Evaluating the Role of Strategic Planning in SMEs; Challenges and Opportunities

Luo Bo

doi:10.56982/dream.v4i08.318

Authors

Luo Bo City University, Kuala Lumpur, Malaysia

DOI:

https://doi.org/10.56982/dream.v4i08.318

Keywords:

Strategic Planning, SMEs, Opportunitiest, Challenges, Business Management

Abstract

This paper evaluates the role of strategic planning in small and medium enterprises (SMEs), emphasizing both its potential benefits and inherent challenges. Strategic planning is increasingly recognized as a critical mechanism for SMEs to enhance competitiveness, allocate resources effectively, and sustain long-term performance. The paper highlights the opportunities that strategic planning offers, including improved decision-making, innovation, and adaptability to market dynamics. At the same time, it acknowledges the barriers faced by SMEs, such as resource constraints, lack of managerial expertise, and external uncertainties, which often limit the effectiveness of formal planning processes. By synthesizing insights from recent literature and theoretical perspectives such as the Resource-Based View and Dynamic Capabilities Theory, this study develops a balanced conceptual framework that integrates both opportunities and challenges. The paper contributes to academic discourse by bridging gaps in SME strategic management studies and provides practical implications for entrepreneurs, managers, and policymakers seeking to strengthen SME resilience and growth through more effective strategic planning.

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