Entrepreneurship Theory and Practice: MD4044 Report on Opportunity

This report delves into the core concepts of entrepreneurship, examining the creation and discovery contexts of entrepreneurial opportunities. It evaluates the differences and similarities between these two contexts, providing examples to illustrate key points. The report also explores the role of firm-level capabilities, such as marketing orientation, collaborations, and technological advancements, in effectively exploiting opportunities. Furthermore, it analyzes the five dimensions of entrepreneurial orientation, including autonomy, competitive aggressiveness, innovativeness, proactiveness, and risk-taking, reflecting on the author's personal attitudes and behaviors in relation to these dimensions, with examples of how they are applied in a work setting. The report provides a comprehensive analysis of entrepreneurship theory.

Entrepreneurship
theory

Contents
Contents
INTRODUCTION...........................................................................................................................1
QUESTION 1 A..............................................................................................................................1
Evaluate the Creation and Discovery contexts of entrepreneurial opportunities........................1
QUESTION 2..................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurship can broadly be defined as the creation or extraction of value. With this
definition, entrepreneurship is viewed as change, which may include other values than simply
economic ones. Entrepreneurs are the persons who are been engaged in looking for the
opportunity. They are also been involved in bringing out the most innovative and creative ideas
so that their business can grow and they can achieve goals and objectives. Present report will lay
emphasis on Creation and Discovery contexts of entrepreneurial opportunities. It will also reflect
on the extent to which the attitudes and behaviors are consistent
QUESTION 1 A
Evaluate the Creation and Discovery contexts of entrepreneurial opportunities.
Entrepreneurial opportunities: This can be defined as that situation where the
entrepreneur can be involved in selling the products and services at higher price than the cost of
the product. They seek opportunity where more profit can be made. The opportunities explored
by them can help entrepreneur in enhancing their profit as well as revenue. It has also been
analyzed that entrepreneurs must be engaged in taking opportunities by analyzing risk factors.
This will help them in gaining professional success. This aspect will assist their business in
growing.
Opportunity creation and opportunity discovery: According to the opportunity creation
theory of entrepreneurship, it has been analyzed that opportunity can be created by seeking the
market perception along with taking into entrepreneurs perception. In this entrepreneurs are been
involved in creating opportunity in new as well as existing market (Emami, 2017). This will
assist them in creating ideas so that they can disrupt the existing market. On the other hand
opportunity discovery theory of entrepreneurship basically means that discovered opportunities
already is been placed at existing market. The entrepreneurs do not need to create these types of
opportunities as it has already been discovered.
Similarities between opportunity creation and opportunity discovery: There are various
similarities between opportunity creation as well as opportunity discovery. It has been analyzed
from the research that both opportunity and discovery are been created from the imperfections of
the market. Entrepreneurs can only create and discover opportunity if there are many scope in
market in which they are dealing. In this the example of Swiggy and Zomato can be taken they
have discovered the opportunity from an imperfect market who lacks delivery of services. It has
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also been analyzed that there are more other similarities like both creation and exploitation has to
go through the exploitation process. It means that both the type of opportunities are been
analyzed by entrepreneurs in order to seek whether it is beneficial or not. They do not work upon
the opportunities if entrepreneurs find out that opportunity is not up to the mark.
The author has also described that creation and discovery of opportunity relies upon the
undefined future. They are also been explored in knowing about the potential risk related to
market failure (Tseng, Tseng and Tseng, 2017). The other type of similarities that can be
explored is that creation and discovery may have similar dimensions and drivers when
developing the opportunity business model etc. It has been analyzed that development of
opportunity which has been created or even discovered is based on similar aspects such as
leadership, human, physical and financial resources. All these factors and elements are really
necessary for the growth of idea. This is can also be taken as the similarity between opportunities
created as well as discover. It has also been analyses that opportunities can only be created and
discovered as well in imperfect market. Entrepreneur’s needs to be engaged in analyzing the risk
related to it so that they can grow.
Differences between opportunity creation and discovery: There are also some differences
between the creation of opportunity and discovery of the same. It includes the following:
Subjective (creation) versus objective (discovery); It has been analyzed that there has
been an ongoing debate on whether the entrepreneurship opportunities are subjective or objective
in nature. It has been analyzed that entrepreneurship opportunities is that situation which requires
raw materials, goods, resources and organizing methods to be combine in one idea and they are
involved in selling those ideas at higher price. These opportunities are treated as objective
phenomena, though their existence is not known by all agents. On the other hand it has been
analyzed that opportunities are been created in order to earn profit in future. These assumptions
are basically subjective in nature (Di Muro and Turner, 2018). These can be taken as the
difference between subjective creation and objective creation.
Endogenous (creation) versus exogenous (discovery): It has been analyzed from the
research that opportunity which are been created can be taken by exogenous shocks. These are
been created while exploring the opportunities in an imperfect market. It has also been analyzed
on the other hand that opportunity discovered are being endogenous in nature. In this
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detachments are been made through existing market. They discover the opportunities in existing
market place situation.
Depends on the actions and reactions of entrepreneurs (creation) versus
independent of the actions of entrepreneurs (discovery): It has been analyzed that opportunity
is been created by the action and reaction of an entrepreneur in different type of situation that has
been faced by them. In this they are expected to act positively in unwanted circumstances so that
opportunities can be created by them. On the other hand it has been analyses that opportunities
are been discovered by depending on an individual’s actions. They must possess correct skills
and attributes so that success can be achieved by them.
Uncertainty (creation) versus risk (discovery): It has been analyzed from the research that
opportunities are been created in an uncertain and unwanted situation. It means that when an
entrepreneur is stuck in a situation he tends to think and bring out creative solution to the
problem. On the other hand it has been analyzed that opportunity is been discovered by taking
risk. All entrepreneurs must be involved in taking risk so that they can grow and achieve their
goals and objectives.
Firm level capabilities: In order to establish the business, it is necessary for the entrepreneurs to
have firm level capabilities. It includes the following:
Marketing/market orientation: In these entrepreneurs must be involved in analyzing the
needs and demands of consumers so that they can establish their market. They also need to be
involved in doing market research so that customers can be satisfied. Entrepreneurs also must be
involved in exploring the opportunities (Long Xia and Hu, 2017). They also need to be involved
in enhancing the awareness if products and services which has been provided by them. This will
assist them in setting market.
Collaborations/alliance formation: It has been analyzed that entrepreneur can enhance their
capabilities of firm by engaging in doing collaborative working. This will assist them in making
use of resources of their alliances. This will assist entrepreneurs in saving the cost and making
firm more cost effective.
Technological: Entrepreneurs also must be engaged in making use of advancing
technologies so that the firm capabilities can be increased. This will also help them in providing
high quality of services to the customers. This will also help them in setting up their market
share. They will also help in increasing profitability as well as revenue.
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Explanation of opportunity exploitation: It refers to that activity in order to gain economic
returns from the discovery of a potential entrepreneurial opportunity. Decisions are been taken
by entrepreneurs by exploring the opportunities. It includes the following:
Advertising: It means that entrepreneur must be involved in promoting their goods and
services through advertising. It will also help them in increasing the revenue. They will also be
able to increase the capabilities of their firm through better promotional methods. It will also
help entrepreneurs in making consumers aware of products and services.
Customer engagement; It has also been analyzed that entrepreneurs need to be involved in
providing high quality of products and services to consumers. This will help them in engaging
consumers. It will also help them in increasing their profit as well as revenue. It will also help
them in increasing consumer satisfaction (George and et.al., 2016).
Networking: In this entrepreneur must be involved in enhancing their business network
while working and taking experience from the big tycoons.
QUESTION 2
Entrepreneurial orientation (EO) is the process in which people craft strategies to exploit
opportunities. This can be considered as decision making process of company to gain success in
market, this process works as entrepreneurially. Five dimensions of EO are explained as below:
Autonomy
This can be defined as ability of person to develop a new idea and make strategies to complete
that idea. Companies that are offering high autonomy to their staff get immediate ideas that give
opportunity to business. If group of people, team work together and have autonomy then it would
help in gaining success in fining new innovative ideas for development of company (Wang,
Thornhill and De Castro, 2017).
Competitive aggressiveness
This is the ability of person to challenge competitors rather than avoiding them. This can include
cutting of price or spend more in marketing to gain competitive advantage. If person has ability
to fight with competitors rather than thinking that individual is not able to fight with such strong
brand then firm can gain success (Lumpkin and Dess, 1996).
Innovativeness
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This is tendency of pursuing creativity. Radical innovations need great skills in person. This
innovativeness can help in finding new ideas to modify products or develop new one. Innovative
efforts always help in enhancing performance of company.
Proactiveness
This is the tendency that show the working style of person to work for future needs. These
companies that have proactiveness behaviour or tendency can enter into new market by taking
risk but this initial efforts can bring success and develop new opportunities for them
(Entrepreneurial Orientation, 2020).
Risk taking
This is another dimension of EO that reflects capability of firm to take risk. More risk is
associated with more opportunities. Companies need to take risk to gain success in such highly
competitive environment.
When it comes to my behaviour and attitude then i believe that to great extent I have
proactiveness personality. I always think to meet future needs hence make efforts in current
situation to meet long term goal. I react less on unfold event, i always see future demand and
accordingly make strategies so that i can show myself as entrepreneur.
I have risk taking capability to great extent. This is part of my personality as I believe that if I
take more risk either I will learn things or I will gain success. I am chronic risk taker who likes to
experiment with new ideas and many times I got success with this Idea. Right now I am working
in organisation where my team members were facing issue in handling heavy workload. I
changed the entire process and reschedule their tasks. This was great risk because if I failed to
meet production requirement then I could lose my job as well but this risk of mine has given
amazed results to me as i become able to finish task on time and I have also raised production
capability as well.
I have autonomy personality, I like to give freedom to all members to share their views and take
their own decision. This skill of mine always supports me in finding new ideas to improve
workplace efficiency. I was working as production manager in big company; I saw that people
are facing trouble in dealing with cross culture people. This was the great issue because due to
which confusion was taking place. But I involved all my team members and ask their suggestion
to deal with cross culture issue. Then i found many creative ideas that has given me amazed
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results. Now All employees are using sign language and they are interacting with each other
properly without any issue.
CONCLUSION
From the above study it has been summarized that entrepreneurial opportunities can be
created and also can be discovered. It has been analyzed from the report that creation and
discovery of opportunity relies upon the undefined future. They are also been explored in
knowing about the potential risk related to market failure. It has also been analyzed that
entrepreneurs must be involved in taking risk by this way this will assist them in discovering the
opportunity. It has also been analyzed that there are various similarities between opportunity
creation and discovery. It has also been analyzed that there are also some differences between
them.
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REFERENCES
Books and Journals
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.
Long, D., Xia, Z.Y. and Hu, W.B., 2017. How does entrepreneurial opportunity affect the
decision-making process of effectuation?. Kybernetes.
Di Muro, P. and Turner, J.R., 2018. Entrepreneurial opportunity pursuit through business model
transformation: a project perspective. International Journal of Project Management, 36(7),
pp.968-979.
Tseng, S., Tseng, C. and Tseng, C.C., 2017. Is Sociocultural Value Important to Entrepreneurial
Opportunity and Economic Growth?. In Academy of Management Proceedings (Vol. 2017,
No. 1, p. 17476). Briarcliff Manor, NY 10510: Academy of Management.
Emami, A., 2017. Gender risk preference in entrepreneurial opportunity: evidence from
Iran. International Journal of Entrepreneurship and Small Business, 30(2), pp.147-169.
Lumpkin, G.T. and Dess, G.G., 1996. Clarifying the entrepreneurial orientation construct and
linking it to performance. Academy of management Review, 21(1), pp.135-172.Wang, T.,
Thornhill, S., & De Castro, J. O. (2017). Entrepreneurial orientation, legitimation, and new
venture performance. Strategic Entrepreneurship Journal, 11(4), 373-392.
Online
Entrepreneurial Orientation. 2020. [Online]. Available through <
https://opentextbc.ca/strategicmanagement/chapter/entrepreneurial-orientation/ >
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