Innovation Through Business Planning Among Micro, Small And Medium Enterprises In Kenya

Abstract

This paper focused on the effects of business planning in the sustainability of the micro, small and medium business enterprises (MSMEs). The main objective is to find out the contribution of the business plans to the MSMEs survival. The failure of most business enterprises can be attributed to lack of business plans. Researches done indicate that many Micro, Small and Medium Enterprises (MSMEs) have not documented business plans. The primary aim of business plans is to increase innovation, productivity and employment in the MSME sector in Kenya. The business plan competition conducted by the Kenya Institute of Management (KIM) in 2009 aimed at assisting current and emerging entrepreneurs in Kenya overcome constraints faced in the MSME sector and to create an environment that spawns creative business ideas and that can be effectively implemented within the context of the global economy. Out of 2,006 business plans obtained from KIM, the researchers established that less than 30% of the entrepreneurs who entered into the competition proceeded to the next stage after screening at semblance of business plans. These were taken through business plan competition training to enable them improve their creativity and innovation in formulation of business ideas. In their analysis, the researchers established that those entrepreneurs who had business plans had sustainable businesses. Desk analysis was used to establish the level of understanding of business plans by entrepreneurs.