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The role of pre-start-up planning in new small business

Author

Listed:
  • Sascha Kraus
  • Erich Schwarz

Abstract

The purpose of this study is to examine the relationship between 'pre-start-up planning' – i.e. written business plans prior to enterprise foundation – and success of small businesses. Our own empirical results, based upon a longitudinal survey of 468 small businesses from Austria, support the claim that the existence of written business plans is beneficial for company success. A positive relationship could be identified by the use of a logistic regression model. Furthermore, a significant difference between pre-start-up planners and their non-planning counterparts could be identified and thus confirm our second hypothesis that pre-start-up planning leads to ongoing planning.

Suggested Citation

  • Sascha Kraus & Erich Schwarz, 2007. "The role of pre-start-up planning in new small business," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 4(1), pages 1-17.
    • Handle: RePEc:ids:ijmede:v:4:y:2007:i:1:p:1-17
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    Citations

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    Cited by:

    1. Oana Adriana Gica, 2009. "Strategic Planning In Small And Medium Sized Enterprises-Case Of Cluj County," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    2. Léo-Paul Dana & Edoardo Crocco & Francesca Culasso & Elisa Giacosa, 2023. "Business plan competitions and nascent entrepreneurs: a systematic literature review and research agenda," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 863-895, June.
    3. Chwolka, Anne & Raith, Matthias G., 2012. "The value of business planning before start-up — A decision-theoretical perspective," Journal of Business Venturing, Elsevier, vol. 27(3), pages 385-399.

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