The formation of opportunity beliefs among university entrepreneurs: an empirical study of research- and non-research-driven venture ideas

Opportunity beliefs, in other words the beliefs of a potential entrepreneur about the feasibility and market fit of a venture idea, are considered as a key driver of entrepreneurial action. The entrepreneur’s existing knowledge plays an important role in reducing the uncertainty surrounding a venture idea, thereby contributing to the formation of strong opportunity beliefs. We develop and test a model which incorporates different types of knowledge that can be considered relevant for the formation of opportunity beliefs. Following a screening of 5955 students at 12 German universities, we identify a sample of 292 aspiring entrepreneurs who evaluate their own venture ideas. We analyze the determinants of opportunity beliefs and entrepreneurial action using structural equation modeling. Empirical evidence suggests that different types of knowledge are relevant depending on the venture idea pursued. Research-driven venture ideas benefit from industry experience, whereas general human capital is important for other types of ideas. We also find divergent relationships between opportunity beliefs and entrepreneurial action. The results contribute to our understanding of how opportunity beliefs are formed and how they relate to entrepreneurial action under different conditions of uncertainty. Our study has practical implications for entrepreneurship education and the support of university start-ups.