ENTREPRENEURSHIP by Student’s Name Class/Course/Code Professor’s Name University/School City, State Date Table of Contents 1. Introduction ............................................................................................................................. 3 2. Body......................................................................................................................................... 3 2.1 Opportunity Recognition ...................................................................................................... 3 2.2 Entrepreneurial Alertness...................................................................................................... 4 2.3 Prior knowledge .................................................................................................................... 5 2.4 Social Network...................................................................................................................... 6 2.5 Business Performance ........................................................................................................... 6 3. Conclusion ............................................................................................................................... 7 1. Introduction Enterprise plays a major role in fostering a nation's economic growth, job creation and innovation. (Baron 2006) proposes the proceedings of entrepreneurship to describe entrepreneurs “through strong application of ideas, skills, knowledge and talent to create and operate viable new companies”. The topic of “how do contractors see possibilities” is fundamental to the research into entrepreneurship. Even after such efforts, entrepreneurship science is still emerging at its infancy level. In order for business to take place, awareness of opportunity must occur first. This research aims at analysing the possible influence of market awareness, previous experience and the social network in the identification of opportunity and, finally, the benefits of superior business success in order to better understand the factors affecting business opportunity recognition. This study examines ways in which the entrepreneur has confirmed or rejected theories, principles and concepts pertaining to the recognition of opportunities. 2. Body 2.1 Opportunity Recognition The key problem in business is that some entrepreneurs fall, and others succeed. Many studies have approached this issue by looking at the entrepreneurial characteristics, the business skills, motivation and business environment (Baum et al. 2001). The opportunities are two opposing points of view. In one view, openings are found and in the other view, they are generated (Corbett 207). These two key points of view vary on the finding or development of opportunities. The first view is the positivist who insists that reality has an empirical existence regardless of the experience of the person. It is hypothesised that external disruptions to developed markets would provide opportunities and it is ready to be discovered by entrepreneurs (Ozgen 2004). Secondly, the builders contend that existence is a social object resulting from the social interactions of people. Their life depends on the interpretation of the individual. From this viewpoint, it is proposed that the entrepreneurs themselves shape opportunities endogenously (Alvarez et al. 2007). It claim that the identification of entrepreneurial opportunity is a cognitive process because it depends on the individual (Shane and Venkataraman 2000) also observed that entrepreneurs use intellectual observations in pursuit of knowledge that contributes to new market possibilities and have to devote more time compared to non-entrepreneurs. Following the analysis, researchers proposed that previous experience adds considerable insights into identifying opportunities. Suggested the potential of entrepreneurs to help identify benefits to previous expertise of a given field. Based on previous theoretical and observational research, (Ardichvili et al. 2003) proposes an extensive structure that illustrates the mechanism of recognising opportunities. First, the entrepreneur must have a degree of training and experience. The combination would make the entrepreneur who understands meaningful growth prospects and who are willing to strategically place the organisation in a profitable planning phase to initiate the new project, along with other main factors, such as market alertness and the business network. As proposed, the identification of opportunity is a process of many phases and not just a spark of unexpected discoveries to come. 2.2 Entrepreneurial Alertness In the description of the entrepreneurial mechanism of opportunities recognition, was the first person to use the word "alertness." Caution is described as a mechanism and viewpoint that makes some people become more conscious of the transitions, changes, chances and unprecedented opportunities (Kirzner 1997). In the light of the economy, established more alerting as a means of finding the possibilities that were overlooked without study. More recent researchers have developed and furthered our awareness of a practical position based upon a variety of cognitive capabilities and processes, such as previous knowledge and experience, the identification of patterns, the retrieval of information and social interactions (Tang et al. 2012). Alertness is conceptualised as three additional dimensions in a new analysis by: alert scanning and checking, alert association and relations and assessment and judgements. Based on their knowledge of market trends and opportunities details, entrepreneurs are successful. (Fisher et al. 2012) contend that some people see associations and habits of knowledge differently than others. They merge knowledge and build new causal relations that both make opportunities easier to recognise. People with such a scheme are hypothesised to note shifts in industry/markets quite often. Mixed results have been seen in previous studies including (Kaish, Stanley, and Benjamin Gilad 1991). The theoretical support, however, is strong and consistent for the connection among alertness and opportunity perception. 2.3 Prior knowledge The unique prior experience of any person provides a "rationality corridor" to allow the contractor to recognise certain opportunities, but not other opportunities (Shane 2000). The theory of the knowledge’s corridor explains that after entrepreneurs have found their businesses, they are going to a corridor that opens up windows of opportunity. They would not be able to see the potential if they had not reached the hallway. Previous cognition research indicates that improved prior experience can provide some benefits in decision making for a person in a specific area. In a (Busenitz et al. 1997), entrepreneurs focused heavily on heuristics to accelerate the processes of decision making in comparison with managers. They would miss the window of opportunity without such a system before it could be detected. Based on the previous literature regarding previous knowledge and applied to the recognition of opportunities, this study expects that people with previous knowledge are more likely to be alert to the available information and to more effectively process it leads to a high number and quality of identified opportunities. Higher levels of prior knowledge are associated with higher opportunity recognition. 2.4 Social Network The social network is a possible opportunity and resources, while social capital is used for profitable economic activities (Xin, Lin, and Kede Qin 2011). The network is used for social capital. The theory of social networks indicates that people are linked by their social networks. The entrepreneur has access to help, information and encouragement across the social network and reveals how people are connected. Theory of social networks studies people's relationships and offers insights into the distribution of knowledge and social mobility, and how people communicate and share information. Combining social capital and networks provides an advantage for information sharing and new knowledge growth (Davidsson, Per, and Benson Honig 2003) 2.5 Business Performance The studies in entrepreneurship have difficulty accurately measure a business company's success or loss. There are problems such as data accessibility, data control complexity and comparability issues. When you research the past literature on corporate success, it is seen that productivity, sustainability and survival quantify performance. In most studies the performance dimensions of growth and profitability are often used. Certain scholars indicated that the entrepreneur's personality determines success via other variables. (Baum 2001) contend that personal characteristics have led to performance when learning to perceive opportunities. (Ardichvili et al. 2003) accepted the argument that previous business and consumer experience contributes to good identification of opportunities and consequently to growth. 3. Conclusion Many research on procedures and the history of opportunities identification have been carried out. While entrepreneurs' literature plays an important role in the recognition of opportunities, there is still much to learn about how entrepreneurs really realise business success opportunities. This research aims at creating a systematic model by analysing the individual's cognitive ability as a precedent to resources for awareness, previous experience and the social network. Growing awareness of opportunities is positively linked to improved market success. The position of the employee, such as the entrepreneurial characteristics, entrepreneurial skills and motivations, were much of the entrepreneurial opportunities study. It is hoped that this research will help develop a paradigm to clarify opportunities in an in-depth study by concurrently testing the interrelationships between the causes. 4. References Baron, Robert A. "Opportunity recognition as pattern recognition: How entrepreneurs “connect the dots” to identify new business opportunities." Academy of management perspectives 20, no. 1 (2006): 104-119. Baum, J. Robert, Edwin A. Locke, and Ken G. Smith. "A multidimensional model of venture growth." Academy of management journal 44, no. 2 (2001): 292-303. Corbett, Andrew C. "Learning asymmetries and the discovery of entrepreneurial opportunities." Journal of business venturing 22, no. 1 (2007): 97-118. Ozgen, Eren. 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