New Firm Performance and the Replacement of Founder-CEO

Founder turnover at high-tech and VC-backed startups is perceived, often by outside investors, as a rational response to an anticipated mismatch between entrepreneurs’ ability and the future of the business. But does the same logic apply to the vast majority of startups in the population that do not usually experience rapid transformational growth and have more autonomy to make their own founder-replacement decisions? To indulge our curiosities for the control dynamics of the typical small business and the forces governing business transfers, we investigate the causes and consequences of founder turnover among over 4,000 Danish startups.

This short video provides you with a teaser of this study and some intriguing findings that stand in sharp contrast to those drawn from the highly selected high-tech and VC-backed startups. Follow this link to see the video.