What Do We Really Mean When We Talk About ‘Exit’? - A Critical Review of Research on Entrepreneurial Exit
International Small Business Journal, Forthcoming
21 Pages Posted: 3 Jan 2014
Date Written: January 2, 2014
Much of the research on entrepreneurial exit has focused upon exit as a dichotomous outcome whereby exit is viewed negatively and survival, positively. This perspective is quite different from that of practicing entrepreneurs, who are more likely to be concerned with various types of exits, viewing some options as the ultimate fulfillment of the new venture process. Further, research on exit frequently fails to account for performance (e.g. earnings from self-employment or firm level profitability) in empirical models, even though performance is arguably the critical component of determining whether an exit is successful or unsuccessful. In this review article we delve into these issues — founder exit intentions, strategies for executing the exit, the process of exit, and the importance of controlling for, or including, performance measures in academic research — thereby outlining an agenda for future research regarding entrepreneurial exit.
Keywords: Entrepreneurial Exit, Failure, Closure, Review
JEL Classification: M13, L26
Suggested Citation: Suggested Citation