The effect of management and strategic planning on the financial performance of small and medium enterprises

This review study set out to investigate the effect of strategic planning on the financial performance of SMEs. Numerous external and internal factors impact business performance: failure to develop strategic plans, lack of finance, poor financial management, and lack of suitable management skills. The literature argues that financial performance challenges faced by SMEs can be mitigated with a clear and wellarticulated strategic plan. However, many SMEs indicated that they had never done strategic planning. The results confirm that strategic planning has a positive effect on the financial performance of SMEs. Policy implications indicate that although strategic planning is found to enhance SMEs' financial performance, the majority of them lack an optimal mix of strategic planning elements. Results found that there is a positive and significant connection between application strategic management and performance company finance manufacturing. The study recommendsusing strategic planning to set clear financial performance targets and for relevant stakeholders to introduce policies that help equip SME owners/managers with the optimal mix of business management skills. The study also found that Issue-based strategic planning is a commonly used strategic planning model.

کلیدواژه ها:

strategic planning ، financial performance ، strategic management