STRATEGIC PLANNING AND THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES
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Date
2024-06-25
Journal Title
Journal ISSN
Volume Title
Publisher
Economics. Economic science Corporate contributor: Sowth-West University Neofit Rilski. Faculty of Economics.
Abstract
Strategic planning has attracted the minds of many scholars over the decades and is widely
recognized as important ingredient that influences the attainment of high organizational
performance. The objectives of the study were to determine the influences of the organization
structure on customer’s satisfaction of small and medium scale enterprises and also to examine
the effects of budgetary allocations on profitability of small medium enterprises. The population of
this study comprised all 1,663 SMEs in Abeokuta South Local government Ogun State. A sample
size of 100 SMEs in Abeokuta South Local government Ogun State was randomly selected to
represent the population for this study. A questionnaire was used to elicit information from the
respondents. The ex-post facto method and Yamane formula were employed. Analysis of variance
(ANOVA) and correlation efficient were adopted. The responces acquired from the questionnaire
were sorted, coded and the statistical Packages for Social Sciences (SPSS) version 20.0 was
employed. The empirical findings revealed show that there is significant relationship between the
organization structure and customer satisfaction of small medium enterprises in Ogun state. The
findings of hypothesis two show R2= .036 which proves that budgetary allocations affect
profitability of small medium enterprises. Budgetary allocation enablesthe business to set targets
which are met since every item is budgeted for, budgetary allocation influences growth in the
business. The study recommends that Small and Medium Enterprises should embrace the use of
strategic planning as a tool and concept to be used in achieving the organizational performance.