Evaluation of Strategic Planning Practices in Small and Medium Enterprises in Onitsha, Anambra State

Strategic planning provides direction and competitive advantage for small and medium enterprises, yet its adoption in the Onitsha trading market, South East Nigeria's largest commercial hub, is anecdotally reported as limited. This study evaluated the nature, extent, and outcomes of strategic planning practices among 150 SMEs in Onitsha Main Market and Nnewi Industrial Cluster, Anambra State. Data were collected through structured questionnaires administered to SME owners and managers. Strategic planning was assessed by the presence of a written business plan, planning horizon length, use of strategic tools (SWOT analysis, market research), and involvement of key stakeholders in the planning process. Business performance was measured by 3-year revenue growth and market expansion indicators. Chi-square tests, frequency distributions, and binary logistic regression were employed. Results showed that only 28% of surveyed SMEs had a written business plan. Among those with formal plans, 89% demonstrated significantly better revenue growth compared to those without (OR = 4.2, p < 0.001). SWOT analysis was used by only 19% of SMEs, primarily those with graduate-educated owners. Planning horizon was predominantly short-term (less than 1 year) in 71% of cases. Owner educational level was the strongest predictor of strategic planning adoption. The study concludes that strategic planning adoption among Onitsha SMEs is limited but significantly correlated with better performance, and recommends business planning workshops through the Anambra State Small and Medium Enterprise Development Agency. Keywords: strategic planning, SMEs, Onitsha, Anambra State, business performance