Entrepreneurship Research Paper 2022

Running head: ENTREPRENEURSHIP
ENTREPRENEURSHIP
Name of the Student
Name of the University
Author Note

1ENTREPRENEURSHIP
Introduction
The discussion of this paper will be on a critical discussion on the topic of whether
Entrepreneurial opportunities are created or discovered. A major aspect of this essay will be
to ability to critically assess the extent literature and apply it appropriately in order to answer
the question which is said above. This paper will include theoretical foundations of
opportunity recognition along with the effective synthesis and analysis of the above question.
Critical evaluation of the origins of opportunities will also be discussed in this paper.
Theoretical Foundations of Opportunity Recognition
Entrepreneurship is a term taken from a French word ‘entrependre’ which holds the
meaning of taking from the below. The term involves an individual’s capability for changing
something. In the modern economical background, entrepreneurship has become a rapid
developing and enlarging aspect. Entrepreneurs are found in all kinds of industries, whether
on a small level of business or corporate sector. They are considered to be the driving force
for the economical expansion and further improvements. Having such recognition is not
sufficient for establishing a relationship between the modern and recognized theories of
business and the entrepreneurial place in the company strategy and finances. Nevertheless,
the concept of opportunity recognition and idea generation is gaining attention with the
increase in number of practitioners and scholars and their valuing the importance of this
research field. According to both the theories of discovery and creation, it has been assumed
that the main objective of an entrepreneur is to develop and exploit the opportunities. Also,
both the theories believe that opportunities are found only when there is a competitive
imperfection within an industry or market (Ardichvili, Cardozo & Ray 2003).

2ENTREPRENEURSHIP
In case of creation theory, it is believed that opportunities do not result as an outcome
of exogenous shocks and are rather created by an entrepreneur’s actions, reactions, desire of
exploration to launch a new product or service. A variety of implications are present on this
theory with endogenous concept of opportunities. For instance, an entrepreneur will not
search or discover an opportunity, but will create them by their actions and observing their
feedback from the markets and customers. The theory of creation lays emphasis on the
actions of an entrepreneur which they consider to be the main driving force behind the
existence of opportunities. On the other hand, the discovery theory relies on the fact that
opportunities are created from exogenous shocks and is based on realist hypothesis of
philosophical science. This theory states that opportunities exist irrespective of the
perceptions or actions of an entrepreneur (Jack 2010).
Moreover, importance is laid on exogenous shocks as it is believed that an
environment is scanned systematically due to it and new opportunities are discovered. If
entrepreneurs follow both the direction and time duration and don’t get confuse with local
search, much more opportunities are found to be existing for producing latest services or
products. While comparing these two theories various aspects of entrepreneurial actions are
covered. Such as, leadership is based on experience and expertise in discovery theory while it
is based on charisma in creation theory. In discovery theory, the decision-making process is
risk based, broad recruitment is done for particular human capital, the strategy is complete
and stagnant, external sources like banks and capital firms are required and have the
advantage of being a secret and speedy one for sustain advantages (Barron 2006). However,
the creation theory’s decision-making procedure is inductive, increasing and full of biasness,
has an emergent strategy, bootstrapping financial strategy, there may be a change in the
marketing mix due to the formation of new opportunities and implicit learning in path
dependent procedure might possess competitive advantages. From the above discussion it