Impact Of Strategic Financial Planning On Business Growth And Financial Stability: Evidence From Kichha, Udham Singh Nagar

Abstract

Strategic financial planning (SFP) is increasingly viewed as a decisive capability that determines whether micro and
small enterprises survive, stabilise, and scale. This study examines how SFP practices budgeting, cash-flow
forecasting, capital budgeting, and financial record-keeping influence business growth and financial stability among
enterprises operating in Kichha, an industrial tehsil of Udham Singh Nagar, Uttarakhand. Using a descriptive crosssectional
design, primary data were gathered from 120 enterprise owners and managers through a structured fivepoint
Likert questionnaire, supported by verified secondary data on the district's MSME base. Descriptive statistics,
Pearson correlation, and multiple regression were applied using SPSS. Findings reveal that SFP is moderately-tostrongly
adopted and is significantly and positively associated with both growth (r = 0.62) and stability (r = 0.58).
Regression results show SFP dimensions jointly explain 51% of the variance in business growth, with cash-flow
forecasting and budgeting emerging as the strongest predictors. The study concludes that disciplined, forward-looking
financial planning is a practical lever for enterprise resilience in semi-urban industrial clusters and recommends
targeted financial-capability support for local enterprises.