The Multiple Effects of Business Planning on New Venture Performance

Andrew Burke · Stuart Fraser · Francis J. Greene

134 citations0/0 files storedJournal of Management Studies

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Entrepreneurship Studies and Influences Firm Innovation and Growth Private Equity and Venture Capital

Abstract

abstract We investigate the multiple effects of writing a business plan prior to start‐up on new venture performance. We argue that the impact of business plans depends on the purpose for and circumstances in which they are being used. We offer an empirical methodology which can account for these multiple effects while disentangling real impact effects from selection effects. We apply this to English data where we find that business plans promote employment growth. This is found to be due to the impact of the plan and not selection effects.

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References

1983Limited-dependent and qualitative variables in econometrics 1981Credit Rationing in Markets with Imperfect Information 2000The Promise of Entrepreneurship as a Field of Research 2002Deliberate Learning and the Evolution of Dynamic Capabilities 2003Understanding dynamic capabilities 1974Competition and Entrepreneurship 1985Of strategies, deliberate and emergent 1995Understanding the small business sector

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