Research Handbooks in Business and Management series
Edited by Dawn R. DeTienne and Karl Wennberg
Chapter 1: Perpetually on the eve of destruction? Understanding exits in capitalist societies at multiple levels of analysis
Entrepreneurial exit completes the full cycle of the entrepreneurial process, because every entrepreneurial entry carries the potential of becoming an entrepreneurial exit. Indeed, the great majority of entries make fairly rapid exits from the business population, often leaving little trace of their existence (Yang and Aldrich 2012). Simply put, we cannot have one without the other. Researchers often lose sight of this truism because of their focus on large, public traded companies, which have lower exit rates than mundane entrepreneurial startups. When we step back to reflect on the larger context for entrepreneurship, however, we recognize how much we have yet to understand about the causes and consequences of exits.