Final answer:
Yes, when preparing the industry analysis section of a business plan, using secondary sources is appropriate. These sources help provide a comprehensive understanding of the industry and offer access to valuable information that can support the business plan's objectives.
Step-by-step explanation:
When preparing the industry analysis section of a business plan, it is indeed appropriate to use secondary sources. These sources, such as books, articles, and online databases, are often used to provide perspective and analysis. They rely on existing information rather than direct observation or firsthand experience. Utilizing secondary sources effectively usually involves citing and building upon primary sources to provide a comprehensive understanding of the industry.
Secondary sources are particularly useful in an industry analysis because they allow access to expert insights, historical data, trends, competitor analyses, and market overviews that might not be directly accessible through primary research. However, it is crucial to review these sources critically, ensuring the information is relevant, accurate, and supports your business plan's objectives. Comparative advantage studies, for example, can benefit from secondary data to understand different productivity levels in various economies.
While secondary sources are important, they should support your argument without overshadowing your original ideas and insights. A good guideline is to aim for a blend of sources with your writing predominantly representing your analysis and viewpoint, adhering to a ratio where approximately 80-90% is your original content and 10-20% consists of summaries, quotations, and paraphrases from secondary sources.