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Perception and pursuit of entrepreneurial opportunities: an evolutionary economics perspective

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  • Guido Buenstorf

Abstract

Considerable debate surrounds the concept of entrepreneurial opportunities. This paper contributes to the discussion by bringing in concepts and findings from evolutionary economics. It makes three points. First, adopting an evolutionary market process perspective sheds new light on the nature of opportunities. Second, not only the pursuit of entrepreneurial opportunities, but also the further development of the entrepreneurial venture is dependent on subjective opportunity perception and interpretation. Third, findings on industry evolution help understand how opportunities, as well as agents' ability and willingness to pursue them, change over time. Effects of pre-entry experience on opportunity recognition and firm performance are also discussed.

Suggested Citation

  • Guido Buenstorf, 2006. "Perception and pursuit of entrepreneurial opportunities: an evolutionary economics perspective," Papers on Economics and Evolution 2006-01, Philipps University Marburg, Department of Geography.
    • Handle: RePEc:esi:evopap:2006-01
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    References listed on IDEAS

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    1. Guido Buenstorf, "undated". "Designing Clunkers: Demand-Side Innovation and the Early History of the Mountain Bike," Papers on Economics and Evolution 2001-05, Philipps University Marburg, Department of Geography.
    2. Guido Buenstorf & Steven Klepper, 2009. "Heritage and Agglomeration: The Akron Tyre Cluster Revisited," Economic Journal, Royal Economic Society, vol. 119(537), pages 705-733, April.
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    4. Guido Buenstorf, 2007. "Evolution on the Shoulders of Giants: Entrepreneurship and Firm Survival in the German Laser Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 30(3), pages 179-202, May.
    5. Witt, Ulrich, 1998. "Imagination and leadership - The neglected dimension of an evolutionary theory of the firm," Journal of Economic Behavior & Organization, Elsevier, vol. 35(2), pages 161-177, April.
    6. Israel M. Kirzner, 1997. "Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 60-85, March.
    7. Guido Buenstorf & Johann Peter Murmann, 2005. "Ernst Abbe's scientific management: theoretical insights from a nineteenth-century dynamic capabilities approach," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(4), pages 543-578, August.
    8. Ulrich Witt, 1999. "Do Entrepreneurs Need Firms? A Contribution to a Missing Chapter in Austrian Economics," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 11(1), pages 99-109, January.
    9. Witt, Ulrich, 2000. "Changing Cognitive Frames--Changing Organizational Forms: An Entrepreneurial Theory of Organizational Development," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(4), pages 733-755, December.
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    17. Ulrich Witt, 1994. "Evolutionary economics," Chapters, in: Peter J. Boettke (ed.), The Elgar Companion to Austrian Economics, chapter 78, Edward Elgar Publishing.
    18. Scott Shane, 2000. "Prior Knowledge and the Discovery of Entrepreneurial Opportunities," Organization Science, INFORMS, vol. 11(4), pages 448-469, August.
    19. Margaret A. Peteraf & Jay B. Barney, 2003. "Unraveling the resource-based tangle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 309-323.
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    21. Robert A. Burgelman, 1983. "Corporate Entrepreneurship and Strategic Management: Insights from a Process Study," Management Science, INFORMS, vol. 29(12), pages 1349-1364, December.
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    Cited by:

    1. Peter Klein & Per Bylund, 2014. "The place of Austrian economics in contemporary entrepreneurship research," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 27(3), pages 259-279, September.
    2. Isabel Salavisa & Pedro Videira & Filipa Santos, 2009. "Entrepreneurship and social networks in IT sectors: the case of the software industry in Portugal," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 15-39.

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    More about this item

    Keywords

    opportunities; market process; business conceptions; industry evolution; spin-offs;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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