Entrepreneurial Failure and Exit

Although entrepreneurial exit is frequently conceptualised as an event, signifying the cessation of formal involvement of entrepreneurs in their firms, conceptualizing exit as a process where the entrepreneur physically and psychologically disengages from the firm provides a lens to explore how entrepreneurs exit their firms and the implications this has for their well-being and future employment. We take an inclusive approach to conceptualizing exit, including processes related to failure and harvest. We review different psychological approaches used to understand how entrepreneurs exit their firms and draw on the literature on divorce and self-regulation to offer suggestions for future research on entrepreneurial exit.