More than half of small businesses in the UK do not have a written business plan, according to research complied by accountant PKF.

The research revealed that while 45% of businesses claimed to be working to a plan, 46% said they had a strategy but no plan with 9% having no plan at all.

Of the companies interviewed, 25% said “the owner makes the decisions”, which was followed by “no time to formulate a plan”, “just moving the business forward” and that “the company is reactive”, all with 17%.

Despite a lack of business plan some two-thirds of respondents (65%) said they were projecting growth of up to 25% this year with a further 23% predicting even higher levels of success. Almost a third of companies (31%) said they were planning to make one or more acquisitions this year.

PKF partner Mark Lister welcomed the level of confidence among small businesses but sounded a note of caution. “The research findings suggest that businesses are riding the wave of relative economic prosperity in the UK but many appear to be forgetting some business basics.

“Effective planning is critical when building a successful business and, while companies can succeed without proper planning, the most effective are generally those that are aware of the opportunities and threats in the marketplace so that they can plan how to achieve targets and monitor their progress,” he added. “Growth is generally good for business but companies need to understand the implications so that they don’t create boom and bust situations.”