The main reasons for the exit of entrepreneurs from business
Keywords:
Exit from business, termination of business activity, sale, liquidation, bankruptcy
Abstract
The purpose of the article is to study the reasons for the termination of entrepreneurial activity, as well as the accumulated experience of entrepreneurs leaving their business. Research on the principles and concepts of business termination became widespread in the late twentieth and early twenty-first century. At first, only Western European and American scientists were interested in this problem. Since 2005, the geography of researchers has expanded significantly. Our analysis is based on the consideration of monographs, articles in peer-reviewed scientific journals, published working papers and research reports. The article presents the characteristics of the main reasons and ways of entrepreneurs out of business. Author proposes their classification and systematization. The results of the study can be used in scientific research of entrepreneurship. They can be used in the educational activities of higher educational institutions. The results are of interest to existing entrepreneurs, helping them to properly build business exit programs.
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References
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Harhoff, D., Stahl, K. & Woywode, M. (1998). Legal form, growth and exit of West German firms – Empirical results for manufacturing, construction, trade and service industries. The Journal of Industrial Economics, XLVI(4), 453-488.
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Pinkovetskaia, I. (2019a). Indicadores económicos de la actividad de las pequeñas y medianas empresas en Rusia. Revista Científica Del Amazonas, 2(4), 5-17. Recuperado a partir de https://revistadelamazonas.info/index.php/amazonas/article/view/18
Pinkovetskaia, I., Nuretdinova, Y., Treskova, T., & Neif, N. (2019). Estimation of fixed capital investment in Russian small enterprises and microenterprises in 2018. Amazonia Investiga, 8(21), 42-51.
Pinkovetskaia, I. (2019b). Evaluación de la concentración del emprendimiento en las regiones de Rusia. Revista Científica Del Amazonas, 2(4), 18-26. Recuperado a partir de https://revistadelamazonas.info/index.php/amazonas/article/view/19
Sharma, P., Chrisman, J. & Chua, J. (2003). Predictors of satisfaction with the succession process in family firms. Journal of Business Venturing, 18, 667-687.
Stokes, D. & Blackburn, R. (2002a). Learning the hard way: the lessons of owner-managers who have closed their businesses. Journal of small business and enterprise development. 2002a, 9(1), 17-27.
Stokes, D. (2002b). Small Business Management. Continuum International Publishing. London.
Ucbasaran, D., Shepherd, D.A., Lockett, A. & Lyon, S.J. (2012). Life after business failure: The Process and Consequences of Business Failure for Entrepreneurs. Journal of Management, 39(1), 163-202.
Van Teeffelen, L., & Uhlaner, L. (2003). Firm Resource Characteristics and Human Capital as Predictors of Exit Choice: An Exploratory Study of SMEs. Entrepreneurship Research Journal, 3(1), 84–108.
Wennberg, K. & De Tienne, D.R. (2014). What do we really mean when we talk about 'exit'? A critical review of research on entrepreneurial exit. International Small Business Journal, 32(1), 4-16.
Wiklund, J., Davidsson, P. & Delmar, F. (2003). What do they think and feel about growth? An expectancy-value approach to small business managers' attitudes toward growth. Entrepreneurship: Theory and Practice, 27, 247-270.
Balcaen, S., Manigart, S., Buyze J. & Ooghe H. (2012). Firm exit after distress: differentiating between bankruptcy, voluntary liquidation and M&A. Small Business Economics, 39(4), 949-975.
Bates T. (2005). Analysis of young, small firms that have closed: Delineating successful from unsuccessful closures. Journal of Business Venturing, 20(3), 343-358.
Cardon, M.S., Stevens, С.E. & Potter, D.R. (2011). Misfortunes or mistakes? Cultural sensemaking of entrepreneurial failure. Journal of Business Venturing, 26 (1), 79-92.
Cefis, E. & Marsili, O. (2011). Born to flip. Exit decisions of entrepreneurial firms in high-tech and low-tech industries. Journal of Evolutionary Economics, 21(3), 473-498.
Coad, A. (2014). Death is not a success: reflections on business exit. International Small Business Journal, 32(7), 721-732.
Cumming, D. (2008). Contracts and exits in venture capital finance. Review of Financial Studies, 21(5), 1947-1982.
Deenitchin, I. & Pikul, P. (2005). Entrepreneurship: how to design growth and exit strategy. Economics and Business Review EBR, 5(2), 25-43.
De Tienne, D.R. (2010). Entrepreneurial exit as a critical component of the entrepreneurial process: Theoretical development. Journal of Business Venturing, 25(2), 203-215.
De Tienne, D.R. & Cardon, M.S. (2012). Impact of founder experience on exit intentions. Small Business Economics, 38(4), 352-374.
De Tienne, D.R., McKelvie, A. & Chandler, G. (2015). Making Sense of Entrepreneurial Exit Strategies: A Typology and Test. Journal of Business Venturing, 30(2), 255–272.
Egeln, J., Falk, U., Heger, D., Hower, D. & Metzger, G. (2010). Ursachen für das Scheitern junger Unternehmen in den ersten fünf Jahren ihres Bestehens. Studie im Auftrag des Bundesministeriums für Wirtschaft und Technologie. Mannheim und Neuss.
Fauchart, E. & Gruber, M. (2011). Darwinians, communitarians, and missionaries: the role of founder identity in entrepreneurship. The Academy of Management Journal, 54(5), 935-957.
Foo, C., John, R. & John, B. (2009). Successful Exit Processes of SMEs in Australia. In: SEAANZ. Wellington. New Zealand.
Harhoff, D., Stahl, K. & Woywode, M. (1998). Legal form, growth and exit of West German firms – Empirical results for manufacturing, construction, trade and service industries. The Journal of Industrial Economics, XLVI(4), 453-488.
Hessels, J., Grilo, I., Thurik, R. & van der Zwan, P. (2011). Entrepreneurial exit and entrepreneurial engagement. Journal of Evolutionary Economics, 21(3), 447-471.
Kiseleva, O., Lebedev, A., Pinkovetskaia, I., Rojas-Bahamón, M., & Arbeláez Campillo, D. (2019). Specialization and concentration of small and medium enterprises employees: Russian data. Amazonia Investiga, 8(20), 6-15.
Knott, A. & Posen, H. (2005). Is failure good? Strategic Management Journal, 26(7), 617-641.
Leonetti J.M. (2008). Exiting Your Business, Protecting Your Wealth. John Wiley & Sons, Inc. Hoboken. USA.
Marjanski, A., & Sulkowski, L. (2019). The Evolution of Family Entrepreneurship in Poland: Main Findings Based on Surveys and Interviews from 2009-2018. Entrepreneurial Business and Economics Review, 7(1), 95-116.
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, 159-172.
Peters, B. (2009). Early Exits: Exit Strategies for Entrepreneurs and Angel Investors (But Maybe Not Venture Capitalists). Meteor Bytes Data Management Corp. Vancouver. Canada.
Pinkovetskaia, I. (2019a). Indicadores económicos de la actividad de las pequeñas y medianas empresas en Rusia. Revista Científica Del Amazonas, 2(4), 5-17. Recuperado a partir de https://revistadelamazonas.info/index.php/amazonas/article/view/18
Pinkovetskaia, I., Nuretdinova, Y., Treskova, T., & Neif, N. (2019). Estimation of fixed capital investment in Russian small enterprises and microenterprises in 2018. Amazonia Investiga, 8(21), 42-51.
Pinkovetskaia, I. (2019b). Evaluación de la concentración del emprendimiento en las regiones de Rusia. Revista Científica Del Amazonas, 2(4), 18-26. Recuperado a partir de https://revistadelamazonas.info/index.php/amazonas/article/view/19
Sharma, P., Chrisman, J. & Chua, J. (2003). Predictors of satisfaction with the succession process in family firms. Journal of Business Venturing, 18, 667-687.
Stokes, D. & Blackburn, R. (2002a). Learning the hard way: the lessons of owner-managers who have closed their businesses. Journal of small business and enterprise development. 2002a, 9(1), 17-27.
Stokes, D. (2002b). Small Business Management. Continuum International Publishing. London.
Ucbasaran, D., Shepherd, D.A., Lockett, A. & Lyon, S.J. (2012). Life after business failure: The Process and Consequences of Business Failure for Entrepreneurs. Journal of Management, 39(1), 163-202.
Van Teeffelen, L., & Uhlaner, L. (2003). Firm Resource Characteristics and Human Capital as Predictors of Exit Choice: An Exploratory Study of SMEs. Entrepreneurship Research Journal, 3(1), 84–108.
Wennberg, K. & De Tienne, D.R. (2014). What do we really mean when we talk about 'exit'? A critical review of research on entrepreneurial exit. International Small Business Journal, 32(1), 4-16.
Wiklund, J., Davidsson, P. & Delmar, F. (2003). What do they think and feel about growth? An expectancy-value approach to small business managers' attitudes toward growth. Entrepreneurship: Theory and Practice, 27, 247-270.
Published
2020-02-21
How to Cite
Pinkovetskaia, I., Berezina, N., & Sverdlikova, E. (2020). The main reasons for the exit of entrepreneurs from business. Amazonia Investiga, 9(26), 68-73. https://doi.org/10.34069/AI/2020.26.02.7
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