Business Opportunities Prototypical Dimensions in Recognition and Decision Stages of the Entrepreneurial Process

Description

Entrepreneurship"s research field focuses on how, by whom and by what means business opportunities are discovered, evaluated and exploited (Shane & Venkataraman, 2000; Baum, Frese, Baron & Katz, 2007). In this study we intend to understand how individuals use the business opportunity prototype (Baron and Ensley, 2006), in different stages of the entrepreneurial process: recognition and decision stages. We used a methodology based on scenarios and on the dimensions of the business opportunity prototype. The study is experimental with a design 2 (scenario A and B) X 3 (business" characteristics: customer"s problem solving; cash flow; manageable risk). Results allowed to understand how individuals use the prototype in two stages of the entrepreneurial process. Both in business opportunity recognition and decision to launch a venture stages, risk plays a fundamental. Following, in recognition stage money and profit are something very considered. However when it comes to actually launch the venture (decision making) customers occupy individuals" attention. These results bring important contributions on how individuals recognize business opportunities and how they evaluate their characteristics according to a prototype framework.

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