Budgeting in Start-up Companies: European Survey-based Evidence

Abstract

The aim of this chapter is to investigate the relationship between the uses of budgets with financial performance in start-ups’ business environment. For this reason, an empirical survey was carried out, using a questionnaire in 134 start-up companies, which are based in 10 different European countries. Results show that there is a positive association between the use of budgets for planning, resource allocation and performance evaluation with financial performance. The CEO’s business educational background, as well as CEO’s beliefs about planning, has a strong influence in the use of budgets in start-up firms. We also concluded that there is a positive association between perceived environmental uncertainty (PEU) and the use of budgets for planning and resource allocation and a negative association between PEU and the use of budgets for performance evaluation.

Citation

Pavlatos, O. and Kostakis, H. (2021), "Budgeting in Start-up Companies: European Survey-based Evidence", Akroyd, C. and Burney, L.L. (Ed.) Advances in Management Accounting (Advances in Management Accounting, Vol. 33), Emerald Publishing Limited, Leeds, pp. 97-125. https://doi.org/10.1108/S1474-787120210000033004