Retirement of entrepreneurs: Implications for entrepreneurial exit

Abstract

Retirement of a large portion of the workforce and, particularly, entrepreneurs is a contemporary trend in developed countries. Despite substantial economic and social consequences of entrepreneurs’ retirement, it has received limited scholarly attention. Using a mixed method approach, we shed light on how entrepreneurs approach retirement and the implications for exit strategy. Our findings suggest retirement is a voluntary decision over which entrepreneurs have considerable control, increasing their proclivity toward partial retirement at a later than normal age. Entrepreneurial identity plays a role in shaping approaches to retirement. Retirement intention influences preferences toward particular exit strategies and associated preparation efforts.