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The extent and nature of opportunity identification by experienced entrepreneurs

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Ucbasaran, Deniz, Westhead, Paul and Wright, Mike. (2009) The extent and nature of opportunity identification by experienced entrepreneurs. Journal of Business Venturing, Vol.24 (No.2). pp. 99-115. ISSN 0883-9026

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Official URL: http://dx.doi.org/10.1016/j.jbusvent.2008.01.008

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.

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Social Sciences > Warwick Business School > Centre for Small & Medium-Sized Enterprises
Faculty of Social Sciences > Warwick Business School > Entrepreneurship, Innovation & Management
Faculty of Social Sciences > Warwick Business School
Journal or Publication Title: Journal of Business Venturing
Publisher: Elsevier BV
ISSN: 0883-9026
Date: 2009
Volume: Vol.24
Number: No.2
Number of Pages: 17
Page Range: pp. 99-115
Identification Number: 10.1016/j.jbusvent.2008.01.008
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access
URI: http://wrap.warwick.ac.uk/id/eprint/44686

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