Judgment Performance in Business Planning

• In Event: SESSION 3B: Performance and Planning

Abstract

This paper investigates factors that influence the effectiveness of entrepreneurs’ decisions to prepare business plans, including confidence in their financial knowledge. Data is obtained from a survey administered to clients of the Arkansas Small Business and Technology Development Center and designed to address various aspects of financing options. Regression analysis is used to develop a descriptive model that indicates the adequacy of capital resources acquired from business financing is related to the interaction of entrepreneurial manager’s decision to prepare a business plan with his/her financial self-efficacy. These findings have implications for research related to the preparation of business plans and organizational performance. Mixed results in prior studies may be attributed to failure to control for context and person factors that may influence both performance and the decision to prepare a business plan.

Author

• David T Dearman, University of Arkansas-Little Rock