The role of pre-start-up planning in new small business
by Sascha Kraus, Erich Schwarz
International Journal of Management and Enterprise Development (IJMED), Vol. 4, No. 1, 2007

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.

Online publication date: Thu, 30-Nov-2006

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