Question

NO HANDWRITTEN ANSWERS PLEASE

Describe the opportunity recognition process.

Answer 1

The model of the opportunity recognition process is shown as above.

A business opportunity represents a possibility for the entrepreneur to meet a large enough unsatisfied need that is worthwhile. The key to recognizing an opportunity lies in the knowledge and experience of the individual entrepreneur and where appropriate the entrepreneurial business. This prior knowledge is a result of a combination of education and experience, and the relevant experience could be work related or could result from a variety of personal experience or events. The entrepreneur needs to be aware of this knowledge and experience and have the desire to understand and make use of it. The other important factors in this process are entrepreneurial alertness and entrepreneurial networks. There is an interaction effect between entrepreneurial alertness and entrepreneur's prior knowledge of markets and customer problems. Those entrepreneurs who have the ability to recognize meaningful business opportunities are in a strategic position to successfully complete the product planning and development process and successfully launch new ventures.