Gordian knot uncut: Understanding the problem of founder exit in social ventures

Abstract

Eventually, all founders leave their social ventures either on their own accord or because they are compelled to do so. However, there is a high level of uncertainty over how founder exit decisions are made in these firms. In this thick problem description of founder exit in social ventures, we identify the factors that distinguish the social entrepreneurship context through the founder, firm, and ecosystem perspectives. The influence of these factors on founder exit is elaborated. Based on the insights developed, we propose research questions that future studies could pursue to expand our understanding of founder exit, exit routes, and succession in social ventures.