New Venture and Small Business

Use of business plan illustrates the way of discovering Opportunity or recognition. These aspects for a long time have influence the processes in entrepreneurship research. However, the impact of these opportunity recovery strategies has been neglected on the resent performance of new ventures because of unsuccessful use of wrong business plans among the venture owners… This is because many of the ventures entrepreneurs claim that this opportunity recognition takes place before the establishment of the venture and not in the last phase of the entrepreneurial process. This shows how owners of the ventures do not follow what the business plan requires. The present study shows that the opportunity recognition strategies use by an entrepreneur influence the results of the venture. This further use of the opportunity recognition strategies of proactive searching, collective action, and competitive scanning facilitate the increase in the newness value of the venture. In the long run, owners of the venture have to restrict to what is written down in the business plan of the venture.

Furthermore, the business plan identifies the human resources in a business setting. Human resource influences entrepreneurial success in that the employees play a crucial role in the management and organizational science of an organization, but they have long been ignored in the small-scale entrepreneurial research of the firms. A business plan with skilled human resource system, which is focused, and based on commitment focuses on the psychological links between the employee’s goals and organization. This is more involved in the managerial decisions, training and rewards, and participation in positively affecting the business success. Moreover, this human resource management is more effective when the firm owners as well as the employees, have a high human capital. Therefore, a business plan gives a financial projection of what is required in the management of the business. It shows the amount of money needed to be spent to get the business moving, the equipment, inventory, and materials needed to obtain the expected profit. It also indicates the reasonable estimation of revenue, which is usually very difficult to project.

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