Exploring the Reasons and Ways to Exit: The Entrepreneur Perspective

Zulaicha Parastuty, Robert J. Breitenecker, Erich J. Schwarz, Rainer Harms

Research output: Chapter in Book/Report/Conference proceedingChapterAcademic

1 Citation (Scopus)

Abstract

Research on entrepreneurial exit has received growing attention recently, attributing to the importance of exit in the entrepreneurial process. Yet, the complex phenomena of exit render the research scattered in the field. This research is aimed at understanding entrepreneurial exit at the individual level, which has received less attention in the scholarly works. This article contributes to the discussion on the level of analysis researching entrepreneurial exit. Furthermore, the empirical work explores the reasons for and ways to exit of young firms. Following Austrian firms from founding until 3–4 years of operation, we are able to track entrepreneurs who exit. Our study reveals that the entrepreneurs who exit have fewer general managerial skills, are less experienced (general job experience, industry), have fewer entrepreneurial skills and less leadership quality, compared to the entrepreneurs who still engage in their founded firms in the sample. These findings indicate the importance of human capital, which plays a role in the continuation of the professional career of an entrepreneur. With regards to reasons to exit, our findings show that entrepreneurs exit due to personal-related reasons (alternative and normative) and firm-related reasons (calculative). Concerning ways to exit, the study reveals the specific context of Austria in which temporary closure is a possible way to exit. In the early stage, this study finds that the voluntary exit occurs in most cases, rather than the involuntary exit.
Original languageEnglish
Title of host publicationContemporary Entrepreneurship: Multidisciplinary Perspectives on Innovation and Growth
EditorsDieter Bögenhold, Jean Bonnet, Marcus Dejardin, Domingo Garcia Perez de Lema
PublisherSpringer
Pages159-172
ISBN (Print)978-3-319-28132-2
DOIs
Publication statusPublished - 2016

Publication series

Name
PublisherSpringer

Fingerprint

Exit
Entrepreneurs
Levels of analysis
Industry
Human capital
Austria
Entrepreneurial skills
Closure
Entrepreneurial process
Managerial skills

Keywords

  • IR-102040
  • METIS-318768

Cite this

Parastuty, Z., Breitenecker, R. J., Schwarz, E. J., & Harms, R. (2016). Exploring the Reasons and Ways to Exit: The Entrepreneur Perspective. In D. Bögenhold, J. Bonnet, M. Dejardin, & D. Garcia Perez de Lema (Eds.), Contemporary Entrepreneurship: Multidisciplinary Perspectives on Innovation and Growth (pp. 159-172). Springer. https://doi.org/10.1007/978-3-319-28134-6_10
Parastuty, Zulaicha ; Breitenecker, Robert J. ; Schwarz, Erich J. ; Harms, Rainer. / Exploring the Reasons and Ways to Exit: The Entrepreneur Perspective. Contemporary Entrepreneurship: Multidisciplinary Perspectives on Innovation and Growth. editor / Dieter Bögenhold ; Jean Bonnet ; Marcus Dejardin ; Domingo Garcia Perez de Lema. Springer, 2016. pp. 159-172
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Parastuty, Z, Breitenecker, RJ, Schwarz, EJ & Harms, R 2016, Exploring the Reasons and Ways to Exit: The Entrepreneur Perspective. in D Bögenhold, J Bonnet, M Dejardin & D Garcia Perez de Lema (eds), Contemporary Entrepreneurship: Multidisciplinary Perspectives on Innovation and Growth. Springer, pp. 159-172. https://doi.org/10.1007/978-3-319-28134-6_10

Exploring the Reasons and Ways to Exit: The Entrepreneur Perspective. / Parastuty, Zulaicha; Breitenecker, Robert J.; Schwarz, Erich J.; Harms, Rainer.

Contemporary Entrepreneurship: Multidisciplinary Perspectives on Innovation and Growth. ed. / Dieter Bögenhold; Jean Bonnet; Marcus Dejardin; Domingo Garcia Perez de Lema. Springer, 2016. p. 159-172.

Research output: Chapter in Book/Report/Conference proceedingChapterAcademic

TY - CHAP

T1 - Exploring the Reasons and Ways to Exit: The Entrepreneur Perspective

AU - Parastuty, Zulaicha

AU - Breitenecker, Robert J.

AU - Schwarz, Erich J.

AU - Harms, Rainer

PY - 2016

Y1 - 2016

N2 - Research on entrepreneurial exit has received growing attention recently, attributing to the importance of exit in the entrepreneurial process. Yet, the complex phenomena of exit render the research scattered in the field. This research is aimed at understanding entrepreneurial exit at the individual level, which has received less attention in the scholarly works. This article contributes to the discussion on the level of analysis researching entrepreneurial exit. Furthermore, the empirical work explores the reasons for and ways to exit of young firms. Following Austrian firms from founding until 3–4 years of operation, we are able to track entrepreneurs who exit. Our study reveals that the entrepreneurs who exit have fewer general managerial skills, are less experienced (general job experience, industry), have fewer entrepreneurial skills and less leadership quality, compared to the entrepreneurs who still engage in their founded firms in the sample. These findings indicate the importance of human capital, which plays a role in the continuation of the professional career of an entrepreneur. With regards to reasons to exit, our findings show that entrepreneurs exit due to personal-related reasons (alternative and normative) and firm-related reasons (calculative). Concerning ways to exit, the study reveals the specific context of Austria in which temporary closure is a possible way to exit. In the early stage, this study finds that the voluntary exit occurs in most cases, rather than the involuntary exit.

AB - Research on entrepreneurial exit has received growing attention recently, attributing to the importance of exit in the entrepreneurial process. Yet, the complex phenomena of exit render the research scattered in the field. This research is aimed at understanding entrepreneurial exit at the individual level, which has received less attention in the scholarly works. This article contributes to the discussion on the level of analysis researching entrepreneurial exit. Furthermore, the empirical work explores the reasons for and ways to exit of young firms. Following Austrian firms from founding until 3–4 years of operation, we are able to track entrepreneurs who exit. Our study reveals that the entrepreneurs who exit have fewer general managerial skills, are less experienced (general job experience, industry), have fewer entrepreneurial skills and less leadership quality, compared to the entrepreneurs who still engage in their founded firms in the sample. These findings indicate the importance of human capital, which plays a role in the continuation of the professional career of an entrepreneur. With regards to reasons to exit, our findings show that entrepreneurs exit due to personal-related reasons (alternative and normative) and firm-related reasons (calculative). Concerning ways to exit, the study reveals the specific context of Austria in which temporary closure is a possible way to exit. In the early stage, this study finds that the voluntary exit occurs in most cases, rather than the involuntary exit.

KW - IR-102040

KW - METIS-318768

U2 - 10.1007/978-3-319-28134-6_10

DO - 10.1007/978-3-319-28134-6_10

M3 - Chapter

SN - 978-3-319-28132-2

SP - 159

EP - 172

BT - Contemporary Entrepreneurship: Multidisciplinary Perspectives on Innovation and Growth

A2 - Bögenhold, Dieter

A2 - Bonnet, Jean

A2 - Dejardin, Marcus

A2 - Garcia Perez de Lema, Domingo

PB - Springer

ER -

Parastuty Z, Breitenecker RJ, Schwarz EJ, Harms R. Exploring the Reasons and Ways to Exit: The Entrepreneur Perspective. In Bögenhold D, Bonnet J, Dejardin M, Garcia Perez de Lema D, editors, Contemporary Entrepreneurship: Multidisciplinary Perspectives on Innovation and Growth. Springer. 2016. p. 159-172 https://doi.org/10.1007/978-3-319-28134-6_10