Why Do Entrepreneurs Quit? An Exploratory Analysis
Most of the entrepreneurial venture exit business in first few years. Failures are more common than success. Entrepreneur and firm as distinct entities can quit market together or individually. The firm survives through transfer of ownership and entrepreneur survives through different avocation or a subsequent entrepreneurial attempt. Quit may not be final for entrepreneurial process. Entrepreneurial exit is a contrarian action to venture creation and thus has to be result of fundamental paradigm shift. The intervening period between venture creation and exit is a measure of entrepreneurial persistency. The objectives to understand the antecedents and contexts dictated an exploratory research design. Quit is generally labelled as failure and very few like to be identified as one. This aspect creates a methodological limitation for the research design. Through a purposive selection, a focus group discussion (FGD) was conducted among the entrepreneurs who have exited. FGD was video recorded. Transcript was prepared and verified from the participants. At the first stage entrepreneurs discussed about their own context of exit and subsequently the group discussed about common exit factors. Findings of exploratory research with purposive sampling can’t be generalized, however this research finds exit factors not reported in previous researches. Entrepreneurial exit is influenced by personal factors, market forces and social factors. Under socio-cultural factors this research finds that sabotage, general lack of employee professionalism influences exit decision. For further substantiation and generalisation, a multi-method approach to this research is proposed. The findings help in creating entrepreneurial awareness and emphasize the need of having mitigation strategies for such risk of exit.
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.