Business Sense or Subjective Satisfaction? Exploring the Outcomes of Business Planning Comprehensiveness in Small and Medium Business Context

Does business planning have any impact on performance of small and medium enterprises (SMEs)? Despite numerous studies in management and entrepreneurship literature, the answer remains contested. We empirically address the stated research question by exploring the composite business planning comprehensiveness construct, reflecting the degree to which business planning practices are embraced in all domains of firm management. Employing a survey of SME owners in the US and Canada (N=568), we explore performance outcomes of this construct. Results demonstrate that business planning comprehensiveness is positively associated with operational and subjective performance of the firm, but not with its financial performance