These may produce negative impact on the outcomes. In order to minimize the impacts of these risks and uncertainties, business organizations, very often go for insuring their assets, physical as well as human capital. However, the decision for purchasing this financial product is not a random decision. Insuring decision of any business organization depends on various factors. Most of the large business houses purchase insurance as soon as they enter into the market or start their operation. However, for small and medium business enterprises (SMEs), non-insurance or under-insurance is a common phenomenon. The proposed study will try to find out the factors that play significant roles behind the making of an insurance decision for SMEs. This study is mainly concerned with Australian SMEs and hence it will focus on insurance decision making of Australian small and medium business enterprise small scale business owners of Gold Coast and Brisbane district. This study will take into account small scale business owners of Gold Coast and Brisbane district.
In order to conduct a successful research, it is necessary to conduct a rigorous review of existing relevant literatures. This review of literatures will be helpful in constructing the theoretical framework for the proposed study as well as it will show the gap in existing literatures and will b helpful in providing justification for the proposed study. Since the proposed study is concerned with insurance decision making of SMEs, two types of literatures will be reviewed. First of all, focus will be placed on those literatures which provide some theoretical explanations of insurance decision making under risk and uncertainty. Then focus will be shifted to the empirical findings of the existing literatures relating to the operation of SMEs and their insurance decisions, primarily in the context of Australian market.
Risks and uncertainties have attracted attention of a large number of researchers as risks and