Strategic planning and SMEs

Abstract

Do small enterprises need strategic planning? What should be the horizon of such a plan, given the high mortality rate of new ventures often postulated in the literature? A small business is not necessarily a little big business, so the elaborate corporate strategic planning process may not be strictly applicable to small enterprises. Consequently, within the constraints of their "smallness" what approaches to strategic planning can entrepreneurs use that will represent a middle ground of planning paralysis and no planning at all? This paper critically evaluates the importance and benefits of strategic planning to SMEs. It suggests that if planning is tailored to the appropriate stage of development of a typical small enterprise, then the few that may evolve as they grow could be developed into a strategic plan that provides direction for future growth.