Small business

PART II:  THE STRATEGIC PLAN

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Chapter 7.
THE VALUE OF THE PLAN
The strategic plan builds on the review of the strengths and weaknesses in the process and management
of SME development policy described in Part 1 and on the approaches and analytical techniques mentioned
there. It will focus on the achievement of specific objectives within the framework of SME development.
The plan is probably best delivered in the early years of a new administration. It can, however, also be
used by an existing administration to support the development of the ‘enterprise culture’. The production
of a plan enables the government to demonstrate that it is responding to the needs of what usually
constitutes the main but neglected form of business activity and the source of much of the growth, innovation
and employment potential 
The plan can embrace a five-year horizon on a rolling basis. It provides:
• A means to link SME development to the mainstream of government economic and social objectives
in a coherent fashion;
• A framework for bringing together coherently the initiatives of various government departments
impacting upon SME development;
• A framework for evaluation and impact reporting of specific programmes and policies, whose time
periods, target groups and scale may differ. This can prevent strategy from becoming the servant or
victim of individual initiatives;
• The bridge between the administration’s philosophy and practice. It sets out the means by which the
government’s particular ideology is to be realised;
• The basis for monitoring progress over time, and, where resources allow, a framework for an annual
report on progress; 
• A central framework for communication with all SME stakeholder groups (including donors) and a
central reference point for debate and discussion with pressure groups.
EFFECTIVE POLICIES FOR SMALL BUSINESS - © OECD 2004
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Examples of high quality reports include those produced by the Hungarian Institute for Small Business Development
and the Hungarian Foundation for Enterprise Promotion. An example of a report outline (on the Bulgarian SME sector for
the period 2000-2002) is reproduced in Annex 6. 
In Ireland the national agency with responsibility for promoting small business highlights its strategic approach in
published documents and annual reports (see www.Enterprise-Ireland.com).
The strategic plan is not a ‘one-off’ static monument to policy but a framework within which changes can
be made reflecting the dynamics of economic and social reality. Its customers are all the key public and
private sector stakeholders in SME development as well as politicians and in, some countries, donors. Its
formulation should not wait until all desirable information is available – the idea is to provide a guide to
what is most necessary for effective decision-making. Regular reviews will help to adjust the plan to
unforeseen problems and new developments.
Each country will have its own conventions for the format of strategic plans. The following is a suggestion
for an overall structure, which can be adapted to local requirements.
1) Introduction setting out briefly the links to national economic and social objectives;

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2) Mission statement and governing principles;
3) Present position of the SME sector;
4) Review of programmes and achievements to date;
5) Future objectives;
6) Targets and planned actions; 
7) Overcoming barriers;
8) Management, monitoring, evaluation and control.
EFFECTIVE POLICIES FOR SMALL BUSINESS - © OECD 2004
7. The Value of the Plan