Strategic management in a SME context and links to performance in South Africa
Date
2015
Authors
Harvey, Donovan Leonard
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Abstract
The aim of this paper was to research the strategic planning processes in small to medium enterprises (SMEs) in South Africa and to determine if there was any relation between strategic planning and financial performance of the organisations selected.
A survey was conducted on a sample of 73 SMEs from various industries throughout South Africa. The results of the survey showed that the majority of small business did not have formal documented strategic planning processes in place, but rather followed an informal and flexible planning method for their strategy planning.
The results were inconclusive however when it came to determining the benefits of formal strategic planning on financial performance and competitiveness of the organisation, with both showing a small negative correlation towards strategic planning.
The findings of this research paper should benefit owners and managers of small enterprises as to the benefits and pitfalls of formal strategic planning on the small business organisation.
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Keywords
Small business -- South Africa -- Management. Business enterprises -- South Africa. Strategic planning -- South Africa.