An Alternative to Business Plan Based Advice for Start-ups?

Abstract

Business plans are advocated by many business support professionals and others, such as educators in higher education institutions, because they suit their purposes. A typical view is that a business plan is ‘one of the most important steps in setting up any new business’ (Burns, 2011); but their hegemony is now being questioned. Sarasvathy (2008) suggests that effectuation is the method often favoured by expert entrepreneurs and this paper seeks to combine it with an exploration view of entrepreneurship to produce an alternative tool for start-up ventures. The paper compares the pros and cons of each approach and suggests that an exploration approach is often more natural, logical and effective than the business plan based alternative.