EFFECT OF PLANNING ON THE SUCCESS OF SMALL BUSINESS ENTERPRISES
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EFFECT OF PLANNING ON THE SUCCESS OF SMALL BUSINESS ENTERPRISES
Chapter one
INTRODUCTION
Background to the Study
Planning is widely regarded as one of the most challenging responsibilities that managers face, and it is simple to delay. Planning is based on the belief that continual management actions can improve a company’s future performance.
It assumes that an organisation will be more effective in terms of its broad objectives if management takes steps to execute the fees and forward the process than if no planning is done.
Management is facilitated when decision makers of an organisation plan its future course of action ahead of time and coordinate individual and group efforts in a sensible manner. Planning entails determining in advance what to do, how to do it, when to do it, and who should do it.
Planning bridges the gap between where we are and where we want to go. It enables or causes events that would not have occurred otherwise. However, the exact future is difficult to anticipate, and factors beyond one’s control might disrupt even the best prepared plans.
Planning is therefore required if the unexpected must be managed within an acceptable process. i.e. involves the intentional determination of a course of action and decision-making based on purpose.
The changing character of activities and procedures in numerous sectors of human activity, such as economic, technological, social, and legal settings, has become an unavoidable aspect of any organisation.
These developments may present possibilities or risks to the organisation. Whatever the direction of change, organisations must accept and adapt to it as part of the planning process.
According to Agu (2003), an organization’s success or failure is mainly defined by its ability to adapt to a changing environment.
1.2 Statement of Problem
Planning is a function of all managers, albeit the type and scope of planning will vary depending on their authority and the nature of the policies and plans specified.
Planning is crucial in an organization’s corporate objectives because it eliminates or minimises managers’ predisposition to guess, rule of thumbs, and hunches in decision making and replaces them with logic, reason, and rationality.
Planning envisions and forecasts the future of affairs. However, many corporate companies have ultimately failed in planning, with some managers neglecting this critical duty.
This has undoubtedly resulted in financial losses and, in certain circumstances, the collapse of our economy. The researcher is thus interested in investigating these critical issues within the context of small business enterprises in Akwa Ibom State
specifically whether small business operators practise planning and, if so, whether it is possible to link growth failure to planning or a lack thereof.
1.3 Objectives of the Study
The primary goal of this study is to investigate the impact of planning on the success of business companies in Akwa Ibom State. Additional aims include the following:
To investigate whether planning contributes in achieving organisational goals.
To explore the impact of planning on the profitability of business firms in Akwa Ibom State.
To determine whether planning is responsible for the failure or success of small businesses in Akwa Ibom state.
To determine if planning leads to the expansion of small businesses in Akwa Ibom State.
1.4 Research Question.
To help fulfil the study’s aims, the following research question is logically formulated.
How does planning affect the profitability of business enterprises?
Does planning help to achieve organisational goals?
Is planning accountable for the success or failure of Akwa Ibom State’s small businesses?
Does planning promote corporate development or expansion?
1.5 Research Hypothesis
Hi: It is true that planning aids in achieving organisational goals.
Ho: Planning helps foresee future events and plan actions.
Hello: Planning allows you to anticipate future occurrences and take action.
1.6 Significance of the Study
The study’s relevance is as follows:
Loopholes in the planning process would be made aware to ensure that planning is appropriately executed at all levels of the organisation.
This study would broaden the research horizon on the effectiveness of planning on the development of business companies in Akwa Ibom State.
This study will explain how planning is implemented to eliminate random activity and overlapping efforts in the organisation.
The study will demonstrate how planning improves activity measurement performance.
This study will demonstrate how planning provides a feeling of direction and concentration to an organisation.
To establish a base for control. Control operations are focused on established goals, which may be standards, objectives, or targets, and so provide a mechanism of monitoring performance.
It will integrate and view the organisation while also visualising how the activities are interrelated in reaching the overall aims.
This study would describe how planning might help leaders and employees achieve their goals.
1.7 Scope and Limitations of the Study
The focus of this investigation was on business firms in Uyo, where Ibedmore’s resources were restricted.
1.8 Definitions for Terms
The following terms are defined in the context of their use in the research activity.
Management is the art and science of employing available resources, including persons, money, materials, and machines, to achieve organisational goals (Nwosu 2011).
Control is the process of assuring efficient performance in order to achieve the enterprise’s objectives.
Decision Making entails a commitment of decision to perform or not do an act, or to adopt or reject an activity.
Profitability refers to an enterprise’s ability to create earnings.
Forecasting entails forecasting and anticipating future problems and events.
Goals: they are the objectives towards which an effort is focused.
Programmed Decision Making: This is routine decision-making that follows set rules or procedures.
A mission statement describes what the organisation wishes to be recognised for.
Strategies are broad programmes designed to achieve the organization’s objectives.
Objectives are precise goals that must be met in order to realise an organization’s mission.
Non-programme decision-making: These are routine decisions that are not made. This is a decision taken in response to unusual and unpredictable events or situations, and it is made with certainty.
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