Article by Prof. Hopp to Be Published by the Strategic Entrepreneurship Journal
The article "Are formal planners more likely to achieve new venture viability? A counterfactual model and analysis" has been accepted for publication in the Strategic Entrepreneurship Journal (VHB Journal Ranking: A). The study, by Francis Greene (University of Edinburgh) and Christian Hopp (RWTH Aachen University), develops and tests a counterfactual model of the relationship between formal written business plans and the achievement of new venture viability.
Having isolated the selection effects, the study examines whether or not these plans help founders to achieve venture viability (performance effects). The results, using data on 1,088 founders, identify two key findings: selection effects do matter in the decision to plan; and it pays to plan: business plans increase the chances of viability by around 15%.