Entrepreneurial Exit Strategies: The Impact of Human Capital
Frontiers of Entrepreneurship Research 2006
13 Pages Posted: 17 Dec 2008 Last revised: 10 Mar 2009
Date Written: December 3, 2008
Although researchers in such diverse fields as economics and organizational sociology have explored firm exit, little research has explored entrepreneurial exit - the decision by the majority - owner founders of privately-held firms to harvest their profits and remove themselves from the primary ownership and decision-making structure of the firm. Yet, all entrepreneurs in one way or another will leave the firm they created. Using theories of goal-setting and human capital we explore two specific questions: (1) why do some entrepreneurs consider an exit strategy while others do not, and (2) under what conditions are entrepreneurs most likely to utilize a specific strategy.
JEL Classification: M13
Suggested Citation: Suggested Citation