The effect of business plans on business performance a case of selected SMEs in Ghana
All over the world, governments and other development agencies have underscored the important role of SMEs right from helping address unemployment and social issues to being a major source of government revenue for infrastructural projects. This study sought to examine the impact of business and growth of Ghanaian SMEs. The research design used was descriptive. The population for the research comprised all SMEs in the Kumasi metropolis out of which 100 SMEs were sampled for the study. Data was collected from primary source by administering questionnaires to owners of the SMEs sampled. By convenience sampling technique, the SMEs were selected and by purposive sampling, the owners were selected. After the study, it was concluded that, SMEs that had business plans performed well in the area of sales, clientele base, and staff capacity. There was however, no relationship between having a business plan and the number of branch networks. Although the percentage was not that encouraging, some SMES had a clearly developed corporate level strategy. The study also found that significant number of SMEs conducted SWOT analysis, made projections, undertook monitoring and modification policy, and had a formally developed business plan. It was revealed that non-financial benefits that SMEs enjoyed by using a formally developed business plan included increase in customer satisfaction, efficiency gains, increase the level of commitment to set target, enhances product or service delivery, and increase in product or service quality. Considering the significance of the effect of business plan on SMEs growth and performance, the researcher recommends that institutions like the National Board for Small Scale Industries should be well resourced to help SMEs develop a compressive business plan. Also, the initiative by TECHNOSERV/ENGINE to help SMEs develop skills in formal business plan preparation should be sustained in the long run.
A thesis submitted to the Department of Marketing and Corporate Strategy, Kwame Nkrumah University of Science and Technology in Partial Fulfillment of Requirement for the award of degree of Master of Business Administration (strategic management consulting option), 2015.