Many British small and medium-sized enterprises (SMEs) do not have a business plan, according to new research.

A study carried out by business advisors PKF reveals that 46 per cent of owners of small firms have a strategy for growth but no written business plan.

An additional nine per cent admit to not having any plan at all, the survey indicates.

However, the figures show that 65 per cent of SME managers are predicting growth for their companies this year.

PKF corporate finance partner Mark Lister commented: "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.

"Managing directors need to plan for the future so that their businesses are capable of surviving and thriving during leaner periods too."

Business plans do not require specific, fixed content but are rather written with particular goals and an audience in mind.