Networking and strategic planning to enhance small and medium-sized enterprises growth in a less competitive economy

Abstract

Competition and day to day fire-fighting prevents small businesses from undertaking the most effective types of strategic planning and networking for growth and innovation. Poor or inappropriate execution of these activities highlights the need for targeted managerial training. Potential explanations for the weak growth of many SMEs focus on the limited use of strategic planning and networking activities. Data from a management survey of SMEs in South East Wales shows that where these activities are undertaken the type of networking and information sought from it is often not that most associated with innovation and growth. Therefore, it may not be their absence per se, but the poor or inappropriate execution of these activities that is the key problem. This deficiency highlights the need for targeted managerial training in these areas.