Extensive literature recommends that entrepreneurs engage in business planning in the process of venture formation (Fry and Stoner, 1985; Mancuso, 1985; Henderson, 1988).While a number of studies have demonstrated that nascent entrepreneurs who plan are more persistent (Delmar & Shane, 2004;Gartner & Liao, 2006; Honig & Karlsson, 2004) studies have not demonstrated a relationship between persistence and success, with some scholars questioning the practice (Bhide, 2000;Gumpert, 2002). A research gap exists regarding why new organizations write plans. An institutional perspective of business planning emerged as an alternative to the rational choice account (i.e., Honig & Karlsson, 2004).