Abstract
Given the growth and role of entrepreneurship today, it is becoming increasinglyimportant to understand how new entrepreneurial opportunities get developed. Discussions of the emergence of new entrepreneurial opportunities often include “eureka” moments, but our understanding of how new opportunities get brought forward is limited. We attribute the difference to a loosely defined quality that Kirzner called “entrepreneurial alertness”. Other market actors do not have the responsibility to create innovative market opportunities although they do have an obligation to consider such opportunities once they are available in the marketplace. Consequently, understanding the opportunity identification processrepresents one of the core intellectual questions for the domain of entrepreneurship. So the question of this paper is how are market environments represented and interpreted in the mind of the entrepreneur such that opportunity identification occurs? and what factors impress on it? To achieve this goal we distribute questionnaires between 115 M.A. students from Economics and Management college of University of Sistan & Baluchestan for the years2012 and 2013. Analysis was done by correlation test. Results showed that there is a significant relationship between market disequilibrium, accuracy vs. timeliness, schema complexity, counterfactual thinking, frame-breaking and sensitivity to profit potential and student’s entrepreneurial alertness; but the relationship between ignorance of new resource and excessive optimism or pessimism about resource and student’s entrepreneurial alertness was not significant.
Highlights
Entrepreneurship research is dominated by the fundamental questions of why it is that only some people see new business opportunities and only some people take actions to exploit the opportunities they do see (Shane and Venkataraman, 2000; Venkataraman, 1997)
What would an alertness schema contain and how would it work if it were to lead to a more accurate or superior assessment of a market situation? Kirzner (1979, 1985) posits that the alert individual is especially sensitive to signals of market disequilibrium, which can occur at the macroeconomic and microeconomic levels
Hypothesis 1 predicts that recognizing events of disequilibrium is significantly related to student’s entrepreneurial alertness
Summary
Entrepreneurship research is dominated by the fundamental questions of why it is that only some people see new business opportunities and only some people take actions to exploit the opportunities they do see (Shane and Venkataraman, 2000; Venkataraman, 1997). Much recent research has been devoted to better understand the diverse range of opportunity types and the corresponding entrepreneurial actions (e.g., Eckhardt and Shane, 2003; Sarasvathy et al, 2005). These are ex post distinctions that only arise once the entrepreneur has already perceived or enacted the initial market need or underutilized resources, recognized a fit between market need and underemployed resources, and created a new fit (Ardichvili et al, 2003). The key question of this paper is how market place represents and interprets in the mind of entrepreneur and what factors impress on it?
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