Abstract
The study analysed the processes involved in business planning, examined the challenges and problems faced by Nigerian entrepreneurs in business planning of Nigeria's Small and Medium Enterprises (SMEs); and how proper planning can promote their businesses. Primary data was used for this study and they were sourced from Small and Medium scale businesses in Ile-Ife through administration of structured questionnaire. The data collected were analysed using descriptive statistics such as tables, charts, frequencies, percentages. Findings showed that most entrepreneurs find out the demand of the market more than setting goals and objectives. Also results showed that economic instability and access to source of finance are major challenges facing SME's; and proper planning can increase the productivity and profitability of Small and Medium scale Enterprises in Nigeria. The study concluded that effective planning has a significant effect on the performance of small and medium enterprises in Nigeria. It is also recommended that specialised government sponsored institutions should be set up to help small firms by providing planning packages to entrepreneurs tailored to customised needs.
Highlights
Small and medium enterprises have been generally acknowledged as the bedrock of the industrial development of Nigeria and other countries (Audretsch et al, 2002; Stokes and Wilson, 2006; Hulbert et al, 2013), providing approximately 75 million jobs and representing 99% of the 23 million enterprises in the EU (Nymen et al, 2006; Hulbert et al, 2013)
It can be seen that a large percentages of Small and Medium Entrepreneurs try to discover the needs of people in their planning
Based on the above findings, this study concluded that planning has a significant effect on the performance of Small and Medium Enterprises in Nigeria
Summary
Small and medium enterprises have been generally acknowledged as the bedrock of the industrial development of Nigeria and other countries (Audretsch et al, 2002; Stokes and Wilson, 2006; Hulbert et al, 2013), providing approximately 75 million jobs and representing 99% of the 23 million enterprises in the EU (Nymen et al, 2006; Hulbert et al, 2013). Poverty remains a major challenge to sustainable development, environment security, global stability and a truly global market. Improving the performance and sustainability of local entrepreneurs and Small and Medium Enterprises (SMEs), which represent the backbone of global economic activity can help achieve this type of growth. With respect to the present Nigerian economic environment, market structure imperfections play a major role in the inability of many prospective entrepreneurs finding avenues to utilize their opportunities and skills. Some of the programmes and/or agencies that have been developed to improve the lot of Small and medium Enterprises include: National Poverty Eradication Programmes (NAPEP), Capacity Enhancement Scheme (CES), Small and Medium Development Agency of Nigeria (SMEDAN), National Economic Empowerment and Development Strategy (Arowomole and Oyedokun, 2006)
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