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Firm resource characteristics and human capital as predictors of exit choice: An exploratory study of SMEs

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This research focuses on exit choices within SMEs. In this study, “exit choice” refers to the decision to opt for either liquidation or sale of the firm. The predictions focus on human-capital and firm-resource variables. The hypotheses are tested on a set of 158 owners of small firms, the majority of which are micro-firms with 0–9 employees. The results of a series of binominal logistic regression analyses show that firm-resource characteristics (previous sales turnover, the firm’s independence from its owner, and firm size), together with one aspect of the owner’s specific human capital (the owner’s acquisition experience), predict exit choice. The conclusions have been made with caution, as the dataset is relatively small and the number of predictors is limited.


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