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How Entrepreneurs Evaluate and Discover Opportunities

Entrepreneurship, according to Drucker (2005) is the process that involves the evaluation, discovery and opportunities exploitation for purposes of introducing new services and products. It also involves techniques of consolidating, raw resources and markets through organization determinants that did not exist before. According to the entrepreneurship theory when there is no market balance, entrepreneurs realize this and turn on the income prospects for market stability (Kirzner, 2003)

Entrepreneurs do not make decisions in a space and time less vacuum but rather under certain conditions that make it possible to attain effective performance and also prohibit accomplishment of other decisions. According to Randall (2003) therefore, entrepreneurs can decide fully on how they are going to use their production factors. The main argument made by Randal (2003) is the fact that entrepreneurship creates room for more profits than might have existed without the same.

For example, whenever entrepreneurs take advantage of certain opportunities, economic environment goes through change and with it, new opportunities are developed. What this means is that entrepreneurship leads to creation of more opportunities. Randall (2003) arguments fail however because they don’t explain the reasons the perception of profit opportunities is influenced by such change. The perception of the researcher on the thesis means passive view and also contradicts choice existence.

According to Jack, Chihmao and Todd (2007) entrepreneurs go through 2 significant processes in discovering and evaluating opportunities. These include opportunities discovery and exploitation of the opportunities. Empirical proof has been offered through study that impact possibility of individuals when they gain access to information that augments possibility of an opportunity arising. These aspects include life involvement as well as the social extensiveness of the individuals.

For the entrepreneur, powerful social linkage relations are important because statistics have proved they attain knowledge as well as information from individuals they trusted and knew. It is argued weak bonds in social linkages have significant impact on the entrepreneur’s ability to evaluate and discover opportunities (Klein, 2008). For instance, entrepreneurial opportunities are associated with the number of weak bonds in social linkages. Fu0Lai Yu (2001) emphasizes weak bonds can be likened to informational channels that provide the entrepreneur access to different sources of understanding and information than is available from powerful bond linkage.

From literature, opportunities get evaluated and discovered by those entrepreneurs who are competent, privileged and alert to take action needed to exploit them. Researchers note that though there are opportunities that exist independently, they are not usually visible to everyone because people have varying level of access to such vital information related to opportunities. This might partly be because of certain information is complex and only professionals are able to understand it (Shaver & Scott, 2001). In most instances, knowledge related to opportunities does not require expertise but dependent individuals with prior position and knowledge in social linkages.

In conclusion, the creation n and discovery perspectives can be employed to come up with hypothetical intelligence on possible outcomes. Hypothesizing opportunities as created and existing corresponds with different process theories of innovation and creativity where the primary time of creative enlargement and openness re important. This research work attempted to explain what the term entrepreneurship means. For example, it is a process that is comprised of evaluation, discovery and opportunity exploitation. The paper also made the attempt to discuss how entrepreneurs discover and evaluate opportunities. For instance, they discover and evaluate opportunities through implementation of the timing factor. Timing is without question essential in regard to investment accessibility and the growth of an organization.

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