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THE EFFECT OF PLANNING ON THE SUCCESS OF SMALL BUSINESS ENTERPRISES
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Planning is generally recognized as the most difficult tasks facing the manger, and it is one that is very easy to procrastinate. Planning rests upon the view that the future success of an entity can be enhanced by continuous management actions. It pre-supposes that an organization will be more successful, in terms of it broad objectives with management actions to implements the fees, forward process of it, then if there is no planning at all. The process of management facilitated when decision makers of organization chart its futures course of actions in advance , and take individual and group effort in a coordinated and rational manner. Planning is deciding in advance what to do, how to dos it, when to do it and who should do it.
Planning bridges the gap from where we are to where we want to go to. It makes it possible or things to occur which would not otherwise happen. Although, the exact future can seldom be predicted and factors beyond control may interfere with the best laid plans. Planning is therefore Necessary if the unexpected must be controlled within acceptable process. i.e. requires the conscious determination of course of action and basing of decision on purpose. The dynamic natures of activities procedures changes in various spheres of human activities, such as economic technological, social and legal environments change has become an inevitable parts of any organization. These changes may create opportunities or threats for the organization. Whatever the direction of change is, it is imperative for organizations to embrace and adopt to it through the process of planning. According to Agu (2013) the success or failure of an organization is largely determined by how effectively it can respond to the changing environment.
1.2 Statement of the Problem
Planning is a function of all managers, although the character and breath of planning will vary with their authority and with the nature of policies and plans stated. In the corporate objectives, planning is necessary in an organization because it eliminates or reduces manage managers’ inclination to guesses rule of thumbs and hunches in decision making and instead replaces them with logic, reason and rationality. Planning visualizes and anticipates future of affairs. However, many business enterprises have failed ultimately in planning, managers of some neglected this very important function. This has no doubt resulted in financial loss and in some cases led to the winding up of our economy. The researcher is therefore interested in examining this critical problems within the context of small business enterprises in Akwa Ibom State, whether small business operators practice planning, and if the do whether it could be possible to relate growth failure to planning or lack of it.
1.3 Objectives of the Study
The main purpose of this study is to examine the effect of planning on the success of business enterprises in Akwa Ibom State. Other objectives include the following:
. To examine whether planning aids in actualizing organizational goals
. To investigate the effect of planning on the profitability of business enterprises in Akwa Ibom State
. To ascertain whether planning is responsible for failure or success of small business in Akwa Ibom State
. To ascertain if planning leads to business expansion in small business in Akwa Ibom State
1.4 Research Question
To facilitate the achievement d of the objectives of this study, the following research question is logically formulated.?
. What is the effect s of planning on the profitability of business enterprises?
. Does planning aids to actualizing organizational goal?
. Is planning responsible for the failure or success of small businesses in Akwa Ibom State?
. Does planning lead to business growth or expansion?
1.5 Research Hypothesis
Hi: It is true that planning aid in actualizing organizational goals
Ho: planning aid in anticipate future events and set actions
Hi: planning helps to anticipate future events and set actions.
1.6 Significance of the Study
The significance of the study are as follows:
Loopholes inherent in the planning process would be made known top ensure that planning is properly implemented in all level of organization This study would broken the research horizon in the effectiveness of planning on the success of business enterprises in Akwa Ibom State This study will show how planning is carried out to reduce random activity and overlapping efforts in the organization The study will show how planning streamlines activity measuring performances. This study will show how planning gives a sense of direction and focus to the organization. To provide a basis for control. Control activities are geared towards established plans which may be standard, objectives or targets and therefore offer means of measuring performance. It will integrate and viewing the organization as are well as visualizes how the activities are interrelated in achieving the overall goals. This study would describe how planning provides a means of actualizing leader and the employees.
1.7 Scope/Limitation of the Study
This research work focused on business enterprises in Uyo which Ibedmore resources limited is the area of the study.
1.8 Definitions of Terms
The following terms are defined in the context which they are used in the research work
Management: This is the art and science of using available resources, men, money, materials and machine to achieve organizational goals (Nwosu 2011)
Control: this is the process of ensuring efficient performance to attain the enterprises objectives.
Decision Making: this involves a commitment of resolution to do or not to do an act , or to adopt or reject an action
Profitability: This is the ability of an enterprise to generate earnings
Forecasting: This involves predicting and anticipating future problems and events.
Goals: this is the purpose toward which and endeavour is directed.
Programmed Decision Making: This is a routine decision making that follows established rules or guidelines
Mission: A mission is a statement of what the organization wants to be remembered for.
Strategies: These are broad programs for achieving the organizations objectives.
Objectives: These are specific goals which have to be accomplished in order to achieve the mission of an organization.
Non Programmes making: These are non-making routine decision making. This is a decision made in response to unusual and unpredictable events or situations, it is am made under certainly.
