Exit decision for social venturing entrepreneurs: A conjoint-based study

ABSTRACT

In this paper, we seek to study four options of exit decisions and strategies for Social Venture Entrepreneurs. Due to the small number of practicing Social Venture Investors and Entrepreneurs currently using the Social Venture Entrepreneurship model, data were collected from a heterogeneous group of founders and managers of social ventures across the Netherlands, sub-Saharan Africa, the United States and Asia. The study relies on a conjoint experiment on exit scenarios in which respondents were asked to decide on exit decisions they regarded as preferred or most probable under various conditions. Results from the descriptive analysis show that the founders are highly unlikely to exit. In the event of exit, Mergers and Acquisition (M&A) and Management Buy-out (MBO)/Internal Succession (IS) are the most preferred and probable exit routes that these founders are likely to take. Results from the conjoint analysis indicate that social impact is the most important factor in the decision of the founder of social ventures to exit. This study contributes to the broadening of our understanding on which exit decision models and strategies are likely to hold and become sustainable for practicing Social Venture Entrepreneurs.

KEYWORDS:

• exit decision
• social venture investment/entrepreneurship
• conjoint analysis

Disclosure Statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Alexander Tetteh Kwasi Nuer

Alexander Tetteh Kwasi Nuer is a multidisciplinary scholar, researcher and development management enthusiast. He currently mentors and teaches courses that relate agribusiness management, social auditing and accountability, community development and not-for-profit, entrepreneurship and business management at the department of Agricultural Economics and Extension, University of Cape Coast, Ghana. He worked and pursued his postgraduate, doctorate and postdoctoral career as a researcher with varied chairgroups at Wageningen University from 2008 until he returned to Ghana finally in early 2017.

Gert van Dijk

Gert Van Dijk is a Professor of Cooperative Business Administration, Social Venturing Entrepreneurship and Impact in developing economies. He has mentored and supervised many scholars in institutions such as Wageningen University, Tias Nimbas (Tilburg University) and Nyenrode Business Universities in the Netherlands.

Hans van Trijp

Hans Van Trijp is a Professor of Marketing and Consumer Behaviour. He leads the chairgroup within sub-department of Business Sciences at Wageningen University, Netherlands. He continues to supervise many studies in consumer behavior in the area of more healthy and sustainable lifestyles. He is also interested in studies related data sciences and data analytics in understanding consumer behavior.