The adoption of strategic planning practices by retail SMEs in Johannesburg

M.Com. (Business Management)Abstract: Small and Medium Enterprises (SMEs) are the main pillar of economies around the world. Some evidence exists to prove the important and crucial role played by SMEs in economic growth. Among the multiple types of SMEs, there is one that specialises in retailing activities. Retailing involves all business activities involved in the selling of goods or services to the final consumer for a personal use. One advantage of retailing is that it makes products and services available to customers and clients in terms of distance. However, despite the incontestable importance of SMEs and the numerous roles they play in economic development, they face several constraints that negatively affect their success to perform in a business environment. These constraints include financial difficulties, lack of managerial skills, and lack of access to the international markets. Although SMEs are essential to the economy, many struggle to survive and to develop themselves. Nonetheless, one of the best management tools to face this dilemma has proven to be strategic planning. Such planning helps an organisation to face all the above-mentioned challenges, and allows it to be more proactive. Strategic planning helps as well appropriately allocate important resources and more. The aim of this study was to explore different factors that retail SMEs consider important for the adoption of strategic planning practices in Johannesburg CBD. A deductive approach and a survey strategy were used in this study followed by a quantitative method. Data were collected from 230 entrepreneurs and managers using a self-administered questionnaire from which a data analysis was conducted ranging from descriptive analysis, factor analysis, correlation analysis to regression analysis. The results revealed that there are five factors that retail SMEs operating in Johannesburg CBD consider important in the practice of strategic planning, namely: monitoring and evaluation, competitiveness, staff involvement, financial resources, and technology