Individual Level And Systemic Level Of Opportunity Recognition

1511 Words May 4th, 2016 7 Pages
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 are various actions that need to be taken by entrepreneurs such as creating new products or processes, creating new ventures, and entering into new markets. Hence, it is vital for entrepreneurs to engage in opportunities that they have identified. The first form of the theory is system level approach, which is essentially involved in how the economic system operates (McMullen & Shepherd, 2006). For this theory, economic conditions such as the stability of macroeconomic conditions and level of economic growth, income inequality, and employment might have an impact on the type of opportunities that will be available. For example in terms of income inequality, if the supply side of income inequality is high, it will therefore push low wage…
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