Lucy Wambui Njoroge


It is generally accepted by policy makers at local, regional and national level that small to medium sized enterprises (SMEs) are becoming increasingly important in terms of employment, wealth creation and development of innovation (Nieman, Haugh and Nieunhulzen 2003, Vesper, Boden and Roman in carland, Carland and Uptono 1999).

In Kenya (SMEs) sectors employs over 80% and is currently receiving a lot of attention from the government. At macro level (SMEs) have created majority of new employment opportunities in developing countries Since 1970’s (Peacock 2004). Given the significance of SMEs to the Kenyan economy and the fact that no study has been done on the influence of strategic planning on SMEs, encouraged my venture into the study.

The main objective of the study was to investigate the influence of strategic planning on performance of small and medium enterprises (SMEs). The   research also seeks to assess the factors that influence SMEs decision makers to use strategic planning.

The findings were that strategic planning played a major role in performance of the SMEs and that both age and education level was significant in the use of strategic planning. This conclusion is significant to SMEs because it shows positive impact on businesses which use strategic

Key words: SMEs, Performance, Strategic planning, Shareholders

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