Examine the Three Theoretical Models of Opportunity Recognition. Evaluate the Impact of Human and Social Capital on the Opportunity Recognition Process.

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Opportunity recognition is the process of discovering a new business opportunity. Identifying and selecting the right opportunities for a business are among the most important abilities of a successful entrepreneur. (al., 1985) What most literature in entrepreneurship calls ‘‘opportunity recognition’’ appears to include three distinct processes: (1) Sensing or perceiving market needs and/or underemployed resources, (2) recognizing or discovering a ‘‘fit’’ between particular market needs and specified resources. (3) creating a new ‘‘fit’’ between heretofore separate needs and resources in the form of a business concept (Hills, 1995) (Koning, 1999) There are three theoretical models of opportunity recognition. The first is active searching; this is where an entrepreneur or often a corporate business consciously searches for new business ideas and gaps in the market. The second is fortious discovery; this is often associated with individual entrepreneurship. Ray and cardozo (1996) argue that any recognition of opportunity by an entrepreneur is preceded by a heightened state of alertness to information. they called this state entrepreneurial awareness (cardozo, 1996) The final model for opportunity recognition is opportunity creation. This is where an entrepreneur or company initiates economic change and creates a new need for a product for example the tablet computer is an example of opportunity creation because the market did not previously exist. consumers are taught to want new things. (Shumpeter 1934) Human capital is effectively a measure of a person's economic value to an organisation, it is influenced by both their formal and informal education and experiences. Human capital corresponds to a stock of knowledge or characteristics (either born with or acquired) that contributes to a persons productivity. The concept of human capital recognises that

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