Incidence of Strategic Planning in Small Business : An Overview

During the last several years, extensive attention has been paid to the issues relating to strategic planning. Even though practitioners and academicians have been continuing their debates on the merits of strategic planning. The literature on planning in small business has grown considerably over the past decades. With a few notable exceptions, many scholars have recommended that small firms need to use strategic planning as an essential tool for their improved performance. According to Gibb and Scott (1985) strategic planning can almost certainly influence the growth of the company and provide a frame work for enhancing this or it can also help maintain the existing size and capability of the firm. Although, the preconceived notions of strategic planning support the idea that formal strategic planning practices heightens the owner managers’ ability to think strategically (Porter, 1980; Lyles et al., 1993). Hence, the present study is initiated on incidence of strategic planning in small business. Secondary data have come from research monograms, books, and journals etc. Therefore, this study will contribute to the existing stock of knowledge in the literature of strategic planning in small business. Finally, based on the empirical findings strategic planning contributed significantly to the relationship with overall performance of small business under the study