Post by Sapphire Capital on Dec 17, 2008 21:41:13 GMT 4
Pre-Startup Formal Business Plans and Post-Startup Performance: A Study of 116 New Ventures
William D. Bygrave
Babson College - Arthur M. Blank Center for Entrepreneurship
Julian Lange
Babson College - Arthur M. Blank Center for Entrepreneurship
Aleksandar Mollov
Babson College - Arthur M. Blank Center for Entrepreneurship
Michael Pearlmutter
Babson College - Arthur M. Blank Center for Entrepreneurship
Sunil Singh
Babson College - Arthur M. Blank Center for Entrepreneurship
Venture Capital Journal, Vol. 9, No. 4, pp. 1-20, October 2007
Babson College Center for Entrepreneurship Research Paper No. 2008-8
Abstract:
This study examined whether writing a business plan before launching a new venture affects the subsequent performance of the venture. The data set comprised new ventures started by Babson College alums who graduated between 1985 and 2003. The analysis revealed that there was no difference between the performance of new businesses launched with or without written business plans. The findings suggest that unless a would-be entrepreneur needs to raise substantial startup capital from institutional investors or business angels, there is no compelling reason to write a detailed business plan before opening a new business.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1269484_code896644.pdf?abstractid=1269484&mirid=1
William D. Bygrave
Babson College - Arthur M. Blank Center for Entrepreneurship
Julian Lange
Babson College - Arthur M. Blank Center for Entrepreneurship
Aleksandar Mollov
Babson College - Arthur M. Blank Center for Entrepreneurship
Michael Pearlmutter
Babson College - Arthur M. Blank Center for Entrepreneurship
Sunil Singh
Babson College - Arthur M. Blank Center for Entrepreneurship
Venture Capital Journal, Vol. 9, No. 4, pp. 1-20, October 2007
Babson College Center for Entrepreneurship Research Paper No. 2008-8
Abstract:
This study examined whether writing a business plan before launching a new venture affects the subsequent performance of the venture. The data set comprised new ventures started by Babson College alums who graduated between 1985 and 2003. The analysis revealed that there was no difference between the performance of new businesses launched with or without written business plans. The findings suggest that unless a would-be entrepreneur needs to raise substantial startup capital from institutional investors or business angels, there is no compelling reason to write a detailed business plan before opening a new business.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1269484_code896644.pdf?abstractid=1269484&mirid=1