An assessment of the effects of financial planning on business Performance: A case of small businesses in Narok Town

Abstract

The study assessed the effects of financial planning on business performance among small businesses in Narok Town. The target population was 70 small business traders in Narok Town where 48 businesses responded. The study assessed: the effects of asset management on business performance of SMEs in Narok Town; determine how risk management affects business performance of SMEs in Narok Town; establish how retirement planning affects business performance of SMEs in Narok Town. The study adopted the life-cycle finance theory and credit rationing theory. Stratified random sampling was utilized in selecting the respondents for the study. Primary data was collected from the study respondents using questionnaires. Data was analyzed descriptively and presented through figures, tables, percentages and tabulation to show differences in frequencies. The study found out that asset management, risk management and retirement planning which are components of financial planning affects business profitability.