Strategic planning and the performance of Small and Medium Enterprises
Strategic planning and the performance of Small and Medium Enterprises

Summary/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.

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