Enablers and Barriers to Exit of Regional Small Business Owners in Australia

Abstract

Successful exit enables businesses to continue with minimal disruption and provides owners with financial returns on their investments. Notwithstanding considerable scholarship in economic geography on rural and regional economic fortunes, experiences of small business exit are seldom explored. In response, this study analyses the barriers and enablers of voluntary exit by regional small business owners. A qualitative research approach with deductive thematic analysis is used to assess enablers and barriers to exit for regional small businesses, drawing upon small business literature, but cognisant of economic geographic factors. Twenty small business owners in Armidale and three business brokers were interviewed. Findings indicate that firm-level factors such as exit planning, market expansion and good performance can help overcome location barriers to exit. The regional setting makes stewardship and cessation exit strategies more feasible than financial reward strategies. Barriers to exit include: the small pool of buyers, small market, dependence on few customers, and inadequate infrastructure. Lack of exit planning and tenancy disputes also hinder exit.