OPPORTUNITY

RECOGNITION PROCESS
 According to Cambridge Dictionary, an opportunity is a
situation or occasion that makes it possible to do
something that you want to do.

 From the business perspective, an opportunity is an

exploitable set of circumstances with uncertain outcome
requiring a commitment of resources and involving exposure
the risk.
 According to Hills, Shrader , & Lumpkin (n,d.) are summarized as follows:
 Precondition – a preparatory stage, during which the individuals assesses his
knowledge of the market. His prior knowledge of the market is extensively shaped by
his educational background. Aside from formal training, personal experiences
including travel and previous employment can also provide the individual with
valuable information on the market that he wants to enter.

5 STAGES OF OPPORTUNITY
RECOGNITION
 Conception - this is the gestation phase, during which
entrepreneurial intentions and ideas are generated, using logic,
creative thinking , or both.
 Visioning – this third stage provides the individual a hunch that
can serve as an opportunity for business. This comes about as
ideas become clearer and how the logic of connections leads the
individual to a new idea
 Assessment – This stage involves the evaluation on whether
the idea can be realized or not. Aside from the resources
needed and technology to be used, the paramount question
to the individual is whether the idea can really be actualized.
 Realization – the last phase suggests the production of a
prototype. This is the stage when the mental construct or
idea is now felt in its tangible or physical form.
A framework on recognizing opportunities crafted by Hisrich, Peters, &
Shepherd (2010), provided some of the key factors in opportunity recognition.
According to them a successful recognition of business opportunities is
influenced by three major factors:
a) Market Awareness
b) Entrepreneurial Readiness
c) Connections

FACTORS IN OPPORTUNITY
RECOGNITION
  (Prior knowledge of market) refers to personal exposure
to market and its components including customers and
suppliers Information on the market, in turn, can be
acquired from formal training. Tools on market analysis
are usually learned from business training programs and
business education. Environmental scanning, for
example , can provide information about the market,
customer needs, and emerging product lines.

MARKET AWARENESS
 Experience can be a major source of understanding the market. Your
dissatisfaction with a particular product can be part of your personal
experience that can push you to improve on the product. In the same manner,
your work experience can also provide a wealth of knowledge about the
market and its prospects.
 (Entrepreneurial alertness), on the other hand, refers to a variety of
features of an individual to start a business venture. It covers all types
of resources that the individual possesses including financial , physical
and human resources. Aside from the resources that the individual can
potentially commit in the implementation of his potential enterprise,
readiness also includes the ability of the individual to take risks and
manage uncertainties once the enterprise is operational. Entrepreneurial
readiness not only has a direct impact on opportunity recognition but it
also has a direct impact on opportunity recognition but it also has an
indirect effect as it interacts with previous knowledge on the market.

ENTREPRENEURIAL READINESS
  (Networks), business opportunity recognition is heightened when the
individual has a diversity of networks. Families and friends as well as
business associates can bring about opportunities that we can pursue.

CONNECTIONS