ISSN (Online): 2321-3418
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Economics and Management
Open Access

Strategic Planning and Its Effect on the Success of Small and Medium Enterprises in Bosaso

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DOI: 10.18535/ijsrm/v12i08.em21· Pages: 7213-7229· Vol. 12, No. 08, (2024)· Published: August 23, 2024
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Abstract

The research seeks to investigate the influence of strategic planning on the performance of small and medium enterprises (SMEs) in Bosaso, Somalia. Its main goal is to clarify how strategic planning impacts the operational success of these businesses, addressing a notable gap in the current literature, as previous studies have largely overlooked SMEs in this area despite their crucial role in economic stability and development. The study employs a correlational research design combined with a quantitative approach, using surveys to collect data from the relevant population. A pilot test was conducted to refine the questionnaire, ensuring it was clear and pertinent for participants. The research used purposive sampling to select individuals based on specific demographic traits relevant to the study. Results indicate that strategic planning significantly influences SME performance in Bosaso, highlighting the importance for these enterprises to adopt structured planning processes to improve their operational efficiency and long-term viability. This research provides valuable insights into the strategic management practices necessary for the growth and success of SMEs in the region. The findings of this study underscore the importance of strategic planning in enhancing the performance and long-term sustainability of SMEs in Bosaso. By establishing a clear link between structured planning and improved operational outcomes, the research provides compelling evidence that SMEs in the region can benefit significantly from adopting formal strategic planning processes. These processes enable businesses to better navigate challenges, allocate resources more efficiently, and seize growth opportunities, ultimately leading to improved financial performance and stability.

Keywords

Business outcomesStrategic planningSME performanceSMEsSomaliaBosaso

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Author details
Mohamed Abdirizak Burale
PhD (ICT) Candidate: Asia e University
✉ Corresponding Author
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Dr, Chaless Saroufim
Supervisors, Director of Research | Accord University Somalia, Prof.Dr Sajed Rizvi Accord University
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