Business Opportunities Prototypical Dimensions in Recognition and Decision Stages of the Entrepreneurial Process

Abstract

Entrepreneurship‟s research field focuses on how, by whom and by what means business

opportunities are discovered, evaluated and exploited (Shane & Venkataraman, 2000; Baum,

Frese, Baron & Katz, 2007). In this study we intend to understand how individuals use the

business opportunity prototype (Baron and Ensley, 2006), in different stages of the

entrepreneurial process: recognition and decision stages.

We used a methodology based on scenarios and on the dimensions of the business opportunity

prototype. The study is experimental with a design 2 (scenario A and B) X 3 (business‟

characteristics: customer‟s problem solving; cash flow; manageable risk).

Results allowed to understand how individuals use the prototype in two stages of the

entrepreneurial process. Both in business opportunity recognition and decision to launch a

venture stages, risk plays a fundamental. Following, in recognition stage money and profit are

something very considered. However when it comes to actually launch the venture (decision

making) customers occupy individuals‟ attention.

These results bring important contributions on how individuals recognize business

opportunities and how they evaluate their characteristics according to a prototype framework.