Özet:

Small and medium enterprises (SMEs) require strategic management in today’s dynamic and highly competitive business environment. The realization of the potentials and opportunities for SMEs in Nigeria to rebound and play the crucial role of growth, development and industrialization, wealth creation, employment generation requires a management paradigm shift. This paper establishes the relationship between vision/mission, formality of strategic planning and SMEs financial performance. Data were analyzed from 132 useable questionnaires out of 150 questionnaires administered on randomly selected SMEs owners and managers in Lagos, Nigeria. Correlation and ordinary least squares regression techniques were used to estimate the relationship between vision/mission, formal strategic planning and business financial performance. The decision criteria were tested at 5% significance level. The correlation coefficients reported positive and significant relationship between SMEs performance and its predictors with coefficient values of 0.59 and 0.43 for vision-mission statement and formality of strategic planning respectively. The regression result showed a positive and significant relationship between SMEs performance and its regressors with beta values of 0.35 and 0.34 correspondingly for vision-mission statement and strategic planning formality. It is recommended that SMEs owners and managers should always review and properly implement the vision/mission statement and strategic planning practices which will propel and sustain SMEs in the turbulent and uncertain business environment. Key Words: SMEs, Vision/Mission, Strategic Planning, Business Financial Performance.

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