Kihlstrom and Laffont(1979),argued that entrepreneurship is the occupational choice of people with less risk aversion to run their own businesses, simulatneous (Castrogiovanni, 1996) argues that emerging entrepreneurial ventures need capital beyond the founder's endowment for inception as well as for growth of a venture.
This brings in view the need for
business plan as it is a tool for soliciting fund for business venture
development. The resources that can’t be obtained from relatives or peers as
the same might face the problem of limitation of resources.
Reference
Kihlstrom,
R.E. and Laffont, J.J., “A general equilibrium entrepreneurial theory of firm formation based on risk aversion,” Journal of
Political Economy, vol. 87, pp. 719–748, 1979.
Castrogiovanni, G.J., 1996. Pre-startup planning
and the survival of new small businesses: theoretical linkages. Journal of Management 22(6): 801-822
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