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The extent and nature of opportunity identification by experienced entrepreneurs

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  • Ucbasaran, Deniz
  • Westhead, Paul
  • Wright, Mike

Abstract

Guided by insights from cognitive theories, this article explores the links between entrepreneurs' prior business ownership experience and their opportunity identification behavior. Hypotheses were tested using data from 630 entrepreneurs. Experienced entrepreneurs identified more opportunities and exploited more innovative opportunities with greater wealth creation potential. Entrepreneurs that had owned more than 4.5 businesses, however, identified fewer opportunities. The nature of prior business ownership experience also shaped opportunity identification behavior. An inverse U-shaped relationship was detected between the proportion of failed businesses relative to the number of businesses owned and the number of opportunities identified in a given period. Business failure experience was not associated with the innovativeness of exploited opportunities.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Business Venturing.

Volume (Year): 24 (2009)
Issue (Month): 2 (March)
Pages: 99-115

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Handle: RePEc:eee:jbvent:v:24:y:2009:i:2:p:99-115

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Web page: http://www.elsevier.com/locate/jbusvent

Related research

Keywords: Repeat entrepreneurs Business ownership experience Business failure Opportunity identification Innovative opportunities;

References

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  1. Paul H. Jensen & Elizabeth Webster, 2004. "Examining Biases in Measures of Firm Innovation," Melbourne Institute Working Paper Series wp2004n10, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
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  12. Cooper, Arnold C. & Folta, Timothy B. & Woo, Carolyn, 1995. "Entrepreneurial information search," Journal of Business Venturing, Elsevier, vol. 10(2), pages 107-120, March.
  13. Wright, Mike & Robbie, Ken & Ennew, Christine, 1997. "Venture capitalists and serial entrepreneurs," Journal of Business Venturing, Elsevier, vol. 12(3), pages 227-249, May.
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Citations

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Cited by:
  1. Dunkelberg, William & Moore, Carmen & Scott, Jonathan & Stull, William, 2013. "Do entrepreneurial goals matter? Resource allocation in new owner-managed firms," Journal of Business Venturing, Elsevier, vol. 28(2), pages 225-240.
  2. Massimo Colombo & Philippe Mustar & Mike Wright, 2010. "Dynamics of Science-based entrepreneurship," The Journal of Technology Transfer, Springer, vol. 35(1), pages 1-15, February.
  3. Elisabeth Bublitz & Michael Fritsch & Michael Wyrwich, 2013. "Balanced Skills and the City: An Analysis of the Relationship between Entrepreneurial Skill Balance, Thickness and Innovation," Jena Economic Research Papers 2013-010, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  4. Vincent Lefebvre & Miruna Radu Lefebvre, 2012. "Integrating Corporate Social Responsibility at the Start-up Level: Constraint or Catalyst for Opportunity Identification?," Post-Print hal-00836856, HAL.
  5. Andries, Petra & Czarnitzki, Dirk, 2012. "Small firm innovation performance and employee involvement," ZEW Discussion Papers 12-013, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. Sarah Kösters, 2010. "Subsidizing Start-Ups: Policy Targeting and Policy Effectiveness," Journal of Industry, Competition and Trade, Springer, vol. 10(3), pages 199-225, September.
  7. Petra Andries & Dirk Czarnitzki, 2014. "Small firm innovation performance and employee involvement," Small Business Economics, Springer, vol. 43(1), pages 21-38, June.
  8. Toft-Kehler, Rasmus & Wennberg, Karl & Kim, Phillip H., 2014. "Practice makes perfect: Entrepreneurial-experience curves and venture performance," Journal of Business Venturing, Elsevier, vol. 29(4), pages 453-470.
  9. Wright, Mike & Kellermanns, Franz W., 2011. "Family firms: A research agenda and publication guide," Journal of Family Business Strategy, Elsevier, vol. 2(4), pages 187-198.
  10. Bergek, Anna & Mignon, Ingrid & Sundberg, Gunnel, 2013. "Who invests in renewable electricity production? Empirical evidence and suggestions for further research," Energy Policy, Elsevier, vol. 56(C), pages 568-581.
  11. Baron, Robert A. & Tang, Jintong, 2011. "The role of entrepreneurs in firm-level innovation: Joint effects of positive affect, creativity, and environmental dynamism," Journal of Business Venturing, Elsevier, vol. 26(1), pages 49-60, January.
  12. Paul Robson & Charles Akuetteh & Paul Westhead & Mike Wright, 2012. "Innovative opportunity pursuit, human capital and business ownership experience in an emerging region: evidence from Ghana," Small Business Economics, Springer, vol. 39(3), pages 603-625, October.
  13. Asplund, Carl-Johan & Léger-Jarniou, Catherine & Tegtmeier, Silke, 2011. "Emerging Student Entrepreneurship – From Ideas to Opportunities. Comparative Study in France, Germany, and Sweden," Economics Papers from University Paris Dauphine 123456789/8470, Paris Dauphine University.
  14. Valle Santos & Teresa García, 2011. "Business motivation and informational needs in internationalization," Journal of International Entrepreneurship, Springer, vol. 9(3), pages 195-212, September.
  15. Ucbasaran, Deniz & Westhead, Paul & Wright, Mike & Flores, Manuel, 2010. "The nature of entrepreneurial experience, business failure and comparative optimism," Journal of Business Venturing, Elsevier, vol. 25(6), pages 541-555, November.

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