Multiple Effects of Business Plans on New Ventures

38 Pages Posted: 5 Mar 2009

See all articles by Andrew E. Burke

Andrew E. Burke

Cranfield University - School of Management

Stuart Fraser

University of Warwick Business School

Francis J. Greene

University of Warwick - Warwick Business School

Date Written: March 5, 2009

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.

Keywords: New Ventures, Business Plans, Switching Regression Modelling

Suggested Citation

Burke, Andrew E. and Fraser, Stuart and Greene, Francis J., Multiple Effects of Business Plans on New Ventures (March 5, 2009). Journal of Management Studies, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1353907

Andrew E. Burke (Contact Author)

Cranfield University - School of Management ( email )

Bedfordshire, MK43 0AL
United Kingdom

HOME PAGE: http://www.som.cranfield.ac.uk/som/faculty/Showfaculty.asp?link=420

Stuart Fraser

University of Warwick Business School ( email )

Room B0.22
Coventry CV4 7AL
United Kingdom
+44 0 24 7652 2899 (Phone)

Francis J. Greene

University of Warwick - Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
633
Abstract Views
2,878
rank
42,273
PlumX Metrics