The Effect of Strategic Planning and Business Performance of Micro-Small and Medium Enterprises in Kaduna State of Nigeria

Abstract

The overarching objective of this study is to measure the effect of strategic planning on performance of Micro-Small and medium enterprises in Kaduna state as focal point. In recent times, entrepreneurial competencies and strategic planning dimension’s role has been acknowledge as prime and imperative factors and tools for MSMEs performance. In spite of this imperative factors there are insufficient research evidence on the roles, values and produce of strategic planning for MSMEs. Past studies has also shown that many researchers use one dimensional measure of strategic planning, which is not in line with the multi-dimensional nature of strategic planning. This present study therefore intends to close this gap. This study aims to identify the entrepreneurship competency and strategic dimensions that an entrepreneur needs to acquire to operate his/her business successfully particularly the owners of the enterprises. The study used both survey and descriptive research designed and questionnaire was distributed to MSMEs in Kaduna Metropolis. The study population for this study was 480 owners of MSMEs in Kaduna metropolis. The sample size was derived using taro Yamane and the sample was arrived at 234.however, 185 questionnaires was retrieved with only 133 were properly filled which was used as a base for the purpose of data presentation and analysis. The research model was interrogated using SPSS-21 version and results revealed that there is a significant positive relationship between strategic planning dimensions and entrepreneurial competencies on the performance of MSMEs. Both strategic planning dimensions and entrepreneurial competencies has positive relationship with performance of operators/owners of MSMEs in Kaduna Metropolis. In general, this finding supported the view that competency can override predisposition of individual entrepreneur. The study recommended that every MSMEs owners should engage in strategic planning process so as build the needed entrepreneur’s competency and create a synergy between the markets and the business activities for high performance.