An Investigation on the Cognitive Process Leading to Social Entrepreneurial Opportunity Recognition

Abstract

Social entrepreneurial opportunity recognition is a critical step in social entrepreneurship. However, we know little about the cognitive process leading to social entrepreneurial opportunity recognition. This conceptual work examines direct experiences of social problems as a predictor of social entrepreneurial opportunity recognition. Building on construal level theory, we proposed that direct experiences of social problems enable individuals to form a more concrete representation of social problems, which in turn activates social entrepreneurial opportunity recognition. We further propose that business model schema richness moderates this indirect relationship. We contribute to the literature on social entrepreneurship and opportunity recognition in several ways.