Entrepreneurial Opportunity as the Potential to Create Value

21 Pages Posted: 28 May 2013 Last revised: 13 Oct 2013

Peter Lewin

University of Texas at Dallas - School of Management - Department of Finance & Managerial Economics

Date Written: October 12, 2013

Abstract

Unpacking the concept of entrepreneurial opportunity to include three categories of essential ingredients, this paper provides a fruitful framework for applying Israel Kirzner’s approach to entrepreneurship - bridging the entrepreneur as someone alert to opportunities to create value, to real world situations requiring the entrepreneur’s evaluation of resource inputs and prospective outputs, and his perception of what actions are necessary and need to be coordinated in an environment of sufficient mutual understandings. To fully understand entrepreneurial opportunities, one must then understand not only how the entrepreneur makes superior evaluations, but also how to address all of these three categories.

Keywords: opportunity, discovery, incentives, Kirzner

JEL Classification: L26, L22

Suggested Citation

Lewin, Peter, Entrepreneurial Opportunity as the Potential to Create Value (October 12, 2013). Available at SSRN: https://ssrn.com/abstract=2271155 or http://dx.doi.org/10.2139/ssrn.2271155

Peter Lewin (Contact Author)

University of Texas at Dallas - School of Management - Department of Finance & Managerial Economics ( email )

2601 North Floyd Road
P.O. Box 830688
Richardson, TX 75083
United States

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