Is business planning pre-condition for the future success of immigrant entrepreneurs in Germany?

In this study, we challenge the negative view of business plan activities, arguing that business planning is not only a rational decision-taking instrument for potential entrepreneurs in the framework of startup capital constraints, but also an important precursor to action in new venture. We investigated both the production and the outcomes of written business plans following 647 immigrant entrepreneurs during a two-year period in the city of Colon. Our empirical findings show that institutional variables, such as coercive, mimetic and normative isomorphic pressure are significant predictors influencing the propensity to incline towards business plan activities. Interestingly, our results indicate that performance, measured by profitability and survival, is an outcome of organisational isomorphism.