The Impact of Strategic Planning to the Development of Small Scale as a Means of Reducing Unemployment
CHAPTER ONE
Objectives of the Study
- To appraise the SMEs business strategies that differentiate them from competition
- To explore the SMEs competitive priorities that outperform competitors
- To examine if SMEs undertake market analysis to determine the need of customers.
- To see if the current strategic planning of SMEs has reduced unemployment
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Employment and job creation
It is apparent that SMEs play an important role in all OECD economies: they make up over 95 per cent of enterprises and account for 60 to 70 per cent of jobs in most OECD countries. The share tends to be somewhat lower in manufacturing, although it varies between 40 to 80 per cent of employment in manufacturing (Table 1.1). The overall share of small firms in employment and output may be even higher given that establishments or firms in the service sector are normally of smaller average size than in manufacturing. Table 1.2 illustrates the variability across sectors: for example, wholesale and retail trade and hotels and restaurants are dominated by SMEs. In construction SMEs account for 80 to 90 per cent of all employment. The fact that these industries loom large in overall employment underscores the importance of SMEs as sources of employment. Furthermore, the share of large firms in employment and output has tended to show a certain decline. The average establishment size in manufacturing has fallen since the early 1980s in Canada, the United Kingdom and the United States, has remained constant in Germany, and has risen in Japan (Table 1.3a and 1.3b). The importance of smaller establishments in job dynamics is often assessed on the basis of net employment changes. From the mid-1980s to the early 1990s, in all countries, small establishments (fewer than 100 employees) displayed more rapid net employment growth than larger ones (OECD Employment Outlook 1994, Chapter 3). However, there are at least four ways in which this should be put into perspective: First, it is not surprising that small enterprises/establishments play an important role in the job creation process since they account for between 40 and 80 per cent of total manufacturing employment. To see whether their role is disproportionately high, net job creation has to be expressed in relation to the initial employment in small and large establishments. As shown in Table 1.4, net job creation rates are in fact often higher for smaller size classes. However, for a number of countries it was found that the highest net job creation rates were among very small firms whereas small to medium-sized firms (between 20 and 50 employees) did not perform better than large firms.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was on the impact of strategic planning to the development of small scale as a means of reducing unemployment. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of the impact of strategic planning to the development of small scale as a means of reducing unemployment
Summary
This study was on the impact of strategic planning to the development of small scale as a means of reducing unemployment. Four objectives were raised which included: To appraise the SMEs business strategies that differentiate them from competition, to explore the SMEs competitive priorities that outperform competitors, to examine if SMEs undertake market analysis to determine the need of customers and to see if the current strategic planning of SMEs has reduced unemployment. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The study adopted a survey research design and conveniently enrolled 80 participants in the study. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from SMEs in Uyo. Hypothesis was tested using Chi-Square statistical tool (SPSS).
5.3 Conclusion
Until now, the government’s efforts to expand the SME quarter have now not been guided through a coherent countrywide, SME coverage framework, and there may be no critical mechanism internal government for designing and tracking the development of an inclusive SME policy. Rules affecting development of SMEs are embedded in different coverage frameworks, which include the national Micro finance approach, the country wide Employment method, the economic coverage, the countrywide Innovation. Unemployment rates (growing to 14% in 2013), and an alltime excessive finances deficit, therefore, SMEs have to be supported and empowered as the principle long time answer for numerous issues, and home firms should be able to compete on a worldwide stage with the products imported into the market from other countries, and the export possibilities offered via unfastened trade agreements. That said, a countrywide marketing campaign led by way of corporations, business institutions, universities, public officials, and legislatures may want to assist SMEs grow. National leaders across sectors ought to be connected to increase countrywide techniques and convey scalable models that construct on nearby assets and entice local assets, as in many cases regional collaboration can accomplish matters which might be hard to attain at the country wide stage. Leaders need to encourage coverage makers to direct resources closer to hyperlinks that fill gaps within the SMEs platform and circulate ideas into use, strengthens SMEs that create jobs and educates humans to be job-prepared. This is good for the economic system and society
Recommendation
Hence, this study recommends that Government should as matter of urgency take proactive measures in addressing some of the key constraints faced by the sector such as Access to finance, Weak infrastructure, Inconsistency of Government Policies, Poor support (Business Development Services), Access to market, Multiple taxation and Obsolete technology. A stable, effective and secure financial systems which is targeted at lending, such as a MSME bank, should be established to mid wife the subsector in terms of access to affordable finance. There should be good institutions at all levels of government to support and promote SMEs and this will however lead to reduction in corruption and regulatory burdens likewise rule of law, land and property rights, creditors’ rights etc. are overcome accordingly. Good infrastructure and facilities that will encourage SMEs to pool their information and resources together is highly needed likewise sufficient human capital development. There should be promotion of and access to innovation and technology and adequate openness to foreign technology. Good policies that encourage stable exchange rates, low inflation which minimizes entry regulations and promote attainment of higher levels of productivity should be put in place
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