Opportunity Recognition

1448 Words 6 Pages
The key to creating a competitive advantage and growth of the companies today are innovations. In the face of fierce competition, it is realistic to see a lot of ideas for businesses that might be developed in relation to favourite activity, as well as with other companies. Indeed, a variety of different options can be found, clever use of which will help to build a good business. Nevertheless, it is critical to developing skills and the ability to keep a fresh look at their products and services, re-evaluate the strengths and weaknesses of the business, to experiment new ways to see new opportunities.
Stevenson et al (1985) stated that defining and choosing the appropriate opportunities for new venture are among essential skills of a successful
…show more content…
In addition, this paper will identify and explore the alternative aspects of opportunity recognition and development process.
Opportunity recognition is ideas, in which business owners determine prescriptive action, in order to establish new venture based on the opportunities that they identify. Bygrave and Hofer (1991) describe an entrepreneur as a person who is able to identify opportunity and develop a business to follow that idea. Indeed, Shane and Venkataraman (2000) claimed that the finding, analysing, and development of opportunities is a determining characteristic of the field of entrepreneurship.
A number of researchers have identified the various factors of opportunity recognition in the business field that have influence from individual to external environmental factors. (Park, 2005; Smith et al., 2009)
Although, Carter and Jones-Evans (2012) have described two main valuable levels of thinking about opportunity recognition: a systemic (environmental trends) and individual (personal characteristics) level, which are illustrated in figure 1 below. Figure 1: Full view of the opportunity recognition
…show more content…
Figure 2: Model of opportunity identification and development (Ardichvili, 2003)
The first term that has been discussed in the literature was ‘entrepreneurial alertness’ in defining the process of opportunity recognition. Whereas, it described as an ability to detect opportunities that were missed without searching (Kirzner, 1999).
Gaglio and Katz (2001) advocated that some entrepreneurs are more likely to find relationships and patterns in information that they have than others. Also, it is believed that greater alertness boosts the probability of an opportunity to be identified.
Although, the study of Buzenitz (1996) found that business owners are more observant to new opportunities and apply information in another way from managers, thus he suggested that entrepreneurial alertness requires further research.
The second factor to discuss is information asymmetry (prior knowledge), the knowledge related to what individuals already know from work experience, education and other means (Von Hippel,

Related Documents