ARTICLE REVIEW

TITLE: EXPLORING ENTREPRENEURS’ EXIT

STRATEGIES IN INDONESIAN SMALL AND MEDIUM-
SIZED ENTREPRISES

PRINCIPLES OF ENTREPRENEURSHIP (ENT530)

FACULTY & PROGRAMME : FACULTY OF HOTEL AND TOURISM

MANAGEMENT & BACHELOR OF SCIENCE
(HONS.) FOODSERVICE MANAGEMENT
SEMESTER :2
NAME : NURUL ‘ALIYA BINTI GHAZALI
GROUP : HM2422A
ACKNOWLEDGEMENTS

The achievement and ultimate result of this task required a ton of direction and help from
numerous individuals and me amazingly lucky to have this up and down the finishing of our task
work. Whatever we have done is just because of such direction and help and we would not
neglect to say thanks to them. I regard and express gratitude toward Ms. Ainunnazlee binti Mohd
Ali for allowing me a chance to accomplish this task work and giving all of us backing and
direction which made me complete the task on schedule, I very appreciative of her for giving
such a pleasant help and direction. We are truly grateful in light of the fact that we figured out
how to finish this task inside the time given by Ms. Ain. My completion of this project could not
have been accomplished without the support of my classmates, friends from other universities.
Also my lovely family. Thanks to my parents as well, Mr. Ghazali b Nordin and Mrs. Jazilah bt
Mansor To wrap things up, we might want to offer our thanks to our companions and
respondents for help and eagerness to invest some energy with us.

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 TABLE OF CONTENT
PAGE
TITLE PAGE i
ANKNOWLEDGEMENT ii
TABLE OF CONTENT iii

1. INTRODUCTION 1
2. FINDING AND DISCUSSION 1-4
3. CONCLUSION 5
4. REFERENCES 5
5. APPENDIX v-vi

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ARTICLE REVIEW

Rahyuda, Agoes Ganesha, Indrawati, Ayu Desi, Candraningrat, Ica Rika, Honor Satrya, I. Gusti
Bagus (2017) Exploring Entrepreneurs’ Exit Strategies In Indonesian Small And Medium-Sized
Entreprises, International Journal of Entrepreneurship, 21 (2) 59-73.

1.0 INTRODUCTION
Small and medium-sized enterprises (SMEs) sector in Indonesia has been in a critical phase
for the last five years. Yet, very little attention has been paid to the different methods
Indonesian entrepreneurs use for exiting their company or what factors contribute to their
choice of exit route, although it can be argued that designing an exit strategy would help not
only the entrepreneur, but also the firm and national economies .The research to date on
entrepreneurial exit has found many factors that contribute to the selection of exit strategies,
such as education level, work experience, understanding market experience, desire to pursue
a different interest, family reason, and emotional commitment to the firm. Moreover, it is
important to explore entrepreneurial exit concept in a new context, where there is a chance of
finding a new exit strategy that is not only useful for the entrepreneurs themselves but also
for extending our understanding of exit strategy in the literature.

2.0 FINDING ANG DISCUSSION

2.1 PURPOSE OF THE ARTICLE
The entrepreneurial exit strategy is a critical component in the entrepreneurial
process, where a well-prepared strategy helps entrepreneurs to reduce the potential
loss of their current business, prepare them to face the post-exit era, and improve the
chance of re-entering business after quitting.

2.2 NEW IDEAS AND INFORMATION

As indicated in the article there are some new ideas or strategies for new
entrepreneurship. Firstly resignation three business visionaries demonstrated that they
needed to acknowledge the unfortunate yet inescapable condition that pushes them to
surrender and leave the present business. We called it "abdication system". This
procedure can be in a casual (i.e., expressing verbally in a data condition) or formal

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 (i.e., writing a statement to the business partner) structure. The choice of this
strategies is inspired through three interconnected factors: (1) perceived unethical
behaviors, (2) own background, and (3) conflict.
The second exit strategy is called “asset sales”. Data analysis proposed that there
were at any rate three mechanisms through which the business people decided to sell
their benefit as their exit way. The first mechanism was about the interaction between
the business’ financial conditions, entrepreneurs’ intention to switch business, and the
market condition. The second mechanism was the equivalent of the mechanism that
persuaded entrepreneurs to just leave their business, which is the connection between
saw unscrupulous practices, the struggle that was raised due to this untrustworthy
discernment, and exit strategy. The last mechanism identified with individual
abilities, for example, the capacity to adjust with the business changes, the theoretical
information on overseeing and arranging, and inventiveness, impacted entrepreneurs
to end their business through explicit leave way (i.e., asset sales).
Selling the whole business, or ‘business sales’, was the third exit strategies there
were three mechanisms that could explain why the entrepreneurs sold their business.
The first mechanism featured the job of entrepreneurs' goal to switch business in
interceding the connection between the proprietor foundation or individual capacities
and exit through business deals. The second mechanism proposed that the connection
between the apparent help from business visionaries' escort and economic situation
(e.g., speculator who is eager to purchase the business) was one of the key drivers in
demotivating business people's soul to maintain the business. Last mechanism
included one factor that clearly became one key driver to push the business
visionaries to the leave entryway from various perspectives (e.g., abdication, resource
deals, and business deals).

2.3 IMPORTANT TO PUBLISH THESE IDEAS

At last, "publishing ideas," is significant on the grounds that we as a whole profit by
participation. What's more, the bigger the coordinating gathering, the better.
Distribution lets the coordinating gathering extend to incorporate the entire world and

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 individuals who will go to your field later on. And these ideas are important to attract
more people to making small and medium sized enterprises as their business choice.

2.4 METHODS AUTHORS TO REACH CONCLUSIONS

There are several methods and that the authors use to reach the conclusions. One of
them is research approach and sample. The point of our investigation is to improve
innovative procedure writing by responding to the exploration question of how
Indonesian business visionaries clarify their encounters of stopping from current
business, and the inspiration or foundation behind this leave dynamic. We decided to
contemplate business people in Indonesia, where the turnover pace of business people
(i.e., business visionaries who quit the business) is high yet little proof can be found
about what leave methodology that Indonesian business visionaries really use to leave
the business. Second method is data collection and interview protocol , four
interviewers (i.e., all four authors) engaged in the data collection and asked an initial
question. This approach helped participants cite concrete and specific situations that
would help authors understand the motivation or background behind their exit, while
at the same time exploring their chosen exit strategy. The last but not least is data
analysis The information were analyzed by investigating subjects that spoke to the
picked leave system and the variables that impacted the determination of that
particular leave methodology. As to decrease and change of the crude meeting
transcripts into an analyzable structure, the meeting transcripts were investigated a
few times and afterward a count sheet was adjusted to condense the occasions a word,
expression, or articulation was referenced in each meeting. As far as legitimacy, we
utilized three subjective legitimacy ways to deal with guarantee the information
legitimacy: information triangulation; To guarantee the dependability of the
subjective information, the questioner must report the meeting method as detail as
could be expected under the circumstances.

2.5 RESEARCH METHODOLOGY

The author's sough to ensure a diverse sample to increase the validity of interview
data. They contacted the Department of Industry and Commerce of the Republic of

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 Indonesia to obtain the data of SMEs and entrepreneurs who left their business
recently. After that all four authors engaged in the data collection. And all authors
took place in dedicated and quite rooms. All authors do the interview and collect the
data. There did three sub-stages to answer their research question. The first sub-stage
was coding, where we tried to isolate those words, phrases, and statements that were
important for answering our research question. A while later, in the subsequent sub-
stage, we arranged those words or expressions that convey an equivalent significance
under one mark or classification. The last sub-stage made them investigate whether
there was some relationship found between every classification to comprehend the
general picture.

2.6 BASIC RESULTS OR FINDINGS

The basic results or findings from the research were investigation of the enterprising
way out methodologies for Indonesian business people who work in SMEs in
Indonesia uncovered that the business visionaries in Indonesia will in general leave
their business through four unmistakable leave ways: abdication, resource deals,
business deals, and progression.

2.7 THE STRENGTHS AND WEAKNESSES OF THE ARTICLE

I think that entrepreneurial exit strategies where a well-prepared strategy helps

entrepreneurs to reduce the potential loss of their current business, prepare them to face
the post-exit era, and improve the chance of re-entering business after quitting. I agreed
with the authors on how strategies make.

The weakness in this article does not have the exit strategies about management buyout.
If these articles give some more strategies to build a business whose legacy
entrepreneurial want to see continued long after entrepreneurial gone. There may want
to consider turning to their employees.

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3.0 CONCLUSION

Have presented realistic research that exploring entrepreneurs’ exit strategies in Indonesian
small and medium-sized enterprises. The links with employees and entrepreneur's an
important role in the satisfaction to reduce the potential loss of their current business,
prepare them to face the post-exit era. The article contains supporting information as the
finding shows that those factors or drivers that motivate the entrepreneurs to leave the
business.

4.0 REFERENCES

Rahyuda, A., Bagus, G., & Satrya, H. (2017). Exploring Entrepreneurs’ Exit Strategies In
Indonesian Small And Medium-Sized Entreprises. International Journal Of
Entrepreneurship, 21(2).

Azura Zaki. (2012, June 3). My article review. https://www.slideshare.net/amethyst212/my-

article-review

Landau, C. (2019, April 3). Planning Your Exit Strategy for Your Small Business or Startup -.
Retrieved from Bplans Blog website: https://articles.bplans.com/types-of-exit-strategies/

‌Thomas Mon. (2014, June 13). Acknowledgement For Assignment.

https://www.slideshare.net/ThomasMon94/acknowledgement-for-assignment

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5.0 ‌APPENDIX

Figure 1 Exit Strategy ‘Resignation’ And Factors Associated To It

Figure 2 Exit Strategy ‘Asset Sales’ and Factors Associated to It

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Figure 3 Exit Strategy ‘Business Sales’ and Factors Associated to It

Figure 4 Exit Strategy ‘Succession’and Factors Associated to It

Figure 5 An Integrated Model Of Entrepreneur’s Exit Strategy

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