Abstract

This study assessed the role of strategic planning on business growth in technical enterprises in the Buea Municipality. The objective of the study is to examine the effect of strategic plain business growth on technological businesses in the Buea Municipality.

Data used for the study were collected through questionnaires from 50 employees of Technical companies in Molyko. The study used both descriptive and inferential statistics through simple regression analysis.

The findings of the study showed that market research has a significant positive effect on business decision making among technical businesses in Buea. Based on the findings, the study recommends that management in Buea should implement the different types of business growth strategies but should focus more on secondary research because they have a higher positive and significant effect on strategic planning while understanding primary market the more because, it is the only means through which organisations can get current and vital data to make informed decision.

 CHAPTER ONE 

INTRODUCTION 

1.1 Background of the study

Business growth refers to the increase in a company’s size, revenue, market share, and profitability over time. Growth is often viewed to be necessary for survivor (Davison, 1991). This can be achieved through a variety of means, including expanding into new markets, developing new products or services, and increasing sales. Business growth helps to increase market shares, increase revenue, attract better talents.

Different businesses look for ways to increase growth some of this ways include: investing in marketing and advertisement, entering new markets, developing new products or services. (Mattsson, 2024) from small startups to large corporations, some findings have proven that some entrepreneurs do not pursue business growth survivor is often enough for them. (Delmar, 2014) every business faces its own unique challenges and opportunities on the path to growth. For business to grow they have many strategies to put in place like market penetration, market expansion, diversification and strategic planning is one.

Strategic planning is an essential tool for any organization aiming to secure long term success (Mark, 2022) provides direction, enhance decision making, improves resource management, and increases operational efficiency. Strategic planning plays a very important role in business growth some of which include shaping business strategies, developing plans, analyzing data and laying goals to achieve the company’s objectives. (Scrum, 2023) Even the best-lead companies in the world, are vulnerable to unexpected changes in technology, consumers demand and beyond strategic planning has help organizations meet word wide targets that helps them achieve organizational objectives.

Strategic planning is linked to Business growth in many ways. (Gumel, 2019) he explores how strategic planning can influence the growth of small businesses. He found that while formal planning might not always show a direct correlation with growth, the planning process helps communicate the owner’s vision and goals, leading to increased customer loyalty and business expansion. (Jessica, 2024) discussed strategies for business growth including setting SMART goals and SWOT analysis.

Strategic planning defines a clear vision and sets long-term goals, which act as a roadmap for business growth. It ensures that resources (time, money, personnel) are allocated efficiently to achieve growth objectives, avoiding waste and maximizing impact and involves analyzing market trends, identifying opportunities and threats, and setting strategies to exploit these opportunities and mitigate risks by understanding the competitive landscape and defining unique value propositions, strategic planning helps businesses position themselves effectively in the market, driving growth (jose, 2024)

Globally, business growth have been studied by many scholars. The global health crisis has disrupted businesses around the world in vastly different ways, but particularly small and medium-sized businesses (SMB), which make up more than 90% of the total worldwide. Many businesses closed their doors temporarily and others for good, while some saw unprecedented grow (Berlman, 2023): conducted a study which empirically tested current trends in the global business environment through interviews with 196 companies worldwide.

Business growth globally is influenced by many factors, including the rise of e-commerce, (Christopher, 2023) strategic intention expansion, and the challenges faced by economies like Europe and China. Industries are evolving with new research highlighting key sectors that are reshaping the global economy as businesses to an increasingly competition landscape.

In developed countries like United States, Germany, Canada, Japan and Australia,  (Vincenzo, 2021): he analyze the main drivers of labor productivity growth over nearly six decades, highlighting the contributions of education, total factor productivity, and non-ICT/ strategic planning often involves leveraging advanced technologies, data analytics, and innovative approaches to stay competitive and adapt to rapidly changing environments Strategic planning in developed countries is a systematic process that involves setting long-term goals and determining the best course of action to achieve them .developing countries are intensifying competition for talents that are key the sustainable development of urban areas globalization facilitates the exchange of knowledge driving innovation and economic growth

In developing countries, business growth is a primary driver of economic development. It creates jobs, increases income levels, and improves living standards using the investment climate survey that was conducted by the World Bank.

Developing countries who rely on the sauce base theory of the firm that was proposed by (Penrose, 1956) where firms growth depend on the kinds an amount of the diver resource they review the literature on entrepreneurship and its role in driving business growth in developing countries. They emphasize the need for supportive policies and an enabling environment to foster entrepreneurship and business growth. In essence, strategic planning in developing countries serves as a roadmap for achieving economic stability, growth, and development while addressing social and environmental challenges. (Peter, 2016)

In Africa the link between strategic planning and business growth is still studied by many researchers this is because the controversies of their result. Africa has the highest entrepreneurship rate globally, but 80% of micro, small, and medium-sized businesses fail within five year. To build a successful business in Africa, entrepreneurs advise listening to the local market, understanding diverse consumer needs, and tailoring products and services. (Claudia Melendez, 2022).

Guides for integrated planning in Africa. Africa boasts the highest rate of entrepreneurship globally, with 22% of its working-age population starting businesses, as highlighted by the African Development Bank. The rice of master planning in urban Africa, for us on transnational circuite and local ambitions. ( Harrison, 2033) Additionally, the continent leads in the proportion of female entrepreneurs, with over a quarter of businesses either founded or run by women, according to The Organization for Economic Co-operation and Development. However, despite these encouraging statistics, many micro, small, and medium-sized enterprises (MSMEs) in Africa fail within the first five years.

Strategic planning is essential for business growth in Cameroon, especially for Small and Medium Enterprises (SMEs). Here’s how it plays a role; Strategic planning helps businesses assess their internal and external environments, identify resources, and monitor implementation. This ensures long-term sustainability and competitiveness, Strategic planning will also help SMEs manages and efficiently allocate their resources. Cameroonian government has integrated strategic planning into its Vision 2035 and Growth and Employment Strategy Plan (GESP). These plans aim to transform Cameroon into an emerging economy by focusing on key sectors like agriculture, infrastructure, and manufacturing.

Since IT strategic technology investments underpin the company’s strategic objectives, then IT strategic planning serves as a business-aligned roadmap that provides clear strategic direction and priorities. The planning process is vital to realizing the right set of outcomes. Also, (Michael, 1980), emphasizes the importance of strategic planning in achieving competitive advantage. He argues that businesses need to analyze their industry structure and position themselves effectively to grow. (Henry, 1994), discusses how strategic planning can help organizations adapt to changing environments and seize growth opportunities. (Gary, 2000), He suggests that companies need to continuously reinvent themselves to stay competitive.

Strategic planning, while beneficial, does come with its share of controversies and challenges. (Richard, 2011) employees resistant to changes that are part of the strategic plan, leading to internal conflicts and morale issues. Some authors argue that strategic planning does not necessarily lead to better performance. Critics claim that the process can be too rigid and may not account for the dynamic nature of business environments. (Henry, 1998) strategic planning often fails in practice and can stifle strategic thinking there’s an ongoing debate about the importance of strategy implementation versus formulation. Resource-based view (RBV) focuses on leveraging internal resources and capabilities, while the market-based view emphasizes external market positioning. (Roge, 2014), criticized strategic planning for being overly focused on planning rather than strategy.

1.2 Statement of the problem 

Business growth is a complex and multifaceted problem that has been extensively studied in literature despite the importance, many organizations struggle to achieve business growth, and the challenges they face are numerous. The study relates small business growth with strategic planning where financial performance, market shares, sales, and return on investment is used to measure the growth (Mazarrow 2009). (Jerry, 2021) talks on issues of over borrowing, overtrading, and expansion in the wrong direction as a problem, emphasizing that these problems can lead to financial strains and potential business failures.

In the world today companies have as their priority to make business growth that will boast their performance and guarantee and guarantee them long sustainable growth. They face challenges when it comes to the management of this growth. In today’s globalized economy businesses are increasingly relying on data drive decision-making to make strategy plans stop. This is because business It takes to provide valuable inside into resource and resource allocation, vision, and objective, SWOT analysis. (Nacho, 2022): identifies excessive focus on budget, lack of alignment, insufficient market research, and poor communication as key obstacles that can hinder business growth (Kateryna, 2018): highlights issues such as insufficient specialist expertise, limited market impact, and the difficulty of exerting control over the external environment for small and medium-sized enterprises (SMEs).

Additionally in developed countries, Business growth faces several challenges, including slow economic growth, high level of debt, and labor market constrains. Additionally, issues such as access to credit, regulatory, and the need for innovation in traditional industries hinders expansion and competitiveness in the global market. (Grzegorzek, 2021) covers issues such as growth speed, financial problems, and over expansion He points out that businesses need substantial finance and resources to grow and that over expansion or over-borrowing can lead to financial strain and potential business failure (Marius, 2021). Large organizations have well laid out strategic plans however they face problems of finding data which is a big challenge there is available statistics which are far below those available in developing countries and also getting every manager to follow the same strategy is not an easy task. This demonstrates that while business growth is invited to its improper application can hinder rather than enhance strategy planning.

Furthermore, business growth in developing countries is hindered by several critical issues, including limited access to markets, limited infrastructure and climate vulnerability. (Morufu, 2019) highlights the importance of statistical literacy and the challenges faced by developing countries in achieving effective planning.  (Abdel Gadir, 2011) explored the key issues, challenges, and prospects of development planning in Africa, emphasizing the need for comprehensive frameworks to address structural transformation. This challenges can make it difficult for entrepreneurs to launch and grow successful business the top obstacles that entrepreneurs normally face in such countries include; limited, assess to funding, in adequate infrastructure assess to advance technology, lack of assess to global market. (Vergas, 2014) also talked on competitive dynamics. (Margaret, 2009) focused on strategic planning challenges in public entities in South Africa, highlighting issues like funding constraints and bureaucratic hurdles. Government and private sectors would have to walk together to address this challenges.

Moreover, in Cameroon small and medium enterprises play a vital role in the economy  (Ndian, 2023) highlights the lack of a strategic approach in managing SMEs as a significant factor contributing to high failure rates, poor managerial choices due to the absence of strategic planning impact the management, organization, efficiency, and profits of businesses in Cameroon strategic planning in small and medium enterprises struggle with financial constraints, lack of access to reliable data, limited expertise in interpreting market data, and also high taxes. These issues hinder their growth and sustainability, impacting the over economic landscape of the economy.

However, the problem is more pronounced in tech companies in Buea. Tech companies most lack strategic planning unlike other firms in the Buea municipality it faces the problem of too much competition and limited skills especially in the small tech companies where materials, equipment and skills are limited (Michael, 2007) discusses how most strategies are built on specific beliefs about the future, which can be deeply unpredictable.. As a result strategic planning in tech companies are mostly base on intuition or outdated information leading to strategic errors, inefficient operations, and difficulties in adapting to change Cameron (2019) – Cameron discusses the high costs and complexity of strategic planning, as well as the skepticism about its ability to accurately anticipate an unknown future.

In the literature of Business growth and strategic planning, several controversies exist, especially in the developed and developing countries. Critics argue that strategic planning can be too rigid, (Katsonos, 2019) limiting an organization’s ability to adapt to unexpected changes or opportunities. On the other hand, proponents believe that a well-crafted plan provides a clear direction and framework for decision-making. Some also believe that strategic planning stifles innovation by focusing too much on past data and trends, projecting them into the future.

Others argue that it helps prioritize and allocate resources effectively, fostering innovation within a structured environment and also, there’s a debate on whether strategic planning leads to efficient resource allocation or if it can result in misallocation due to overemphasis on certain areas, such as budget constraints. This conflicting view points to the need for more research especially in Tech companies .for the purpose of this study, this work seeks to answer the following research questions.

1.3 Research Questions

1.3.1 Main Research Question 

What is the effect of strategic planning on business growth in technology companies in the Buea municipality?

1.3.2 Specific Research Questions

1. What is the effect of swot analysis on business growth in technology companies in Buea?
2. What is the effect of mission statement on business growth in technology companies in Buea?
3. What is the effect of core values on business growth in technology companies in Buea?

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