Session 3: Entrepreneurial opportunities

Question 1

The role of opportunities

Answer 1

An entrepreneurial opportunity is a situation in which a person can
create a new means-ends framework for recombining resources that
the entrepreneur believes will yield a profit.

Question 2

Where do opportunities come from and what are they like?

Answer 2

• Schumpeterian opportunities (1934)

- Kirznerian opportunities (1973)

Question 3

Schumpeterian opportunities (1934)

Answer 3

• Disequilibrating
• Requires new information
• Very innovative
• Rare
• Involves creation

Question 4

Kirznerian opportunities (1973)

Answer 4

• Equilibrating
• Does not require new information
• Less innovative
• Common
• Limited to discovery

Question 5

Where do opportunities come from?

Answer 5

• Consumers
• Existing Products and Services
• Trends
• R&D

Question 6

Paper Shane (2000)

Answer 6

Research on entrepreneurship falls into three schools of thought, each
with different assumptions about this process:
1. Neoclassical equilibrium
theories
2. Psychological theories
3. Austrian theories

Question 7

Austrian theories

Answer 7

1. People cannot recognize all entrepreneurial opportunities
2. Information about opportunities, rather than
   fundamental attributes of people, determine who
   becomes an entrepreneur.
3. This process depends on factors other than people’s
   ability and willingness to take action.

Question 8

Exploitation of opportunities

Answer 8

Socio-demographic factors

Psychological factors:

Question 9

Opportunity - Successful exploitation

Answer 9

Attractive, Timely, Durable, Large benefit to the

customer