Entrepreneurs’ Exit Strategy Intentions and Their Final Exit Paths

Hohen, Sascha; Schweizer, Lars

doi:10.1007/s41471-021-00123-7

Cited by 7 publications

(15 citation statements)

References 112 publications

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“…Additionally, we show that the entrepreneur's exit intention does not only influence the final exit path (DeTienne et al. , 2015; Hohen and Schweizer, 2021) but also the investor choice.…”

Section: Introductionmentioning

confidence: 79%

“…On the other side, founders often leave the company as part of an acquisition (DeTienne and Cardon, 2012). Acquisitions are the second most attractive exit strategy in terms of financial return Entrepreneurs and corporate venture capital (Hohen and Schweizer, 2021). It is also more feasible for companies with lower growth (Hohen and Schweizer, 2021).…”

Section: Exit Strategiesmentioning

confidence: 99%

“…, 2009; Zu Knyphausen-Aufseß, 2005), as well as the entrepreneur's exit intention (DeTienne et al. , 2015; Hohen and Schweizer, 2021). Our results confirm that specific resources as well as the aspired exit path, influence entrepreneurs' preference for CVC.…”

Section: Introductionmentioning

confidence: 99%

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Entrepreneurs' preference for corporate venture capital – The influence of exit strategies and resource requirements

Weniger

Jarchow

Nenadic

2023

JSBED

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PurposeLiterature on entrepreneurial finance has long overcome the view of an investor as a sole provider of financial capital. Entrepreneurs need to consider more aspects when deciding on an investor. Especially the depiction of corporate venture capital (CVC) investors has long highlighted advantages and disadvantages compared to independent VC (IVC) investors. The authors investigate what drives entrepreneurs' preferences for CVC relative to IVC and thereby focus on two key issues in the entrepreneur's consideration – the role of resource requirements and exit strategies.Design/methodology/approachThe data were collected in an online survey that gathered information on several characteristics of entrepreneurs and their ventures. The resulting data set of 105 German entrepreneurs was analyzed using logistic regression and revealed important drivers for entrepreneurs' investor preferences.FindingsThe study’s findings confirm that the venture's resource needs, specifically the need for marketing resources and access to the corporate network, which play a significant role in the decision on whether a CVC or IVC investor is preferred. Moreover, the analysis debunks the hypothesis that entrepreneurs view a CVC investment as the first step toward acquisition. However, those entrepreneurs striving for an IPO are less likely to prefer CVC.Originality/valueThe study expands the literature on CVC attractiveness and specifically considers the entrepreneurs' intentions and needs. The results confirm but also debunk some widespread perceptions about why entrepreneurs choose to pursue financing from a CVC investor.

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“…Additionally, we show that the entrepreneur's exit intention does not only influence the final exit path (DeTienne et al. , 2015; Hohen and Schweizer, 2021) but also the investor choice.…”

Section: Introductionmentioning

confidence: 79%

Section: Exit Strategiesmentioning

confidence: 99%

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Entrepreneurs' preference for corporate venture capital – The influence of exit strategies and resource requirements

Weniger

Jarchow

Nenadic

2023

JSBED

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“…properly measured and understood (Hohen and Schweizer, 2021;DeTienne and Wennberg, 2016). S.R.S.Pirzada, PhD Thesis, Aston University 2022…”

Section: Duration Studies and The Panel Study Of Entrepreneurial Dyna...mentioning

confidence: 99%

Founder's Human Capital and the Entrepreneurial Process Duration

Shahid¹

2023

Preprint

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This thesis presents three quantitative empirical studies, utilising two US cohorts from the harmonised Panel Study of Entrepreneurial Dynamics (PSED), to advance our understanding of the relationship between nascent entrepreneurs’ human capital and duration to different entrepreneurial outcomes. Each chapter provides a distinct perspective across three dimensions: (1) human capital, age and sector impact duration to a profitable outcome, (2) the association of human capital and age with the founder’s exit; and finally, (3) human capital impact on the duration to a profitable outcome with a different spatial scope of sales. Following the introductory chapter, in chapter 2, the human capital perspective is used to investigate how the level of human capital and the founder’s age influence the likelihood of profitable venture creation in a shorter duration. This chapter extends research in nascent entrepreneurship that hitherto has largely overlooked the duration perspective to an entrepreneurial process outcome. This chapter stresses that hi-tech start-up particularly benefits from the nascent entrepreneur’s higher educational attainment in terms of shorter duration until the profitable outcome, and find that age has a non-linear relationship with the speed of the profitable venture outcome. Chapter 3 examines how a founder’s human capital factors and age influence the likelihood of a founder’s exit, and duration to an exit, from the entrepreneurial process. This chapter also extends its focus to human capital interactions to establish which combinations are more likely to reduce an earlier prospect of a founder’s disengagement from the entrepreneurial process. The chapter, also adds to the literature on how founders, with higher human capital, learn quickly and make intelligent choices to disengage without incurring heavy personal and societal costs. A non-linear relationship is found between the founder’s age and the duration to disengagement. Finally, chapter 4, seeks to understand how a founder’s human capital affects the profitable outcome, and the duration to such an outcome, at the different spatial scopes of sales. This paper takes a new approach and adds to the international entrepreneurship literature by clarifying how the founder’s human capital factors impact rapid (born global) and incremental (international new ventures) spatial scope strategies differently. Among the general human capital, a university degree is valuable across all types of spatial scopes of sales in terms of profitable venture creation in a shorter duration. However, start-up experience (specific human capital) only tends to be vital for international scope in terms of the shorter duration to create a profitable new venture. Altogether, the thesis advances our understanding of the important role of the founder’s human capital dimensions in nascent entrepreneurship, in the duration either to a profitable venture creation or to exit, which is underdeveloped in the existing literature. The thesis paves the way for future, both theoretical and empirical research, into nascent entrepreneurship process duration by analysing the direct effects of various aspects of social capital.

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“…plus newer options such as crowdfunding (Bruton et al, 2015). We have assumed that firms would use public equity as a means to grow their firms; however, as noted by DeTienne (2010) and Hohen and Schweizer (2021), entrepreneurs could use public equity financing as an exit strategy. Whilst our data do not explore this issue directly, it is discussed further in the following section on family firms (2.1).…”

Section: Theoretical Background Context and Hypothesis Developmentmentioning

confidence: 99%

Mind the gap: public equity as a financing solution for medium-sized enterprises and the influence of national culture

Koch

Crossan²,

Jaworski³

2022

IJEBR

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PurposeThis research focuses on the demand from medium-sized firms to access public equity as a source of finance. The acceptance of public equity differs strongly between countries, particularly between the United Kingdom and Germany. Therefore, this research aims to identify the impact of national culture on the decision to go public in these two countries.Design/methodology/approachThe theoretical framework builds on the satisficing theory of rationality, the pecking-order theory as well as Hofstede's cultural dimension theory. Using a questionnaire, over 1,000 medium-sized businesses in the United Kingdom and Germany were surveyed.FindingsThe findings demonstrate that British medium-sized firms are more open to using public equity as a source of finance than their German counterparts. The results indicate that national culture not only affects the decision to go public but also has a negative impact on uncertainty avoidance and long-term orientation.Originality/valueThe originality of the research lies in the focus on medium-sized firms and the effects of cultural differences between the United Kingdom and Germany. No previous research has explored how culture influences the decision to go public using a dataset generated from medium-sized firms in the United Kingdom and Germany.

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Entrepreneurs’ Exit Strategy Intentions and Their Final Exit Paths

Cited by 7 publications

References 112 publications

Entrepreneurs' preference for corporate venture capital – The influence of exit strategies and resource requirements

Entrepreneurs' preference for corporate venture capital – The influence of exit strategies and resource requirements

Founder's Human Capital and the Entrepreneurial Process Duration

Mind the gap: public equity as a financing solution for medium-sized enterprises and the influence of national culture

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