INVESTOR EXPECTATIONS OF BUSINESS PLANNING AND

An important criterion in investment appraisal is the quality of the business plansubmitted when finance is sought. This study explores investors’ expectations ofprocess and content aspects of planning among early-growth-stage qualifying smallenterprises and their expected future performance. In-depth semi-structuredinterviews were used to obtain the views of investors involved in funding theseventures. The main findings from content analyses were that investors expectformality in the planning process such as thought, testing, documentation, monitoring,feedback and controlling the business relative to the plan. Furthermore, the content ofthe business plan is relevant only to a limited extent but should cover strategic issuessuch as market, entrepreneur characteristics, product offering and financials in detail.Competitor orientation, environment-of-business, and staffing strategies should beconcisely included. Investors primarily expect the financed venture to performfinancially and other performance dimensions were viewed as subsets of the financialdimension but within reason, were influential on the propensity of the investor toallocate finance. Finally, it was found that investors share an equivocal perspectiveon the ability of Black Economic Empowerment to influence their decision making.