Entrepreneurial Opportunity as the Potential to Create Value
University of Texas at Dallas - School of Management - Department of Finance & Managerial Economics
October 12, 2013
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.
Number of Pages in PDF File: 21
Keywords: opportunity, discovery, incentives, Kirzner
JEL Classification: L26, L22
Date posted: May 28, 2013 ; Last revised: October 13, 2013