Identifying Entrepreneurs’ Social Network in Entrepreneurial Exit

Document Type : Research Paper


1 Entrepreneurship faculty- Tehran university- Tehran- iran

2 faculty of Entrepreneurship- Tehran university

3 Faculty of Entrepreneurship- Tehran university

4 Associate Professor at Entrepreneurship Faculty of University of Tehran


Entrepreneurial exit is an important part of the entrepreneurial process that has a remarkable impact on the entrepreneur, enterprise, various industries and macroeconomics of each country. However, little research has been done in this area; In particular, researchers have paid less attention to the role of the entrepreneurs' social networks on exit. Entrepreneur’s social network is defined as the totality of all persons connected to entrepreneur and include partners, suppliers, customers, venture capitals, distributors, business associations, family members, friends& Advisors. The purpose of this study is to identify the role of social networks and its related factors on entrepreneurial exit. This research in terms of purpose is applied and in terms of method is qualitative-narrative. The statistical population of the study consisted of entrepreneurs in Tehran who had at least one experience of leaving the business in conditions of good economic performance. Research samples were selected using the snowball technique. Semi-structured interviews were also used to collect the data. After interviewing with 12 person theoretical saturation was achieved. Data analysis and coding led to the identification of seven components related to the social network that are involved in the exit process. These seven components are: differences and conflicts between partners, partners' lack of commitment to their business, partners' lack of experience and skills, family emotional support at the time of exit, family role conflict of business partners, customer’s feedback, and professional and emotional support from friends at the time of exit.


محقق نیشابوری، محمد سعید؛ طالبی، کامبیز و سجادی، سید مجتبی (1396). عوامل خروج کارآفرینان: تلفیق نگاه فردی محیطی. توسعه کارآفرینی، 10(3): 497-516.‎
نوری، پوریا؛ احمدی کافشانی، عبدالله و طالبی، کامبیز (1395). شناسایی عوامل خروج کارآفرینان ایرانی: رویکرد روایتی. توسعه کارآفرینی، 9(1): 159-175.‎
Abbas, A. (2016). Exploring churn in female led businesses by qualitative assessment of venture exits under gender lens.
Aldrich, H., & Zimmer, C. (1986). Entrepreneurship through social networks. In D. sexton, & R. Smilor, The Art and Science of Entrepreneurship (pp. 3-23). New York: Ballinger.
Amaral, A. M., Baptista, R., & Lima, F. (2007). Entrepreneurial exit and firm performance.Frontiers of entrepreneurship research, 27(5), 1-25.
Andringa, S., Poulston, J., & Pernecky, T. (2016). Hospitality entrepreneurship: a link in the career chain.International Journal of Contemporary Hospitality Management, 28(4), 717-736.
Atsan, N. (2016). Failure Experiences of Entrepreneurs: Causes and Learning Outcomes.Procedia-Social and Behavioral Sciences,235, 435-442
Bird, M., & Wennberg, K. (2016). Why family matters: The impact of family resources on immigrant entrepreneurs' exit from entrepreneurship.Journal of Business Venturing, 31(6), 687-704.
Borgatti, S., Brass, D., & Halgin, D. (2014). Social network research: confusions, criticisms, and controversies. Research in the Sociology of Organizations, 40, 1-29.
Breugst, N., Patzelt, H., & Rathgeber, P. (2015). How should we divide the pie? Equity distribution and its impact on entrepreneurial teams.Journal of Business Venturing, 30(1), 66-94.
Bruyaka, O. P. (2008). Alliance partner diversity and biotech firms'exit: differing effects on dissoluion vs. divestment. In Academy of management proceedings (Vol. 2008, No. 1, pp. 1-6). Briarcliff Manor, NY 10510: Academy of Management.
Caliendo, M., Fossen, F., & Kritikos, A. (2012). Trust, positive reciprocity, and negative reciprocity: Do these traits impact entrepreneurial dynamics?Journal of Economic Psychology,33(2), 394-409.
Chepchieng, H. (2017).Entrepreneurial Profile, Networking and Outcomes: A Study of Women Owned Mitumba Enterprises in Mombasa City, Kenya(Doctoral dissertation, Moi University).
Clarysse, B., Bobelyn, A., & Del Palacio Aguirre, I. (2013). Learning from own and others’ previous experience: the contribution of the venture capital firm to the likelihood of a portfolio company’s trade sale.Small Business Economics,40(3), 575-590.
Collewaert, V., & Fassin, Y. (2013). Conflicts between entrepreneurs and investors: the impact of perceived unethical behavior.Small Business Economics,40(3), 635-649.
Dashti, Y., & Schwartz, D. (2018). Should start-ups embrace a strategic approach toward integrating foreign stakeholders into their network?Innovation,20(2), 164-191.
DeTienne, D. R. (2010). Entrepreneurial exit as a critical component of the entrepreneurial process: Theoretical development.Journal of Business Venturing,25(2), 203-215.
DeTienne, D. R., & Cardon, M. S. (2012). Impact of founder experience on exit intentions.Small Business Economics,38(4), 351-374.
Diánez-González, J. P., & Camelo-Ordaz, C. (2017). The influence of the structure of social networks on academic spin-offs’ entrepreneurial orientation.Industrial Marketing Management. 80, 84-98
Farooq, M. S., Salam, M., ur Rehman, S., Fayolle, A., Jaafar, N., & Ayupp, K. (2018). Impact of support from social network on entrepreneurial intention of fresh business graduates: A structural equation modelling approach.Education+ Training,60(4), 335-353
Gem. (2013), Tehran
Georgarakos, D., & Tatsiramos, K. (2009). Immigrant self-employment: does intermarriage matter? InEthnicity and Labor Market Outcomes(pp. 253-271). Emerald Group Publishing Limited.
Greve, A., & Salaff, J. W. (2003). Social networks and entrepreneurship.Entrepreneurship theory and practice,28(1), 1-22.
Haring, M. (2018). How Student Entrepreneurs Develop Their Social Network Over Time During the Process of Starting a Company.Business and Management Studies,4(1), 68-80.
Hegde, D., & Tumlinson, J. (2014). Does social proximity enhance business partnerships? Theory and evidence from ethnicity's role in US venture capital.Management Science,60(9), 2355-2380.
Hsu, D. K., Wiklund, J., Anderson, S. E., & Coffey, B. S. (2016). Entrepreneurial exit intentions and the business-family interface.Journal of Business Venturing,31(6), 613-627.
Kar, B., Kapur, S., & Panda, A. K. (2017). Why Do Entrepreneurs Quit? An Exploratory Analysis.
Klyver, K., Evald, M. R., & Hindle, K. (2011). Social networks and new venture creation: the dark side of networks. In K. Hindle, & K. Klyver, Handbook of research on new venture creation (pp. 145-159). Cheltenham, UK . Northampton, MA, USA: Edward Elgar.
Ragozzino, R., & Blevins, D. P. (2016). Venture Backed Firms: How Does Venture Capital Involvement Affect Their Likelihood of Going Public or Being Acquired?Entrepreneurship Theory and Practice,40(5), 991-1016.
Shu, R., Ren, S., & Zheng, Y. (2018). Building networks into discovery: The link between entrepreneur network capability and entrepreneurial opportunity discovery.Journal of Business Research,85, 197-208.
Wennberg, K. (2009). Entrepreneurial Exit. Stockholm, Sweden: Stockholm School of Economics.
Wennberg, K., & DeTienne, D. R. (2014). What do we really mean when we talk about ‘exit’? A critical review of research on entrepreneurial exit.International Small Business Journal,32(1), 4-16.
Wennberg, K., Wiklund, J., DeTienne, D. R., & Cardon, M. S. (2010). Reconceptualizing entrepreneurial exit: Divergent exit routes and their drivers.Journal of Business Venturing,25(4), 361-375.
Zaccaria, L. (2015).Are family and friends the wrong investors? Evidence from us startups. Working Paper.
Zhu, F., Burmeister-Lamp, K., & Hsu, D. K. (2017). To leave or not? The impact of family support and cognitive appraisals on venture exit intention.International Journal of Entrepreneurial Behavior & Research,23(3), 566-590