Owner-managers and Business Planning in the Small Firm

Abstract

This article explores the ways in which the characteristics of the owner-managers of small firms influence whether or not those firms have a business plan. The focus is primarily on antecedent influences on owner-managers such as education and prior experience. Data are drawn from a survey of the owner-managers of small metalworking firms in Sheffield, UK. Around half the sample of owner-managers possess a business plan. Antecedent influences on owner-managers showing a significant association with the possession of a business plan include an above average level of education, previous work experience in a large firm immediately before setting up their firm and running firms in sectors outside their previous experience. Not surprisingly, possession of a business plan showed a positive association with those owner-managers with a growth orientation. It is concluded that owner-manager characteristics can be important in explaining the presence/absence of a business plan within the small firm.