Entrepreneurship - Opportunity Recognition

Topics: Entrepreneurship, Entrepreneur, Joseph Schumpeter Pages: 8 (2194 words) Published: May 19, 2013
Curtin University of Technology
Metropolitan Campus
Sem 2, 2012

Entrepreneurship 300
Literature Review Component 1:
Opportunity Recognition

Student Name: Mohd Fikri Bin Kamarudin
Student ID: 15146339
Tutor's Name : Ms Nava Krishnan
Day & Tutorial Time : Tuesday(12-4pm)
Date Submitted : 14th August 2012
1.0 Introduction
Entrepreneur and Company Background – Frezawa Engineering Sdn Bhd

The entrepreneur that will be interview for this project is Mr Kurian Zachariah, founder of Frezawa Engineering Sdn Bhd; one of the major engineering firms in Malaysia which specializes in Airfield (Airport) Ground Lighting System and Power Supply System. Mr Kurian was born in December, 13th 1961 and had graduated in Diploma in Electrical and Electronic Engineering in the year 1983. Mr Kurian has been in the engineering industry for almost 30 years, in which he has worked under different companies during the first 17 years. Mr Kurian had begun his career as entrepreneur in the year 2000, where he established his own engineering firm alongside with his 2 partners. Mr Kurian took full advantage of his experience working under different engineering firms for 17 years, and applied engineering and management skills that he had learnt to start his own business. Currently, Mr Kurian Zachariah is the Managing Director of Frezawa Engineering Sdn Bhd. This literature review concentrates on the topic of opportunity recognition for entrepreneurs. In order to start-up business, entrepreneurs have to identify the idea or core value of the business. Generally, entrepreneurs would go for opportunity or business which would promise greater success in the market.

2.0 Literature Review
Opportunity Recognition

A stream of research shows that opportunity recognition is highly associated with entrepreneur’s alertness in the market, prior knowledge on a particular field, mental stimulation, social capital, and behavioral and cognitive skills. According to research done by Gregoire, Barr and Shepherd (2010, 29), cognitive skills are crucial for entrepreneurs to identify opportunities. Entrepreneurs used their prior knowledge and creativity skills in order to search for “open window” in the market. D’Souza, Rodney, and Schenkel (2011, 46) stated that greater prior knowledge breadth provide entrepreneurs with higher chances of identifying innovative opportunities. Research shows that 46% of the studied entrepreneurs agreed with crucial roles of knowledge in identifying the best opportunity. With knowledge, entrepreneurs know how and where to look for opportunities. Butler, Doktor and Lins (2012, 23)viewed alertness and social interaction as the major driving forces for entrepreneurs. St-Jean and Tremblay (2011, 42) stated in his research that entrepreneurs are alert to the environmental factors such as economy, political and social to create opportunities. Moreover, it is observed from the literature review that entrepreneurs applied different types of strategies and techniques throughout the opportunity recognition process. Studies done by Butler, Doktor and Lins (2012, 32) shows that entrepreneurs involved the technique of active searching and experiential learning throughout the recognition process. In other hand, Gregoire, Barr and Shepherd (2010, 63)concluded in his research that entrepreneur opportunities occurred based on timing and luck; thus waited for opportunities to occur instead of taking crucial steps searching for opportunities. Chitakornkijsil (2011, 53) noted that different individuals discovered different opportunities, according to their particular way of gathering and processing information.

Based on the study done by Butler, Doktor and Lins (2012, 98), entrepreneurs have different sources of opportunities. First, Butler, Doktor and Lins viewed that entrepreneurs focused on innovation as a source of opportunity. Entrepreneurs focused on innovation of technology to create a “door” to the market. D’Souza, Rodney, and...
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