Family- and non-family-related reasons for entrepreneurial exits

Abstract

PurposeThis study examines the family- and non-family-related reasons that may determine the choice of the anticipated entrepreneurial exit strategy (exit intention).Design/methodology/approachThe study is based on a survey of 267 owner-managers of micro-and small-sized firms in Poland and focuses on their exit intentions (rather than actual actions) as precursors to entrepreneurial exit. Structural equation modelling (SEM) was used to test the hypotheses.FindingsThe results show that family-related reasons may encourage entrepreneurs to choose the stewardship strategy over the financial harvest or voluntary cessation strategies, while non-family-related reasons such as maintaining financial independence and health may encourage the choice of the financial harvest or the voluntary cessation strategy.Originality/valueThis research contributes to both the entrepreneurial exit literature and psychological ownership theory by demonstrating the potential relevance of psychological ownership in the selection of exit strategies.

Household and entrepreneurial entry: an individual entrepreneurial capital perspective

“…, 2022) as well as research on family reasons for entrepreneurial exit (Jayawarna et al. , 2021; Koładkiewicz et al. , 2022), while in the more general field of entrepreneurship and management, the impact of family has not been fully discussed (Jaskiewicz et al.…”

“…First, the interactive relationship between family and entrepreneurship has not been sufficiently explored. This is reflected in the fact that literature on the relationship between family and entrepreneurship is concentrated in research on family businesses (Karaevli and Yurtoglu, 2018;Mart ınez-Alonso et al, 2022) as well as research on family reasons for entrepreneurial exit (Jayawarna et al, 2021;Koładkiewicz et al, 2022), while in the more general field of entrepreneurship and management, the impact of family has not been fully discussed (Jaskiewicz et al, 2017). For instance, Belkhodja and Daghfous (2020) suggest a double-edged sword effect of familiness in family businesses, but for families and households in general, we still know little about the impact.…”

Formal advisors and succession process in family firms

“…In the process of exiting a business, incumbents may be subjected to various pressures (Michel and Kammerlander, 2015). One source of pressure is their age, health, financial and nonfinancial needs (Koładkiewicz et al, 2022), and other concerns related to exiting the company. Sources of external pressure include families, potential successors and businesses (Gersick et al, 1999).…”

Who is brave enough to start a new business during the Covid-19 pandemic?

“…In 2020 the world was affected by the coronavirus (so-called Covid-19) pandemic, which has become a negative external shock, reshaping the economies and the ways how the business was made, including shutting down existing companies, exploring new business opportunities and setting up new ventures (Donthu and Gustafsson, 2020; Anker, 2021; Ivanov, 2021; Caiazza et al ., 2021; Kuckertz et al ., 2020; Brixiová et al ., 2020; Dvouletý et al ., 2021a; Davidsson et al ., 2021; Cepec et al ., 2022; Khlystova et al ., 2022; Koładkiewicz et al ., 2022; Cowling et al ., 2022). Each country has coped with the pandemic crisis uniquely, and this study aims to contribute to this ongoing scholarly discussion by providing insights from the context of the UK.…”