THE IMPORTANCE OF BUSINESS PLANNING IN MANAGEMENT OF MICRO, SMALL AND MEDIUM SCALE ENTERPRISES (MSMEs) IN NIGERIA

Abstract

This term paper examines the importance of business planning in management of Micro, Small and Medium Enterprises, focusing on the foundational tools that guides the strategic direction and operational activities of an enterprise. It articulates an organization’s vision, objectives, and the means through which these goals can be achieved, thereby transforming entrepreneurial ideas into structured, actionable strategies. Beyond serving as a blueprint for internal management, a well-developed business plan plays a crucial role in attracting investors, securing financial support, and enhancing organizational credibility. It enables entrepreneurs to evaluate market opportunities, assess potential risks, and allocate resources efficiently. Moreover, the process of drafting a business plan encourages critical thinking and evidence-based decision-making, both of which are essential in today’s dynamic business environment. The importance of a business plan, therefore, extends beyond the startup phase; it remains an indispensable instrument for measuring progress, adapting to market changes, and ensuring long-term sustainability. This paper underscores the multifaceted value of business planning and its contribution to entrepreneurial success, organizational growth, and competitive advantage.