STRATEGIC PLANNING FOR MICRO-COMPANIES IN NETHERLANDS – USE OF AI-BASED TECHNOLOGY
Abstract:This paper examines how Artificial Intelligence (AI) can enhance strategic planning for micro-enterprises operating in an uncertain business environment, with a special emphasis on the Netherlands. Micro-enterprises often lack the time, financial resources, strategic knowledge or motivation to conduct formalized strategic planning. Existing strategic frameworks are often too complex or abstract for microenterprises, especially owner-managed enterprises (OMEs), whose primary objectives may be survival, autonomy or social value rather than growth. The research draws on the concept of bounded rationality to argue that micro-entrepreneurs make decisions under strong cognitive and informational constraints. It proposes that AI, when used as a cognitive enabler rather than a decision-maker, can help overcome these limitations by providing structure, clarity, and analytical support. Using design science research (DSR) and action research methods, the research develops and tests a customized twelve-step strategic planning process embedded in an AI-powered digital tool. The tool was developed iteratively and evaluated with microenterprise managers through surveys and prototype testing on a low-code platform. The results show that participants recognize the value of structured planning when presented in a practical, non-intimidating format enabled by AI. The tool significantly increased users’ confidence improved strategic planning skills, and their ability to formulate long-term goals. Features of explainable AI (XAI), such as the tool’s ability to reason recommendations based on market data and user input, played a critical role in building confidence and enabling learning. The study shows that strategic planning for microenterprises can be democratized through intuitive, adaptive and explainable AI-driven tools. The paper offers recommendations for future research to investigate the long-term implications and ethical considerations of AI-enabled strategic decision- making.
Keywords: strategy, decision making, AI, SME
