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

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.