Uncertainty And Imperfect Information On Entrepreneurship

2676 Words Feb 9th, 2015 11 Pages
Uncertainty and Imperfect information in entrepreneurship are two important concepts that should be considered in the role of entrepreneurs. According to (Klir, 1999) uncertainty has many methods and dimensions and can include concepts such as vagueness, disagreement and conflict, imprecision and non-specificity The term ‘uncertainty’ can be defined broadly as “any deviation from the unachievable ideal of completely deterministic knowledge of the relevant system” (Walker, 2003). Uncertainty could mean unpredictability, doubt or fear of the unknown. It has to do with the risk entrepreneurs take in business. Imperfect information on the other hand means lack of adequate information before embarking on the business. It can also be viewed as incomplete collection of facts or flawed communication. These two concepts play vital roles in businesses and if not carefully considered and handled, they can have adverse effects on businesses.
Who Are Entrepreneurs?
An entrepreneur is a person who creates new business, taking risks in accomplishing the objectives which they intend to make profits and growth by recognising vital opportunities (Burdus, 2010). They are individuals who innovate, recognise business opportunities, gather and co-ordinate new blends of resources {i.e. production functions) in other to extract the most profits from their innovations in an uncertain environment (Rapheal Amit, 1993) Entrepreneurs are private business owners. They are self-starters and optimistic…

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