MGT602 – Entrepreneurship
Discussion Boar # 02
Study :- “A research study shows that entrepreneurs managing small businesses
consider formal business planning a mere wastage of their precious time."
Review : The reasons of ineffectiveness
of formal business planning for small businesses can be describe as follows :
In small businesses the focal point are not very much
certain and changing with the change of market trend, so planning will not be
Due to the lack of finance the small business man
cannot fix logical framework to develop and pursue business strategies
Due to volatile market behavior the young entrepreneur
can not fix benchmark against which actual performance can be measured and
most of small business men considered their successes in volatility and
business hopping to tab the benefit where the liquidity been observed, in this
case the both the long term / short term planning will not be fruitful.
Although the planning will pay off in long term but in
the case of small business the owner doesn’t have reserve liquidity to invest
and wait for the result, mostly the small business owner would like to have
quick return of money with profit.