INVESTOR EXPECTATIONS OF BUSINESS PLANNING AND
Date
2011-04-13
Authors
Govender, Deano
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Abstract
An important criterion in investment appraisal is the quality of the business plan
submitted when finance is sought. This study explores investors’ expectations of
process and content aspects of planning among early-growth-stage qualifying small
enterprises and their expected future performance. In-depth semi-structured
interviews were used to obtain the views of investors involved in funding these
ventures. The main findings from content analyses were that investors expect
formality in the planning process such as thought, testing, documentation, monitoring,
feedback and controlling the business relative to the plan. Furthermore, the content of
the business plan is relevant only to a limited extent but should cover strategic issues
such as market, entrepreneur characteristics, product offering and financials in detail.
Competitor orientation, environment-of-business, and staffing strategies should be
concisely included. Investors primarily expect the financed venture to perform
financially and other performance dimensions were viewed as subsets of the financial
dimension but within reason, were influential on the propensity of the investor to
allocate finance. Finally, it was found that investors share an equivocal perspective
on the ability of Black Economic Empowerment to influence their decision making.
Description
MBA - WBS
Keywords
Investment planning, Black economic empowerment