TABLE OF CONTENTS
Title Page – – – – – – – – – i
Approval page – – – – – – – – ii
Certification – – – – – – – iii
Dedication – – – – – – – – iv
Acknowledgements – – – – – – – v-vi
Abstract – – – – – – – – – vii
List of Tables – – – – – – – – viii
Table of Contents – – – – – – – ix-xii
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study – – – – – – 1-2
1.2 Statement of the Problem – – – – – 3
1.3 Objectives of the Study – – – – – – 3-4
1.4 Research Questions – – – – – – – 4
1.5 Statement of Hypothesis – – – – – 4-6
1.6 Significance of the Study – – – – – – 6
1.7 Scope of the study – – – – – – – 6
1.8 Limitation of the Study – – – – – – 7
1.9 Organization of the Study – – – – – – 7-8
1.10 Definition of Terms – – – – – – 8-9
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Concept of business plan – – – – – – 10-12
2.2 Business plan as a tool for effective planning for SMEs – – 13-15
2.3 The importance of business plan to SMEs – – – – 16-19
2.4 The impediments associated with the preparation/usage
of business plan – – – – – – – 19-23
2.5 Who should prepare a business plan – – – – – 23-24
2.6 Who needs a Business plan – – – – – – 24-27
2.7 Strategies for improving the use of business plan
by SMEs – – – – – – – 27-29
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Research design – – – – – – 30
3.2 Population of the Study – – – – – – 30
3.3 Sample and Sampling Technique – – – – – 30-32
3.4 Instrumentation – – – – – – 32
3.5 Method/plan for Data Analysis – – – – – 32-34
3.6 Problems of Data Collection – – – – – 34-35
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1. Data Presentation, Analysis and Interpretation – – 36-38
4.2.1 Test of hypothesis one – – – – – – 44-48
4.2.2 Test of hypothesis two – – – – – – 48-52
4.2.3 Test of hypothesis three – – – – – – 52-56
Test of hypothesis four – – – – – 56-59
4:3.1 Discussion of Findings For Data Analysis – – – – 59-61
4.3.2 Discussion Of Findings For Testing Of Hypotheses – – 62-64
CHAPTER FIVE
FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings – – – – – 65-66
5.2 Conclusion – – – – – – – – 66-67
5:3 Recommendations – – – – – – – 67-68
References
Appendix I
Appendix II
LIST OF TABLES
Table 3.1: Sample selection – – – – – – – 31
Table 4.1: Responses to research question one – – – – 37
Table 4.2: Responses to research question two – – – – 39
Table 4.3: Responses to research question three – – – – 41
Table 4.4: Responses to research question four – – – – 43
Table 4.2.1A: Observed frequency for hypothesis one – – 45
Table 4.2.1B.: Expected contingency for hypothesis one – – 46
Table 4.2.1C: Comparison of observed with expected
frequencies for hypothesis one – – – – 47
Table 4.2.2A: Observed frequency for hypothesis two – – – 49
Table 4.2.2B.: Expected frequency for hypothesis two – – 50
Table 4.2.2C: Comparison of observed with expected
frequencies for hypothesis two – – – – – – 51
Table 4.2.3A: Observed frequency for hypothesis three – 53
Table 4.2.3B.: Expected frequency for hypothesis three – 54
Table 4.2.3C: Comparison of observed with expected
frequencies for hypothesis three – – – – – 55
Table 4.2.4A: Observed frequency for hypothesis four – – – 57
Table 4.2.4B.: Expected frequency for hypothesis four – – – 57
Table 4.2.4C: Comparison of observed with expected
frequencies for hypothesis four – – – – – – 58
ABSTRACT
This study was undertaken to examine business plan; as a tool for adequate planning for small scale business enterprises. Using selected small scale enterprises in Uyo as case study. To achieve the objective of the study; the work was segmented into five chapters. A survey research technique was used. A sample size of fifty respondents was drawn from the population through convenience sampling method, the main instrument of the study was self -developed questionnaire which was personally administered by the researcher. Hypotheses and research questions were formulated to guide the study. The primary data were analysed using simple percentage and chi-square (χ2) statistical tools. The study revealed how business plan can serve as tool for effective planning for SMEs include ;provision of data for exposure of investment opportunities and provision of data for effective planning while the importance of business plan to SMEs to include provision of data for evaluating business performance and provision of basics for analysing business potential by suppliers, creditors and talented personnel, the study also revealed the problem associated with the use of business plan to include; low levels of management skills lack of creativity, poor patronage of locally made products and high rate of illiteracy, the study also revealed the person who should prepare a business plan to include; hired professionals, business owners, entrepreneurs with other professionals. It was recommended that selected small scale business enterprise should employ the services of professionals in preparing a business plan in order to benefit from the advantage derived from business plan. School of business should develop curriculum on business plan as a way of training the future entrepreneurs. Also government/talented personnel should organize seminar and workshops to enlighten the entrepreneurs on the importance of developing a business plan at the different stages of their business.
CHAPTER ONE
INTRODUCTION
1.1 Background Of The Study
It is conventional wisdom that business be planned prior to their start-up, hence prospective business are generally advised to develop formal plans of their proposed venture, Since it is a means for business creation, it is worthy to note therefore, that all the enterprise need the business plan of any kind of business they involved in. Also it is imperative that a typical business plan should set priorities and the steps to be undertaken for the realization of the business objectives. At this point a business plan that serve as a blue print or road map that provide direction and increase firms chance for survival and success in this essential.
In a business plan, the goals to be achieved are set out in clear terms and the specific plan to be executed within a specific time frame are determine, a business plan shows what is to be done and how it is to done given the general frame work provided by the feasibility study, M. A Uiaghe (2008).
For instance, in partnership, there is need for every partner to know where the partnership is heading to and this could only be known through business plan. Also a big establishment owners may not be physically present to run the business on a daily basis so they need a business plan to at least be made available to the board of directors on their behalf pending that the business creation, it follows that a business plan must envelope the step process of executing a business, it must cover the following areas.
The objective of the business
The mission statement
The source of capitalization and cost
Finally, since a feasibility study and business plan provide life for a proposed business, feasibility study in the other hand is to ascertain the workability and profitability of a venture and as a result , it is carried out before a final decision to made to commit resources to the project, and in the other hand, a business plan is developed only after is has been ascertained that a business opportunity exists.
1.2 Statement Of The Problem
Most small scale business enterprise and entrepreneurs have failed to achieve their goals and objectives as a result of not setting out a functional blue print (business plan) to guide their operation. Small businesses have ignored the fact business plan is a panacea to know and answer questions like where am I? Where do I go from here? What should I do? Where should I start from? As the case may be, it is on this backdrop that this research project seeks to examine business plan as a tool for adequate planning for small scale business enterprise.
1.3 Objectives of the study
The following objectives are formulated for the success of this research
To examine business plan as a tool for adequate planning for small business enterprises.
To assess the importance of business plan to entrepreneurs and small businesses growth.
To identify the problems associated with the preparation/usage of business plan.
To determine who should write a business plan
To determine who need a business plan
1.4 Research Questions
Based on the above objectives of the study the following research questions were formulated to guide the researcher.
How can business plan serve as a tool for effective planning for Small and Medium Scale Enterprise (SMEs)?
How important is business plan to Small and Medium Scale Enterprise (SMEs)?
What are the problems associated with the usage of business plan?
Who should prepare a business plan?
Who needs a business plan?
Statement OF Hypotheses
Ho: Provision of data for effective planning, exposure of investment opportunities and enhancing competitive advantage over competitors are not the roles of business plan as a tool for adequate planning for SMEs.
Ha: Provision of data for effective planning, exposure of investment opportunities and enhancing competitive advantage over competitors are the roles of business plan as a tool for adequate planning for SMEs.
Ho: Low level of management skills, lack of creativity, poor patronage of locally made produce and high rate of illiteracy are not the problems associated with the usage of business plan.
Ha: Low level of management skills, lack of creativity, poor patronage of locally made produce and high rate of illiteracy are the problems associated with the usage of business plan.
Ho: Financial institutions, government, suppliers, creditors, land lord communities and talented personnel are not in need of business plan.
Ha: Financial institutions, government, suppliers, creditors, land lord communities and talented personnel are in need of business plan.
Ho: Regular training of workers, recruitment of talented personnel, and installation of ICT facilities are not the strategies for improving the preparation/usage plan by SMEs.
Ha: Regular training of workers, recruitment of talented personnel, and installation of ICT facilities are the strategies for improving the preparation/usage plan by SMEs.
BUSINESS PLAN: A TOOL FOR ADEQUATE PLANNING FOR SMALL SCALE BUSINESS ENTERPRISES A CASE STUDY OF SELECTED SMALL AND MEDIUM SCALE ENTERPRISES SMEs IN UYO, AKWA IBOM STATE
