Towards Understanding the Process of Entrepreneurial Exit from Sustainability-Oriented Businesses

Abstract

The study explores the procedural mechanism of entrepreneurial exit for sustainable entrepreneurs and their post-exit consequences. Drawing upon human capital perspective and institutional theory, we analyzed the configurations of these two frameworks in shaping exit decisions. Using semi-structured interviews to collect primary data from twenty-seven sustainable entrepreneurs, who had exited their businesses, we analyzed the exit process through a grounded theory approach. We found that sustainable entrepreneurs with superior human capital are better positioned to overcome institutional barriers than novice and young entrepreneurs. Furthermore, enhanced human capital also facilitates sustainable entrepreneurs to classify their entrepreneurial experience as the source of learning and personal development. The findings provide several interesting aspects to pursue entrepreneurial exit research for sustainable entrepreneurs who pledge to maintain a triple bottom line approach. Keywords: Sustainable entrepreneurs, entrepreneurial exit, human capital, institutional environment, entrepreneurial learning, qualitative methods.