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Business Harvesting Strategies for Entrepreneurs

In: Entrepreneurship - Contemporary Issues

Author

Listed:
  • Herring Shava

Abstract

Entrepreneurship plays a pivotal role in our societies, such as employment creation. This is a key to addressing income inequalities leading to poverty reduction and economic growth. As a result of this critical role, the campaign is on establishing more entrepreneurial entities, and there is very little concern regarding harvesting an entrepreneurial entity. Entity harvesting is equally important as setting up a new entrepreneurial venture and this chapter explores this issue. During the harvesting process, the entrepreneur recovers value through the sale of an entrepreneurial entity or its assets. Having spent several years building and adding value to the business, the entrepreneur must design an entity harvesting strategy that would provide maximum returns on the investment of time, effort and money. Several reasons may compel the entrepreneur to harvest the business and this chapter provides some of these reasons based on extant literature and primary data collected from small- and medium-sized entity (SME) owners in Sub-Saharan Africa. Further, the chapter outlines various entity harvesting strategies preferred by SME owners in Sub-Saharan Africa and circumstances at which they deem appropriate to apply such.

Suggested Citation

  • Herring Shava, 2021. "Business Harvesting Strategies for Entrepreneurs," Chapters, in: Mladen Turuk (ed.), Entrepreneurship - Contemporary Issues, IntechOpen.
  • Handle: RePEc:ito:pchaps:214933
    DOI: 10.5772/intechopen.93442
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    More about this item

    Keywords

    harvesting; entrepreneur; buyouts; mergers; outright sale;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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