Is the quality of entrepreneurial business plans related to the outcome of a new venture?
Hindle, Kevin and Mainprize, Brent 2006, Is the quality of entrepreneurial business plans related to the outcome of a new venture?, in AGSE 2006 : Regional frontiers of entrepreneurship research 2006 : Proceedings of the 3rd Regional Frontiers of Entrepreneurship Research conference, 2006, AGSE, [Auckland, New Zealand], pp. 760-777.
AGSE 2006 : Regional frontiers of entrepreneurship research 2006 : Proceedings of the 3rd Regional Frontiers of Entrepreneurship Research conference, 2006
Editor(s)
[Unknown]
Publication date
2006
Conference series
Australian Graduate School of Entrepreneurship International Entrepreneurship Research Exchange Conference
Start page
760
End page
777
Publisher
AGSE
Place of publication
[Auckland, New Zealand]
Summary
The evaluation of new ventures often involves two key aspects of entrepreneurial business plans: how best to write them and how best to rate (evaluate) them. Ultimately the performance of the venture should be the definitive criterion of quality. Surprisingly, the writing, rating and performance effects of entrepreneurial business plans (EBPs) comprise three related but under researched areas. This paper empirically tested principles for writing and rating entrepreneurial business plans to draw inferences on how to improve the private equity investment evaluation process. A simplified perspective of General Systems Theory guided our empirical investigation of the input and outcome of the VC investment decision. Our empirical investigation reveals that entrepreneurial business plans that comport with the writing principles from the literature improve a new venture’s likelihood of success.