Analyses the link between management buyouts (MBOs) and the entrepreneurial process. Argues that, at least initially, a management‐based explanation of entrepreneurial activity is the most appropriate for MBOs. Assesses a number of performance variables to determine the impact of the MBOs. Finds that there is a general improvement in performance suggesting that MBOs provide management with entrepreneurial opportunities which had previously been unavailable to them. Concludes that there is evidence to support the MBO‐entrepreneur link and that MBOs do encourage entrepreneurial activity.
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