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International Small Business Journal
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Owner-managers and Business Planning in the Small Firm

Suzanne M. Richbell

Sheffield University Management School, UK

H. Doug Watts

University of Sheffield, UK

Perry Wardle

Staffordshire Moorlands District Council, UK

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.

Key Words: business plans • owner-managers • small firms

International Small Business Journal, Vol. 24, No. 5, 496-514 (2006)
DOI: 10.1177/0266242606067275
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