The impact of entrepreneurs’ military experience on small business exit: A conservation of resources perspective

Based on insights drawn from the conservation of resources (COR) theory, this paper examines the impact of military experience on small business exit decisions among entrepreneurs. We theorize that entrepreneurs with military backgrounds are more conservative regarding the potential resource loss associated with the entrepreneurial process than those without military experience, making them more likely to exit their business as a coping mechanism. We further theorize that these entrepreneurs are more likely to exit the business voluntarily rather than involuntarily, using business exit as a coping mechanism to preemptively manage risks before the actual losses occur. An empirical analysis of data from the 2007 Survey of Business Owners (SBO 2007) provided by the United States Census Bureau supports our hypotheses. This study contributes to our knowledge of how military service affects entrepreneurs’ decisions regarding business exit.