IMPACT OF BUSINESS PLAN AND FEASIBILITY STUDY ON SMALL AND MEDIUM ENTERPRISES (SMES) GROWTH AND PERFORMANCE IN NIGERIA

Abstract

The general objective of the study was to examine the impact of business plan and feasibility study on SMEs growth and performance in Osun State, Nigeria. There were other three specific objectives for the study. The study adopted the descriptive research design using a questionnaire administered to 138 owners and managers of bakeries industries across all 30 local government areas in Osun State A purposive sampling technique was used. Data were analyzed with the aid of linear regression. The study revealed strong positive impacts of business plan and feasibility study on SMEs growth on the selected bakeries in Osun State. The regression result shows; Business plan (R=0.984, Adjusted R square=.967. sig. =0.000), Feasibility study R=0.990, Adjusted Rsquare=.980, sig. =0.000) and Combined effect,( R=0.995 Adjusted R square=.990, sig. =0.00). The study concludes that the level of adoption of business plan and feasibility study and its usage by SMEs is very low by the selected bakery industries and the study thereby recommended the compulsory adoption of business plan and feasibility study by SMEs, the study further recommended that SMEDAN must influence SMEs on the use of business plans and feasibility study, by giving professional assistance and training on the preparation and implementation to SMEs at no cost