An Exploration of the Phenomenon of Business Planning in Nascent and Young Firms

Whether or not nascent entrepreneurs should spend time developing a business plan is still an issue of debate for both scholars and practitioners. This chapter contributes to a better understanding on the uses and expectations of planning among business start-ups by taking a deeper and more granular approach than previous research. The chapter examines not only if planning is used but also how it is used and how this changes over time. Contrary to current thinking, the research suggests that for most firms the issue of planning may be a question of choice more than a request from institutional pressure. The insights developed in this chapter provide a foundation for future theorizing about the antecedents and effects of business planning for start-ups.