Relationship of Strategic Planning and Government Support Systems on Sustainability of SMES in South-South Nigeria

Abstract

This study examined relationship of strategic planning and government support system on sustainability of small and medium scale enterprises in South-South Nigeria. The specific objectives were to determine the relationship between strategic planning and sustainability of SMEs, and explore the relationship between government support systems and sustainability of SMEs in South South Nigeria. The researcher adopted primary source of data to collect information from the respondents. In this study, a mixed research design- survey and correlational- was adopted. The total population was seven hundred and sixty-three (763) SMEs proprietors/managers. The sample size of the study was 262 derived statistically from Taro Yamane formula. The researcher adopted simple random sampling technique. Regression model and Pearson correlation coefficient were used to test the relationships between dependent and independent variables of the study. Two hundred and sixty-two (262) copies of questionnaire were distributed to selected SMEs in South-South, Nigeria. Eight (8) copies of questionnaire where wrongly filled and discarded with 3.1%. However, two hundred and fifty-four (254) copies of questionnaire were properly completed and returned, constituting 96.9% response rate. The findings of the study revealed that there was a significant relationship between strategic planning and sustainability of SMEs. There was a significant relationship between government support systems and sustainability of SMEs in South South Nigeria. The study concludes that entrepreneurship development, through innovation, strategic business models, effective leadership, product differentiation, and supportive government policies, plays a critical and integrated role in driving the sustainability of SMEs in South-South Nigeria. The study recommended that SME owners and managers should institutionalize strategic planning processes by developing formal strategic plans that clearly define organizational goals, objectives, and sustainability priorities. This will provide direction and improve long-term business performance.

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