Abstract
This paper builds on opportunity-based conceptualisations of entrepreneurship that focus on the identification and exploitation of opportunities. The study investigates the importance of factors when evaluating opportunities andidentifies distinct clusters of preferences for differing opportunities. Based on a conjoint analysis where importances and part worth utilities were calculated when assessing an entrepreneurial opportunity, significant differences appear in the importances associated with the business sector, capital intensity, technology maturity, market potential and return on investment potential. Moreover clustering is dependent on gender, academic background and principal work experience of respondents. A holistic conclusion of this study confirms not only that both opportunity dimensions and demographic factors are important, but that identifying levels of differences and differences in the degree of importances with unique constellations therein, is fundamental in understanding opportunity evaluation. The study contributes to the clustering of different types of opportunities to ensure the effective targeting of policies and services by government. Empirical evidence is mounting which demonstrates that there are more entrepreneurial opportunities in developing countries and that the higher number of entrepreneurial opportunities and demand for entrepreneurship in developing countries is indeed matched by higher rates of opportunity-driven entrepreneurs entering the market.
Highlights
Recent research finds that the matching of entrepreneurial talent with productive technologies and opportunities for growth is the essence for driv ing economic development (Naude, 2010)
For businesses based in Africa, the challenge to participate in the global economy of the 21st century will be to compete as world-class businesses where the focus is on high-value added human capital based on creativity and opportunity recognition leading to high-growth firms (Goedhuys & Sleuwaegen, 2010; Luiz, 2006)
By employing conjoint analysis, which requires respondents to make a series of judgments based on profiles from which their captured decision processes can be decomposed into its underlying structure (Saayman, Saayman & Slabbert, 2011; Shepherd & Zacharakis, 1997), we are able to empirically determine which criteria are significantly used in the decisions on an entrepreneurial task; the objectives of this article are:
Summary
Recent research finds that the matching of entrepreneurial talent with productive technologies and opportunities for growth is the essence for driv ing economic development (Naude, 2010). In emerging economies where growth is often the primary goal of organisations, opportunity recognition and innovation in small and medium enterprises (SMEs) can be critical for firm profitability and survival (Antoncic & Hisrich, 2001; Goosen, De Coning & Smit, 2002). The growth and development of the SMME business sector, has been identified b y many stakeholders as being of utmost importance in an effort to create employment and address poverty (Department of Trade & Industry, 2006). An increasing pool of entrepreneurs is assumed to be linked to these beneficial outcomes. These outcomes are often shaped by the ability of entrepreneurs to recognise and evaluate business opportunities (Westhead, Ucbasaran & Wright, 2009)
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