Abstract

This study integrates theories on entrepreneurial process, entrepreneurial exit, and effectuation. It elucidates the phenomenon of exit during the nascent stage of venture creation and extends prior work examining nascent entrepreneurs’ attribution of exit to being either strategic (due to market or demand forces), or behavioral (for personal reasons). Prior research suggests three reasons for why entrepreneurs quit nascent venture efforts: the existence of alternative opportunities, calculative evaluations of the possible achievement of personal goals, and normative perceptions of friends and family. We also consider beliefs that ventures are “doable,” and whether entrepreneurs are “all in” or use affordable loss logic.

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