Entrepreneurship and the Opportunity-Knowledge Nexus

Abstract

This paper is premised on the underlying notion that knowledge is crucial to the opportunity recognition and development process. In particular we draw on the insights of Atkinson and Stiglitz (1969) on the localised nature of knowledge accumulation. We then extend this analysis to portray and define the solution space and examine the implications of entrepreneurial knowledge in the recognition and development of opportunity within this space. Distinguishing between two forms of entrepreneurial knowledge, namely context dependent idiosyncratic knowledge or tacit knowledge, and codified knowledge, the primary aim of this article is to propose a knowledge-based model of opportunity within a bounded solution space. Our discussion of this model includes elaboration on how the composition of entrepreneurial knowledge predicts major path differences for the expansion and development of opportunities.