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Pre-Startup Planning and the Survival of New Small Businesses: Theoretical Linkages

Gary J. Castrogiovanni

University of Houston

Although eyidence is equivocal and often contradictory, prospective business founders are generally advised to develop formal plans of their proposed ventures. Consistent with this advice, some scholars have suggested that the high mortality of new small businesses could be reduced through greater pre-startup planning. However, there is an emerging view that the value of planning is context-dependent. This view is elaborated here as it applies to new small businesses. First, ways in which pre-startup planning can facilitate survival are delineated. Then, contextual conditions that can limit these impacts are described. Finally, suggestions are offered which show how this view can be used to guide future research and extend the body of knowledge.

Journal of Management, Vol. 22, No. 6, 801-822 (1996)
DOI: 10.1177/014920639602200601
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