Opportunity Recognition in Entrepreneurship

Question: Discuss about the Opportunity Recognition in Entrepreneurship. Answer: Introduction The entrepreneurial individuals are success driven, and therefore, more interested in having engagement in the appropriate type of opportunity recognition for ensuring that they are successful. There is the existence of entrepreneurial scopes when individuals are having a special understanding of the values relating to scopes that are not common. When there is the requirement towards the identification of opportunity recognition, two factors are contributing to opportunity recognition that is information as well as knowledge. Novice entrepreneurs are having less amount of opportunity recognition in comparison to experienced entrepreneurs since, the latter is having the expectation of possessing higher knowledge. There is the role of alertness in opportunity recognition as a distinctive preparedness for recognizing scopes when they are available. Opportunity Recognition in Entrepreneurship Style Kashif Saleem is the founder and CEO of Perth-based Saleem Technologies. He is also the inventor of Trackem. Trackem does the tracking of the construction materials in mining, oil and gas projects as well as other large-scale engineering and works projects. It does the using of GPS technology. At one point of time, when he was working as a project manager for Construction Company there occurred a problem with beams that had gone missing. There is the requirement of having clarity to investors or co-founders. According to Kashif, he believes in the fact that customers do not know what they want and there is the requirement for adapting. There is a clarity in respect of investors or co-founders. He also feels that there is the need for finding out the target market and there is the need for evolving with the latest technological aspect. Self-efficacy is explained as the belief of an individual as well as desire for achieving in an effective way specific targets as well as tasks. The attitude of an individual will be reflecting his or her desire for perceiving probable scopes. When there is the requirement towards the identification of opportunity recognition, two factors are contributing to opportunity recognition that is information as well as knowledge (Ward 2004). Novice entrepreneurs are having less amount of opportunity recognition in comparison to experienced entrepreneurs since, the latter is having the expectation of possessing higher knowledge (Shane 2000). There is the role of alertness in opportunity recognition as a distinctive preparedness for recognizing scopes when they are available. In this context, the factors that need to be focused on are considered to be prior knowledge, specific search strategies, social networks as well as other recognition that does the determination of the level of alertness of every individual (Vaghely 2010). The major three issues that are creating individual differences for perceiving the changing aspects are shifts in clarity, richness relating to content, as well as degree of focus regarding major traits associated with the content domain (Ronstadt 2000). One more issue that is affecting the process of opportunity recognition is associated with experience. The experienced entrepreneurs will be showing higher capability for recognizing scopes in comparison to the novice entrepreneurs, because of repeated circumstances that will be increasing the knowledge base regarding same kind of scopes. The entre preneurs are processing their thoughts through two methods, viz. Systematic analysis of the facts as well as by applying the heuristics. The various cognitive biases that are having a predominance within the entrepreneurs take into consideration the aspect of being overconfident, illusion of control, as well as representations (Ramos-Rodrguez 2010). The opportunity recognition is a constant method that provides assistance relating to the pre-start-up, start-up, survival as well as development relating to a venture and therefore, it is not considered being a one-time activity in the initiation of creating a venture. On the other hand, the type of scope identified as well as used might vary along the process. Self-efficacy is considered significant in respect of entrepreneurs for not only deciding towards choosing entrepreneurship but also in their steadiness for progressing in the creation of ventures. This is referring to the experience base as well as knowledge that will be preceding the creative journey. Concerning the aspect of opportunity recognition, preparation is referring to the background as well as experience that is brought by an entrepreneur to the process (Gaglio 2001). In this phase, references are often made relating to particular problems that an individual is making an effort for solving. The sub-conscious scenario regarding incubation is highlighting the significance relating to intuition in respect of the creative method. Also, incubation is referring to the aspect of opportunity recognition method where an entrepreneur does the contemplation of an idea or a particular problem. On the other hand, it will not be referring to the conscious solving of problems or methodical evaluation (Fisher 2012). As incubation is referring to an ongoing process, insight is referring to a moment relating with recognition. In respect of opportunity recognition, three varied kinds of insights are being envisioned that might take place. Primarily, it is associated with experiencing the spontaneous or momentary identification of a business scope. Secondly, it is the situation when an individual is having the idea that will be solving the problem he/she has been taking into consideration. Thirdly, there is the representation of the moment when there occurs the availability of an idea with the help of social network (Fiet 2008). It has been found out that entrepreneurs having broader network of social contacts will be identifying more ideas as well as recognizing increasing scopes in comparison to entrepreneurs having lesser contacts. In respect of entrepreneurs, as a result, the insight phase might comprise of three varied kinds of insights. This is the phase relating to the process when analysis of insights occurs in respect of their viability. This is also considered to be the stage of verification as because it is involving research into whether an aspect is operational, also whether the entrepreneur is possessing the skills required for achieving it. In regard to the aspect of launching new ventures, evaluation is having the involvement of feasibility evaluation (Dew 2009). In this phase of the method, ideas are being tested through different types of investigation like preliminary testing of the market, analysing the financial viability as well as feedbacks from business associates. This is considered being the phase that will be testing the commitment as well as willingness of an entrepreneur for committing to the launch of a business (Corbett 2007). In this stage, the processes generally cease to be basically an individual as well as personal method and the scope is being subjected to the consideration by others. The entrepreneur is having the requirement of feedback from the knowledge experts as well as the marketplace concerning the aspect of business viability. This is the stage where there occurs the actualization of creative insights. In regard to the entrepreneurial business scope, elaboration will be representing the business planning method. In this stage, the workings out of various details are done (Chandler 2011). Kashif also feels that to become successful, there is the need for getting passionate, having faith, having an effective business model as well as being the best. Moreover, he feels its always about the execution and not only about the idea. Conclusion Opportunity recognition is the main aspect regarding entrepreneurship. Creativity is considered being a significant aspect relating to entrepreneurship. The potential entrepreneurs are required conversing more with their closed network groups in respect of recognizing the scopes. Self-efficacy as well as factors of motivation will not be influencing the aspect of opportunity recognition in any stage relating to entrepreneurs. The various cognitive biases that are having a predominance within the entrepreneurs take into consideration the aspect of being overconfident, illusion of control, as well as representations. The opportunity recognition is a constant method that provides assistance relating to the pre-start-up, start-up, survival as well as development relating to a venture and therefore, it is not considered being a one-time activity in the initiation of creating a venture. On the other hand, the type of scope identified as well as used might vary along the process. Self-effic acy is considered significant in respect of entrepreneurs for not only deciding towards choosing entrepreneurship but also in their steadiness for progressing in the creation of ventures. Reference Chandler, Gaylen N., Dawn R. DeTienne, Alexander McKelvie, and Troy V. Mumford. "Causation and effectuation processes: A validation study."Journal of business venturing26, no. 3 (2011): 375-390. Corbett, Andrew C. "Learning asymmetries and the discovery of entrepreneurial opportunities."Journal of Business Venturing22, no. 1 (2007): 97-118. Dew, Nicholas. "Serendipity in entrepreneurship."Organization Studies30, no. 7 (2009): 735-753. Fiet, James O., and Pankaj C. Patel. "Entrepreneurial discovery as constrained, sytematic search."Small Business Economics30, no. 3 (2008): 215-229. Fisher, Greg. "Effectuation, causation, and bricolage: a behavioral comparison of emerging theories in entrepreneurship research."Entrepreneurship theory and practice36, no. 5 (2012): 1019-1051. Gaglio, Connie Marie, and Jerome A. Katz. "The psychological basis of opportunity identification: Entrepreneurial alertness."Small business economics16, no. 2 (2001): 95-111. Ramos-Rodrguez, Antonio-Rafael, Jos-Aurelio Medina-Garrido, Jos-Daniel Lorenzo-Gmez, and Jos Ruiz-Navarro. "What you know or who you know? The role of intellectual and social capital in opportunity recognition."International Small Business Journal28, no. 6 (2010): 566-582. Ronstadt, Robert. "The corridor principle."Journal of Business Venturing3, no. 1 (1988): 31-40. Shane, Scott, and Nicos Nicolaou. "Creative personality, opportunity recognition and the tendency to start businesses: A study of their genetic predispositions."Journal of Business Venturing30, no. 3 (2015): 407-419. Shane, Scott. "Prior knowledge and the discovery of entrepreneurial opportunities."Organization science11, no. 4 (2000): 448-469. Vaghely, Ivan P., and Pierre-Andr Julien. "Are opportunities recognized or constructed?: An information perspective on entrepreneurial opportunity identification."Journal of Business Venturing25, no. 1 (2010): 73-86. Ward, Thomas B. "Cognition, creativity, and entrepreneurship."Journal of business venturing19, no. 2 (2004): 173-188.