Strategy process in a micro-enterprise

Abstract

This thesis aims to understand and visualize the strategy process in micro-enterprises. It explores how micro-enterprises can benefit from strategic planning and it identifies factors that may hinder strategy process progressing in micro-enterprises. As part of this study, business strategy figure was developed and then reviewed with a real, operating micro-enterprise in the music, audio, and video production industry. This process is described in detail.

This thesis was carried out as qualitative research and interviews with one entrepreneur were part of the data collection in the empirical part of the work. Survey was carried out to get information from a larger number of micro-entrepreneurs. Literature review explored the concept of strategy, strategy tools and strategy shaping, as well as the status of micro-enterprises in Finland. Theoretical data was gathered from various sources, including books and articles. The objective was to gain a comprehensive understanding of strategy and the strategy process, particularly in the context of micro-enterprises. Based on the collected information, strategy process figure was made to visualize the process, and the strategy process was reviewed with the interviewed entrepreneur. This process is thoroughly documented in this thesis.

This thesis visualized the strategy process and demonstrated its practical application in micro-enterprises. The findings suggest that engaging in a strategic planning process can enhance a micro-enterprise’s ability to manage daily operations effectively. It became evident that the entrepreneurs’ personal characteristics, skills and attributes play a significant role in strategy planning process. The survey revealed that interest in and effort towards strategic planning among micro-enterprises could be fostered by presenting the concept in a more compelling manner. Importantly, strategic planning extends beyond financial gains and future objectives, encompassing improvements in daily operations and present-day performance. The study found that defining success is a crucial initial step in the strategic planning process for micro-enterprises. Moreover, a realistic assessment of the entrepreneur's resources and skills at the outset of the process is essential for its successful implementation. Failure to conduct such an assessment can hinder the progress of strategic planning.