Planning and the Entrepreneur: A Longitudinal Examination of Nascent Entrepreneurs in Sweden

Abstract

We studied 623 nascent entrepreneurs during a six‐year period, examining how their planning decisions impact venture‐level performance. Our study is unique in that we tracked nascent ventures, examining their planning behavior, including changes to plans. Relying on the theory of legitimacy, this paper adds to the scholarly debate over the merits of business planning by examining, longitudinally, the impact of planning during a six‐year period, accounting for both pre‐emergent nascent activity and post‐emergent success factors. We found that neither formal planning nor changes in the business plan increased venture‐level performance over the six‐year study period.

* Both authors contributed equally and are listed alphabetically.

* Both authors contributed equally and are listed alphabetically.

Notes

* Both authors contributed equally and are listed alphabetically.

Additional information

Notes on contributors

Benson Honig

Benson Honig is professor in the DeGroote School of Business, McMaster University.

Mikael Samuelsson

Mikael Samuelsson is Assistant Professor of Business Administration in the Stockholm School of Economics.