Impact of Strategic Financial Planning and its Barriers in UK SME

This study aims to analyze the impact of strategic financial planning and its barriers in an SME in the UK, specifically focusing on the case study of Cahinia Accountancy & Business Advisory Service. It will evaluate the challenges faced by SMEs in terms of financial management and the practices that impact organizational performance. The research will also explore the relationship between strategic financial planning and SMEs' business outcomes.

Running head: IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN
UK SME
To Study the Impact of Strategic Financial Planning and its Barriers in an SME in the UK: A
Case Study of Cahinia Accountancy & Business Advisory Service
Name of the University:
Name of the Student:
Authors Note:

1IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
Executive Summary
Despite of the growth trends as well as positive outlook in the SME sector of UK, it has been
observed that most of these companies including Cahinia Accountancy & Business Advisory
Service are dealing with barriers to successful financial management planning in the form of
ineffective managerial abilities, absence of trained personnel, less utilisation of new technologies
and improper access to the financial resources. The aim of the research is to study the impact of
“strategic financial planning”along with the barriers in a same in the UK: a case study of Cahinia
Accountancy & Business Advisory Service. Correlation as well as regression analysis will be
carried out in evaluating the relationship among dependent and the independent variables, where
the dependent variable will be strategic financial planning and the independent variable will be
financial management barriers.The recommended financial management practices for addressing
the identify barriers are likely to include accounting information systems, financial analyse and
reporting, management of financial structure,

2IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
Table of Contents
1. Introduction..................................................................................................................................4
1.1. Research Background...........................................................................................................4
1.2. Problem Statement................................................................................................................4
1.3. Research Hypotheses............................................................................................................5
1.4. Research Questions...............................................................................................................5
1.5. Company Description...........................................................................................................6
1.6. Research Significance...........................................................................................................6
1.7. Research Aim and Objectives...............................................................................................7
2. Literature Review........................................................................................................................8
2.1. Concept of SME and Strategic Management in SMEs.........................................................8
2.2. Strategic Financial Management Practices in UK SMEs.....................................................9
2.3. Impact of Strategic Financial Management Practices on SME Performance.....................10
2.4. Barriers in Implementation of Strategic Financial Management Practices in SME...........12
2.5. Conceptual Framework.......................................................................................................14
3. Research Methodology..............................................................................................................16
3.1. Research Approach.............................................................................................................16
3.2. Research Strategy...............................................................................................................16
3.3. Data Source.........................................................................................................................17

3IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
3.4. Sampling and Sample Size.................................................................................................18
3.5. Data Analysis......................................................................................................................18
3.6. Accessibility.......................................................................................................................19
3.7. Ethical Considerations........................................................................................................19
3.8. Deliverables........................................................................................................................20
3.9. Resources Needed...............................................................................................................21
3.10. Research Timeframe.........................................................................................................21
4. Conclusion and Recommendations............................................................................................22
References......................................................................................................................................23

4IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
1.Introduction
1.1. Research Background
Due to considerable role of fresh jobs creation, increase in GDP, innovation and
entrepreneurship Small and Medium Scale Enterprises (SMEs) in UK are considered to be the
important socio-economic growth drivers. It has also been observed that SMEs in UK are
observed to deal with several challenges related with issuesconcerned with poor financial
management that resulted in the major business failure causes of SMEs (Ahmad 2017).
“Strategic financial management” observed to be the major managerial areas of the SMEs
because of its important function on survival, growth as well as performance of these SMEs.
Focused on such consideration, the objective of research is to evaluate major function of efficient
practices of financial management in these companies along with recognizing the financial
management challenges along ith the practices that impacts organizational performance of the
UK SMEs from the perspective of strategic management (Alvesson and Sköldberg 2017).
Despite of the growth trends as well as positive outlook in the SME sector of UK, it has been
observed that most of these companies including Cahinia Accountancy & Business Advisory
Service are dealing with barriers to successful financial management planning in the form of
insufficient managerial skills, absence of trained personnel, less utilisation of new technologies
and improper access to the financial resources.
1.2. Problem Statement
Cahinia Accountancy & Business Advisory Service is observed to deal with issues
related with poor financial management planning that has affected the existence of the company
in few locations of UK. It has been observed that the managerial mistakes along with failure of

5IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
developing a strategic plan along with weak financial control among the most operations of the
business. It has been observed that certain SMEs including Cahinia Accountancy & Business
Advisory Service deals with certain challenges related with insufficient new technology use, lack
of business based training, insufficient managerial capabilities, increased tax rates as well as
certain different bureaucratic issues (Burns 2016). Ineffective know-how along with low levels
of technology use is observed to be commonbarriers that are faced by Cahinia Accountancy &
Business Advisory Service in planning their financial management activities. In consideration to
such research problem, the current study will be focussed on analysing the reasons related with
ineffective technical knowledge in developing business plans along withdifficulties in
recognising the start-up capital that is required to undertake a high amount of costs regarding the
business launch (Cowling 2016).
1.3. Research Hypotheses
The hypotheses of research developed will be tested in this study are represented below:
 H0: Strategic financial planning has no such impact on the businesses of SMEs
 H1: Strategic financial planning have positive impact on the businesses of SMEs
1.4. Research Questions
The research questions which will be answeredby accomplishing of the current research are
indicated under:
 How is the strategic financial planning in the SMEs of UK considering the case study of
Cahinia Accountancy & Business Advisory Service?
 What are the barriers that are faced by the selected SME Cahinia Accountancy &
Business Advisory Service in the strategic financial planning?

6IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
1.5. Company Description
Cahinia Accountancy & Business Advisory Service is a Private Limited Company based
in UK and the business of this SME includes accounting and auditing activities, bookkeeping
and tax consultancy activities. The company is focussed on offering door-to-door service and is
also cantered on collecting and delivering completed work of less inconvenience (Eniola and
Entebang 2016). Accountancy and the business advisory services of the company includes
certain specialist accountancy areas that includes business development, advice on business start-
up, secretarial company service, fundraising, family owned managed businesses, advice on IT
skills, advice on loan finance and leasing, management consultancy and payroll services. Over
the years the company have employed combined financial resources and skills to support its
consumers to improve as well as retain their personal along with business wealth. However, over
the recent years the company is observed to face barriers related with building reputation all over
UK with effective use of its financial resources across various sectors (Eniola and Entebang
2017).
1.6. Research Significance
The research significance is to analyze the important role of financial management along
with challenges faced by these SMEs in UK in attaining advantages through suitable
implementation of the strategic financial management practices. SMEs in UK is observed to be a
developing research area and in consideration to that the research will have significant
contribution to present literature through evaluating the key challenges within financial
management conduct in UK SME along with the influence of strategic financial management
practices on the performance of SMEs (Fletcher 2017). The research findings will have increased
significance in analyzing the financial management as supporting the overall management

7IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
system in the SMEs. In consideration to same, the study will also evaluate the inefficiencies and
ineffectiveness of the financial conduct that has drastic impacts on the longevity and
performance of the SME. In addition, the research will also make significant contributions in
revealing that most of the barriers faced by the SMEs in UK have a financial nature and through
analyzing the case study of Cahinia Accountancy & Business Advisory Service the researcher
will also reveal that poor financial management is an important as well as common reasons for
business failure among the UK SMEs (Galbraith et al. 2017). Significantresearch implications
will reflect from this study in the form of explaining that financial management knowledge
absence along with uncertainty in business surroundings results in the SMEs to address serious
issuesconcerned with financial and business performances. This can further intimidate the
survival of the SME as observed in case of Cahinia Accountancy & Business Advisory Service.
1.7. Research Aim and Objectives
The research aim is to study impact of strategic financial planning and its barriers in
asame in the UK: a case study of Cahinia Accountancy & Business Advisory Service. The
research objectives that must be tested through completion of recent study are indicated below:
 To carry out study on the strategic financial planning in the SMEs of UK considering the
case study of Cahinia Accountancy & Business Advisory Service
 To analyze the barriers that are faced by the selected SME Cahinia Accountancy &
Business Advisory Service in the strategic financial planning

8IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
2. Literature Review
2.1. Concept of SME and Strategic Management in SMEs
Hussain, Salia and Karim (2018) indicated that there are several small and medium sized
companies segmentation due to changing socio-economicsituations of the entire economic region
and the nations. These researchers also stated that there is no particular explanation of the SME
concept andfor this reason SMEs are explained as the enterprisesthat has a low market share
managed by the owners withinpersonalized manner and not by means of well-developed
management framework. These act as individual entities through not being a part of large group
or enterprise. Malagueño, Lopez-Valeiras and Gomez-Conde (2018) stated that SMEs are
considered as support of the European nations as well as UK as it includes 98% of companies as
well as contributing towards 67% of employment along with the gross value added in the nation
as recorded in the year 2018. These researchers also indicted that the contribution of SMEs in the
social as well as economic development is widely recognized in the developed nations along
with developing economies that is closely associated with growth. Researchers such as Rizos et
al. (2015) has also revealed a robust as well as positive relationship among relative size of SMEs
and growth of the economy.
The likely economic and social advantages of SMEs in UK are observed to include job
creation at low cost of capital resulting in contribution to positive Gross Domestic Product
enhancing forward and backward linkages between sectors. Rizos et al. (2016)indicated that
SMEs in UK are considered to be highly innovative in comparison to the larger companies that is
generally viewed to be highly innovative in comparison to larger companies. These researchers
have also revealed that the SMES include up to 250 employees and these companies are the
major contributor of entrepreneurial skills, employment and innovation that is also highly

9IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
affected by the process of globalization and regularly confronts with certain barriers related with
attaining sufficient capital for business growth, specifically in the early set-up phase. Shah, Long
and Ganji (2017) stated that due to their increased contribution to the economy they are likely to
deal with increased difficulties associated with attaining financing along with higher fixed
taxation costs along with regulatory compliance. Other than this, the SMEs are also offered with
increased incentives alongwith favorable tax treatment. Based on the convoy of the company,
governments might employ a range of policies in order to improve the growth of the SMEs.
2.2. Strategic Financial Management Practices in UK SMEs
Sinkovics, Kurt and Sinkovics (2018) have identified that the performance of UKs SME
sector is a good indicator of its vitality as well as its future prospects. Small businesses in the
nation is considered to be a vital factor for improving income, growth as well as individuals
prosperity, the community as well as the economy of UK. These researchers also revealed that
the SMEs in UK constantly adapt their business function in enhancing the business performance
at the situation of economic turmoil. Stankovska, Josimovski and Edwards (2016) stated that the
previous researchregarding the financial management function as the area in SMEs that needs
increased focus and adjustment and in improving the business performance at the times of
challenging economic times. These researchers also sought to identify the most important
business and management skills needed for the small enterprises of management. The
findingsalsoindicated that most SMEs feel the absence of management and the business skills
and the UK SME owners often seemed to be persuaded by the non-monetary rewards. Trianni,
Cagno and Farné (2016) indicated that the SMEs in UK is not observed to have necessary
skillsthat they need for their growth and survival. These researchers also stated that the SMEs in
the nation also do not possess of financial and accounting management skills that is necessary to

10IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
optimally function and reach the potentialin consideration to the growth, sustainability and
profitability.
It has also been determined by these researchers that the business, entrepreneur expertise
along with financial management skills are regarded as the most strongest predictors of the
survival of small businesses in UK. Sinkovics, Kurt and Sinkovics (2018) revealed the
importance of internal and external business environments’ impact on the debt availability from
the commercial banks to the SMEs as observed in case of Cahinia Accountancy & Business
Advisory Service. Internal factors were categorised as collateral, managerial competencies,
networking along with business information and the external factors are considered as macro-
economy, ethics, legal, corruption and crime. Sinkovics, Kurt and Sinkovics (2018) added that
these identified external and internal factors is deemed to have considerable impact on the debt
availability of the SMEs existing in UK. These researchers also revealed that it has also been
evidenced that companies like Cahinia Accountancy & Business Advisory Service’s failure
evidenced that financial management is an important skill for an SME as it impacts all the
business aspects of an organisation. Previous research also revealed that
financialmanagementpractices in the SMEs include cost minimisation, profit maximisation along
with planning as well as controlling the company’s financial assets. Sinkovics, Kurt and
Sinkovics (2018) investigated the financial information use by the SMEs in UK and revealed that
several small organisations implements practices which encompass formal control and planning.
2.3. Impact of Strategic Financial Management Practices on SME Performance
Sinkovics, Kurt and Sinkovics (2018) revealed that effective and suitable strategic
financial management practices have a broad positive impact on the performance of the SMEs
existing within UK. Supporting such view, it has also been envisaged that SMEs cannot maintain

11IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
their successfulposition in the absence of sufficient funding as well as necessary management
skills. Conversely, the funding that is attained can generally isassociated with the financial
management skills level existing with the SMEs. Previous research carried out by Hussain, Salia
and Karim (2018) also suggested that the SMEs must consider implementing as well as
developing new business plans, attain strategic as well as operational plans and forecast cash
flows in securing the debt along with actions that are likely the result of advanced skills of
financial management. Devoid of such important results, the credit providers are observed to be
quite hesitant in offering necessary funding to the SMEs. From such finding it can also be
ensured that as financial management skills are important for SMEs for thisreason it can be
grouped within logical groups and can be associated with the financial skills and topics.
Hussain, Salia and Karim (2018) added thatthe financial management practices that
positively impacts the operations and business performance of the SMEs include cost and
management accounting, financial planning and analysis, investment decision, financing decision
as well as working capital management. These researchershave also evidenced that SMEs in UK
such as Cahinia Accountancy & Business Advisory Service takes into consideration the financial
management planning in the company in the form of profitability management through income
interpretation, tax returns preparation, income statement forecast and through conductingbreak
even analysis. Hussain, Salia and Karim (2018) also evidenced that the SMEs in UK have also
attain better financial management panning through working capital management that supports
the performance of these company through observing improvement in maintaining stock levels in
the business, preparing creditors list, improvement in the cash flow statement and observing the
positive variance on the balance sheet. These researchers also evidenced that maintaining
effective financial management skills planning by the SMEs in UK has resulted in their

12IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
improvement in cash flow position, decision making along with proper analysis if the areas in
these companies that needs development. Hussain, Salia and Karim (2018) indicated that most of
the determinants of capital structure considered to be important for UK small businesses
industry. Size, age, growth, profitability as well as future opportunities of growth is deemed to
have huge impacts on the level of the short and long term debt of these SMEs.
2.4. Barriers in Implementation of Strategic Financial Management Practices in SME
SMEs witness various impediments to innovation, survival and growth. It has been found
that maximum failures in the performance of SMEs have been due to a variety of factors like
under capitalization, short-term liquidity issues, inadequate working capital and ineffective
financial management. The major barriers that the SMEs encounter face in implementing
strategic financial management practices include the following:
Business growth:
As commented by Eniola and Entebang (2017), the split-up of large organizations into
small organizations or subsidization of small organizations would not result in quick growth. It
has been noted that additional fundamental reforms need to be instituted primarily for managing
the underlying reasons behind the non-fulfillment of business growth potential. The ability of
accessing finance might be one of the causes behind the absence of robust correlation between
the prevalence of SMEs and economic growth.
It has been noted further by Ahmad (2017) that with the aid of financial development, the
small organizations are benefitted immensely. According to the organizational and sector level
studies, it has been found that the performance of small firms is relatively better in contrast to big
organizations in nations with soundly developed financial institutions. The absence of well-

13IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
functioning financial market makes it extremely complex for the organizations to grow to the
optimal size, as the external investors could not restrict expropriation by the corporate insiders.
Profitability:
In the words of Cowling (2016), despite the fact that the credit condition is
accommodative, constancy could be observed in credit growth particularly for the SMEs. The
organizational level data as well sector corporate balance sheet reveals that various SMEs have
encountered structural issues of increased leverage along with low profitability. Moreover, it has
been argued that the financial position across SMEs has been weakened by the global financial
crisis, especially for those having low creditworthiness (Galbraith et al. 2017). The barriers are
deemed to have close relationship with low availability of risk capital along with the
pervasiveness of measures related to credit support. Therefore, addressing these barriers would
assist in enhancing business productivity, growth and private investment. Moreover, there is
need for efforts for deepening capital market for risk enhancement, availability of capital and
addressing regulatory impediments for initiating a business.
Financial innovation:
According to Hussain, Salia and Karim (2018), the progress in communication and
information technologies has enhanced greatly the rivalry spurred by the globalization of the
nations. Moreover, the SMEs are no longer immunized to the barriers brought about by the
globalization. The search of innovative management practice and policy affirmed that rise in
innovative level raises financial performance. More precisely, the relevance of innovation is
underlined for fulfilling the needs of the customers along with differentiating from the
competitors for enhancing overall financial performance.

14IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
Furthermore, Lyee and Cowling (2015) identified that the importance of innovative
products and ideas is increasing for countering the price-oriented rivalry from the low-cost
producers from the emerging nations. By taking into consideration such crucial scores, the SMEs
are often confronted with various impediments to innovation that comprise of resource
constraints and they restrict the development and processes of innovative products.
2.5. Conceptual Framework
The figure below indicates the relationship among independent and the dependent
variables in which dependent variable where the dependent variable will be strategic financial
planning and the independent variable will be financial management barriers. It is also observed
from this framework that financial planning techniques such as capital budgeting along with
working capital management process can facilitate various successful factors of the SMEs
working capital and profitability position (Meath, Linnenluecke and Griffiths 2016). It is also
claimed that the SMEs in UK which claimed to employ sophisticated “discounted cash flow
capital budgeting techniques”and has been effective in employing highly sophisticated
discounted cash flow budgeting it has facilitated them in decreasing debtors’ credit period to
increasing profitability.
The conceptual framework indicated in the figure below also signifies that in analysing
the performance of the SMEs like Cahinia Accountancy & Business Advisory Service the
barriers affecting financial management practices implementation in these companies will also
be evaluated. In consideration to such framework the research will analyse the barriers that are
likely to impacts effective financial planning implementation in SMEs (O'Dwyer and Gilmore
2018). These barriers can be faced by the SMEs in UK in the form of optimisation of capital
investments along with effectivedecision making regarding investmentsinto fixed assets.

15IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
Through addressing such barriers SMEs such as Cahinia Accountancy & Business Advisory
Service can ensure improving their value based performance indicators along with ensuring
availability of sufficient liquidity (Rakićević, Omerbegović-Bijelović and Lečić-Cvetković
2016). The research will also explain the ways on which comprehensive financial planning
system can facilitate in managing capital expenditure along with effectively managing barriers
related with managing investments, financing operations and working capital.
Figure 1: Conceptual Framework
(Source: Authors Creation)
Strategic
financial
planning
Barriers in
Implementing
Strategic Planning
Performance
of UK SMEs
like Cahinia
Accountancy
& Business
Advisory
Service

16IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
3. Research Methodology
3.1. Research Approach
Selecting most appropriate research approach is deemed to be a vital step in carrying out
research and attaining projected findings. There are basically two major researchapproaches,
inductive and deductive in which inductiveresearch approach facilitates researcher to develop
new set of models and theories after analyzing the study outcomes. On the other hand, deductive
research approach takes into account scrutinizing the existing models and theories associated
with research through attaining help from such study findings. In the current research deductive
research approach will be employed in analyzing the strategic financial planning challenges
faced by Cahinia Accountancy & Business Advisory Service Company (Flick 2015). Moreover,
as the current research is focussed on carrying out quantitative analysis,
deductiveresearchapproach is deemed to be highly suitable as it can facilitate in
attainingsuitableresearch outcomes. In addition, for the reason that positivism research
philosophy will be followed in conducting quantitative analysis for this reason, deductive
research approach will be suitable for the study in deriving actual results from the research
(Kumar 2019). As the researcher will not develop any new theory or model and human responses
have been given the major priority for this reason, deductive research approach is considered to
be most appropriate in analysing the impact of strategic financial planning practices on the UK
SMEs as well as to identify the barriers in implementing such strategic financial management
planning initiatives.
3.2. Research Strategy
Selecting most suitable research design facilitate the researcher to ensure better chance of
guiding the research in a way that it attains a particular objective relied on specific objective set

17IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
for study. The chosen research design can facilitate the researcher in offering reference to
targeted findingsin which the existing fraction of overallstudy is conducted on a particular goal
(Ledford and Gast 2018). In thisresearch, descriptive research strategy will be chosen in that
facilitatesresearcher in analyzing the cause-effect relationship by anticipating upcoming
outcomes of the research. Descriptiveresearch design will be employed in the current study in
exploringalong with elaborating the issues confronted by the study, it can also offer the research
with a better opportunity to increase understanding along with the knowledge base. This research
strategy can facilitate in elaborating the causes behind the financial management planning in
Cahinia Accountancy & Business Advisory Service. In addition, descriptive research strategy
implementation will also result in preparing a recommendations list in decreasing the research
problems through attainment of research objectives (Lyee and Cowling 2015).
3.3. Data Source
The major data source for this research will be primary data. In addition to primary data,
the secondary data will also be used in this research. Semi-structured interview will be carried
out on the employees of Cahinia Accountancy & Business Advisory Service. Such qualitative
approach is considered to be suitable for this research as employees requires interpreting from
their individual experiences (Mackey and Gass 2015). In addition, another important data source
will be secondary sources such as relevant government or newspaper publications on financial
planning management of SMEs in UK as well as the selected company’s website can also serve
as an important data collection source. In addition, books on accountancy and business advisory
services will also be referred for applying suitable accounting concepts on the situation faced by
the selected UK based organisation (McCusker and Gunaydin 2015). Open ended questions will
be asked in the interview for attaining detailed qualitative data and along with that likert scale

18IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
will be employed in developing questionnaire for the survey that can facilitate in gathering data
in the numerical form for better and efficient quantitative analysis.
3.4. Sampling and Sample Size
Suitable sampling technique must be followed in the research in selection of the target
respondents for the study from the selected larger population. Simple random sampan technique
will be exploited in the currentresearch in selectingthe important data source of primary data in
blendingrelevant informationwhich is associated with the aim and objectives of the study. This
sampling technique will be used in carrying out survey with professionals as it offers equal
chances to all the respondents to get chosen in the survey (Quinlan et al. 2019). For this reason,
quantitative data will be collected from a hue sample through employing simple random
sampling method. It has also been evaluated that in order to conduct quantitative data analysis
effectively a relatively larger sample is considered to be necessary in effectively analyzing the
respondents’ responses. For this reason, 20 employees will be selected from Cahinia
Accountancy & Business Advisory Service Company and 2 managers of the company. This
sample size selected is deemed to be suitable for its analysis because of a huge data set that can
be attained from interviews and because of the short timeframe available for the research
(Taylor, Bogdan and DeVault 2015). Simple random sampling technique to be employed in
thisresearch can offer fair as well as representative view regardingthestrategic financial planning
techniques used by Cahinia Accountancy & Business Advisory Service as well as the barriers
faced by the company while implementing the same.
3.5. Data Analysis
The collected data will be analyzed through employing suitable statistical analysis tools
in order to gather effective and reliable research findings regarding the barriers that are affecting

19IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
Cahinia Accountancy & Business Advisory Service in their successful implementation of
strategic financial management planning (Walliman 2017). Correlation and regression analysis
will be carried out in evaluating the relationship between the dependent and the independent
variables, where the dependent variable will be strategic financial planning and the independent
variable will be financial management barriers. Based on such statistical analysis the hypotheses
developed can be tested from evaluating the regression results. In addition, the data that will be
analysed is deemed to be represented in the form of tables and graphs that can make it easy to
analyse and observe the study findings for developing constructive recommendations (Taylor,
Bogdan and DeVault 2015).
3.6. Accessibility
The currentresearch is quantitative and the data gathered for this research will be attained
through questionnaire and the qualitative data will be collected through interview as problems
are not faced regarding attainment of ethical approval of the research(Taylor, Bogdan and
DeVault 2015). Moreover, very less attempts has been made to attain any confidential
information related to the selected company that can affect the interest of the company along
with information that are in public domain on the interest about Cahinia Accountancy &
Business Advisory Service will also be employed in this study.
3.7. Ethical Considerations
In carrying out research on “impact of strategyfinancial planning and barriers faced in
same by UK SMEs”, the researcher will ensure that suitable “code of conduct” will be
considered in accomplishing tasks forprocess of data collection. The researcher will also make
sure that the researcher will gather secondary data from diverse valid sources in maintaining the
validity of the reset outcomes. In carrying out the research in a reliable manner, the

20IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
researcherwill also take into consideration attaining mutual consent from the respondents before
they participate in the interview and survey process(Taylor, Bogdan and DeVault 2015).
Conversely, the identity of the respondents will also not be disclosed and their identity will be
kept confidential for sanctuary reasons. In addition, the gathered data for business use will be
entertained from the researchers end. The research that will be carried out is considered to be the
researcher’s sole work and will also be ensured that it will be free of any plagiarized content. In
keeping the findings of the research genuine, the researcher will make sure that the data is
collected from most authentic sourcesalong with participant responses. The researcher will also
have to make better attempts to maintain validity of datathrough employing the SPSS application
in data intoperpetration(Taylor, Bogdan and DeVault 2015). The researcher will also make use
of most relevant and authentic websites in collecting data regarding strategic financial planning
process followed within the SMEs.
3.8. Deliverables
In accomplishing the research, the topic selection is proposed to be done till 25th June,
approval for the research proposal topic is to be attained till 20th June. Development of research
objectives along with completion of literature review is deemed to be accomplished till 8nd July.
Collection of the primary data through survey or interview and secondary data from reliable
sources is estimated to be complete till 15th July based on which data transcription will be
accomplished by 18th July. Analysis of gathered data through using reliable statistical data
analysis tools will be accomplished by 30nd July based on which results its discussion, conclusion
and recommendation will be prepared and completed by 10th August. Softcopy of the theses will
be presented till 20th August and then after its approval, the dissertation will be printed out and
submitted by 30th August 2019.

21IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
3.9. Resources Needed
The necessary resources that are needed for the completion of the research will include
stationary paper for questionnaire that will be of size A 4 sheet, journal articles and books from
the libraries, personal computer or laptop for research work, printer, internet connection, survey
questionnaire for transcription of the interview data gathered along with reliable statistical
software like SPSS for data analysis (Ledford and Gast 2018).
3.10. Research Timeframe

22IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
3.11. Data Analysis Findings and Discussion
Descriptive Statistics
Mean Std. Deviation N
I would like to recommend
the company to realize the
importance of innovative
products and ideas in
strengthening strategic
financial planning process
1.60 .821 20
The company has adequate
financial and accounting
management skills
4.45 .759 20
The company faces
structural issues of
increased leverage along
with low profitability affecting
strategic financial planning
process
1.75 .444 20
There are enough resources
available with the company
to support financial process
of the company
4.40 .681 20
The employees are skilled
enough to use financial
funds to attain each
department goals
4.15 .671 20
The company faces barrier
of under capitalization
affecting strategic financial
planning process
4.15 .813 20
The company faces barrier
of short-term liquidity issues
affecting strategic financial
planning process
4.05 .759 20

23IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
The company faces barrier
of inadequate working
capital issues affecting
strategic financial planning
process
4.45 .686 20
Correlations
I would like
to
recommend
the
company to
realize the
importance
of
innovative
products
and ideas
in
strengtheni
ng strategic
financial
planning
process
The
company
has
adequate
financial
and
accounting
manageme
nt skills
The
company
faces
structural
issues of
increase
d
leverage
along
with low
profitabili
ty
affecting
strategic
financial
planning
process
There
are
enough
resourc
es
availabl
e with
the
compan
y to
support
financial
process
of the
compan
y
The
employee
s are
skilled
enough
to use
financial
funds to
attain
each
departme
nt goals
The
company
faces
barrier of
under
capitalizati
on
affecting
strategic
financial
planning
process
The
compa
ny
faces
barrier
of
short-
term
liquidity
issues
affectin
g
strategi
c
financia
l
plannin
g
process
The
company
faces
barrier of
inadequa
te
working
capital
issues
affecting
strategic
financial
planning
process

24IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
Pearson
Correlati
on
I would like
to
recommen
d the
company to
realize the
importance
of
innovative
products
and ideas
in
strengtheni
ng strategic
financial
planning
process
1.000 -.203 .000 -.170 -.172 .016 -.304 -.224
The
company
has
adequate
financial
and
accounting
manageme
nt skills
-.203 1.000 .195 .550 .481 .567 .416 .399

25IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
The
company
faces
structural
issues of
increased
leverage
along with
low
profitability
affecting
strategic
financial
planning
process
.000 .195 1.000 .000 .309 -.036 .039 .043
There are
enough
resources
available
with the
company to
support
financial
process of
the
company
-.170 .550 .000 1.000 .553 .457 .367 .834
The
employees
are skilled
enough to
use
financial
funds to
attain each
department
goals
-.172 .481 .309 .553 1.000 .343 .501 .532

26IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
The
company
faces
barrier of
under
capitalizatio
n affecting
strategic
financial
planning
process
.016 .567 -.036 .457 .343 1.000 .584 .533
The
company
faces
barrier of
short-term
liquidity
issues
affecting
strategic
financial
planning
process
-.304 .416 .039 .367 .501 .584 1.000 .460
The
company
faces
barrier of
inadequate
working
capital
issues
affecting
strategic
financial
planning
process
-.224 .399 .043 .834 .532 .533 .460 1.000

27IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
Sig. (1-
tailed)
I would like
to
recommen
d the
company to
realize the
importance
of
innovative
products
and ideas
in
strengtheni
ng strategic
financial
planning
process
. .196 .500 .237 .234 .474 .096 .171
The
company
has
adequate
financial
and
accounting
manageme
nt skills
.196 . .205 .006 .016 .005 .034 .041

28IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
The
company
faces
structural
issues of
increased
leverage
along with
low
profitability
affecting
strategic
financial
planning
process
.500 .205 . .500 .092 .439 .435 .428
There are
enough
resources
available
with the
company to
support
financial
process of
the
company
.237 .006 .500 . .006 .021 .056 .000
The
employees
are skilled
enough to
use
financial
funds to
attain each
department
goals
.234 .016 .092 .006 . .070 .012 .008

29IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
The
company
faces
barrier of
under
capitalizatio
n affecting
strategic
financial
planning
process
.474 .005 .439 .021 .070 . .003 .008
The
company
faces
barrier of
short-term
liquidity
issues
affecting
strategic
financial
planning
process
.096 .034 .435 .056 .012 .003 . .021
The
company
faces
barrier of
inadequate
working
capital
issues
affecting
strategic
financial
planning
process
.171 .041 .428 .000 .008 .008 .021 .

30IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
N I would like
to
recommen
d the
company to
realize the
importance
of
innovative
products
and ideas
in
strengtheni
ng strategic
financial
planning
process
20 20 20 20 20 20 20 20
The
company
has
adequate
financial
and
accounting
manageme
nt skills
20 20 20 20 20 20 20 20

31IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
The
company
faces
structural
issues of
increased
leverage
along with
low
profitability
affecting
strategic
financial
planning
process
20 20 20 20 20 20 20 20
There are
enough
resources
available
with the
company to
support
financial
process of
the
company
20 20 20 20 20 20 20 20
The
employees
are skilled
enough to
use
financial
funds to
attain each
department
goals
20 20 20 20 20 20 20 20

32IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
The
company
faces
barrier of
under
capitalizatio
n affecting
strategic
financial
planning
process
20 20 20 20 20 20 20 20
The
company
faces
barrier of
short-term
liquidity
issues
affecting
strategic
financial
planning
process
20 20 20 20 20 20 20 20
The
company
faces
barrier of
inadequate
working
capital
issues
affecting
strategic
financial
planning
process
20 20 20 20 20 20 20 20
Model Summary

33IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
Model R R
Square
Adjusted R
Square
Std. Error of
the Estimate
Change Statistics
R Square
Change
F
Change
df1 df2 Sig. F
Change
1 .504a .254 -.181 .892 .254 .585 7 12 .757
a. Predictors: (Constant), The company faces barrier of inadequate working capital issues affecting strategic
financial planning process, The company faces structural issues of increased leverage along with low profitability
affecting strategic financial planning process, The company has adequate financial and accounting management
skills, The company faces barrier of short-term liquidity issues affecting strategic financial planning process, The
employees are skilled enough to use financial funds to attain each department goals, The company faces barrier of
under capitalization affecting strategic financial planning process, There are enough resources available with the
company to support financial process of the company
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 3.255 7 .465 .585 .757b
Residual 9.545 12 .795
Total 12.800 19
a. Dependent Variable: I would like to recommend the company to realize the importance of
innovative products and ideas in strengthening strategic financial planning process
b. Predictors: (Constant), The company faces barrier of inadequate working capital issues
affecting strategic financial planning process, The company faces structural issues of increased
leverage along with low profitability affecting strategic financial planning process, The company
has adequate financial and accounting management skills, The company faces barrier of short-
term liquidity issues affecting strategic financial planning process, The employees are skilled
enough to use financial funds to attain each department goals, The company faces barrier of
under capitalization affecting strategic financial planning process, There are enough resources
available with the company to support financial process of the company
Coefficientsa
Model Unstandardize
d Coefficients
Standardize
d
Coefficients
t Sig. 95.0%
Confidence
Interval for B
Correlations Collinearity
Statistics
B Std.
Error
Beta Lower
Boun
d
Upper
Boun
d
Zero-
order
Partia
l
Part Toleranc
e
VIF

34IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
1 (Constant) 3.104 1.718 1.80
6 .096 -.640 6.848
The
company
has
adequate
financial and
accounting
managemen
t skills
-.409 .403 -.378
-
1.01
5
.330 -1.287 .469 -.203 -.281 -.25
3 .448 2.235
The
company
faces
structural
issues of
increased
leverage
along with
low
profitability
affecting
strategic
financial
planning
process
.191 .518 .103 .369 .719 -.937 1.319 .000 .106 .092 .791 1.264
There are
enough
resources
available
with the
company to
support
financial
process of
the
company
.316 .649 .262 .487 .635 -1.098 1.730 -.170 .139 .121 .214 4.663

35IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
The
employees
are skilled
enough to
use financial
funds to
attain each
department
goals
.107 .435 .088 .246 .810 -.842 1.056 -.172 .071 .061 .491 2.039
The
company
faces barrier
of under
capitalizatio
n affecting
strategic
financial
planning
process
.575 .378 .569 1.52
2 .154 -.248 1.398 .016 .402 .379 .444 2.252
The
company
faces barrier
of short-term
liquidity
issues
affecting
strategic
financial
planning
process
-.448 .368 -.414 -
1.21
6
.247 -1.250 .354 -.304 -.331 -.30
3
.536 1.866

36IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
The
company
faces barrier
of
inadequate
working
capital
issues
affecting
strategic
financial
planning
process
-.545 .623 -.456 -.876 .398 -1.903 .812 -.224 -.245 -.21
8 .229 4.367
a. Dependent Variable: I would like to recommend the company to realize the importance of innovative products and
ideas in strengthening strategic financial planning process
Coefficient Correlationsa
Model The
company
faces
barrier of
inadequat
e working
capital
issues
affecting
strategic
financial
planning
process
The
company
faces
structural
issues of
increased
leverage
along with
low
profitabilit
y affecting
strategic
financial
planning
process
The
company
has
adequate
financial and
accounting
managemen
t skills
The
compan
y faces
barrier
of short-
term
liquidity
issues
affecting
strategic
financial
planning
process
The
employees
are skilled
enough to
use
financial
funds to
attain each
departmen
t goals
The
company
faces barrier
of under
capitalizatio
n affecting
strategic
financial
planning
process
There
are
enough
resource
s
available
with the
company
to
support
financial
process
of the
company

37IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
1 Correlation
s
The
company
faces barrier
of
inadequate
working
capital
issues
affecting
strategic
financial
planning
process
1.000 -.153 .368 -.160 -.081 -.334 -.774
The
company
faces
structural
issues of
increased
leverage
along with
low
profitability
affecting
strategic
financial
planning
process
-.153 1.000 -.252 .105 -.326 .161 .263
The
company
has
adequate
financial and
accounting
managemen
t skills
.368 -.252 1.000 -.068 -.141 -.457 -.465

38IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
The
company
faces barrier
of short-
term liquidity
issues
affecting
strategic
financial
planning
process
-.160 .105 -.068 1.000 -.356 -.367 .170
The
employees
are skilled
enough to
use financial
funds to
attain each
department
goals
-.081 -.326 -.141 -.356 1.000 .129 -.205
The
company
faces barrier
of under
capitalizatio
n affecting
strategic
financial
planning
process
-.334 .161 -.457 -.367 .129 1.000 .164

39IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
There are
enough
resources
available
with the
company to
support
financial
process of
the
company
-.774 .263 -.465 .170 -.205 .164 1.000
Covariance
s
The
company
faces barrier
of
inadequate
working
capital
issues
affecting
strategic
financial
planning
process
.388 -.049 .092 -.037 -.022 -.079 -.313
The
company
faces
structural
issues of
increased
leverage
along with
low
profitability
affecting
strategic
financial
planning
process
-.049 .268 -.053 .020 -.074 .031 .088

40IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
The
company
has
adequate
financial and
accounting
managemen
t skills
.092 -.053 .162 -.010 -.025 -.070 -.122
The
company
faces barrier
of short-
term liquidity
issues
affecting
strategic
financial
planning
process
-.037 .020 -.010 .136 -.057 -.051 .041
The
employees
are skilled
enough to
use financial
funds to
attain each
department
goals
-.022 -.074 -.025 -.057 .190 .021 -.058
The
company
faces barrier
of under
capitalizatio
n affecting
strategic
financial
planning
process
-.079 .031 -.070 -.051 .021 .143 .040

41IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
There are
enough
resources
available
with the
company to
support
financial
process of
the
company
-.313 .088 -.122 .041 -.058 .040 .421
a. Dependent Variable: I would like to recommend the company to realize the importance of innovative products and
ideas in strengthening strategic financial planning process
Collinearity Diagnosticsa
Mod
el
Dimensi
on
Eigenval
ue
Conditi
on
Index
Variance Proportions
(Consta
nt)
The
company
has
adequate
financial
and
accountin
g
managem
ent skills
The
compan
y faces
structur
al
issues
of
increas
ed
leverag
e along
with low
profitabi
lity
affectin
g
strategi
c
financial
plannin
g
process
There
are
enough
resourc
es
availabl
e with
the
compa
ny to
support
financi
al
proces
s of the
compa
ny
The
employe
es are
skilled
enough
to use
financial
funds to
attain
each
departm
ent
goals
The
company
faces
barrier of
under
capitalizat
ion
affecting
strategic
financial
planning
process
The
compa
ny
faces
barrier
of
short-
term
liquidit
y
issues
affecti
ng
strateg
ic
financi
al
planni
ng
proces
s
The
compan
y faces
barrier
of
inadequ
ate
working
capital
issues
affecting
strategic
financial
planning
process

42IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
1
1 7.863 1.000 .00 .00 .00 .00 .00 .00 .00 .00
2 .061 11.372 .00 .00 .58 .00 .00 .03 .01 .00
3 .023 18.499 .01 .00 .04 .05 .02 .16 .20 .03
4 .018 20.922 .00 .22 .01 .00 .09 .13 .36 .00
5 .013 24.160 .08 .33 .08 .00 .22 .17 .01 .05
6 .012 25.911 .84 .03 .15 .01 .03 .08 .00 .04
7 .008 31.447 .06 .12 .06 .04 .64 .32 .38 .02
8 .003 55.480 .00 .30 .07 .89 .01 .11 .03 .85
a. Dependent Variable: I would like to recommend the company to realize the importance of innovative products and
ideas in strengthening strategic financial planning process
From the findings of the table it has been gathered that the dependent variable
recommendation on innovative ideas development for financial planning performance
improvement has indicated a significant relationship with the independent variables such as
financial planning barriers like structural issues, financial and accounting management skills,
enough resources, financial funds, under capitalization, short-term liquidity and inadequate
working capital issues with values below 0.005 significance level. Based on such significant
findings H1 can be accepted.

43IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME

44IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME

45IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME

46IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
Cahinia Accountancy & Business Advisory Service is not observed to have necessary
skills that they need for their growth and survival. The findings of the data analysis revealed that
the SMEs in the nation also do not possess of financial and accounting management skills that is
necessary to optimally function and reach the potential in consideration to the growth,
sustainability and profitability. It has been found that maximum failures in the performance of
Cahinia Accountancy & Business Advisory Service have been due to a variety of factors like
under capitalization, short-term liquidity issues, inadequate working capital and ineffective
financial management. The findings revealed that the financial management practices that
positively impacts the operations and business performance of Cahinia Accountancy & Business
Advisory Service include cost and management accounting, financial planning and analysis,
investment decision, financing decision as well as working capital management. It has also been
revealed that Cahinia Accountancy & Business Advisory Service takes into consideration the
financial management planning in the company in the form of profitability management through

47IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
income interpretation, tax returns preparation, income statement forecast and through conducting
break even analysis.
4. Conclusion and Recommendations
The aim of the research is to study the impact of strategic financial planning and its
barriers in asame in the UK: a case study of Cahinia Accountancy & Business Advisory Service.
Analysis of the literature revealed that maximum failures in the performance of SMEs have been
due to a variety of factors like under capitalization, short-term liquidity issues, inadequate
working capital and ineffective financial management. In analyzing the impact of such barriers,
the collected data will be analyzed through employing suitable statistical analysis tools in order
to gather effective and reliable research findings regarding the barriers that are affecting Cahinia
Accountancy & Business Advisory Service in their successful implementation of strategic
financial management planning. Through applying the triangulation method in research, it
attained the study objective of analysing barriers faced by SMEs in implementing the strategic
financial planning practices in China Accountancy & Business Advisory Service. The research
results have addressed the research objective of the strategic financial planning in the SMEs of
UK considering the case study of China Accountancy & Business Advisory Service. Aligning
with the literature review and the research objectives, the findings of the research revealed that
Cahinia Accountancy & Business Advisory Service with increased incentives along with
favorable tax treatment. Based on the convoy of the company, governments might employ a
range of policies in order to improve the growth of the SMEs. It has also been revealed that
Cahinia Accountancy & Business Advisory Service in the nation also do not possess of financial
and accounting management skills that is necessary to optimally function and reach the potential
in consideration to the growth, sustainability and profitability.

48IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
From completion of the research effective recommendations will be proposed regarding
the ways in which the SMEs in UK such as Cahinia Accountancy & Business Advisory Service
can dealwith their barriers in successful implementation of financial management planning.
Recommendation will be provided to the company regarding trainingalong with other support
needs for maintaining effective financial management systems. The recommended financial
management practices for addressing the identify barriers are likely to include accounting
information systems, financial analyse and reporting, management of financial structure,
management of working capital through determination of investment hurdle rate and attaining
necessary financial advices.

49IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
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Appendix
Questionnaire for Employees of Cahinia Accountancy & Business Advisory Service
1. The company has adequate financial and accounting management skills
Strongly Agree Agree Neutral Disagree Strongly
Disagree
2. The company faces structural issues of increased leverage along with low profitability
affecting strategic financial planning process
Strongly Agree Agree Neutral Disagree Strongly
Disagree
3. There are enough resources available with the company to support financial process of
the company
Strongly Agree Agree Neutral Disagree Strongly
Disagree

53IMPACT OF STRATEGIC FINANCIAL PLANNING AND ITS BARRIERS IN UK SME
4. The employees are skilled enough to use financial funds to attain each department goals
Strongly Agree Agree Neutral Disagree Strongly
Disagree
5. The company faces barrier of under capitalization affecting strategic financial planning
process
Strongly Agree Agree Neutral Disagree Strongly
Disagree
6. The company faces barrier of short-term liquidity issues affecting strategic financial
planning process
Strongly Agree Agree Neutral Disagree Strongly
Disagree
7. The company faces barrier of inadequate working capital issues affecting strategic
financial planning process
Strongly Agree Agree Neutral Disagree Strongly
Disagree
8. I would like to recommend the company to realize the importance of innovative products
and ideas in strengthening strategic financial planning process
Strongly Agree Agree Neutral Disagree Strongly
Disagree