An examination of factors influencing entrepreneurial opportunity identification process

Why do some people identify entrepreneurial opportunities while others do not? This is a question that has not been fully answered by researchers, educators, practitioners and policy makers. The purpose of this study was to answer the above question by examining the factors that influence opportunity identification process by entrepreneurs. This exploratory investigation builds and extends upon Ardichvili, Cardozo, and Ray's (2003) theory of opportunity identification process. A mixed method research design using both qualitative and quantitative methodologies was employed to investigate how entrepreneurs identify business opportunities.; The data for this study was collected from 30 entrepreneurs who were former graduates of the University of Illinois at Urbana-Champaign using two instruments; semi-structured interviews and survey instrument. Both qualitative and quantitative data were analyzed independently using computer software and later compared to determine convergence. Survey results were used to enhance deeper understanding and confidence in the interview results. The findings were consistent with opportunity identification factors found in the literature namely creativity, optimism (based on self-efficacy), information search, alertness, social network and prior knowledge. Although, mentoring and brainstorming emerged as other important factors, social network was identified as the dominant factor in opportunity identification. The study builds on theoretical and empirical studies by proposing a model that identifies two antecedents that distinguish between different types of entrepreneurs, more effectively explaining opportunity identification factors, and suggesting their inclusion in future models. Implications, limitations, and suggested future research are discussed.