Submitted Successfully!
To reward your contribution, here is a gift for you: A free trial for our video production service.
Thank you for your contribution! You can also upload a video entry or images related to this topic.
Version Summary Created by Modification Content Size Created at Operation
1
Kathryn Cormican
 + 2633 word(s) 2633 2021-12-23 13:51:50 |
2 format correct
Conner Chen
 Meta information modification 2633 2022-01-07 01:50:52 |

Video Upload Options

We provide professional Video Production Services to translate complex research into visually appealing presentations. Would you like to try it?
No, upload directly Yes

Confirm

Are you sure to Delete?
Yes No
Cite
If you have any further questions, please contact Encyclopedia Editorial Office.
Cormican, K. Opportunity Assessment: Considerations for Entrepreneurs. Encyclopedia. Available online: https://encyclopedia.pub/entry/17812 (accessed on 22 December 2024).
Cormican K. Opportunity Assessment: Considerations for Entrepreneurs. Encyclopedia. Available at: https://encyclopedia.pub/entry/17812. Accessed December 22, 2024.
Cormican, Kathryn. "Opportunity Assessment: Considerations for Entrepreneurs" Encyclopedia, https://encyclopedia.pub/entry/17812 (accessed December 22, 2024).
Cormican, K. (2022, January 06). Opportunity Assessment: Considerations for Entrepreneurs. In Encyclopedia. https://encyclopedia.pub/entry/17812
Cormican, Kathryn. "Opportunity Assessment: Considerations for Entrepreneurs." Encyclopedia. Web. 06 January, 2022.
Opportunity Assessment: Considerations for Entrepreneurs
Edit
This entry is adapted from the peer-reviewed paper 10.3390/su14010049

Defining entrepreneurship can be problematic and maybe sometimes misleading. For example, the assertion that entrepreneurship is concerned with the discovery and exploitation of profitable opportunities does not appear to take account of the notion of risk, which because of uncertainty is always inherent in new market decisions. This is borne out by reality, where evidence indicates that a large percentage of start-ups (often thought to be between 50% and 70%) fail within the first 5 years. This fact, coupled with research suggesting that idea generation, by itself, is not an issue, implies that the key challenge lies in the effective evaluation of those ideas. This means that entrepreneurs must be honest with themselves and objectively assess whether they have identified a viable business opportunity, as distinct from a good idea with limited or no commercial prospects. This is particularly important for technology entrepreneurs as the lead time to market is often long and the risk of failure is high. Central therefore to the resulting opportunity confidence leading to adoption or rejection of an idea is an iterative process of evaluation, which in the first instance is critical in nascent entrepreneurial processes. Three key constructs—opportunity costs, market assessment and financial analysis—are of singular importance in the evaluation process and are discussed in more detail below. 

opportunity cost market assessment financial analysis nascent entrepreneurship

1. Opportunity Cost

Opportunity costs are considered to be the foregone benefit of the next available alternative as a consequence of making a choice [1]. In general, this refers to the cost of an alternative that must be relinquished in order to pursue a certain action and includes items such as income and perceived security from alternative employment, personal liquidity changes, and alternative career development opportunities. That is not to say that the opportunity cost of new business venturing represents a dichotomous choice between entrepreneurship and non-entrepreneurial activity.
For example, many individuals begin the process of new venture creation while maintaining regular employment [2]. This can have the effect of lowering opportunity costs because the part-time or hybrid entrepreneur does not forgo an income, and at the same time may increase human capital through continued learning [3][4]. Choice-making is also necessary in the context of preference for specific entrepreneurial ventures, and so for existing or experienced entrepreneurs, selecting from among several viable ventures also creates an opportunity cost when evaluating those opportunities [5]. Additionally, opportunity cost-based decisions form part of the early-stage processes because entrepreneurs are resource-constrained [6][7][8] and therefore not only have to choose between alternative projects but also have to decide between applying resources to further opportunity evaluation or opportunity exploitation [9][10].
Theorists suggest that individuals engage in a form of cost-benefit analysis in which current opportunities and their returns are compared to prospects associated with alternative opportunities [11][12][13][14]. Sometimes this evaluative exercise may be informal or unscientific [15], although the process tends to become more formal once the application of resources (other than the entrepreneur’s time) is factored into the equation. Often these costs are financial in nature. For example, Amit et al. [12] used the opportunity cost framework to study the transition to entrepreneurship from salaried or paid employment. They found that the individuals who started new ventures had lower income compared to those who chose to remain in paid employment, a finding mirrored in Cohen’s [16] classic work. A similar financial formulation of opportunity cost is evidenced in situations where entrepreneurs invest their personal funds or personally guarantee borrowings when starting a business [17][18] or where they incur unlimited liability resulting from the debt structure of the business [19].
However, opportunity cost in the context of entrepreneurial intention is a multi-dimensional construct. Cassar [1] explored indicators of household income as a proxy for the financial dimension along with influences such as the education level of the entrepreneur and their managerial experience—effectively introducing the notion of human capital as a dimension of opportunity cost. Defining human capital as “the extent to which an individual has invested in their knowledge and can subsequently apply such knowledge to tasks as required”, he goes on to assert that individuals with greater human capital levels incur greater opportunity costs when starting a business because they have better alternatives available to them. However, entrepreneurial activity can, in turn, increase human capital [20] which is of major significance given the assertion that individuals that possess it, on average, possess better judgment and evaluative skills [21] and are more likely to become entrepreneurs in the first instance [18]. This view is consistent with Shane and Venkataraman’s [17] seminal work which asserts that human capital in the form of learning, reduces the cost of exploiting an opportunity when the learning or experience is transferrable.
While studies commonly assess human capital using measures around education level, start-up experience and industry experience and combine it with specific factors such as ‘bank connections’ [22], a wider view is taken in some studies. For example, in one study the concept of ‘Pre-Venture Managerial Experience’ (PVME) is explored and found to be relevant in several aspects, namely; the decision to engage in entrepreneurial activity, the goals set for the new venture and the level of risk that is acceptable [23]. Other authors concur with PVME theory concluding that it drives overall expectations, scope, and direction [24][25][26][27][28]. This is because individuals who have extensive managerial experience typically enjoy high earnings and usually also have several career alternatives available to them. Since technology innovation start-ups are typically characterized by high potential returns, they are likely to be appealing especially to those with high pre-venture experience.
However, studies around the impact of opportunity cost and human capital are not exclusively concerned with the intention to engage in entrepreneurship, often resulting in disparate findings. Hormiga et al. [14] found an additional influence—the propensity to innovate, and Arora and Nandkumar [13] found that people with greater opportunity cost tended to operate to a different planning horizon and were more likely to ‘cash-out’ sooner. In the realm of experience and education, there is also a lack of unanimity. For example, while many support the proposition that entrepreneurs gain important insights from applicable prior experience [29][30][31][32][33][34] others do not. On the one hand, empirical studies have shown that experience is associated with greater task performance, including forecasting ability [35][36][37] but on the other hand, such claims are disputed by those who argue against the benefit of experience, due to the heterogeneity across tasks limiting transferability of knowledge [38][39][40], the lack of task repeatability [41][42] and cognitive biases that may inhibit learning [43][44][45][46].
Notwithstanding these debates, the literature reviewed for this study found only limited empirical research that directly investigates the influence that experience has on entrepreneurs’ new business expectations and judgments, with inconclusive findings. This alone provides a compelling reason for addressing this topic in the current work. In addressing it, various dimensions of the construct and their place in the literature are outlined in Table 1. These dimensions are tested in our fieldwork.
Table 1. Dimensions of opportunity cost.
Dimension Consideration Reference
Extent to which an entrepreneur has choices The cost incurred versus alternative choices, specific to the individual, where the lower the cost, the more likely to pursue entrepreneurship [17][47][1]
Full-time versus part-time Part-time or hybrid entrepreneurship can reduce financial uncertainty [2][3][48]
Level of human capital Individuals with greater human capital incur a greater opportunity cost [5][18][1]
Employment and education history Work experience and high education levels may promote successful entrepreneurship [20][18][3][49]
Liquidity and economic risk Entrepreneurs incur financial costs in terms of income foregone in financing the business and risk in guaranteeing debts and loans [1][8][19][50]

2. Market Assessment

In order to achieve even a modicum of success, entrepreneurs must determine if there is an identifiable market for the opportunity they wish to exploit through some process of market evaluation or assessment [6][51]. Intending entrepreneurs need to make decisions based on identified customer needs rather than unconfirmed assumptions [52][29][53] and this includes considering revenue and cost drivers as well as assessing potential competition [5]. In fact, competition is particularly pertinent where an entrepreneur is employing a first-mover strategy [54], and so while market-related decisions can be some of the most profound organizational decisions an entrepreneur will face, they can also be overwhelming for an aspiring entrepreneur [10].
Much of the research in the area of market assessment and quantitative work on target markets stems from the areas of economics and econometrics. The focus of this research has largely been on estimating strategies for the mode of market entry for new opportunities [55][56]. This becomes challenging and costly, particularly for firms with limited managerial capacity and other resource constraints [57]. Beginning by gathering information for assessment [9][6][58] a secondary but equally vital demand is to rally the resources required to enter their preferred market(s), set up their operations, advertise their presence, promote their products, and establish distribution channels, and compounding these demands is uncertainty—around customers preferences, product mix, and pricing and the marketing strategies [3]. As a process, evaluation often begins with an informal investigation of a potential market need, which may precipitate further, more formal reviews [15] which traditionally take the form of feasibility analysis, market research or market experimentation [9][53]. However, the dilemma for the entrepreneur is about where to stop the evaluation and begin to exploit the opportunity and enter the market to recoup such early resource spending [5][59].
In addressing this issue, Choi et al. [9] theorize that there exists a trade-off between the time needed to increase legitimacy and the requirement to act. Conceiving a concept described as an “ignorance threshold”, they posit that once an entrepreneur reaches a threshold of accumulated knowledge then they should move to the next stage of exploitation action. In turn, there are several factors that influence this. For example, serial entrepreneurs tend to identify more potential markets before moving on [60][61] and consistent with the human capital discussion in the previous section of this paper, individuals with prior industry experience may already have prior market knowledge [20][62]. Clearly, this may represent an advantage over entrepreneurs who have no such experience, although such consideration needs to be balanced against the common entrepreneurial cognitive biases such as overconfidence and excessive risk-taking propensity [63]. Equally, while expert entrepreneurs often apply both predictive and non-predictive logic in evaluating a market opportunity [60], there also exists the possibility that their experience may be irrelevant, thereby rendering it ineffective in arriving at the ignorance threshold.
Market evaluation is essentially about addressing a customer problem and building value around a defined need rather than creating a novel but perhaps unnecessary or superfluous idea [10]. This not only has the effect of improving decision-making but also improves credibility in the eyes of potential stakeholders and financiers. Specifically, in the context of nascent entrepreneurship, one of the most critical aspects of this process is in the assessment of competitive forces. Timing is crucial [9] because the longer that is spent on evaluation, the greater the chance given to competitors to assimilate information on the new venture and thus become better prepared to compete against it—a factor that becomes more critical as the opportunities are novel. In this light, the dimensions of the construct are shown in Table 2. These dimensions are used to guide the development of our data collection instrument.
Table 2. Dimensions of market evaluation.
Dimension Consideration Reference
Evaluation of an opportunity Begins with an informal market investigation, becoming more formal as the likelihood of exploitation increases [9][10][15][64][65]
The more defensible a market position, the more attractive the opportunity
Evaluation of market opportunities Identifying more potential markets to provide a choice of the market to pursue [60][10]
Evaluation of customer value Must be market-orientated to create superior customer value [52][65][66][67]
Evaluation of competition At a threshold, need to cease evaluation and action the exploitation in order to gain a first-mover advantage before the competition learns to compete [9][29][64]
Evaluation of exploitation decision Exploitation is more likely when the entrepreneur perceives more knowledge of customer demand for the opportunity [52][9][17]

3. Financial Analysis

People enter the entrepreneurial fray for a variety of reasons and financial considerations are of central import, whether they represent the primary motivation or not. Consistent with the opportunity cost arguments, Shane and Venkataraman [17] found that exploiting opportunities is more common when people have access to financial capital, and Shane [68] provides empirical evidence that in addition to radicalness and patent scope, the commercialization of inventions and innovations is heavily influenced by the magnitude of their economic value. However, this is not a static concept, and so in considering financial analysis in the context of opportunity evaluation, this must take two forms—current state analysis and future state predictions. The former refers to the examination and review of accounting statements measuring what is actually happening in the new business and the latter to projections and predictions of sales and other indicators. In turn, this means that the frequency with which a firm prepares such statements determines the minimum interval for performing such evaluations [69]. The resulting conundrum results from the fact that the stability and consequently the ability to estimate such figures may be problematic in a fledgling firm, raising additional questions about whether to abandon further opportunity evaluation and instead exploit the business opportunity to drive a potential income stream and promote its own survival [9][29][64].
What is not the subject of debate, however, is the fact that undercapitalization and cash-flow problems are some of the main reasons for venture failure, especially in technology-oriented ventures [70][71]. Therefore, acquiring the confidence of potential investors is critical and can be achieved by reliable predictions about future firm performance and viability [69][6][71]. Research has shown that nascent entrepreneurs who devoted time to preparing financial projections were substantially more likely to attract investment [18] and not just from external sources [50][71]. However, uncertainty presents a challenge in the early stages of the process [69][18][71] and may lead to optimistic prediction error [72].
Despite these recognized difficulties, nearly all research dealing with the acquisition of financial capital concerning entrepreneurship concerns itself with the firm rather than the venture [73][71][72][74][75]. This means that such studies are based around legal constructions of the firm rather than the more general exploitable opportunity stage of venture creation and notwithstanding the fact that some studies have captured their samples at the time that firms were born, the literature provides an incomplete picture of the exploration phase in the entrepreneurial process, suggesting an imperative for including it in this and future research—the dimensions of which are summarized in Table 3. They are used to inform the development of our data collection instrument for our fieldwork.
Table 3. Dimensions of financial analysis.
Dimension Consideration Reference
Evaluation of current financial position and performance Financial statements are a communication tool for investors where the frequency of preparation reflects minimum evaluation interval [69][52][5][6][18]
Evaluation of an opportunity Focus is on opportunities with the ability to generate positive cash flow [17][5][30]
Evaluation of market opportunities Entrepreneurs only invest what they can afford to lose [52][60][7]
New business evaluation/financial projections Industry experience is associated with more accurate forecasts [20][8]
Importance of finance Financial resources are critical to early new venture development [69][6][18]
Importance of previous experience Higher levels of education and net worth associated with a greater likelihood of external funding [50][76]

4. Concluding Remarks

Prior work suggests that entrepreneurs have little difficulty generating a large number of ideas for potential businesses; however, their key challenge is in the effective evaluation of those ideas. We argue that the evaluation of opportunities is perhaps the most critical element in the early entrepreneurial process because it describes the entrepreneur’s assessment of whether his or her idea can generate the requisite returns for the resources available. This is particularly important for technology entrepreneurs as investments are often high, lead times from development to market are long and the risk of failure is high. The outcome of the evaluation process ultimately determines whether and how the opportunity will be exploited, and thus whether the new enterprise will succeed or fail. A synthesis of the literature reveals that the opportunity cost of a new business and how market and financial information influence the direction of a new business are particularly important to entrepreneurs.

References

  1. Cassar, G. Entrepreneur opportunity costs and intended venture growth. J. Bus. Ventur. 2006, 21, 610–632.
  2. Dyer, W.G. Toward a Theory of Entrepreneurial Careers. Entrep. Theory Pract. 1995, 19, 7–21.
  3. Folta, T.B.; O’Brien, J.P. Entry in the presence of dueling options. Strateg. Manag. J. 2004, 25, 121–138.
  4. Ravina-Ripoll, R.; Foncubierta-Rodríguez, M.-J.; Ahumada-Tello, E.; Tobar-Pesantez, L.B. Does Entrepreneurship Make You Happier? A Comparative Analysis between Entrepreneurs and Wage Earners. Sustainability 2021, 13, 9997.
  5. Dimov, D. Nascent Entrepreneurs and Venture Emergence: Opportunity Confidence, Human Capital, and Early Planning: Nascent Entrepreneurs and Venture Emergence. J. Manag. Stud. 2010, 47, 1123–1153.
  6. Schoonmaker, M.; Carayannis, E.; Rau, P. The role of marketing activities in the fuzzy front end of innovation: A study of the biotech industry. J. Technol. Transf. 2013, 38, 850–872.
  7. Haynie, J.M.; Shepherd, D.A.; McMullen, J.S. An Opportunity for Me? The Role of Resources in Opportunity Evaluation Decisions. J. Manag. Stud. 2009, 46, 337–361.
  8. Mazzarol, T.; Volery, T.; Doss, N.; Thein, V. Factors influencing small business start-ups: A comparison with previous research. Int. J. Entrep. Behav. Res. 1999, 5, 48–63.
  9. Choi, Y.R.; Lévesque, M.; Shepherd, D.A. When should entrepreneurs expedite or delay opportunity exploitation? J. Bus. Ventur. 2008, 23, 333–355.
  10. Canakoglu, E.; Erzurumlu, S.S.; Erzurumlu, Y.O. How Data-Driven Entrepreneur Analyzes Imperfect Information for Business Opportunity Evaluation. IEEE Trans. Eng. Manag. 2018, 65, 604–617.
  11. Amit, R.; MacCrimmon, K.R.; Zietsma, C.; Oesch, J.M. Does money matter? J. Bus. Ventur. 2001, 16, 119–143.
  12. Amit, R.; Muller, E.; Cockburn, I. Opportunity costs and entrepreneurial activity. J. Bus. Ventur. 1995, 10, 95–106.
  13. Arora, A.; Nandkumar, A. Cash-Out or Flame-Out! Opportunity Cost and Entrepreneurial Strategy: Theory, and Evidence from the Information Security Industry; National Bureau of Economic Research: Cambridge, MA, USA, 2009; p. w15532.
  14. Hormiga, E.; Hancock, C.; Valls-Pasola, J. The relationship between employee propensity to innovate and their decision to create a company. Manag. Decis. 2013, 51, 938–953.
  15. Ardichvili, A.; Cardozo, R.; Ray, S. A theory of entrepreneurial opportunity identification and development. J. Bus. Ventur. 2003, 18, 105–123.
  16. Cohen, W.M. Fifty years of empirical studies of innovative activity and performance. In Handbook of the Economics of Innovation; Elsevier: Amsterdam, The Netherlands, 2010; Volume 1, pp. 129–213. ISBN 978-0-444-51995-5.
  17. Shane, S.; Venkataraman, S. The Promise of Enterpreneurship as a Field of Research. Acad. Manag. Rev. 2000, 25, 217.
  18. Kim, P.; Keister, L. If I Were Rich? The Impact of Financial and Human Capital on Becoming a Nascent Entrepreneur. 2003. Available online: https://www.semanticscholar.org/paper/If-I-Were-Rich-The-Impact-of-Financial-and-Human-on-Kim-Keister/cd0e1c48ddddf0efbd459c12aa23a757c9992d8b (accessed on 15 November 2021).
  19. Cressy, R. Credit rationing or entrepreneurial risk aversion? An alternative explanation for the Evans and Jovanovic finding. Econ. Lett. 2000, 66, 235–240.
  20. Cassar, G. Industry and startup experience on entrepreneur forecast performance in new firms. J. Bus. Ventur. 2014, 29, 137–151.
  21. Colombo, M.G.; Grilli, L. Founders’ human capital and the growth of new technology-based firms: A competence-based view. Res. Policy 2005, 34, 795–816.
  22. Gill, A.; Gurău, C.; Dana, L.P.; Sánchez, C.R. Human capital, financial strategy and small firm performance: A study of Canadian entrepreneurs. Int. J. Entrep. Small Bus. 2017, 31, 492.
  23. BarNir, A. Pre-venture managerial experience and new venture innovation: An opportunity costs perspective. Manag. Decis. 2014, 52, 1981–2001.
  24. Caliendo, M.; Fossen, F.; Kritikos, A.S. Personality characteristics and the decisions to become and stay self-employed. Small Bus. Econ. 2014, 42, 787–814.
  25. Davidsson, P.; Honig, B. The role of social and human capital among nascent entrepreneurs. J. Bus. Ventur. 2003, 18, 301–331.
  26. Hellmann, T. The Role of Patents for Bridging the Science to Market. Gap; National Bureau of Economic Research: Cambridge, MA, USA, 2005; p. w11460.
  27. Kickul, J.; Gundry, L. Prospecting for Strategic Advantage: The Proactive Entrepreneurial Personality and Small Firm Innovation. J. Small Bus. Manag. 2002, 40, 85–97.
  28. Rodenbach, M.; Brettel, M. CEO experience as micro-level origin of dynamic capabilities. Manag. Decis. 2012, 50, 611–634.
  29. Corbett, A.C. Experiential Learning within the Process of Opportunity Identification and Exploitation. Entrep. Theory Pract. 2005, 29, 473–491.
  30. Baron, R.A.; Ensley, M.D. Opportunity Recognition as the Detection of Meaningful Patterns: Evidence from Comparisons of Novice and Experienced Entrepreneurs. Manag. Sci. 2006, 52, 1331–1344.
  31. McGrath, R.G.; MacMillan, I.C. The Entrepreneurial Mindset: Strategies for Continuously Creating Opportunity in an Age of Uncertainty; Harvard Business School Press: Boston, MA, USA, 2000; ISBN 978-0-87584-834-1.
  32. Parker, S.C. Learning about the unknown: How fast do entrepreneurs adjust their beliefs? J. Bus. Ventur. 2006, 21, 1–26.
  33. Ronstadt, R. The Corridor Principle. J. Bus. Ventur. 1988, 3, 31–40.
  34. Wiklund, J.; Shepherd, D. Aspiring for, and Achieving Growth: The Moderating Role of Resources and Opportunities*. J. Manag. Stud. 2003, 40, 1919–1941.
  35. Clement, M.B. Analyst forecast accuracy: Do ability, resources, and portfolio complexity matter? J. Account. Econ. 1999, 27, 285–303.
  36. Mikhail, M.B.; Walther, B.R.; Willis, R.H. Do Security Analysts Improve Their Performance with Experience? J. Account. Res. 1997, 35, 131.
  37. Del Campo Villares, M.O.; Miguéns-Refojo, V.; Ferreiro-Seoane, F.J. Business Survival and the Influence of Innovation on Entrepreneurs in Business Incubators. Sustainability 2020, 12, 6197.
  38. Bonner, S.E.; Lewis, B.L. Determinants of Auditor Expertise. J. Account. Res. 1990, 28, 1.
  39. Clement, M.B.; Koonce, L.; Lopez, T.J. The roles of task-specific forecasting experience and innate ability in understanding analyst forecasting performance. J. Account. Econ. 2007, 44, 378–398.
  40. Jacob, J.; Lys, T.Z.; Neale, M.A. Expertise in forecasting performance of security analysts. J. Account. Econ. 1999, 28, 51–82.
  41. Camerer, C.; Lovallo, D. Overconfidence and Excess Entry: An Experimental Approach. Am. Econ. Rev. 1999, 89, 306–318.
  42. Wright, W.F. Task Experience as a Predictor of Superior Loan Loss Judgments. Audit. J. Pract. Theory 2001, 20, 147–155.
  43. Cassar, G.; Craig, J. An investigation of hindsight bias in nascent venture activity. J. Bus. Ventur. 2009, 24, 149–164.
  44. Hogarth, R.M. Judgement and Choice: The Psychology of Decision, 2nd ed.; Wiley: Chichester, UK, 1994; ISBN 978-0-471-91479-2.
  45. Kahneman, D.; Lovallo, D. Timid Choices and Bold Forecasts: A Cognitive Perspective on Risk Taking. Manag. Sci. 1993, 39, 17–31.
  46. Sexton, D.L.; Upton, N.B.; Wacholtz, L.E.; McDougall, P.P. Learning needs of growth-oriented entrepreneurs. J. Bus. Ventur. 1997, 12, 1–8.
  47. Welpe, I.M.; Spörrle, M.; Grichnik, D.; Michl, T.; Audretsch, D.B. Emotions and Opportunities: The Interplay of Opportunity Evaluation, Fear, Joy, and Anger as Antecedent of Entrepreneurial Exploitation. Entrep. Theory Pract. 2012, 36, 69–96.
  48. Raffiee, J.; Feng, J. Should I Quit My Day Job?: A Hybrid Path to Entrepreneurship. Acad. Manag. J. 2014, 57, 936–963.
  49. Sahut, J.-M.; Peris-Ortiz, M. Small business, innovation, and entrepreneurship. Small Bus. Econ. 2014, 42, 663–668.
  50. Gartner, W.B.; Frid, C.J.; Alexander, J.C. Financing the emerging firm. Small Bus. Econ. 2012, 39, 745–761.
  51. Schmidt, J.B.; Sarangee, K.R.; Montoya, M.M. Exploring New Product Development Project Review Practices. J. Prod. Innov. Manag. 2009, 26, 520–535.
  52. Choi, Y.R.; Shepherd, D.A. Entrepreneurs’ Decisions to Exploit Opportunities. J. Manag. 2004, 30, 377–395.
  53. Rice, M.P. Co-production of business assistance in business incubators: An exploratory study. J. Bus. Ventur. 2002, 17, 163–187.
  54. Boeker, W. Strategic Change: The Effects of Founding And History. Acad. Manag. J. 1989, 32, 489–515.
  55. Agarwal, S.; Ramaswami, S.N. Choice of Foreign Market Entry Mode: Impact of Ownership, Location and Internalization Factors. J. Int. Bus. Stud. 1992, 23, 1–27.
  56. Javalgi, R.G.; Griffith, D.A.; Steven White, D. An empirical examination of factors influencing the internationalization of service firms. J. Serv. Mark. 2003, 17, 185–201.
  57. Bhide, A. The hidden costs of stock market liquidity. J. Financ. Econ. 1993, 34, 31–51.
  58. Ortega, M.J.R. Competitive strategies and firm performance: Technological capabilities’ moderating roles. J. Bus. Res. 2010, 63, 1273–1281.
  59. Schoonhoven, C.B.; Eisenhardt, K.M.; Lyman, K. Speeding Products to Market: Waiting Time to First Product Introduction in New Firms. Adm. Sci. Q. 1990, 35, 177.
  60. Dew, N.; Read, S.; Sarasvathy, S.D.; Wiltbank, R. Effectual versus predictive logics in entrepreneurial decision-making: Differences between experts and novices. J. Bus. Ventur. 2009, 24, 287–309.
  61. Westhead, P.; Ucbasaran, D.; Wright, M. Experience and Cognition: Do Novice, Serial and Portfolio Entrepreneurs Differ? Int. Small Bus. J. Res. Entrep. 2005, 23, 72–98.
  62. Shane, S. Prior Knowledge and the Discovery of Entrepreneurial Opportunities. Organ. Sci. 2000, 11, 448–469.
  63. Groves, K.; Vance, C.; Choi, D. Examining Entrepreneurial Cognition: An Occupational Analysis of Balanced Linear and Nonlinear Thinking and Entrepreneurship Success. J. Small Bus. Manag. 2011, 49, 438–466.
  64. Dimov, D. Grappling with the Unbearable Elusiveness of Entrepreneurial Opportunities. Entrep. Theory Pract. 2011, 35, 57–81.
  65. Cowley, L. Telecoms: Still Suffering from Sector Blues. Eur. Ventur. Cap. J. 2002, 96, 27.
  66. Nasution, H.N.; Mavondo, F.T.; Matanda, M.J.; Ndubisi, N.O. Entrepreneurship: Its relationship with market orientation and learning orientation and as antecedents to innovation and customer value. Ind. Mark. Manag. 2011, 40, 336–345.
  67. Slater, S.F.; Narver, J.C. Market Orientation and the Learning Organization. J. Mark. 1995, 59, 63.
  68. Shane, S. Technological Opportunities and New Firm Creation. Manag. Sci. 2001, 47, 205–220.
  69. Cassar, G. Financial Statement and Projection Preparation in Start-Up Ventures. Account. Rev. 2009, 84, 27–51.
  70. Schiff, A.; Hammer, S.; Das, M. A financial feasibility test for aspiring entrepreneurs. Entrep. Exec. 2010, 15, 33–38.
  71. Zimmerman, M.A.; Zeitz, G.J. Beyond Survival: Achieving New Venture Growth by Building Legitimacy. Acad. Manag. Rev. 2002, 27, 414–431.
  72. Armor, D.A.; Sackett, A.M. Accuracy, error, and bias in predictions for real versus hypothetical events. J. Pers. Soc. Psychol. 2006, 91, 583–600.
  73. Astebro, T. Key Success Factors for Technological Entrepreneurs’ R&D Projects. IEEE Trans. Eng. Manag. 2004, 51, 314–321.
  74. Ou, C.; Haynes, G.W. Acquisition of Additional Equity Capital by Small Firms—Findings from the National Survey of Small Business Finances. Small Bus. Econ. 2006, 27, 157–168.
  75. Verheul, I.; Thurik, R. Start-Up Capital: “Does Gender Matter? ” Small Bus. Econ. 2001, 16, 329–346.
  76. Nielsen, K. Human capital and new venture performance: The industry choice and performance of academic entrepreneurs. J. Technol. Transf. 2015, 40, 453–474.
More
© Text is available under the terms and conditions of the Creative Commons Attribution (CC BY) license; additional terms may apply. By using this site, you agree to the Terms and Conditions and Privacy Policy.
Upload a video for this entry
Information
Subjects: Management
Contributor MDPI registered users' name will be linked to their SciProfiles pages. To register with us, please refer to https://encyclopedia.pub/register :
Kathryn Cormican
View Times: 2.6K
Revisions: 2 times (View History)
Update Date: 07 Jan 2022
Table of Contents
    1000/1000
    Hot Most Recent
    Video Production Service
    Feedback