Effect of Strategic Planning on the Performance of Small and Medium Scale Enterprises in Nigeria, Evidence from Delta State
Ernest Jebolise Chukwuka *
Department of Entrepreneurship, University of Delta, Agbor, Nigeria.
Imide Grace Ese
Department of Entrepreneurship, University of Delta, Agbor, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
The study investigated the connection between success in the SME sector and the adoption of strategic planning. Despite what appears to be improved institutional support for the sector and an apparent increase in interest in starting small and medium-sized businesses in Nigeria, performance seems to be falling short of expectations. According to several reports, the poor performance of SMEs may be caused by a variety of attitudes toward strategic planning. With the use of SPSS, a descriptive and regression analysis was performed. Findings of the study include the fact that market share growth in Delta state was significantly and favorably impacted by the implementation of strategic plans. In Delta State, there was a substantial and favorable correlation between the development of the strategic plan and the profitability of small and medium-sized enterprises. The examination of cross-functional decisions has a considerable and favorable impact on customer satisfaction in Delta State. The use of strategic planning as a concept and method to achieve organizational performance is recommended for the Small and Medium Enterprises in Delta State, Nigeria.
Keywords: Strategic plan, strategic plan implementation, strategic plan formulation, market share, profitability, organizational performance, SME