Literature Review: Strategic Planning and Performance in Small Business
From the mid-seventies, we can see that scientists make the distinction between large and small enterprises with regard to the needs, complexity and scope of strategic planning. Bracker and Pearson to formulate (1986), Rue and Ibrahim (1998), Perry (2001) and Wijewardena, Zoysa, Fonseka and Perera (2004), all definitions of strategic planning, taking into account the uniqueness of small businesses and not allow small companies derive on the management and material resources in a manner similar to large organizations. Empirical studies show results, a correlation between strategic planning and implementation. However, the results are mixed. A survey of 26 studies to identify Miller and Cardinal (1994) showed a positive correlation between strategic planning and small business performance. Robinson (1982) found a significantly high level of profitability and an increase in sales and profits and the number of full-time employees in a group of small businesses that consultants use for the purpose of strategic planning. Compared with other companies, Bracker and Pearson (1986) found a significant increase in income and the allowance per entrepreneurs in the company of (prepared strategic plans), the highest of four levels, the following strategic planning. No significant increase was detected in the measure divided wage bill for the sum of the sales. was a significant increase in differentiation in the rate of sales to around Rue and Ibrahim (1998) in small businesses, a written plan (Basic or found) a challenge to contain, because unlike other companies. Perry (2001) showed a significant difference in the degree of planning was in small enterprises, which is not applied in bankruptcy, that those who conducted themselves in opposition. Wijewardena et al. (2004) define three levels of planning: No plan, basic planning and scheduling. The results show that the level of planning in direct proportion to the amount of sales. Saffu and Yusuf (2005 rated), three levels of planning: low, medium and high. A correlation between increases in revenues and the low level of planning found. No correlation between strategic planning and increasing the market share or profitability found.