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A tale of two exits: nascent entrepreneur learning activities and disengagement from start-up

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  • Juita-Elena Yusuf

Abstract

This article explores entrepreneurial exit defined as disengagement from the start-up process. It addresses two questions: (1) is disengagement a negative outcome? and (2) are all cases of disengagement homogeneous? The literature identifies two types of disengagements based on the degree of learning by nascent entrepreneurs. Intelligent exit refers to proactive or strategic disengagement precipitated by entrepreneurs’ learning that concluded the business opportunity would not be successful. From this perspective, entrepreneurs could adopt discovering or enacting modes and their related causal or effectual approaches to learning. Reactive or uninformed exit results from lack of planning and an inability to solve problems. Results suggest two different disengagement clusters—the intelligent and reactive exit clusters—but the distinction between discovering and enacting approaches to learning is not supported. Cases of intelligent exit are found to be more similar to cases of operating businesses than they are to cases of reactive exit. Copyright Springer Science+Business Media, LLC. 2012

Suggested Citation

  • Juita-Elena Yusuf, 2012. "A tale of two exits: nascent entrepreneur learning activities and disengagement from start-up," Small Business Economics, Springer, vol. 39(3), pages 783-799, October.
    • Handle: RePEc:kap:sbusec:v:39:y:2012:i:3:p:783-799
    DOI: 10.1007/s11187-011-9361-4
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    Cited by:

    1. Shahid, Pirzada Syed Rizwan, 2023. "Founder's Human Capital and the Entrepreneurial Process Duration," OSF Preprints yf6mg, Center for Open Science.
    2. Martin Lukeš & Jan Zouhar, 2016. "The Causes of Early-Stage Entrepreneurial Discontinuance," Prague Economic Papers, Prague University of Economics and Business, vol. 2016(1), pages 19-36.
    3. Vera Rocha & Anabela Carneiro & Celeste Varum, 2015. "Entry and exit dynamics of nascent business owners," Small Business Economics, Springer, vol. 45(1), pages 63-84, June.
    4. Brajaballav Kar & Yimer Ayalew Ahmed, 2021. "Quit or continue? The influence of demography, challenges and performance," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 83-95, December.
    5. Lewis, Trey & Hechavarría, Diana M. & Williams, David W. & Cardon, Melissa S., 2024. "Doing the right things at the right times: The role of temporal enactment in venture outcome attainment," Journal of Business Venturing, Elsevier, vol. 39(1).
    6. Tubadji, Annie & Nijkamp, Peter & Santarelli, Enrico, 2017. "Shacklean Uncertainty and Cultural Embeddedness as Innovation Constraints in the UK," GLO Discussion Paper Series 111, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Entrepreneurial learning; Panel Study of Entrepreneurial Dynamics; Start-up outcome; Disengagement from start-up; Entrepreneurial exit; L26; M13;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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