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 une xplored. This study seeks to address this issue. Analyses of data gath ered from 130 small business ventures and entrepreneurial firms sugges t that entrepreneurial firms engage in more sophisticated planning tha n small firms overall. In both types of firms, however, as perception of environmental uncertainty increases, strategic and operational plan ning decrease. Implications for future research are discussed.