Understanding Failure and Exit in Social Entrepreneurship: a Protocol Analysis of Coping Strategies

Entrepreneurial failure and exit are critical components of the venturing process of social entrepreneurs. Failing and abandoning the pursuit of opportunities that seek to create social good has consequences for a wide array of stakeholders, whose well-being depends on the value that the social entrepreneur provides. Given the nature of social entrepreneurship, this type of entrepreneur may present essential dissimilarities with their traditional counterpart in the way they cope with potential failure and exit. Using Verbal Protocol Analysis, the study reveals that decisions of social and traditional entrepreneurs vary equally depending on the nature of the business they are managing, not on the kind of entrepreneur they represent. While individual differences appear to matter more in the recognition of social opportunities, the nature of venture seems to be responsible for shaping individual responses to potential failure and exit