UNCERTAINTY AND PLANNING IN SMALL AND ENTREPRENEURIAL FIRMS - AN EMPIRICAL-ASSESSMENT

Although previous research in large firms provides some evidence that perceived environmental uncertainty influences strategic planning, the influence that the perception of environmental uncertainty has on the strategic and operational planning of small firms remains largely unexplored. This study seeks to address this issue. Analyses of data gathered from 130 small business ventures and entrepreneurial firms suggest that entrepreneurial firms engage in more sophisticated planning than small firms overall. In both types of firms, however, as perception of environmental uncertainty increases, strategic and operational planning decrease. Implications for future research are discussed.