Meaning ● Business Model Risk, concerning SMBs, represents the potential for an adopted business structure to underperform or fail, hindering growth prospects. Considering implementation, this risk manifests as an inability to effectively deploy the model due to resource constraints or operational inefficiencies. ● Automation amplifies both potential benefits and hazards; therefore, automation-dependent models are exposed to threats like technology obsolescence and system integration issues. Risk mitigation demands vigilant analysis, adjustment of operational assumptions, and strategic investment in flexible infrastructure. Furthermore, failing to adapt to changing market conditions or disruptive technologies poses a significant threat to the model’s long-term viability. Finally, ineffective scaling, stemming from poor process design, constitutes a core business model risk in rapidly growing SMBs.
