A Study On The Impact Of Business Planning On The New Venture Emergency

Entrepreneurs often choose to create a business plan for their business when they in the early stages of the enterprise,because business planning is generally acknowledged as a crucial link of the new venture emergence in entrepreneurial practice.Although entrepreneurial practitioners have affirmed the value of business planning,but In contrast to the judgment of consensus in practice,the academic research on the value of business plans has never been consistent results.In this background,rely on the organization theory and Legitimacy theory,this research focuses on the microscopic level of entrepreneurial behavior and process to study the influence of business planning in the process of new venture emergency.We consider business planning from two perspectives,one is whether engaging in business planning,and the other is the timing of business planning.Meanwhile,we put innovativeness of products and uncertainty of financing environment into the study of business planning,and further uncover the mechanism of the impact of different innovativeness of products and different uncertainty of financing environment on the performance of new venture.This paper offers some empirical findings by using multiple linear regression and logistic regression methods,based on the first two rounds of survey data from China Panel Study of Entrepreneurial dynamics.Firstly,choosing to develop a business plan will promote the emergency of new venture and gain more profit.Secondly,the timing of business planning does not affect the new venture emergency significantly.Finally,in the case of high innovativeness of products and uncertainty of financing environment,the sooner the entrepreneur develops the business plan,the more it will help the new venture emergency.The above conclusion drawn from this research has great significance for business planning in theory and practice.In the area of theoretical research,we put the timing of business planning into the existing business planning research framework,taking into account the moderating effect of the innovativeness of products and uncertainty of financing environment,in order to complement the existing research and improvement.In the practical activities,these findings provide some pertinence suggestion and guidance for participators in entrepreneurial practice such as entrepreneurs,investors,government and so on.