Relevance of strategic management in small and medium enterprises.

Abstract

Strategic management has enabled enterprises to do business more professionally, efficiently, proactively, gaining control over the business, satisfying stakeholders and establishing a “fit” between company’s strengths and weaknesses and the opportunities and threats that exist in the external environment. It has gained more significance in the large-scale enterprises. It is generally perceived as irrelevant to Small and Medium Enterprises (SMEs) in Pakistan. SMEs play a vital role in the development of a country’s economy. Yet many reasons have lead to the lack of strategic management in them. This study is conducted in order to understand what strategic management is, how is it beneficial to organizations, how do SMEs in developed countries adapt it, what is the role of SMEs in the development of our country, what is the role of SMEDA in this regard. After thorough research on the above topics, this study critically analyzes the entrepreneurs’ attitude towards business, level of adoption of strategic management in SMEs in Pakistan and reasons of lack of its awareness of strategic management.