MNE3701
ASSIGNMENT 1
DUE DATE: 20 AUGUST 2026
, MNE3701 ASSIGNMENT 1 2026
DUE 20 AUGUST 2026
QUESTION 1
Drawing on the arguments and evidence presented in Article 1 (Becherer &
Helms, 2009), critically examine five distinct value-creating functions of a
business plan in the context of new venture formation and early-stage
development.
The business plan is frequently viewed as the foundational document for any new
venture, often serving as the initial step for an entrepreneur in transforming an idea into
a tangible business entity (Longenecker et al., 2017, p. 146). Although some critics
argue that a business plan's value is overstated or that its usefulness diminishes over
time, Article 1 by Becherer and Helms (2009) provides compelling empirical evidence of
its significant value-creating functions. This discussion will critically examine five
distinct functions, supported by theoretical perspectives and empirical findings from the
article.
1. Creating a Framework for Financial Success and Profitability
One of the primary value-creating functions of a business plan is its role in establishing
a clear path to financial viability and profitability. According to Article 1, the purpose of a
business plan includes outlining a strategic approach to pursue an opportunity, including
cost estimates and profitability projections (Becherer & Helms, 2009, p. 1).
The study's empirical findings powerfully support this function. The researchers found a
significant relationship between the use of a business plan at start-up and both the
firm's financial success and the achievement of satisfactory financial return goals
(Becherer & Helms, 2009, p. 10, p. 12). Specifically, firms with a business plan reported
ASSIGNMENT 1
DUE DATE: 20 AUGUST 2026
, MNE3701 ASSIGNMENT 1 2026
DUE 20 AUGUST 2026
QUESTION 1
Drawing on the arguments and evidence presented in Article 1 (Becherer &
Helms, 2009), critically examine five distinct value-creating functions of a
business plan in the context of new venture formation and early-stage
development.
The business plan is frequently viewed as the foundational document for any new
venture, often serving as the initial step for an entrepreneur in transforming an idea into
a tangible business entity (Longenecker et al., 2017, p. 146). Although some critics
argue that a business plan's value is overstated or that its usefulness diminishes over
time, Article 1 by Becherer and Helms (2009) provides compelling empirical evidence of
its significant value-creating functions. This discussion will critically examine five
distinct functions, supported by theoretical perspectives and empirical findings from the
article.
1. Creating a Framework for Financial Success and Profitability
One of the primary value-creating functions of a business plan is its role in establishing
a clear path to financial viability and profitability. According to Article 1, the purpose of a
business plan includes outlining a strategic approach to pursue an opportunity, including
cost estimates and profitability projections (Becherer & Helms, 2009, p. 1).
The study's empirical findings powerfully support this function. The researchers found a
significant relationship between the use of a business plan at start-up and both the
firm's financial success and the achievement of satisfactory financial return goals
(Becherer & Helms, 2009, p. 10, p. 12). Specifically, firms with a business plan reported
