A new research study by Jianwen Liao and William Gartner called “Are Planners Doers? Pre-Venture Planning and the Start-Up Behaviors of Entrepreneurs” explores the relationship between business planning and the general activity levels of nascent entrepreneurs.
There are conflicting views on whether the process of pre-venture planning is beneficial to the success of starting new ventures. Some researchers suggest that pre-venture planning enables entrepreneurs to surface their assumptions about factors leading to success, reduces delays in implementing critical activities, and helps them communicate their vision to others. Others suggest, however, that planning is a distraction from the real work of creating and building a new enterprise. Establishing the value of pre-venture planning may be important to nascent entrepreneurs.
Consequently, this study explores the relationship of business planning to the general activity levels of nascent entrepreneurs. It examines whether preventure
planning appears to spur nascent entrepreneurs to engage in other venture creation activities, as engaging in planning may be the catalyst in taking further steps toward creating a business.
The activity of business planning, and the level of formality of the business plan (i.e. whether the plan is written, informally written, or existing only in thought) does not, as a main effect, influence the rate at which entrepreneurs engage in more activities, their tendency to concentrate activities in a short period of time, or the overall timing of other startup activities. Early planning, however, appears to be an impetus for early action.