An Assessment of the Psychological Determinants of Planning in Small Businesses

Abstract
DR. JAMES W. CARLAND, DR. JO ANN C.CARLAND and CARROLL D. ABY. Jr. are with the Western Carolina University School of Business. North Carolina, United State of America. A sample of 368 small business owners/managers were divided into three groups: those who use formal, written plans; those who employ informal, unwritten plans; and non-planners. The groups were compared on their need for achievement, innovative preferences and risk-taking propensity as well as education level, sales, management structure, and number of employees. The group employing written plans was found to have significantly higher need for achievement, innovative preference and risk-taking propensity than the group employing unwritten plans and non-planners.

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