Entrepreneurs Self-Perception of Planning Skills: Evidences from Brazilian Entrepreneurs

Abstract

This study examined whether entrepreneurs see themselves as good strategic planners and understand key factors that contribute to plan their business endeavors. This is a quantitative-qualitative research. 339 entrepreneurs ahead of businesses with at least 5 years of existence in Sao Paulo, Brazil answered a survey with 27 validated questions about planning, strategy and entrepreneurship. Data was analyzed through factorial analysis. Results showed six factors named external environment, innovation, internal environment, experience, mission and impulsiveness. The qualitative part of the study brought a discussion about these factors. The relevance of the internal and external environments is shown by the important relationship and influence that these may exercise in the performance of the enterprise, including information about best practices of the market in the production of products/services in comparison to internal strengths and weaknesses. In contrast to environmental uncertainty and variations, that makes the planning effort extremely difficult for entrepreneurs. We suggest that their personal abilities can compensate the lack of planning, including their innovative ability together with accumulated experience. Thanks to these qualities, entrepreneurs are constantly honing their abilities to create and manage their businesses and, over time, achieving success. The factors rose on the analysis shows that the strategic planning initiatives of entrepreneurs balance both environmental facts and personal abilities. The theoretical approach of effectuation and causation explains how entrepreneurs deal with this balance when deciding to act impulsively or planned in certain conditions, representing the key contribution of this article.