• Management style and ability. The

• Management style and ability. The extent of planning depends, in part, on
the ability of the entrepreneur to grasp multiple and interrelated dimensions of the business, to keep all necessary information in his or her head, and to retrieve it in an orderly fashion. It also depends on the lead entrepreneur's management style. These are practical matters that affect the actual amount of planning, but they may not lead to the ideal amount of planning.
• Preferences of the management team. The amount of planning also depends
on the management team's personal preferences. Some management reams
want to participate in the planning process; others do not. Lack of interest on
the part of management is likely to lead to insufficient planning.
• Complexity of the business. The level of complexity of a business affects how
much planning is appropriate.
• Competitive environment. If the firm will be operating in a highly competitive
environment, where it must be scrupulously managed in order to survive, a
significant amount of planning will be needed.
• Level of uncertainty. Ideally, ventures facing a volatile, rapidly changing environment would prepare for all eventualities through extensive planning. In reality, however, entrepreneurs are more inclined to plan when there is less
uncertainty because they can better anticipate future events which is the opposite of what they should be thinking.