Social entrepreneurs' opportunity recognition in response to wicked problems: the role of identity

Abstract

Wicked problems such as persistent poverty, climate change and biodiversity loss are some of the greatest challenges that humankind faces, because they span national boundaries, are prone to contestation and are highly complex. Social entrepreneurs can address these problems and fuel change, but to do so, they need to recognize entrepreneurial opportunities. The relationship between the recognition of a problem and the recognition of a related opportunity has been conceptualised as a linear one, which does not do justice to the complexity of the process. Therefore, we investigate the process whereby problem recognition is transformed into opportunity recognition. We use an identity-based perspective to uncover how social entrepreneurs recognize opportunities in relation to wicked problems. We use an abductive, qualitative approach, and analyse interviews with 26 social entrepreneurs. Our findings show that the opportunity recognition process for wicked problems consists of four stages: (1) the recognition of a wicked problem, (2) the reinforcement of a prosocial identity, (3) the translation of a wicked to a specific problem, and, (4) the connection of the specific problem to an identity. We contribute to the entrepreneurship literature by unpacking the opportunity recognition process of social entrepreneurs in relation to wicked problems.