Significance Of Business Planning And The Role Of Effectuation In The Success Of A Business by

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Significance of Business Planning and the Role of Effectuation in the Success of a Business



With increased globalization, competition has become even more intense making it difficult for organizations to survive in the market. Thus, it is imperative for entrepreneurs to plan their resources to achieve organizational goal efficiently (Eriksson & Kovalainen, 2008). It is essential to determine the reason due to which entrepreneurs are able to accomplish their organizational objectives successfully, even in uncertain times, while others struggle. Therefore, the research has been conducted to ascertain factors that will assist managers in successfully achieving their objectives (Hopwood, 2004).

The researcher has gathered information to provide managers with appropriate guidelines to be followed to be successful and gain competitive advantage. According to the effectuation in the business environment entrepreneurs are required to follow five principles that vary from those that have been identified by the causal entrepreneurs (Neuman, 2005). Hence, research has been conducted to analyze the beliefs and perceptions of different entrepreneurs towards the importance of effectuation in a business. The research has carried out both primary and secondary research for collecting data to achieve research objectives (Neuman, 2005).

3.1 Data Collection Method

In order to proceed with the study, the researcher is available with different options to collect the data to develop an understanding of the matter under study. The researcher can use primary research method or secondary research to collect information. However, it is important for the researcher to ensure that the data has been analyzed effectively and efficiently (Neuman, 2005). The research is focused on analyzing the beliefs and perceptions of entrepreneurs towards the importance of effectuation in business success. The research has analyzed the literature that was available through secondary research. Furthermore, the researcher will collect information through primary research.

Sufficient study has not been made to analyze the importance of effectuation in entrepreneurship and understanding its significance for competing successfully in the industry. Therefore, the researcher will emphasize on gathering information that will enable to understand the impact of effectuation on business success (Pearce & Robinson, 2003).

3.1.1 Primary Research

Primary research also known as field research is conducted to gather first hand information and data that has not been published. The researcher has used the interview research method to gather primary data (Verschuren, 2003). Interviews with entrepreneurs operating in the current business environment will facilitate the researcher to understand their views and perceptions towards the importance of effectuation and business planning for accomplishing organizational goals (Verschuren, 2003).

Entrepreneurs need to develop effective strategies that will enable them to combat the competition in the market, which is not only faced from the domestic market, but also from the international market. The foremost reason for the existence of business organizations is to ensure increased profitability and achieve growth through surviving the market competition.

With technological advancement and diverse demographic of the target market entrepreneurs need to organize and plan their resources efficiently for streamlining business growth. Hence, to meet this objective researcher has carried out interviews with the entrepreneurs ...