Importance of Strategy and Aspects of Strategic Development in Small and Medium-Sized Entrepreneurship1

The main aim of this research is to identify how important the strategy and determinants of strategic development and strategic management are for the selected research sample of small and medium-sized enterprises (SMEs). The main research methods are selected methods of financial analysis and personal interview with manager-owners of selected SMEs. The research confirmed that not all strategic development determinants are considered among SMEs as equally important. The monitored SMEs consider strategy for business development as important, although only 47% of them have a formulated strategy. Individual functional and corporate strategies and defined areas of strategic management are not considered by SMEs as equally important. The size of the SME has a direct impact on strategy formulation - the bigger the enterprise, the higher the probability that a strategy is formulated. The research also confirmed formulating and implementing a strategy has a positive effect on the economic results of the SME.