Business Planning and the Economic Growth of Small and Medium Scale Enterprises in Nigeria

Abstract

The purpose of this study was to determine the relevance of business planning  the economic growth of Small and Medium Scale Enterprises (SMEs) and their ability to attract investors and loans, in the face of dwindling economic returns in Nigeria. A five point likert-type questionnaire was utilized in gathering data from 450 entreprenuers based in Lagos metropolis, Nigeria. Three hypotheses were formulated for the study and tested with chi-square statistic at 0.05 level of significance. Findings revealed that the availability of a “business plan” will significantly enhance the ability of SMEs to attract investors and loans from the financial community. Furthermore, it was revealed that business planning will enhance the capacity of SMEs to adequately respond to environmental changes (such as the recent economic meltdown), as well as, gain competitive advantage over competitors. Important recommendations were advanced.

LWATI: A Journal of Contemporary Research, 9(2), 1-10, 2012