Entrepreneurial Opportunity Recognition and Evaluation

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This assignment delves into the concept of entrepreneurial opportunity recognition and evaluation. It presents a collection of research papers and articles that discuss various aspects of entrepreneurship, including opportunity identification, leadership style, and risk analysis. The papers cover topics such as understanding entrepreneurial opportunities, developing prototypes for new ventures, and improving entrepreneurship education. The assignment aims to provide students with a comprehensive understanding of the entrepreneurial process and its key components.

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IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

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Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Evaluation of different sources of entrepreneurial ideas and innovation...............................1
TASK 2............................................................................................................................................2
P2 Marketing gap for a specific entrepreneurial..........................................................................2
TASK 3............................................................................................................................................2
P3 Presentation of data for evaluating gap analyses of the entrepreneurial idea.........................2
P4 Interpretation of data for providing evidence of market potential.........................................2
TASK 4............................................................................................................................................2
P5 Application of SWOT framework to collate evidence to support an objective assessment of
idea...............................................................................................................................................2
P6 Evaluation the competitive and market environments where idea will be launched..............2
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................2
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INTRODUCTION
Entrepreneur is one who inculcates all opportunities, threat and personal capacity so as to
convert thoughts into business ideas. Report will focus on idea that is generated to start a new
venture and what all factors are required for the same (Rennemo and Ă…svoll, 2014). Through this
researcher will have an understanding about how to establish a new venture and where the idea
came from? Thus, through the concept of innovation and creativity a person will be able to
develop creative abilities. Furthermore, methods and framework to creating venture ideas so as
to get benefits is explained in this report. Other than this market techniques such as primary and
secondary are incorporated in order to evaluate whether the ideas will give maximum benefits or
not.
TASK 1
P1 Evaluation of different sources of entrepreneurial ideas and innovation
Innovation is a concept which assists companies in manufacturing new products that can
creates and values to its commodities. Thus, it can be said that innovation is done to satisfy the
needs and wants to people. This incorporates imaginative thoughts by considering all the
resources available to them (Drucker’s Seven Source of Opportunity, 2015). Creating an idea is
easy but converting them into business idea is a difficult task. There are various external and
internal sources through which an entrepreneur can generate opportunities and these are given by
Peter Drucker who was one of the renowned management consultants henceforth, some of these
are explained below:
Unexpected: Market place is considered as an area with full of opportunities from where
they can have an idea about current trends that is going on. It also helps an entrepreneur in
anticipating whether service will last for longer period of time or not. Therefore, world of
business is full of unexpected things because unexpected situation can give an individual higher
opportunities but it depends on situation (Guerrero, Urbano and Fayolle, 2016).
The Incongruity: This has explained about the nature of most of the companies that they
manufacture goods without knowing what targeted customers wants form their company. Thus,
in some context, company can face a downfall in their business operations.
Process Need: Under this, a new idea is generated but it fully concentrates on task
instead of situations. An entrepreneur manufactures goods according to the needs and demands
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of consumers. Therefore, for making any changes it is necessary to implement innovative ideas
and this leads to innovation.
Change in structure of industry and market: Structure that comes under this can stable
for many years but there are some reasons which they can apply for sustaining in market area for
longer period of time. Because of the change in technological department many companies faces
some or the other difficulty in processing their system (Miles, 2014). Thus, its prime duty of
managers to monitor what is going on in market area so that they can be aware of threats and
opportunities.
Demographics: Change in demographic can have an effect on business operations as
company has to analyse demands of customers at different places. This includes certain factor
like age, employment, education and many more.
Change in perception, meaning and mood: With the change in course of time people's
perception has changed. One of the main reasons of this is implementation of new technologies
which has made life easier. Henceforth, companies should look out the recent trends that are
going in the market.
New knowledge: Innovation of new technologies should not be overlooked if they want
to operate their business effectively. Thus, it is important that company adopts changes so that
they can have appropriate growth. Henceforth, new knowledge always help organisation in
improving supply chain so as to select suitable employees for their firm (Noyes and Linder,
2015).
Schumpeter’s sources of innovation
Product: Under this kind of approach company try to make new products. Therefore, for
an entrepreneur it is essential that they know market trends so that they can manufacture a
complete fresh and new commodities.
Process: For manufacturing goods there are always certain procedures which company
follow but by making some innovation company can produce innovative goods and
commodities.
New market: This is the prime role of companies that have adequate information about
the market area. This will help them in delivering goods in speculated time frame and its end
customers as well (Lima and et. al., 2015).
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New sources of inputs: New products always attract a large number of customers so
company should look for new suppliers who can provide them with raw materials at reasonable
cost.
New organisation: Now a day’s investors are more interested in investing their money in
new organisations or entrepreneurs. Reason behind this is that they implement new and
innovative ideas (Green, J. V., 2015).
TASK 2
P2 Marketing gap for a specific entrepreneurial
Now a day’s people are very much focusing on trying new and innovative things, “Print
your shirt” is going to start a new business in market area. Therefore, some of the factors are
explained below that company can incorporate for fulfilling market gap:
Identification of customers:
Targeting: “Print your shirt”, there are majorly focusing on the young people who want
to work with a motive of earning money. They can use their new ideas and thoughts in printing
various shirts. So, company is focusing on earning more and more money by printing creative
and innovative shirts.
Behavioural: According to the current market scenario, now a day’s people are
preferring to earn money and spending them on things that are not required. People are
celebrating many occasions and they are gifting valuable things to their beloved (Renko and et.
al., 2015). So, printed shirt is the best options as one can get these at reasonable rates.
Demographic: “Print your shirt” for establishing their business they are focussing on
major cities. So, they are identifying the places from where they can get better outcomes. Thus,
they are focussing on young people who want to do something innovative and creative in their
life.
Geographic: Environmental is the biggest concern for most of the organisation. Along
with this, it includes factors that includes climatic condition, population etc., thus, in terms of
“Print you Shirt” they are using ozone-friendly stuffs for printing process. Therefore, it is
attracting more and more customers towards their organisation (Jarvis, L. C., 2016).
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Understanding environment of industry: For having an effective growth company “Print your
shirt” is going through all the factors which can help them in gaining maximum benefits. It
includes external and internal element that can have an effect on business operations.
Porter's five force model:
Buyers power: In this competitive world, power is in the hands of customers so their
chance of buying products are higher. This is because they have a variety of options to buy
commodities from anywhere as a large number of substitutes are available in the market area. In
terms of “Print your shirt” they have launched their own mobile application from where
customers can purchase their commodities as per their needs and wants consumers (Wilson and
Martin, 2015).
Suppliers power: Under this category, suppliers don't have power as there are various
options available from where customers can buy commodities. But if company are providing
offers in their goods than in such case they can have some sort of power as their sales and
profitability will be increased.
Threat of substitution: Now a days as most of the companies are establishing their
business with innovative ideas so there is a possibility that existing organisation's works can get
hampers. So, it is important that company makes alteration in their business on a regular basis
according to the current market situations. Through this, an increase in the growth scan be seen
in business operations (George and et. al., 2016).
Competitive Rivalry: There are many organisations that are working in domestic and
international level in United Kingdom. For example: Airbnb is a renowned company and it is
holding a strong position at market area. Thus, in context with “Print your shirt”, Airbnb is
becoming one of the potential competitors. So, in order to grow it is important that “Print your
shirt” uses innovative ideas and thoughts as a result it will assist them in sustaining a better
position at market area.
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TASK 3
P3 Presentation of data for evaluating gap analyses of the entrepreneurial idea
Customers now a day’s people have become more selective in terms of buying
commodities and they are choosing what is best according to their standards. Custom printed
shirts are gaining maximum benefits. According to the survey around $1.2 billion people are
buying t-shirts online and an increase of 10% in business has been seen. The above graph gives
us an evaluation of how many people are buying printed t-shirts (Jaskiewicz, Combs and Rau,
2015). Therefore, it has been identified that around 49% people are buying through customised
shops whereas 48% through distributors and online. Thus, in case of “Print your Shirts”, they are
using mobile application and giving advertisement in various mediums so as to attract more and
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more people. Through online process company are getting maximum benefits as people prefer
this because it is cheap as compared to traditional form of marketing.
Gap analysis
For every organisation it is essential that they evaluate the places or position on which
they are standing in the market area. This will help them in illustrating gap between own
business model and real system. There are some factors that are incorporated by companies:
Gap between model and requirement: Company “Print your shirt” has implemented
various models but current model that they are using is through online process. For this,
company has launched a new application and they are giving all related information to its
customers through this. Therefore, those people who are interested for the same are purchasing
their products according to the needs. Furthermore, they are providing discount offers in certain
commodities as a result it is assisting them in improving their sales and profitability in
speculated time frame (Suddaby, Bruton, and Si, S, 2015). Customers who are purchasing their
products through online process are giving them high ratings but some drawbacks are also there
and to fix this they need a technical person who is best in doing this job or developing effective
applications.
Gap between requirements and real system: There are various resources that have been
optimised by 'Print your shirt' but real system is different from all others. For gaining popularity
company utilises a huge amount of funds for giving advertisements in television or any other
sources. Apart from this, firm is spending a large amount of money during their initial years on
discount coupons and vouchers. As a result an increase in sales has been seen. Therefore, in
context with “Print your Shirt” they don’t need people who are best in marketing so that they can
promote activities of the organisation rather than high technical experts. As according to the
current market scenario, new technologies and tools has made promoting system convenient and
easy (Karimi and et. al., 2016).
Gap between model and real system: Current model of companies and real model are not
same as they constitute a gap between them. In terms of “Print Your Shirt” as company is not so
big because of which they have limited financial resources. So, company are in a dilemma
whether they should invest in developing quality or in promotional activities. There is a
difference between “Print your shirt” and other rival companies as former is charging for the
services they are providing to its customers so as to increase their sales and revenues whereas
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other firms are not charging any penny for services they are providing. Therefore, to sustain in
the market for a longer period of time, company must make certain strategies which they can
incorporate for getting effective results (Kohlbacher, Herstatt and Levsen, 2015).
Management of “Print Your Shirt” had formulated questionnaire to examine gap analysis.
This technique helps them to get information from people about performance of company. For
this, 50 respondents are selected for analysis of quality of products and services.
Questionnaire
Name
Age
Address
Contact No.
Q1. Does Print Your Shirt provide good products?
A. Yes
B. No
Q2. Are you satisfied by services provide by “Print Your Shirt”?
A. Yes
B. No
Q3. Which is the best part of “Print Your Shirt”?
A. Slogans printed on shirts
B. Quality of printing
C. Customer service
Q4. Which is factor that affect sales of “Print Your Shirt”?
A. Presence of rival firms
B. Poor marketing tools
C. Ineffective customer services
Q5. Provide recommendation to Mobique Point by which its sales performance can
increased...
Theme1. “Print Your Shirt” provides you good products
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Q1. Does “Print Your Shirt” provide good
products?
Frequency
A. Yes 32
B. No 18
8
A. Yes B. No
0
5
10
15
20
25
30
35
Column D
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Theme 2. Customers are satisfied by services
Q2. Are you satisfied by services provide by
“Print Your Shirt”?
Frequency
A. Yes 34
B. No 14
9
A. Yes B. No
0
5
10
15
20
25
30
35
Column C
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Theme 3. Customers wants to buy mobile phones on easy payment mode
Q3. Which is the best part of “Print Your
Shirt”?
Frequency
A. Slogans printed on shirts 10
B. Quality of printing 25
C. Customer service 15
10
A. Slogans printed on shirts
B. Quality of printing
C. Customer service
0
5
10
15
20
25
Column C

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Theme 4.
Q4. Which is factor that affect sales of
“Print Your Shirt”?
Frequency
A. Presence of competitors 10
B. Poor marketing techniques 14
C. Ineffective customer services 16
11
A. Presence of competitors
B. Poor marketing techniques
C. Ineffective customer services
0
2
4
6
8
10
12
14
16
Column B
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P4 Interpretation of data for providing evidence of market potential
From the above data, the following result has been interpreted which is stated below:
Theme1:
Central tendency Total
Mean 25
Median 25
Mode 14
Standard Deviation 9.89
Interpretation: As per above data, it has been comprehended that average of customers
believe that Print your shirt gives good products to them. Maximum number of respondents think
that some changes in items are required for firm. While standard deviation also indicate that
there is no gap between perceptions of buyers.
Theme2:
Central tendency Total
Mean 24
Median 24
Mode 6
Standard Deviation 14.14
Interpretation: From the above data, it has been interpreted that average of customers
believe that Print your shirt provide good services to them. Maximum number of candidates
think that some changes in system are required by management. While standard deviation also
indicate that there is no gap between perceptions of customers.
Theme 3:
Central tendency Total
Mean 12.5
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Median 12.5
Mode 10
Standard Deviation 3.53
Interpretation: As per above data, it has been interpreted that quality of printing and
customer service are two best part of “Print Your Shirt” specified by average respondents. Large
people are happy with firm which determine that there is no gap between perception of buyers.
Theme 4:
Central tendency Total
Mean 13
Median 13
Mode 10
Standard Deviation 4.24
Interpretation: It has interpreted from statistical data that buyers think that presence of
competitors and poor marketing techniques both impact on sales performance of Print your shirt.
So, it needs to concern on both factors mostly.
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Textile industry in this current market scenario is becoming one of the popular industries for
business. This can be classified under two categories direct to fabric and direct to garment. As of
for now people prefer to wear printed t-shits, whatever season of the year. The above graph
shows about classification of textile industry and its printing market. According to the picture
maximum number of business is done by apparel i.e. 54 % and companies who are working in
this industry are getting maximum benefits in return. Therefore, in context with “Print your shirt”
they are concentrating on providing their services in by selling printing t-shirts as apparel and as
a result company has gained benefits in speculated time frame (Rennemo and Ă…svoll, 2014).
Furthermore, for attracting a large number of people they are focussing on advertisements form
the beginning as they want to establish themselves so that if they earn desired profit than they
can think of launching their business in some other place as well. Graph is related to number of
people who are buying their clothes in United Kingdom. People are enjoying buying clothes
form their stores as they are providing discounts to its valuable customers. Company is giving
privilege and paying attention to customers those who are from their homeland. As a result firm
is earning a large amount of revenues in a limited period of time. For example: if manufacturing
cost is around 2343 pounds per units in which 12 shirts are printed and if they are selling it in
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reasonable price due to the high sale they will get a profit margin of 1% which is decent
according to the current market scenario.
TASK 4
P5 Application of SWOT framework to collate evidence to support an objective assessment of
idea
Tool called SWOT analysis is utilise by business enterprises in order to identify their strengths,
weakness, opportunities and threats. One of the main benefit of this analysis is that it help
manager in develop effective policies and at the same time help in utilise the opportunities exist
in market. “Print your shirt” is not a creative idea but this will provide various benefits to firm in
long run. One of the main reasons why it is very essential for business organisation to use this
tool is that it helps in identify the strengths which can be use by firm to get a competitive benefit
in marketplace (Guerrero, Urbano and Fayolle, 2016). Further this also provides various ways
through which entity can minimise the negative impact of its weakness. Overall this help
manager in taking right decision. SWOT analysis of entrepreneurial idea is given below under
these following points:
Strength:
ď‚· One of the major strength of this idea is that it offers various long term benefits of
business organisation which support entity in sustain in market for long run. This idea is
not a bubble which increases its effectiveness. Competition in market is high but by
providing featured products entity can get and maintain a strong position in market.ď‚· By offer featured products at lower prices entity can survive in market and at the same
time can attract more number of customers towards its product. In this way, individuals
can buy attractive t shirts in minimum prices.
Weakness:
ď‚· Political instability in United Kingdom and so many fluctuations in economic growth due
to Brexit decrease the success chances of entrepreneurial idea. Due to this government
also restrict the entry of other firms in nations in order to maintain the economic growth
(Miles, 2014).
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ď‚· A huge and complicated legal process affects the success of idea in negative manner.
Further in legal rules, laws and regulations all make it difficult for firm to work
effectively.
Opportunities:
ď‚· Due to changes take place in technology in fast speed, it is very essential for business
enterprise to use updated technology. So with help of new technology ............. firm can
manufacture t shirt with better and effective prints with minimum cost. With this
enterprise can attract more number of customers towards its product and can generate
more number of profits. With help of technology, company can ensure production of
large number of t shirt in minimum amount of time and cost. This will bring efficiency
and provide an opportunity to entity to retain customers for a long time period.ď‚· With help of its attractive prints entity can enter and get a competitive position in market
easily. As the sector in which entity is operating has a high potential of growth so
company can generate more number of profits and can offer value to its customers
(Santos and et. al., 2015).
Threats:
ď‚· Huge competition in the industry in which entity operates is serving as a biggest
threat for entity.
ď‚· Changing needs and requirements of customers on continuous basis is another threat
for entity.
All this is the SWOT analysis of ............ firm. By use its strengths entity can capture a
large market share in market and at the same time can generate more number of profits. It
is very essential for entity to use its strength in an effective manner so negative impact of
company’s weakness on its business performance can be minimised. Further SWOT
analysis is the one that make the manager aware about the opportunities exist in market
and by utilise the same company can increase the number of its customers. In this way,
company can deal with all the threats (Noyes and Linder, 2015).
P6 Evaluation the competitive and market environments where idea will be launched
There are many businesses that are present in the market area nut what makes a person
entrepreneur different from other is that they implement new and innovative strategies so as to
attract a large number of customers. Thus, entrepreneur are said to be one who love to run their
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business solely with the help of some of the employees who are capable of doing such kind of
difficulties. Therefore, in terms of “Print your shirt” they are considering all the factors that are
available to them and through which they can execute their plan of action. Along with this,
entrepreneur is determining the idea whether it will give them maximum benefits or not or if any
new product will sustain in the market or not (Lima and et. al., 2015). Following are the points
through which company can follow for getting desired results:
Company: In an organisation there are various departments that work together for
attaining a common goal in given period of time. If departments doesn’t work according to the
roles and responsibilities assigned to them than company may face some problems. For example:
if finance sector is not performing the task effectively than firm may face issue in generating
adequate amount of funds which they can apply for future proceedings. Therefore, “Print your
shirt” has maintained a better relation with its entire department and as a result all the work is
done by them right on time.
Customer: People’s choices and preferences are changing, instead of buying costly items
they are going towards things that are reasonable at cost. As there are various options that are
present in market area and people have choices to select products according to their needs and
wants. So, influencing customers is not an easy task therefore, through their mobile application
they are providing discounts and offer coupons in order to attract a large number of consumers.
Competitor: In this large marketing environment there are lot many companies who are
working in same field so, according to this number of competitors are present in the market area.
Company is lucky as they have implemented some innovative ideas in their business plans like
printed t-shirts they are selling changes its colour after every wash (Green, J. V., 2015). Because
of which common people doesn’t have to buy clothes for every single occasion they can wash
them and a new colour of T-shirt will be there. Therefore, through this innovative idea company
is giving something new and impressive to its customers as a result they are showing their strong
presence in market area.
Porter's five force analysis: This is model which was propounded by Michael E. Porter
define competition analysis of organisation. It is framework through which business position and
strength are examined by management of “Print your shirt”. These are five forces which helps
them to have knowledge about competitive intensity and market attractiveness is stated below:
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ď‚· Threat of new entrants: It is tactic which state that new entrants are attracted towards
market which is making profit in good amount. For this, it is government responsibility to
frame barriers to restrict entry of new firms. Thus, protect existing companies sales and
revenue from lowering down.ď‚· Bargaining power of buyers: This is another aspect which define that each and every
organisation require to provide products and services in according to demand of people.
Customers are in power when there are large number of firms, so they can bargain from
executive to sell items at lower rates. But, if enterprise are less than buyers can't bargain
and have to purchase at defined prices.ď‚· Threat of substitute product or service: It is situation when close substitute item are
present in market. For example, tea and coffee are products which are substitute to each
other. Both sales and revenue are affected with each other, so management require to
create appropriate position in market for attracting customers to purchase product than
other brand.ď‚· Bargaining power of suppliers: This tactic define that suppliers can drive prices if there
are in less number and firms in large amount. For this, management of “Print your shirt”
require to maintain connection with supplier. This help them to save firm to get products
and material in according to demands of people. Along this, they even can lower down
rates by taking things in bundle.
ď‚· Rivalry among existing competitors: It is aspect which state that large number of rival
firms exist in market. It is necessary that executive of “Print your shirt”provide
differentiated items and services to attract large number of people. Thus, enhance sales
volume and profitability to maintain their market position and and image.
Collaborators – Making new connection is essential in this industry because it is
completely dependent on the more number of advertisements on the mobile application which
company provide to customers (Renko and et. al., 2015).
CONCLUSION
From the above report it can be concluded that, entrepreneurs to be success in life must
develop an innovative ideas as it will help them in grabbing attention of large number of people.
For this, a variety of strategies they are implementing life porter’s fie force model, Peter
Drucker’s opportunity sources etc. Along with this, latest tools and technologies have also been
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incorporated as per the situation and circumstances. Therefore, an entrepreneur must know the
path through which they can generate a large amount of funds by providing best quality products.
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REFERENCES
Books and Journals
Kohlbacher, F., Herstatt, C. and Levsen, N., 2015. Golden opportunities for silver innovation:
how demographic changes give rise to entrepreneurial opportunities to meet the needs of
older people. Technovation, 39, pp.73-82.
Karimi, S. and et. al., 2016. Fostering students’ competence in identifying business
opportunities in entrepreneurship education. Innovations in education and teaching
international, 53(2), pp.215-229.
Suddaby, R., Bruton, G. D. and Si, S. X., 2015. Entrepreneurship through a qualitative lens:
Insights on the construction and/or discovery of entrepreneurial opportunity. Journal of
Business venturing, 30(1), pp.1-10.
Jaskiewicz, P., Combs, J. G. and Rau, S. B., 2015. Entrepreneurial legacy: Toward a theory of
how some family firms nurture transgenerational entrepreneurship. Journal of Business
Venturing, 30(1), pp.29-49.
Renko, M. and et. al., 2015. Understanding and measuring entrepreneurial leadership style.
Journal of Small Business Management, 53(1), pp.54-74.
George, N. M. and et. al., 2016. A systematic literature review of entrepreneurial opportunity
recognition: insights on influencing factors. International Entrepreneurship and
Management Journal, 12(2), pp.309-350.
Wilson, N. and Martin, L., 2015. Entrepreneurial opportunities for all? Entrepreneurial capability
and the Capabilities Approach. The International Journal of Entrepreneurship and
Innovation, 16(3), pp.159-169.
Wood, M. S. and McKelvie, A., 2015. Opportunity evaluation as future focused cognition:
Identifying conceptual themes and empirical trends. International Journal of
Management Reviews, 17(2), pp.256-277.
Jarvis, L. C., 2016. Identification, intentions and entrepreneurial opportunities: an integrative
process model. International Journal of Entrepreneurial Behavior & Research, 22(2),
pp.182-198.
Green, J. V., 2015. The opportunity analysis canvas. Venture Artisans.
Lima, E. and et. al., 2015. Opportunities to improve entrepreneurship education: Contributions
considering Brazilian challenges. Journal of Small Business Management, 53(4),
pp.1033-1051.
Noyes, E. and Linder, B., 2015. Developing undergraduate entrepreneurial capacity for social
venture creation. Journal of Entrepreneurship education, 18(2), p.113.
Santos, S. C. and et. al., 2015. Prototype models of opportunity recognition and the decision to
launch a new venture: identifying the basic dimensions. International Journal of
Entrepreneurial Behavior & Research, 21(4), pp.510-538.
Miles, D. A., 2014. Developing a taxonomy for identifying entrepreneurial risk: An empirical
study on entrepreneurial risk patterns of business enterprises. Journal of Developmental
Entrepreneurship, 19(01), p.1450002.
Guerrero, M., Urbano, D. and Fayolle, A., 2016. Entrepreneurial activity and regional
competitiveness: Evidence from European entrepreneurial universities. The Journal of
Technology Transfer, 41(1), pp.105-131.
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