Learning Objectives

5-1: Explain how the entrepreneurial mindset relates to opportunity recognition.

Having the right entrepreneurial mindset is essential to identifying opportunities and taking action to start new ventures. It gives entrepreneurs the confidence to network and find unmet needs in the marketplace, and the ability to persist with ideas and build on opportunities.

5-2: Employ strategies for generating new ideas from which opportunities are born.

Of the nearly countless ways of generating ideas, seven strategies have been outlined by researchers. Included are analytical strategies, search strategies, imagination-based strategies, habit-breaking strategies, relationship-seeking strategies, development strategies, and interpersonal strategies.

5-3: Apply the two primary pathways to opportunity identification.

The first is the finding approach, which relies on the notion that as the global societies shift and develop, undiscovered opportunities abound. Alternatively, Saras Savasvathy asserts that a building approach, which assumes that opportunities do not exist independent of entrepreneurs but are instead a product of the mind, is beneficial toward capitalizing on the opportunity.

5-4: Demonstrate how entrepreneurs find opportunities through active search and alertness.

In the finding approach, entrepreneurs often engage in active search in attempting to discover existing opportunities. While active search can be very helpful in the recognition of opportunities, entrepreneurs need to be alert to random opportunities when they arise.

5-5: Connect idea generation to opportunity recognition.

The process of moving from idea generation to opportunity recognition is primarily composed of three stages: idea generation, creativity, and opportunity recognition.