonstrated strong positive relationships between revenue growth and the independent variables, with fraud risk assessment showing the highest correlation. Regression analysis confirmed that fraud risk assessment had the greatest impact, followed by anti-fraud policies and fraud detection, while fraud deterrence negatively influenced outcomes. The study concluded that while SMEs had adopted various fraud risk management strategies, gaps in fraud deterrence approaches and the enforcement of anti-fraud policies remained. Strengthening fraud assessment frameworks, investing in fraud detection technologies, and balancing deterrence measures with ethical corporate governance were recommended. Collaboration between SMEs, regulatory bodies, and financial institutions is essential to enhance fraud prevention measures and sustain business growth. By addressing fraud risks and proposing actionable solutions, this research contributes to SME sustainability and financial security. The findings provide valuable insights for policymakers and business owners, reinforcing the importance of fraud risk management in driving SME growth and resilience in Kenya’s business environment.
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Full - text thesis
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Citation
Warui, C. (2025). Effect of fraud risk management on revenue growth in Women-Owned Small and Medium Sized Enterprises in Starehe Sub-County, Kenya [Strathmore University]. http://hdl.handle.net/11071/15734