Home⇛Journal of Interdisciplinary Perspectives⇛vol. 4 no. 1 (2026)

The Relationship Between Business Planning and Business Performance Towards Microbusiness

Kayte Jassen P. Bacroya | Daiserie V. Ampoeda | Mark Lloyd Anthony S. Andilab | Laiza L. Ardenes | Metonia M. Gonzales | Jishanis Mae G. Becaro-lapiz

Discipline: business studies

 

Abstract:

This study investigates the relationship between business planning and business performance among microbusinesses in Cabanglasan, Bukidnon. Business planning serves as a strategic tool to enhance operational effectiveness by mitigating risks, ensuring precise project execution, and optimizing the use of financial resources. Applying a quantitative research design, data were collected from 79 registered sari-sari store owners using structured questionnaires focused on planning-related practices. Descriptive statistics and Pearson correlation analysis were used to assess the extent to which planning components influence performance indicators. The results revealed that microbusinesses that practice strong risk mitigation strategies, well-organized projects, and disciplined financial resource management report notable improvements in profitability, customer satisfaction, and business continuity. Risk mitigation had the most significant influence on overall performance. Challenges were observed in the adoption of digital tools and in access to financial support, which limit further gains. The findings emphasize the need to strengthen local training programs, resource-allocation strategies, and support systems tailored to the realities of microenterprises. This study provides policymakers, regional development agencies, and educators with meaningful insights to promote sustainable growth in rural microbusiness sectors.



References:

  1. Abellana, J. J., & Alonzo, A. (2025). Factors influencing business growth among Micro, Small, and Medium-sized (MSMEs) Bakery Enterprises in Northern Mindanao, Philippines. African Journal of Food, Agriculture, Nutrition and Development, 25(7), 27384–27409. https://doi.org/10.18697/ajfand.144.26100
  2. Alonzo, A., Ganas, E., & Abellana, J. J. (2025). Roadblocks to success: Examining the resources and performance of micro, small, and medium enterprises. International Review of Management and Marketing, 15(5), 49–59. https://doi.org/10.32479/irmm.19309
  3. Alcobary, M. (2022). Strategies that retail business owners use to prevent and reduce employee theft. (Doctoral dissertation, Walden University). https://tinyurl.com/mvvfj52s
  4. Alves, A., & Carvalho, F. M. P. (2022). How dynamic managerial capabilities, entrepreneurial orientation, and operational capabilities impact microenterprises’ global performance. Sustainability, 15(1), 14. https://www.mdpi.com/2071-1050/15/1/14
  5. Anakpo, G., Nqwayibana, Z., & Mishi, S. (2023). The impact of work-from-home on employee performance and productivity: A systematic review. Sustainability, 15(5), 4529. https://www.mdpi.com/2071-1050/15/5/4529
  6. Anbumozhi, V., Kimura, F., & Thangavelu, S. M. (2020). Global supply chain resilience: Vulnerability and shifting risk management strategies. In Supply Chain Resilience: Reducing Vulnerability to Economic Shocks, Financial Crises, and Natural Disasters (pp. 3–14). Singapore: Springer Singapore. https://tinyurl.com/epa3eukx
  7. Astuty, E., Sudirman, I. D., & Aryanto, R. (2024). Sustainable resilience strategy: Unleash the micro-businesses’s potential in the digitalization and sustainability era. Cogent Business & Management, 11(1), 2313672. https://tinyurl.com/3v97htsy
  8. Attah, R. U., Garba, B. M. P., Gil-Ozoudeh, I., & Iwuanyanwu, O. (2024). Best practices in project management for technology-driven initiatives: A systematic review of market expansion and product development techniques. International Journal Of Engineering Research And Development, 20(11), 1350–61. https://tinyurl.com/yc39x279
  9. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
  10. Celestin, M., & Vanitha, N. (2020). The hidden costs in your financial statements: What you're overlooking. International Journal of Computational Research and Development (IJCRD), 5(2), 34–41. https://tinyurl.com/396szucj
  11. Chaudhuri, A., Bhatia, M. S., Kayikci, Y., Fernandes, K., & Fosso-Wamba, S. (2023). Improving social sustainability and reducing supply chain risks through blockchain implementation: Role of outcome and behavioural mechanisms. Annals of Operations Research, 327(1), 401–433. https://tinyurl.com/sec2mpn8
  12. Dal Mas, F., Massaro, M., Paoloni, P., & Kianto, A. (2023). Translating knowledge in new entrepreneurial ventures: The role of business plan development. VINE Journal of Information and Knowledge Management Systems, 53(6), 1159–1177. https://tinyurl.com/585xtjne
  13. Damnjanovic, V., Proud, W., & Milosavljevic, M. (2021). Mentoring development at student international business case competitions. EuroMed Journal of Business, 16(2), 154–170. https://tinyurl.com/bdhdurmw
  14. Elbanna, S., Eissa, M. A., & Armstrong, L. (2025). Financial literacy in the modern economy: Bridging the knowledge gap for entrepreneurs and beyond. In the Future of Education Policy in the State of Qatar (pp. 147–173). Singapore: Springer Nature Singapore. https://tinyurl.com/2ypu224d
  15. Errico, F.,  Petruzzelli, A. M., Panniello, U., & Scialpi, A. (2024). Source of funding and specialized competences: The impact on the innovative performance of start-ups. Journal of Knowledge Management, 28(2), 564–589. https://tinyurl.com/53j5pp4x
  16. Ghaffar, J. A., Khattak, M. S., Shah, T. A., & Jehangir, M. (2024). Impact of personality traits on financial planning: An empirical evidence from Pakistan. Journal of Economic and Administrative Sciences, 40(2), 434–450. https://tinyurl.com/rwbcz3yj
  17. Gutterman, A. (2022). Financing activities for businesses. SSRN 4242277. https://tinyurl.com/4kjfceed
  18. Gutterman, A. (2023). Organizational performance and effectiveness. SSRN 4532570. https://tinyurl.com/2h87wcaz
  19. Haber, N., & Fargnoli, M. (2021). Sustainable product-service systems customization: A case study research in the medical equipment sector. Sustainability, 13(12), 6624. https://www.mdpi.com/2071-1050/13/12/6624
  20. Harake, M. F. (2025). Navigating economic crises: Strategic project management for agility, resilience, and innovation. https://tinyurl.com/32kyev9v
  21. Institute of Internal Auditors. (2025). Enhanced enterprise risk management and strategic decision-making. The IIA Whitepaper
  22. Kaukiainen, A. (2019). Corporate strategy implementation through strategic projects. (Doctoral dissertation, Master’s Thesis. Tampere University, Finland). 
  23. Kusairi, S. (2023). The business survival of micro-enterprises in facing economic uncertainty. Journal of Governance and Integrity, 5(3), 328–35. https://tinyurl.com/spsy8am3
  24. Lung-Guang, N. (2019). Decision-making determinants of students participating in MOOCs: Merging the theory of planned behavior and self-regulated learning model. Computers & Education, 134, 50–62. https://tinyurl.com/ydrck67w
  25. Mahmud, F., Orthi, S. M., Saimon, A. S., Moniruzzaman, M., Miah, M. A., Ahmed, M. K., Khair, F. B., Islam, M. S., & Manik, M.  (2025). Big data and cloud computing in IT project management: A framework for enhancing performance and decision-making. https://tinyurl.com/3nundj2v
  26. Mansoori, Y., & Lackéus, M. (2020). Comparing effectuation to discovery-driven planning, prescriptive entrepreneurship, business planning, lean startup, and design thinking. Small Business Economics, 54(3), 791-818. https://tinyurl.com/u2caervk
  27. Mehmood, M., & Zaman, S. (2025). Financial projections and valuation optimization for pre-seed startups: A strategic framework. ACADEMIA International Journal for Social Sciences, 4(2), 137-153. https://tinyurl.com/ydupzb2c
  28. Nedeljkovic, J., & Sun, T. (2024). Thriving transitions, navigating and empowering micro-businesses toward a promising future with the “Transformative Strategy Journey”. https://openresearch.ocadu.ca/id/eprint/4489/
  29. Okafor, I., & Odubade, O. (2022). Factors affecting scope creep in project management: Identify the key factors contributing to scope creep and explore strategies to prevent it. International Journal of Engineering Technology and Management Sciences, 6(11), 10-5281. https://tinyurl.com/2s3tk5s2
  30. Okano, M. (2022). The importance of entrepreneurship in micro and small enterprises in uncertainty and barrier scenarios. International Journal of Business Administration, 13(1). https://tinyurl.com/4fxyyeva
  31. Philippine Institute for Development Studies. (2025). PIDS 2024 annual report: Securing a future for all by growing a resilient middle class. PIDS.
  32. Prakash, D. (2024). Data-driven management: The impact of big data analytics on organizational performance. International Journal for Global Academic & Scientific Research, 3(2), 12–23. 
  33. Project Management Institute. (2021). A guide to the project management body of knowledge (PMBOK® Guide) (7th ed.). PMI.
  34. Quingco, J., & Leonoras, C. (2019). The economic impact, contribution, and challenges of micro business enterprises to the local development. Philippine Social Science Journal, 2(2), 107–122. http://philssj.org/index.php/main/article/view/84
  35. Rajnoha, R., Lesnikova, P., Stefko, R., Schmidtova, J., & Formanek, I. (2019). Transformations in strategic business planning in the context of sustainability and business goal setting. Transformations in Business & Economics, 18(2), 44–66. https://tinyurl.com/4an2v5bk
  36. Schachel, H., Lachmann, M., Endenich, C., & Breucker, O. (2021). The importance of management control systems for startup funding–empirical evidence from external financiers. Journal of Accounting & Organizational Change, 17(5), 660–685. https://tinyurl.com/5xpp534u
  37. Severo, E. A., Sbardelotto, B., de Guimarães, J. C. F., & de Vasconcelos, C. R. M. (2020). Project management and innovation practices: Backgrounds of the sustainable competitive advantage in Southern Brazil enterprises. Production Planning & Control, 31(15), 1276–1290. https://tinyurl.com/2wm6p879
  38. Trigg, A. J. (2020). Small business owners’ strategies to mitigate employee theft. Walden University ProQuest Dissertations & Theses. https://tinyurl.com/33z2raf9
  39. Vodă, A. I., & Florea, N. (2019). Impact of personality traits and entrepreneurship education on entrepreneurial intentions of business and engineering students. Sustainability, 11(4), 1192. https://www.mdpi.com/2071-1050/11/4/1192
  40. Wang, C. L., Walker, E. A., & Redmond, J. (2010). Exploring the relationship between business planning and performance in small firms. International Small Business Journal, 28(6), 578–602.
  41. Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180.  https://doi.org/10.1002/smj.4250050207
  42. Zhanseitova, G. S., Tleuberdiyeva, S. S., & Auelbekova, A. K. (2022). Risk management in public administration. ECONOMIC Series of the Bulletin of the LN Gumilyov ENU, (2), 144–154. https://tinyurl.com/yyrtkubk

Tools


Copyright © 2026  KITE Digital Educational Solutions |  Exclusively distributed by CE-Logic