Evaluating the process of strategic decision formulation among small and micro enterprises in an economic environmental context

Abstract

The strategic decision-making process in small businesses, specifically in the services sector, including micro, has given rise to a contentious debate on whether the decision formulation process is analytical-rational or whether the process retains a more intuitive orientation in responding to environmental changes. The purpose of the study was to evaluate the process of strategic decision formulation among small and micro enterprises in an economic environmental context. Using a qualitative paradigm, 10 semi-structured interviews, four focus groups and 36 purposively selected participants from businesses in the services sector, classified as small and micro, this paper reports that the process of strategic decision formulation assumed a more intuitive orientation as compared to an analytical-rational mode. The findings have profound implications to understanding the process of decision formulation with value to business owners, government agencies and educational platforms.