The Promise of Entrepreneurship as a Field of Research Essay Example

new goods, services, raw materials and organizing methods can be introduced and sold at greater than their cost of production. The focus has been on opportunities in product markets and factor markets.

Factor markets mean discovery of new materials. Within product market entrepreneurship, there are three categories of opportunities:

• The creation of new information, as occurs with the invention of new technologies.
• The exploitation of market inefficiencies.
• The reaction to shifts of alternative uses for resources.

The Discovery of Entrepreneurial

Opportunities Entrepreneurial opportunities are not always obvious to everyone all the time. An individual can earn profits only if he or she recognizes that the opportunity exists and has value.

There are two factors people will discover particular opportunities. Firstly are information corridors. An entrepreneur has to have prior and new information to exploit profitable opportunities. This information might be about user needs or specific aspects of the production function. The development of internet is a good example providing information needed. Second factor is cognitive properties. A successful entrepreneur is able to combine existing concepts and information into new ideas. They are willing to take risks and less likely to engage in counterfactual thinking.

The Decision to Exploit Entrepreneurial Opportunities The characteristics of opportunities themselves influence the willingness of people to exploit them, for example, its expected value. The decision is influenced by individual differences. The probability of opportunity exploitation depends on individual’s financial capital ability, transferability of information, prior entrepreneurial experience and differences in the willingness to bear with risk, individual optimism, and ambiguity. .

Conclusion

Entrepreneurship is an important and relevant field study. Therefore, entrepreneurship research is necessary to built a framework to help researchers recognize the relationship among the

multitude of necessary, factors that compose entrepreneurship and to advance the quality of empirical and theoretical work in the field.

• Source: The Academy of Management Review, Vol. 25, No. 1(Jan. , 2000), pp. 217-226