Drivers of exit processes: Differentiating between intentions and actions

An important aspect of the entrepreneurial life cycle that has been largely neglected is the entrepreneurial exit. Previous literature has identified a broad range of variables that influence the transfer of larger firms. Both personal-, social-, business- and industry-related variables have been shown to impact the transfer of larger firms. Few studies, however, have examined these variables in the context of smaller firms. In this study, we study the impact of person and business related variables on exit decisions of small-business owners. We use insights from the theory of planned behavior in order to distinguish between factors rationally incorporated in the entrepreneur’s intention to exit and factors directly impacting exit outcomes. Our hypotheses are tested on a unique, self-collected dataset on exit decisions by 196 small business owners. Our results indicate that human capital and intangible assets impact the intentions to exit. Further, company viability and intangible assets impact the actual realization of an exit. Implications for theory and practice are suggested.status: publishe