Financial planning and control in very small start-up companies: antecedents and effects on company performance
Journal
International Journal of Entrepreneurship and Small Business
ISSN
1476-1297
ISSN-Digital
1741-8054
Type
journal article
Date Issued
2015
Author(s)
Abstract
This study motivates and tests hypotheses about the antecedents of the use of financial planning and control systems in very small and young start-up firms, and, in turn, the effect of this on firm performance. This setting is of particular interest since theory on financial planning and control in start-up firms is not fully specified when it comes to very small and young firms. Based on survey data, we found educational background to be an antecedent of the use of financial planning and control systems, and some support for work experience as an antecedent. Use of financial planning and control systems, in turn, was found to be an antecedent of company performance. Although theory on start-up firms suggests that sophisticated financial planning and control activities might not be beneficial for very small and young start-ups, we found empirical evidence that indicates the opposite.
Language
English
Keywords
financial planning
financial control
start-up companies
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Inderscience
Publisher place
Olney, Bucks
Volume
26
Number
2
Start page
191
End page
216
Pages
26
Subject(s)
Division(s)
Eprints ID
242633