Egya Gyanzah Eshun, Vannie Naidoo
Small businesses are considered the pillars of many economies in both developed and developing countries and for that reason efforts to improve their performance is critical. Implementation of strategic planning has been cited as pivotal to ensure the success of small businesses. This study looks at the challenges that impede the implementation of strategic planning in small businesses as a prelude to finding ways to improve the performance of small businesses to effectively serve their role as the engines of growth of countries. The study employed a descriptive survey design and data was collected using a structured questionnaire where respondents on a 5-ponit Likert scale indicated the extent to which their businesses are faced with factors that impede the implementation of strategic planning. The study focused on 500 owner-managers from Ghana who were sampled using the quota sampling technique. Generally, the study revealed that small businesses in Ghana face huge challenges impeding the smooth implementation of strategic planning. Specifically, the challenges the small businesses were found to face include the following: lack of resources for strategy implementation; lack of strategy supportive culture; lack of top management interest or support for strategic planning; lack of competence for effective change management. The results confirm the perceived lack of strategic planning effectiveness in small businesses and the need to mitigate the identified challenges. It is recommended that small business support institutions be resourced to help develop the capacity of small businesses in strategic planning as a way of dealing with identified challenges.