The role of strategic management on small business growth in Kosova

Abstract

Small and medium enterprises (SMEs) are considered to be the engine of economic growth through employment generation, contribution to GDP, technological innovations and other aspects of economic and social development. SMEs are also important because they are key drivers of employment and economic growth. The growth of SMEs depends on ability of those firms to apply strategic planning. In that context, strategic planning is very important for small and medium enterpriese in the time of global competition, technological change and increased dynamics in markets. Even if many entrepreneurs do not formulate business plans, the strategic planning and systematic decision-making can be considered a key determinant of survival and success of small firms. The paper examines the relationship between strategic planning and small and medium enterprises (SME) growth in terms of empirical analyses that include various strategic planning elements.The study has practical implications. Entrepreneurs need to be aware that strategic planning practices, processes and techniques can be beneficial for growth of the firm. In order to enable their firms to grow, entrepreneurs may like to consider exactly formulating strategy, focusing on growth, profit, and market, among strategic analysis techniques paying special attention to analysis of market and competition and exactly formulating generic business strategies The key implication of this study for research is that the assessment of the relationship between strategic planning and small firm growth needs to be done across various elements or dimensions.