Opportunity Recognition Process and Development
Factors Influencing Opportunity Recognition Process and Development
An opportunity is a favourable circumstance that arouses a necessity for additional products, services and businesses (Baron.,2006. p104). Opportunities cannot be separated from the responsible individuals. At the personal level, thinking about opportunities represents an understanding of the experienced reality of potential and existing entrepreneurs. At the personal level, possibilities recognition requires assessment of specific instances. Whether they represent opportunities or not, this creates a feeling of idea creation for the entrepreneurs(Baron.,2006. p104). Opportunity recognition, therefore, is the way by which entrepreneurs identify potential ways towards defining business based on the possibilities that they identify, and is characterised of many factors such as the influence of business and general environment. This essay explains the significance of individual characteristics and other factors that affect opportunity recognition and development.
Entrepreneurial opportunity recognition emphasises on a person’s acknowledgement and exploitation of unexploited venture opportunities. This may be viewed as an individual’s entrepreneurial strategy when identifying resources necessary in idea creation and innovation (Amage et.al., 2014. p221). Business people who determine and exploit potential opportunities in the business environment surrounding that competitor do not pay close attention to serving as a valuable competitive edge to them. Therefore, personal entrepreneurial opportunity recognition traits lead to a finer comprehension of new knowledge and technological challenges that are impactful in the generation of ideas(Amage et.al., 2014. p221). Two personal characteristics link to favorable opportunity recognition, which includes:
Self-efficacy involves belief’s about one’s potential to accomplish a particular task and convinces entrepreneurs when choosing to learn and setting goals for themselves (Comer and Ho., 2010. p653). It also has an effect on an individuals effort and persistence when grasping difficult tasks, therefore, assisting entrepreneurs to view threats as opportunities other than challenges. Self-efficacy is usually classified into three categories; magnitude, strength, and generality. These involve task difficulty levels of an individual, beliefs that he or she can achieve the goal regarding its significance whether strong or weak and the extent to which the projection is generalized across all situations(Comer and Ho., 2010. p653). The sense of an entrepreneurial abilities and capabilities influences his perception, motivation, and performance. Therefore, this feature becomes significant in the opportunity recognition by an entrepreneur.