Individual-opportunity nexus theory
There is a long standing debate about the origins of entrepreneurial opportunities. There is a divide between scholars that think entrepreneurs create opportunities, and those that believe they merely discover them.
Scott Shane and Jonathan Eckhardt (2003) make the case that opportunities are absolutely found and discovered, not made or created. They even argue that the foundation of the field of entrepreneurship relies upon the objectiveness of opportunities and would otherwise be on shaky ground.
It is the constant pivoting of the entrepreneur that lands him or her on an opportunity that exists out there, objectively, though this can often appear to be a creative activity. Therefore, first, opportunities exist, then individuals discover the opportunities, then entrepreneurs exploit the opportunities.
The theory highlights that both enterprising individuals and entrepreneurial opportunities are needed for entrepreneurial ventures to develop, hence the nexus occurring at two different levels of analysis.
The theory makes no prediction about the role of effort by entrepreneurs. It also assumes that different entrepreneurs might be involved in opportunity recognition and exploitation (i.e., specialization). The theory acknowledges a role for creativity, but only in the process of opportunity exploitation. Finally, success in entrepreneurship is subjective and may be informed by motivations other than profit.
Casson, M. (2005). The individual–opportunity nexus: a review of Scott Shane: a general theory of entrepreneurship. Small Business Economics, 24(5), 423-430.
Eckhardt, J. T., & Shane, S. (2010). An update to the individual-opportunity nexus. In Handbook of entrepreneurship research (pp. 47-76). Springer New York.
Shane, S., & Eckhardt, J. (2003). The individual-opportunity nexus. In Handbook of entrepreneurship research (pp. 161-191). Springer US.
Scott Shane and Jonathan Eckhardt (2003) make the case that opportunities are absolutely found and discovered, not made or created. They even argue that the foundation of the field of entrepreneurship relies upon the objectiveness of opportunities and would otherwise be on shaky ground.
It is the constant pivoting of the entrepreneur that lands him or her on an opportunity that exists out there, objectively, though this can often appear to be a creative activity. Therefore, first, opportunities exist, then individuals discover the opportunities, then entrepreneurs exploit the opportunities.
The theory highlights that both enterprising individuals and entrepreneurial opportunities are needed for entrepreneurial ventures to develop, hence the nexus occurring at two different levels of analysis.
The theory makes no prediction about the role of effort by entrepreneurs. It also assumes that different entrepreneurs might be involved in opportunity recognition and exploitation (i.e., specialization). The theory acknowledges a role for creativity, but only in the process of opportunity exploitation. Finally, success in entrepreneurship is subjective and may be informed by motivations other than profit.
Sources:
Casson, M. (2005). The individual–opportunity nexus: a review of Scott Shane: a general theory of entrepreneurship. Small Business Economics, 24(5), 423-430.
Eckhardt, J. T., & Shane, S. (2010). An update to the individual-opportunity nexus. In Handbook of entrepreneurship research (pp. 47-76). Springer New York.
Shane, S., & Eckhardt, J. (2003). The individual-opportunity nexus. In Handbook of entrepreneurship research (pp. 161-191). Springer US.
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