Planning an important tool to management of small scale business

Project Abstract

Small-scale businesses play a crucial role in the economy, contributing significantly to employment and innovation. However, managing a small business effectively can be challenging due to limited resources and intense competition. One key tool that can greatly enhance the management of small-scale businesses is planning. This research project focuses on the importance of planning in the context of small business management. The study examines the various aspects of planning and how they can be applied to small-scale businesses to improve their performance and sustainability. Planning involves setting goals, identifying resources, establishing strategies, and creating action plans to achieve desired outcomes. For small businesses, effective planning can help in budgeting resources efficiently, setting realistic objectives, and adapting to changing market conditions. Through a comprehensive review of existing literature on business planning and small business management, this research project aims to provide insights into the specific benefits that planning can offer to small-scale enterprises. By analyzing case studies and examples of successful small businesses that have implemented robust planning processes, the study highlights the positive impact of planning on various aspects of business operations. Furthermore, the research project explores the challenges and barriers that small businesses may face in implementing planning effectively. These challenges may include limited expertise, time constraints, and uncertainties in the business environment. By identifying these obstacles, the study seeks to offer practical recommendations and strategies to overcome them and enhance the planning capabilities of small businesses. Overall, this research project underscores the critical role of planning as a strategic tool for small-scale business management. By emphasizing the importance of foresight, goal setting, and proactive decision-making, planning can help small businesses navigate uncertainties, seize opportunities, and achieve sustainable growth. The findings of this study can provide valuable insights for small business owners, managers, policymakers, and stakeholders interested in enhancing the performance and competitiveness of small-scale enterprises through effective planning strategies.

Project Overview

<p> <b></b></p><p><b><b>INTRODUCTION</b></b></p><p><b><b></b></b></p><b><b><p><b>1.1 &nbsp; &nbsp; <br></b><b>Background<br>of the study</b></p><p><b></b></p><b><p>This project introduces<br>planning as an important tool to management of small-scale business with a case<br>study of <em>PETER<br>VENTURE.</em>&nbsp; It is located at No. 6 Isiokpo Awada Layout, Onitsha<br>– Anambra State. This venture deals on production of plastics of various kinds.<br>Emphasis is placed on planning as important tools to the management of<br>small-scale business. Upon completing this project one should be able to<br>describe the importance of planning and why it is needed in a small-scale<br>business and should understand managerial task in planning. Planning, being one<br>of the functions is very necessary to the survival of any business. Planning<br>includes the forecasting and selecting of Objectives with policies, programme<br>and procedures for achieving their business goals. It involves making decision,<br>it helps small-scale business to grow, and it embraces all the activities which<br>a company undertakes to determine the type of products it will produce/market.<br>It is normally undertaken to determine the present and further requirement of<br>customers, which involves goods and services for their satisfaction<br>(customers). Tools used in planning involve<br>collection of data by coding, tabulating, charting and discussing them in an<br>orderly manner in other to bring out their meaning clearly by analyzing data<br>collected.</p><p><strong>PROBLEM<br>ASSOCIATED WITH THE SUBJECT MATTER</strong></p><p>Planning is an<br>intellectually demanding process, it requires the conscious determination of<br>course of action, and the basic decision on purpose, knowledge and considered<br>estimates.Projects have failed in most business enterprises such as small scale<br>as a result of inadequate plans being made and all variables like to affect the<br>business, not adequate controlled. Planning should consider some factors in the<br>environment, which will help or hinder the organization in achieving its goals.<br>They should take account of existing organization and provide for control, so<br>performance can be checked with established standards. It focuses on action and<br>purpose, which forecasts actions and tends towards the ultimate goals and not<br>those irrelevant ones. Small scale business management planning seeks to<br>achieve a consistent, coordinated structure of operation focused and desired<br>ends. So without planning action produces nothing but<br>chaos. &nbsp; One main features of planning is to make a decision.<br>This will involve assumptions about the future and about many variable factors<br>usually dealt with in the decision making process.Many persons may be involved<br>in planning activities, which must be continuous process, but the main point is<br>that these activities must produce a specific plan, without which plans,<br>planning activities have no real effect.</p><p><strong>1.2<br>PROBLEMS THAT THE STUDY WILL BE CONCERNED WITH</strong></p><p>Planning being an important<br>tool to small-scale business requires the business enterprise to determine its<br>long-term survival based on finding the most profitable way to allocated<br>limited resources among competing ends. Labour hours to such values as how<br>satisfied individuals and groups in the business of small-scale management.The<br>higher up the hierarchy of management the more attention is paid to planning,<br>particularly in setting out goals and strategies for long period ahead.<br>Managers lower in the hierarchy usually deal with sections of the total plan,<br>and are concerned with shorter periods of time. Efficiency of planning is measured<br>by the amount it contributes to purpose and objectives, as offsets by costing<br>and unsought required formulating and operating it. The most important way<br>management can contribute to growth is by systematic planning probabilities are<br>forecast and programmes developed to take advantage of them. Consistent<br>attention must be given to changing circumstances and many revisions of plans<br>may be needed.</p><p>Items affecting forecasting<br>are as follows:- Political stability, Population trends, Price levels, government<br>control and fiscal policy, employment, productivity and national income,<br>technical environment. Some areas have shown great changes such as computer.<br>Its impact and speed development must be especially noted.</p><p>&nbsp;A Simple Cycle Of<br>Business Plan Activity Can Run Thus:</p><p>Planning cycle.</p><p>FORECAST PLANS </p><p>&nbsp;The diagram above<br>shows how planning of small-scale business an important tool to the production<br>and distribution to customers.</p><p><strong>1.3<br>THE IMPORTANCE OF STUDYING THE SUBJECT AREA</strong></p><p>&nbsp;It is of great importance to studying the area<br>of small scale business planning. In planning for longer periods, a forecast of<br>technological changes is vital especially for those companies, which are in<br>area rapidly advancing technology. For an organizational point of view<br>companies have separated the basic day-to-day planning activity from a<br>strategic planning for the future.Job is not so rigidly defined as in a large<br>organization and there is more flexibility between jobs. There will be less<br>formality than in larger organizations. Decision-making will be quicker and<br>rules and procedures less rigid, which are usually, based on planning.The size<br>of the outdoor staff depends upon many factors, particularly the method of<br>production. Geographical size of the territory usually depends upon the physical<br>nature of the product and services. Work must be planned, so that mechanical<br>gadgets and equipment, raw material are effectively utilized. For efficient<br>production of products (plastics) customer’s demand and buying patterns,<br>factory locations production capacity are applied based on planning and<br>techniques simulation. In forecasting it is important to stress the need to<br>examine the economic environment and possible fluctuations in company profits<br>and relations to possible cycles of business activity.</p><p><b>1.4<br>OBJECTIVE OF THE STUDY</b></p><p><b></b></p><b><p>The objectives of the study are;</p><p>1. &nbsp; To ascertain<br>the present management practice of planning and its effects on small scale<br>business</p><p>2. &nbsp; To<br>examine some strategies for the attainment of goals and objectives set out for<br>the business</p><p>3. &nbsp; To<br>find out the role of management in ensuring the smooth running of the business</p><p>4. &nbsp; To ensure that business<br>at any given time is capable of carrying out its activities that could aid in<br>achieving its goals.</p><p><b>1.5<br>RESEARCH HYPOTHESES</b></p><p><b></b></p><b><p>For the successful completion of the study, the<br>following research hypotheses were formulated by the researcher; </p><p><b>H0:<br></b>there<br>is no present management practice of planning and its effects on small scale<br>business<b></b></p><b><p><b></b></p><b><p><b>H1:<br></b>there<br>is present management practice of planning and its effects on small scale<br>business</p><p><b>H02:</b>there<br>is no role of management in ensuring the smooth running of the business</p><p><b>H2:<br></b>there<br>is role of management in ensuring the smooth running of the business</p><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>1.6<br>SIGNIFICANCE OF THE STUDY</b></p><p><b></b></p><b><p>This<br>study will be of significance to students of different higher of learning as it<br>would enlighten them and the entire nation. Finally, this study will also help<br>to serve as literature (reference source) to the public, individuals and<br>corporate bodies into what to carry out on further research on planning an<br>important tool to management of small scale business.</p><p><b>1.7 SCOPE AND LIMITATION OF<br>THE STUDY</b></p><p><b></b></p><b><p>The<br>scope of the study covers planning an important tool to management of small<br>scale business. The researcher encounters some constrain which limited the<br>scope of the study;</p><p><b>a)<br>AVAILABILITY OF RESEARCH MATERIAL:</b><br>The research material available to the researcher is insufficient, thereby<br>limiting the study &nbsp; &nbsp; &nbsp; </p><p><b>b) TIME:</b><br>The time frame allocated to the study does not enhance wider coverage as the<br>researcher has to combine other academic activities and examinations with the<br>study.</p><p><b>c)<br>Organizational privacy</b>: Limited Access to the selected<br>auditing firm makes it difficult to get all the necessary and required<br>information concerning the activities. </p><p><b>1.8 DEFINITION OF TERMS</b></p><p><b></b></p><b><p>Is the most basic of<br>managerial functions. It determines organization objectives and purposes so<br>that everyone understands what they have to accomplish.</p><p><b>PLANS</b></p><p><b></b></p><b><p>&nbsp;Is outline drawing showing the relative size,<br>positions of parts.</p><p><b>GOAL<br>(IMPORTANT TOOL):</b></p><p><b></b></p><b><p>&nbsp;It gives broad guidelines towards which more<br>detailed and specific plans are directed. They consist of the purpose, mission<br>and objectives.<b></b></p><b><p><b></b></p><b><p>&nbsp;<b>STRATEGIC PLANNING:</b></p><p><b></b></p><b><p>Involves deciding upon the<br>major goals of the organization and what policies will be used to achieve them.</p><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>TACTICAL<br>PLANNING</b>: </p><p>Involves deciding how<br>resources will be used to help the organization achieve its strategic goals. It<br>relies more on past records and involves shorter time periods.</p><p><b>DECISION:</b></p><p><b></b></p><b><p>Is a choice where by a<br>person forms a conclusion about a situation. This represents a course of<br>behaviors about what must or what must not be done. It is the point at which<br>plans, Polices and objectives are translated unto concrete actions. Planning<br>leads to decision guided by company policies, procedures and programmes.The<br>purpose of decision-making is to direct human behavior towards a future goal.<br>If there were no alternatives, there would be no need for a<br>decision. &nbsp;</p><p><b>SMALL-SCALE<br>BUSINESS: &nbsp; &nbsp; &nbsp; &nbsp; </b></p><p><b></b></p><b><p>Is independently owned and<br>do not dominate the market.</p><p>It plays an important part<br>in the private enterprise system. Management is processes by which<br>scarce-resources are combined to achieve given ends. Policies are guide to<br>action or decisions of people. Policies are directives issued from a higher<br>authority, and provide a continuous frame work for the conduct of individuals<br>in a business. They are in effect a type of planning. Policies are expressions<br>of a company’s within attitude towards types of behaviour within which it will<br>permit, or desire employees to act. They express the means by which the<br>company’s agreed objectives are to be achieved and usually take the form of<br>statements, telling members how they should act in specific<br>circumstances.Policies reflect management thinking on basic matters and inform those<br>interested, Management thinking on the activities of the company about the<br>company’s intentions regarding them.Policy formulation may begin at any level<br>of organization. MBO which has its meaning as Management by Objectives, is one<br>approach to planning that enables all managers to participate fully in planning<br>activities. Subordinate and managers meet to establish objectives and<br>periodically review progress. It is based upon as set of assumptions that under<br>proper conditions, people will find satisfaction at work and will accept<br>responsibility for their results.Forecasting is extrapolating or projecting the<br>trend of the past experiences into the future. Forecasting sales by product and<br>sale territory is a never-ending responsibility of a market analyst or a sale<br>manager.</p><p>Budget control is the basis<br>of control of the activities of a firm, or small-scale business and government.</p></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b> <br><p></p>