The Relevance of Business Planning Document for Small and Medium Scale Enterprises in Tamale Metropolis, Northern Ghana

Jochebed Abbrey, Daniel A. Bagah, Joseph K. Wulifan

Abstract


It is conventional  wisdom  that  new  businesses  be  planned  prior  to  their  start-up hence  prospective  business  founders  are  generally  advised  to  develop  formal  plans  of their  proposed  ventures. A business plan that serves as a blueprint or road map that provides direction and increases the firm’s chances for survival and success is thus essential. According to Kraten and Kenneth (2010), a business planning document represents “a nuts-and-bolts document†that clearly demonstrates that the business operator prepared to operate the business from day one. Andualem (1997) asserts that SMEs with regards to Ghana comprise activities that are independently owned and operated; managed by the owner; have a small share of the market; and employ 6-49 employees.

This study investigated the impact of a business planning document on the growth of small scale businesses. Basically, the researcher chose the survey strategy in line with the observation that it is possible to use survey approaches within either a qualitative or quantitative research strategy. All the 50 respondents chosen purposively from the target population responded to the survey questionnaires.

The study found that business planning influences the success or survival of SMEs. Also SMEs Enhance poverty alleviation, Improve per capita income, Enhance the quality of lives, Encourage technological innovations, Enhance export promotion, Enhance GDP growth, Encourage entrepreneurship, Accelerate employment generation, Ensure inter- and intra-regional decentralization, Serve as a countervailing force against the economic power of larger firms, Accelerate the achievement of wider socio-economic objectives, as well as Serve as cornerstone for socioeconomic growth and stability.

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