Business planning and performance of small and medium scale enterprises in Mukono municipality

Abstract

This study focused on assessing the impact of business planning and performance of Small and Medium Scale Enterprises in Uganda. The study was guided by the following study objectives namely;assessing the Nature of Business Planning and how it affect performance of SMEs in Mukono Municipality, analyzing the internal business planning factors that affect business performance of SMEs in Mukono Municipality and examining the External Business Planning Factors that affect business performance of SMEs in Mukono Municipality. The study was guided by a cross sectional design conducted from a population of 45 CEOs of SMEs in Mukono Municipality. The study found out that internal business planning factors such as setting specific objectives, availability of business plans and employees' awareness of core values affect performance of SMEs. More still, the study found out that external business planning factors including changes in government policies, environmental regulations and policies as well as political environment affect performance of SMEs. Furthermore, the study found out that external business planning has an overall impact on the performance of SMEs. The following recommendations were therefore made; SMEs should set objectives and goals, develop simple and clear vision, mission, core values as well as strategic plans that guide their operations. More still managers of SMEs should create awareness to all stakeholders about key business planning issues that affect the performance of the business.