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Entrepreneurial Exit
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AbstractEntrepreneurial exit is a critical component of the entrepreneurial process and one that is critical to the practicing entrepreneur. This article examines differences between failure and deliberate closure, how founders of privately held ventures make exit decisions, how they develop exit strategies, and the impact of those decisions. I begin by clarifying the different types of exit based on two dimensions – firm exit and founder exit. Both firm exit and founder exit as entrepreneurial culmination that occur when the firm fails and also through deliberate closure is refered here. Entrepreneurial departure occurs when the founder exits from the firm (e.g., forced exit, succession, harvest), but the firm remains in the market. Entrepreneurial recycling occurs when the firm exits, but the founder remains engaged in entrepreneurial activity (e.g., portfolio or serial entrepreneurs). In addition, a list of potential research questions, guiding theoretical perspectives, and critical references for researchers interested in each of these different types of exit is provided.
Title: Entrepreneurial Exit
Description:
AbstractEntrepreneurial exit is a critical component of the entrepreneurial process and one that is critical to the practicing entrepreneur.
This article examines differences between failure and deliberate closure, how founders of privately held ventures make exit decisions, how they develop exit strategies, and the impact of those decisions.
I begin by clarifying the different types of exit based on two dimensions – firm exit and founder exit.
Both firm exit and founder exit as entrepreneurial culmination that occur when the firm fails and also through deliberate closure is refered here.
Entrepreneurial departure occurs when the founder exits from the firm (e.
g.
, forced exit, succession, harvest), but the firm remains in the market.
Entrepreneurial recycling occurs when the firm exits, but the founder remains engaged in entrepreneurial activity (e.
g.
, portfolio or serial entrepreneurs).
In addition, a list of potential research questions, guiding theoretical perspectives, and critical references for researchers interested in each of these different types of exit is provided.
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