International Review of Management and

Marketing
ISSN: 2146-4405

available at http: www.econjournals.com

International Review of Management and Marketing, 2022, 12(4), 19-28.

Critical Factors for the Successful Implementation of a Strategic

Business Plan among Small and Medium Size Enterprises

Paul Saah*

North-West University, Mahikeng Campus, Private Bag X2046, Mmabatho, 2745, South Africa. *Email: [email protected]

Received: 06 April 2022 Accepted: 28 June 2022 DOI: https://doi.org/10.32479/irmm.13280

ABSTRACT
In today’s dynamic and competitive business world, small and medium-sized enterprises require strategic planning as a business tool. The purpose
of this study was to determine requirements that a small business must meet to successfully implement a strategic business plan. The study
employs a qualitative research approach for collecting and analysing data. A non-probability sampling method was used to select the 20 small
business owners and managers who participated in the study. The data collection was done through the conduction of interviews and thematic
analysis was carry out to analyse the data. The findings demonstrate that strategic business planning helps small businesses in analysing their
existing contexts, examining how current trends could affect them, and determining best practices to overcome potential barriers to success. The
study equally portrays those small businesses that implement strategic business planning into their operations have a higher chance of success
than those that do not.
Keywords: Critical Factors, Strategic Business Plan, SMEs, Implementation, Success
JEL Classifications: M130, M13, M21

1. INTRODUCTION an organization’s mission, vision, goals, objectives, strategic

decisions and resources.
As competition intensifies, small and medium-sized enterprises
(SMEs) in many nations are stepping up their efforts to learn Strategic business planning is a management tool that protects
how to improve their performance. However, opinions on companies from highly competitive and volatile markets by
the impact of strategic planning on business performance are offering an operational framework that helps them to achieve a
divided. Highly competitive and volatile market conditions competitive advantage and improve performance. The primary
pose a threat to the survival of SMEs. These operations must components of strategic business planning methodologies include
undertake strategic planning to survive and compete in a tough mapping where an organization wants to go, where it is now, how
business environment. Unstable corporate dynamics necessitate it plans to get there, and what changes could occur in the business
more extensive yet adaptable strategic planning techniques to environment. This strategic planning includes the creation of an
ensure survival and growth (Tinashe, 2018). SMEs must engage organisation’s purpose statement, the establishment of goals, the
in strategic planning as business environments become more formulation and execution of strategies, as well as the monitoring
sophisticated and uncertain. This demonstrates how strategic and control of strategy implementation progress (Sandada
planning processes could assist SME owners and managers et al., 2014). Academics, professionals, and policymakers are
in determining where they are now, where they are going, and increasingly interested in the elements that determine the success
how to deal with business uncertainty in the future. Strategic of SMEs. A substantial amount of literature shows that critical
business planning is a feasible alternative because it connects success factors (CSF) have been and continue to be the focus of

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 Saah: Critical Factors for the Successful Implementation of a Strategic Business Plan among Small and Medium Size Enterprises

research in a variety of disciplines, including CSF for business be implemented successfully? As a result, the findings of this study
development in many countries throughout the world (Al-Tit benefit SME owners and managers in understanding those aspects
et al., 2019). they should consider in their strategic business planning and how
important they are to their companies’ success and growth.
In order to successfully implement a strategic business plan in
SMEs, a more methodical and intentional assessment of the 2. LITERATURE REVIEW
essential aspects is required. This is because small businesses
need to be aware of the factors that enable their organisations to Small and Medium Size Enterprises are by no means easy to
successfully implement the strategic business plan., The strategic establish and grow into successful entities. The purpose of this
business plan is extremely important in SMEs due to the role these section is to examines the theoretical perspectives that analyses
enterprises play in the growth of an economy (Olszak and Ziemba, the philosophy and ideas that underpin the success of SMEs
2012). Small businesses can use strategic business planning and also review literature of the principal elements of strategic
to figure out what causes problems and how to solve them, as business planning.
well as to comprehend the operating environment, define the
organisation’s purpose, and explain the company’s goals, values, 2.1. Theoretical Perspective of SMEs Success
and account for the resources. The more a small business practises Scholars have put forth several theories to explain SME success
strategic planning in a dynamic market, the more stability it may and sustainability. The major theories underpinning SME
accomplish its objectives. In this way, strategic business planning sustainability are the financial gap theory, the resource dependence
assists to clarify business objectives, collect data in a methodical theory, the theory of mergers and acquisitions, investment theory
way, prioritise initiatives, foster teamwork, raise environmental and trickle-down theory. These theories form the underlying
awareness, communicate strategic intentions to all stakeholders, foundations for SMEs survival and sustainability.
and improve performance (Sandada et al., 2014).
2.2.1. Financial gap theory
Scholars have put forth numerous theories to explain SME Asplund and Henriksson (2012) note that the financial gap theory
performance, however the theory of mergers and acquisitions has states that there is a gap between investors and/or financiers and
never been projected as the underlying foundations for success of small business owners, with the underlying reasons typically
small firms. This is due to the fact that mergers and acquisitions being insufficient cash from the financiers, inadequacies from the
are one of the most effective strategies for small firms to develop business owners, or both. According to these experts, the financial
and become more successful. A merger or acquisition in business gap arises from a “knowledge gap” between SMEs and financiers,
is defined by Arvanitis and Stucki (2015) as the combination of in which the financiers do not understand the situations of the
two or more enterprises into one new entity. He goes on to say that entrepreneurs and the entrepreneurs do not satisfy the investors’
in the twenty-first century, mergers and acquisitions have become or financiers’ demand for information and have insufficient
a critical strategic tool for achieving certain company goals and knowledge of various capital-raising prospects. The financial gap
objectives. This means that a merger and acquisition occurs when theory raises awareness of the need for SMEs to obtain financing
two legal entities’ assets and liabilities are integrated to form a from the government and other sources such as commercial banks
single legal entity. According to Roberts et al. (2010), SMEs merge in order to grow and sustain their businesses.
to create synergies or collaboration between the acquirer and the
target, increasing the value of the company unit. Synergies between 2.2.2. Resource dependency theory
businesses give major benefits since businesses with stronger Resource dependency theory calls for the use of adaptive techniques
market strength charge higher prices for their products and, as a to reduce reliance on other interested parties and to seek out new
result, make more money from consumer surplus. This indicates coalition-building strategies, such as mergers, to help businesses
that mergers benefit both parties since they boost profitability develop. The main ideas of resource dependency theory are
because they provide the new business entity significant market that organizations have methods to increase their autonomy and
strength, allowing it to dominate smaller businesses, charge higher pursue their interests, that social environment is crucial, and that
prices, and earn more. understanding internal and external activities of organizations is
critical (Davis and Cobb, 2010). The resource dependency theory is
The purpose of this study is to develop a conceptual framework relevant for small businesses because it advocates for alliances to be
for SMEs success determinants that could assist investors, formed during periods of low environmental munificence, when stock
entrepreneurs, small business finance organisations, and market reactions are more favourable, demonstrating the magnitude
government agencies in devising a strategy to help small of dependency that successfully predicts these types of alliances.
enterprises flourish while avoiding managerial and financial
failures. The study is important since it shows the impact of CSF 2.2.3. The theory of mergers and acquisition
for SMEs, which may be used as a starting point for future research. Roberts, Wallace and Moles (2010) describe a merger and
By evaluating essential small company success characteristics, acquisition as the combination of two or more enterprises into one
the study’s major goal is to identify SME success elements that new corporation. He goes on to say that in the twenty-first century,
contribute to long-term development. Based on this context, the mergers and acquisitions have become a critical strategic tool for
study seeks to answer the following question: What are the most achieving certain company goals and objectives. According to
significant factors for a small enterprise’s strategic business plan to Mboroto (2012), mergers and acquisitions take place when the

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 Saah: Critical Factors for the Successful Implementation of a Strategic Business Plan among Small and Medium Size Enterprises

assets and liabilities of two legal entities are integrated to establish 2.3. Principal Elements of Strategic Business Plan
a single legal entity. As a result, mergers and acquisitions theory In a well-planned and managed organisation, controls are put
is one of the reasons why businesses have been able to become in place to identify plans that oblige management to regularly
more commercialized and successful in recent years. monitor progress toward the attainment of its goals. Kalane (2015)
states that a strategic business plan is an important step for a small
2.2.4. Investment theory firm in order to build a long-term vision of where it wants to go
Investment theory gives the foundations of making investment and what techniques it should employ to get to this destination.
decisions, starting with portfolio theory and the trade-off Strategic business planning helps small businesses make future
between risk and return. Investment theory portrays how the decisions now; it allows them to make better decisions, determine
definition of entrepreneurs or an investor risk depends critically future orientations, create priorities, allocate resources, improve
on diversification. Investment theory mainly portrays the risk and operations, and track outcomes. An organisation’s ability to plan
returns expected by entrepreneurs and investors when they invest and act strategically enables it to creatively adapt to changing
in a business such as an SME. The classic problem of financing circumstances. With this in mind, it is imperative to review
investment is whereby an entrepreneur or an investor identifies a literature on the organizational vision, mission, core values, critical
great investment opportunity but lacks the cash to take advantage success factors, strategies, goals, objectives, and action plans,
of it. Hence, in such a situation, the only option for the investor is which are the five main components of a strategic business plan.
to borrow money either privately from a bank, or from the public
by issuing securities with promises of future payment (Goetzmann, 2.4. Organisational Vision
2017). Investment theory is important to SMEs because it provides The strategic management process includes shaping a SME’s
investment options or strategies by entrepreneurs or investors vision, which portrays the company’s future image. Papulova
which in this case, is equity and debt investments. Hence, it is (2014) asserts that an organisation’s vision is a result of creative
imperative for SMEs to implement the tenets of investment theory imagination, which is the act of imagining the future. A vision
if they desire to succeed. of the future based on concepts that go beyond the present and
motivate generations of small business owners and managers
2.2.5. Trickle-down theory is called an organisational vision. Darbi (2012) considers that
Trickle-down economics theory advocates that the benefits of for all types of companies, especially small and medium-sized
wealthy individuals should trickle down to everyone else in the companies, the organisational vision is recognised as an essential
society, especially the poor population. According to Bhalotia and part of the strategic management process. As a result, vision
Tech (2017), the benefits of big companies and wealthy individuals statements influence business strategy and most aspects of
are usually tax cuts or reduction on big businesses, on high-income overall performance. If a small business owner does not have a
earners, on capital gains, and on dividends because investors, vision, they would not know where they are going, how to create
business owners and savers are the real drivers of economic a strategy to get there, or how to know when they have arrived
growth in every nation. Sowell (2013) further adds that though it (Grusenmeyer, 2017).
is assumed that the jobs would increase the opportunities for the
local people, there would also be trickle down effects because the To get from where they are now to where they aspire to be in
new rise in incomes of the workforce would boost their purchasing the future, SMEs can utilise an organisational vision to structure
power. Consequently, boosting the purchasing power of the local operations, assign priorities, and allocate resources. The vision of a
people enables them to buy more goods and services especially company describes what it wants to be or how it wants to be. As a
from SMEs, which in turn would boost the SME sector and lead result, for SMEs, having a vision is the quintessential dream. Darbi
to the growth and sustainability of small businesses. (2012) claims that by giving strategic direction, organisational
vision functions as a catalyst for SMEs’ purpose and other
Out of the five theories that form the underlying foundation for important goals. This is because a business entity’s vision serves
SMEs survival, the theory of merger and acquisition portrays one as a guide, motivator, and source of purpose and direction for its
of the best strategy of small business success. The theory of mergers employees, managers, and stakeholders. A vision is obviously a
and acquisitions has been developed almost exclusively from the significant aspect for the success of SMEs because it affects an
study of large deals by large firms. Entrepreneurs and managers enterprise’s future. A business’s ability to overcome the inevitable
of SMEs are fully aware of the importance of growth strategy by obstacles in its growth is driven by its vision. It also expresses
merger/acquisition and that is why these small business entities hope and optimism about future prospects (Papulova, 2014). This
make up a greater proportion of the yearly mergers and acquisitions means that SMEs must pursue their goal on a daily basis in order
population as a strategy for their survival and sustainability (Weitzel for their company vision to become a reality one day. This implies
and McCarthy, 2011). The theory of mergers and acquisitions is that a vision is essentially what SMEs should strive to actualise,
important to SMEs because the theory generally advocates for and it should always serve as the road map that stimulates, inspires,
merger or acquisition, which can enable small businesses to form and drives management and other stakeholders.
a larger business entity that can survive the commercial hurdle
associated with small enterprises. The theory of mergers and 2.5. Mission Statement
acquisitions is also important to the success of SMEs because An organisation’s mission is a statement of why it exists, the
it portrays the benefits of amalgamation or integration of small broad purpose it serves in society, the boundaries it operates
business entities to become one larger business entity. within, and how it guides everyday operations and decisions.

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 Saah: Critical Factors for the Successful Implementation of a Strategic Business Plan among Small and Medium Size Enterprises

It also serves as a yardstick by which the company’s activities Berkhout and Rowlands (2007) argue that organisations that
and plans should be measured (Braun et al., 2012). Along with coordinate their selection process so that individual values fit
strategy, vision, and goals, a mission statement is one of the with the basic principles of the business are far more successful
four essential elements of a business plan. A mission offers an in business because their employees are happier. Therefore,
organisation a sense of purpose and establishes boundaries, which employees strive to achieve organisational goals to the best of
are both vital for the organisation’s effectiveness, success, and their ability. Kaye and Jordan-Evans (2009) contend that certain
long-term survival. A mission statement, like a vision statement, individuals value a solid fit between personal values and company
is an important aspect of strategic business planning and basic principles more than the amount of money they make. This
management for all kinds of enterprises (Darbi, 2012). Mission demonstrates that people are beginning to value how they feel and
statements affect strategy and practically every aspect of an how content they are at work over how much they are paid for the
organisation’s performance, which is why they are so important work they do. This means that fundamental values are vital in the
for SMEs to flourish. As a result, stakeholders in SMEs must strategic planning process of an enterprise. Hence, SMEs must
create a written mission statement that articulates the company’s set fundamental principles to guide the execution of programme
objectives and determines priorities among competing demands services and activities in order to succeed in business, especially
for limited resources. when resources are limited.

Darbi (2012) notes that a mission statement is an important part 2.7. Critical Success Factors
of corporate integration because it aligns everyone with the same In order to ensure corporate success, it is vital to apply creative
goals and encourages them to work together to achieve corporate ways and technologies to decrease waste and focus on value-added
success. A mission statement should reflect the owners’ beliefs and operations due to ongoing pressure and market competitiveness in
guiding principles. Varcoe (2016) asserts that the most effective job the organisation (Alaskari et al., 2013). Critical Success Factors
performance strategy when a member is an employee, consultant, (CSF) are essential components for effective strategic planning
or owner is to ensure that individual values and missions are and have the capacity to influence an organisation’s overall
consistent with those of the organisation. Entrepreneurs, managers, performance. Raravi et al. (2013) argue that crucial success
executives, and small business owners need to have a vision factors are the actions that must be taken in order for a company
for the future before writing a mission statement. SMEs prefer to succeed, as well as the features of a company that help it
mission statements because focusing on customer values which survive in a competitive market. This indicates that the CSF of
helps to develop a customer service culture. The development of all organisations in any market is likely to expand significantly
a customer service culture can improve consumer satisfaction and to ensure sustainability. Alaskariet et al. (2013) consider that
increase employee behaviour that has a direct impact on financial organisations that achieve higher results in the important success
performance. Therefore, the mission statement needs to be tied to criteria outperform their market competitors because they have
personal and business value, as well as aspects that set the SME capabilities in specific areas of the industry. Therefore, when a
apart from other companies. company seeks to outperform its competitors in the same market,
the management should focus on a small number of important
2.6. Core Values success variables rather than a large number.
The beliefs and ethics that bind an organisation’s employees,
stakeholders, and customers together are known as values. Values Soheili (2015) asserts that understanding the potential strategic
are frequently defined in order to give an ethical context and effects of information systems necessitates effective planning.
standards for organisational decision-making (Kenny, 2014). Therefore, the key policy in the design of information systems
People with similar value systems, or fundamental values, are more is that they must follow managerial tactics. Sanyang and Huang
likely to succeed in the job. On the other hand, those who do not (2010) consider that many business experts are realising that
share the same set of values are more likely to fail. Darbi (2012) information systems are key strategic management resources
avers that an enterprise’s essential values are long-term views that may help SMEs establish a competitive advantage and boost
held by the founders, referred to as corporate vision, and which productivity. This suggests that with better strategic information
distinguish one organisation from another. A values statement system planning, a business have fewer, if any, operational
is required by SMEs to tell employees and customers about the problems. Sanyang and Huang (2010) proceed to argue that
enterprise’s top priorities and basic convictions. Barrett (2010) any enterprise’s ability to achieve short- and long-term business
says that SMEs’ fundamental values are crucial since they affect success depends on its complete acceptance of vital success
the reputation of an organisation, stakeholder relationships, and elements. As a result, in order for SMEs to survive and thrive,
everything that is done within the company to ensure success. they must implement a complete set of crucial success elements.
When allocating a business’s limited resources, fundamental
values are especially important since they govern the development 2.8. Strategies, Goals, Objectives and Action Plan
and implementation of programme services and activities. As a a) Strategies: The following activity system is a duplication of the
result, fundamental values in business organisations are significant business plan. Strategies are contingent action plans or binding
because they are interwoven into the enterprise, dictating decisions that are developed by management to achieve a specific
behavioural patterns, affecting how customers and suppliers are objective (Casadesus et al., 2010). Networking, coalition building,
regarded, and impacting relationships inside the organisation, education, community development, advocacy, and political or
much like values in people’s lives. legislative reform are examples of strategy that businesses could

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 Saah: Critical Factors for the Successful Implementation of a Strategic Business Plan among Small and Medium Size Enterprises

use to achieve their goals. Nagy and Fawcett (2009) mention of data about a phenomenon, using standardized measures and
that a good strategy development process enables a company to statistical analysis. Qualitative research is a form of social action
develop plans and tactics that generate strategic advantage in a that stresses on the way of people interpret, and make sense of
highly competitive market. As a result, strategies assist SMEs in their experiences to understand the social reality of individuals.
determining which business model to use in the event of a disaster. It makes the use of interviews, diaries, journals, classroom
observations and immersions; and open-ended questionnaires to
(b) Goals: Goals are the desired future results that a person or obtain, analyse, and interpret the data content analysis of visual
an organisation conceives, plans and commits to achieve by and textual materials, and oral history (Mohajan, 2018). Qualitative
setting deadlines within a specified period. Cothran and Wysocki data therefore consists of open-ended questions that the researcher
(2012) assert that goals are statements about a future to which ask to get information by interviewing participants. Open-ended
an organisation aspires. Goals are intended to symbolise what an questions shape the interview process, allowing the participants to
organisation is trying to achieve and serve as an internal source respond in their own words for the researcher to better understand
of motivation and inspiration, as well as a roadmap for action a complex situation.
and as a measure of success. This means that an organisational
objective is important in determining whether or not a small The interview was used in this study to get confirmatory
business prospers. Cothran and Wysocki (2012) also confirm that information provided by small business owners and managers
goals provide motivation, direction, and purpose. This means that about their perceptions or opinions concerning the critical factors
if SMEs want to achieve their goals, they must design them in for the successful implementation of strategies for the survival
such a way that they are achievable. This is because articulating of SMEs which is the subject matter of the study. In this regard,
organisational goals in terms of fostering positive outcomes and the interview questions for this study were formulated to address
avoiding negative outcomes makes the goal more achievable. the strategies implore by small business owners and managers to
ensure the success of their SMEs. Twenty small business owners
(c) Objectives: Business objectives are the long-term intentions and managers were chosen from among the small businesses around
that an enterprise seeks to achieve, such as making a profit or South Africa. This is because saturation was reached after this
providing high-quality goods or services to customers (Root, number of participants had been questioned, as the majority of their
2016). This suggests that a business has only one main goal: to responses to the interview questions were the same at this point.
maximize profits. Root (2016) asserts that business profitability
requires ensuring that total revenues always exceed operating Sampling techniques were implored to determine the sample
costs, calling for a greater focus on cost control in operations and size of the study. Gray (2014) asserts that a sample is the entire
manufacturing, while sustaining an income margin in the sold selected set of items or objects of which hypotheses are tested
items. Sadiq et al. (2007) are convinced that productivity is not or of which research questions are asked, taken from the total
the main objective of a company because, although entrepreneurs available population. Hence, sampling is used to determine the
focus on profits, they must also consider the interests of their sample size which is the representation of the entire research
customers, employees and the community. As a result, in order for population. This also implies that sampling studies the features of
SMEs to exist, they must have goals, particularly economic goals, the bigger group in order to save time, minimize cost and to avoid
that are aligned with their business aims and mission. inconveniences associated with arranging appointments with the
entire population. As such, sampling is the selection of a unit of
(d) Action plan: This is a set of instructions for achieving a certain individuals to measure from a bigger population. A simple random
goal. A corporate action plan’s purpose is to describe the types selection procedure was utilised to choose the 20 interviewees.
of resources needed to achieve the goals, provide a timeline that Participants were given the opportunity to share their ideas on
illustrates when each task must be completed, and determine the important aspects for the effective implementation of a strategic
resources needed to achieve the goals (Rouse, 2013). As a result, business plan among SMEs using open-ended interview questions.
an action plan outlines in detail who is responsible for what, when,
and how to effect changes in the organisation. A list of potential The nonverbal communication process was used to categorize
obstacles or resistance, necessary resources, and open partners or the main themes in the analysis process while the audio-recorded
communication channels can also be included in an action plan. interview complements the transcription of the data. The analyses
Scheid (2013) states that an action plan leads an organisation to in this study required comprehensive consideration to the recording
its objectives by outlining the steps that must be taken and the and data coding in the content analysis. Therefore, the analysis
day-to-day activities undertaken to accomplish its objectives. This that was performed on the data for this study is thematic analysis.
means that any action plan must start with a precise description Thematic analysis is a method of analysis in qualitative study that
of objectives, then break down large objectives into smaller ones put emphasis on pinpointing, examining, and recording patterns,
within a given time limit, and finally overcome setbacks and hurdles otherwise known as themes within a data set. Thematic analysis is
that may hinder an organisation from achieving its objectives. carry out in qualitative research study so as to be able to identify,
analyse, organize, describe, and report themes that are within a
3. METHODOLOGY data set in order to produce trustworthy and insightful findings
(Nowell et al., 2017). Therefore, thematic analysis can be said
This study uses a qualitative data collection and analysis approach. to be a technique which works to reflect both the reality, and to
Quantitative studies generally involve the systematic collection unravel or disentangle the surface of reality.

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 Saah: Critical Factors for the Successful Implementation of a Strategic Business Plan among Small and Medium Size Enterprises

4. FINDINGS … I set aside enough time to oversee the personnel and

run the company.
This study used a qualitative data collection and analysis approach
to aid in the goal of identifying important criteria for the successful Semi-structured questions were asked about the many business
implementation of strategic business plans among SMEs. This practices entrepreneurs or small business owners and managers
research design emphasises the use of analytic methodologies utilise to make sure that their enterprises succeed. With most business
for interviews, a thematic approach of coding, and conclusions owners trying to implement one or more strategies to ensure success,
based on each of the interview questions. The results of qualitative it is clear that strategic business planning is vital to the survival of
data analysis utilising the ATLAS.ti application software are an enterprise, as the above codes and the direct comments made by
presented in this section. By assessing participants’ perceptions, participants about their survival plans indicate. This could explain
understandings, and knowledge, this study used ATLAS.ti and why some SMEs without strategic business plans have difficulties
qualitative thematic data analysis to establish how they attribute maintaining their solvency, some even fail. Lorette (2017) states that a
meaning to a certain phenomenon. Making meaning of the strategic business plan is essential for the success of an enterprise since
interview schedules was the first step in the data analysis, which it gives small business proprietors a step-by-step path for achieving
began with identifying themes. The data analysis began with their company’s goals and objectives in order to survive and expand.
compiling all 20 participant responses into a single transcript.
The qualitative study’s interview questions were carefully crafted In response to the question of how successful the strategy is for
to elicit the perspectives of small business owners and managers SMEs’ success, the majority of those polled claimed their strategies
in South Africa’s North West Province on what they require to had been successful thus far. Figure 2 shows their precise wording
grow their businesses. The questions were open-ended, giving as generated by ATLAS.ti.
participants as much latitude as possible to respond and provide
as much information as possible. The following are some of the participants’ verbatim submissions
regarding SME survival strategies:
ATLAS.ti used automatic coding in the transcript to visualize …The tactic has worked since my company has endured
participants’ understanding and ideas about the key factors that throughout the years
describe the successful implementation of strategic business plans …The strategy isn’t working in my case since my
among SMEs. ATLAS.ti created codes that describe how people enterprise is shrinking all the time
think about a topic when they talk about it. Figure 1 depicts the …I don’t have sufficient fund to invest in a decent
results of the thematic analysis, which established two significant advertising strategy to reach out to prospective clients,
themes: strategies utilised to ensure the success of SMEs and how so the approach is not very effective.
successful the strategy is ensuring SMEs’ success. …The method worked since I was able to achieve a
number of successes in my firm
In relation to the theme: strategies utilized to ensure the success …The method is effective since it has increased client
of SMEs, apart from two participants, all participants submitted loyalty, which has resulted in increased product sales
that they used one or more strategies to ensure the success of …The method is effective since it has increased client
their businesses. Four business owners stated that they had re- loyalty, which has resulted in increased product sales
invested all of their profits. These participants were convinced
that the tactics they use could help them expand their businesses. The business owners who were interviewed noted that strategies
Similarly, four other participants indicated that advertising is such as setting and fulfilling yearly goals have had a good impact,
the most effective approach for ensuring business growth. They as seen by the fact that their enterprises have endured over time.
highlighted door-to-door marketing, word-of-mouth marketing, Fifteen business owners said that marketing strategies and setting
flyer marketing, target marketing, and social media marketing annual goals have helped them develop their businesses. These
as examples of different types of advertising. The survey also participants documented that their businesses have experienced
shows that setting annual goals and ensuring that they are met are consumer loyalty, as well as increased sales and earnings over time.
crucial factors for SMEs’ growth and success. The SME owners Two business owners, on the other hand, noted that the plan had
and managers interviewed noted that working longer hours, bulk failed since their businesses had shrunk over time due to a lack of
purchases, management, quality control, and stocking high-quality financial resources to meet the objectives they set for themselves.
goods and products are all ways that SMEs could use to grow. The Only one stated that because of financial constraints for marketing
following are some of their verbatim responses. objectives, the goal-setting technique was unsuccessful. Another
…I reinvest all profits into the company to ensure its business owner shared this viewpoint, claiming that despite
growth and long-term viability. using goal-setting as a strategy, his business continued to decline.
…In my fashion business, I use target marketing to target Another business owner, on the other hand, disagreed, noting that
primarily the adolescents who are fashion obsessed. the strategy had been extremely successful in his organisation.
…I sell my stuff to potential clients by going door to door.
…I set annual goals and ensure that they are met. 5. DISCUSSION
…I work long hours, including weekends and holidays
…I buy in bulk from the manufacturer at a reduced price, The results of the study portray that the majority of small business
allowing me to make a considerable profit. owners and managers use strategic business planning in their

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Figure 1: Items for successful implementation of a strategic business plan an SMEs

operations. From the literature, Wiese (2014) avers that many planning could buy and combine tactical business strategies with
studies confirm a correlation between strategic planning and each other as a strategy to succeed.
business success, meaning that formulating and implementing
an effective strategic business plan boosts a company’s chances Most of the strategies that entrepreneurs and managers employ to
of success. Due to a lack of well-developed management and run their businesses are successful, according to the responses of
resources, such as restricted access to money and human capital, the study participants. Indeed, most of them stated that the strategy
most SMEs frequently fail to establish and implement efficient they implemented to run their companies yielded positive results.
strategic business plans. For most of the SMEs in South Africa According to the responses from the two themes that emerged
that are most likely to fail due to a lack of strategic business from the important factors outlining the effective implementation
planning, the study is theoretically consistent with the proposition of strategic business plans in SMEs, small business proprietors
for mergers and acquisitions. The many small enterprises that are and managers must establish and implement a strategic business
on the verge of bankruptcy because of lack of strategic business plan for their companies. Because most entrepreneurs seek to

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 Saah: Critical Factors for the Successful Implementation of a Strategic Business Plan among Small and Medium Size Enterprises

Figure 2: Strategies for survival of SMEs

formulate strategic plans for their businesses and the majority surplus. A merger or purchase of a business is defined by Roberts
of them succeed. Hence, the findings of this study demonstrate et al. (2010) as the combination of two or more firms into a single
that strategic business planning is a significant aspect in assuring new entity. He goes on to say that in the twenty-first century,
business success. This indicates that the mainstream of small mergers and acquisitions are a critical strategic instrument for
enterprises with robust and more effective business tactics achieving certain corporate goals and objectives. Hence, SMEs can
could face little or no challenges in running their businesses and employ merger and acquisition as a tactic to expand and succeed.
achieving their goals and objectives. Cefis et al. (2009) assert that SMEs that explore mergers and
acquisitions are likely to produce value, which is a critical tactic for
Strategic business planning can give SMEs more market power, their success and growth. The idea of mergers and acquisitions, it
allowing them to block other potential firms from entering the is argued, explains why business organisations have become more
market in the future, allowing their enterprises to command a commercialised and viable in recent years. As a result, strategic
higher quality and provide another long-term basis of proceeds. business planning is a method that SMEs may utilise to stay afloat
Most business people strive to develop strategies for running their and grow. This means that SME owners and managers require a
companies because they have realised that it is akin to a road solid business strategy to strengthen and secure the success of
map to success. This remark backs up Berry (2017)’s assertion their businesses through strategic business planning.
that a tactical business strategy defines where an organisation’s
energy and resources will be focused, as well as defining goals 6. CONCLUSION
for stakeholders to reach in order for their enterprises to succeed.
Mergers and acquisitions are one strategy that SMEs might employ From the findings of this study, a well-planned and well-managed
in order to grow. This logically gels with the theory of mergers and business is well positioned to detect plans that compel management
acquisitions, which states that a merger or acquisition is the merger to keep track of progress toward its goals on a frequent basis.
of two or more companies into a new organisation (Roberts, 2010). This is because strategic business planning assists an organisation
As a success strategy, large organisations with excellent business in understanding its current situation, examining how present
strategies can amalgamate or buy smaller companies that do not and imminent trends might influence it, and determining the
have a good business strategy and are on the margin of failure so greatest course of action to counter looming difficulties. Small
that they can be revived. businesses can benefit from strategic business planning in
overcoming unpredictably tough business situations. Insights
SMEs merge to develop synergies that increase the enterprise’s gained throughout each planning cycle may enable SMEs to
value (Salama, 2015). According to mergers and acquisitions respond effectively to rapid and complex change while actively
theory, combining corporate synergies provides enormous benefits focusing on reaching their desired destination. SME owners can
since companies with more market strength bargain higher prices benefit from strategic business planning in a variety of ways,
for their goods and, therefore make more profits from customer particularly since it teaches staff how to think and act strategically.

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 Saah: Critical Factors for the Successful Implementation of a Strategic Business Plan among Small and Medium Size Enterprises

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