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Swedish Entrepreneurship Forum Working Paper Series, Swedish Entrepreneurship Forum

No 2011:5:
Business planning and venture level performance: challenging the institution of planning

Benson Honig () and Mikael Samuelsson ()

Abstract: In this study we longitudinally examine outcomes of entrepreneurial business planning to access whether this is a fruitful activity or not. We use both data replication and data extension to examine previously published and controversial research. Our empirical setting is a random sample of 623 nascent ventures that we follow over a period of six years - from conception, through exploitation venture level performance, as well as termination. We compare and contrast previous findings based on this data by observing sub-sets for the population regarding a number of dependent variables. Our findings highlight the importance of data replication, data extension, and sample selection bias. Thus, we add not only to the debate regarding the merits or liabilities of planning, but we also contribute to evaluating normative research and publication standards by re-examining past research using more comprehensive data and an extended time frame.

Keywords: business; planning; (follow links to similar papers)

JEL-Codes: A00; (follow links to similar papers)

30 pages, February 2, 2011

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