How Entrepreneurs Identify New Business Opportunities Essay

1372 Words 6 Pages
Dictionary.com defines an entrepreneur as “a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.”(Dictionary.com) Entrepreneurs are people who see opportunities in everyday situations. Entrepreneurs discover opportunities in areas others do not. Entrepreneurs additionally envision the possibilities the future brings that others do not recognize. Similarly, Dictionary.com did a good job in defining what an entrepreneur is. Again, dictionary.com describes an entrepreneur as “a person who organizes and manages “any” enterprise, especially a business, usually with considerable Initiative and risk.” (Dictionary.com). An entrepreneur recognizes “any” need, and satiates it. …show more content…
Thus risk is perceived as a significant factor of how entrepreneurs evaluate ideas and in making decisions of entrepreneurial opportunities. Nonetheless, risk is viewed differently in the eyes of an entrepreneur than others. We perceive risky situations less due to the way we view an opportunity. Some of these biases can be overconfidence, illusion of control and others. Additionally the way we perceive risk influences our evaluation of an opportunity. Thus, entrepreneurs, and I, make less thorough investigations of information. Such examples can be using a small sample size and letting it be a representation of a whole population upon the conclusions of the research. But it should be encouraged to have a more complete information instead having more biases such as belief in small numbers.

One bias I often experience in exploring entrepreneurial opportunities is overconfidence. In being overconfident, I base my certainty on the effortlessness by which I recollect reasons for self-confidence. This is called the availability heuristics. (Entrepreneurship Theory and Practice).Because of availability heuristics, I give greater credibility to certain information and misjudge the possibility of something similar to happen in the future. Moreover, availability heuristics led me to many problems. It leads me to believe that certain events are much more likely to happen or typical than they really are. I tend

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