Individual Level And Systemic Level Of Opportunity Recognition

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Introduction Recognizing opportunities is a process that is necessary and will never be avoided by entrepreneurs that are looking to create value for their stakeholders. In order to understand more about the definition of opportunity recognition, it will be sensible to first get to know the meaning of opportunity. According to (Baron, 2006) “Opportunity can be interpreted as a perceived means of generating economic value such as profit that has not been exploited and is not currently exploited by others ”. Therefore, opportunity recognition can be defined as the process when individuals came to a conclusion that they have discovered an opportunity. Differences between individual level and systemic level of opportunity recognition There…show more content…
Since the individual level theory emphasizes on how it occurs and who are the individuals who do it compared to whether or not it occurs. Therefore, researchers are more likely to give explanations about why some individuals are more likely to go after opportunity for financial gain (McMullen & Shepherd, 2006). At the individual level, there are basically two reasons why they discover the opportunities which are they have better access to information and they have well defined cognitive capabilities. One of the reasons why individuals have better access to information is because of job function. For example, people who are working in the field of natural sciences and engineering are more likely to see the new venture opportunities because the nature of these jobs give easier access to technology and knowledge. On the other hand, for cognitive capabilities, there are two groups of it. The first group which is absorptive capacity claims that previous knowledge provide an absorptive capacity that ease the collection of information. The second group that intensifies the entrepreneurial discovery is the ability of individuals to categorize information, ability to see causal links and ability to assess assumptions and information correctly (Fuduric,
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