Impact of Strategic Financial Planning and its Barriers in UK SME
Added on 2023-04-21
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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:
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,
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
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
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
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?
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
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
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
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