The relationship between strategic planning and growth in small businesses

Small businesses play a critical role in the economy of the United States. However, the U.S. Small Business Administration reports that approximately half of new small businesses fail within the first five years of operation. Given the significance of small firms to the national economy and the fact that most empirical strategic planning studies have focused on large businesses, this survey investigates the linkage between strategic planning and growth in small businesses.; Survey research was conducted with a sample population of 121 small businesses located within the Atlanta, Georgia metropolitan statistical area. The study incorporated a strategic planning and growth model as well as a strategic planning activities questionnaire. Findings include a statistically significant positive correlation between strategic planning and growth among small businesses. Conclusions drawn from these findings suggest that enhanced planning may lead to stronger growth and greater success for small firms.