How does an idea transform into an opportunity and then progress into a new venture?
Firstly, it will be helpful to understand what drives an individual or team to pursue a business idea (entrepreneurial intention). And secondly, how this idea transforms into behaviour (entrepreneurial action). Meaning that real action is taken to start a business, although practically, this process does not interest many new founders. Possibly because it leans towards the subjective mechanisms of thinking and acting rather than objective outcomes. It is, however, an important process to grasp to avoid barriers that might impede the process of transforming an opportunity into a new venture. Therefore, understanding these interactions and the process of cognition (thinking about the opportunity). And also, behaviour (acting on that opportunity) will be helpful to avoid situations of procrastination. In other words, fears of acting on an opportunity and fears of failure.
What does entrepreneurial intention means?
Entrepreneurial intentions are the first step in discovering or creating an opportunity to exploit. It is however, generated out of the perception that the opportunity is desirably and feasible. Although some motivational factors are shown to inform the desirability and feasibility of the intention. This section will only provide a broad overview of the topic.
Hence, to simplify – the strength of an entrepreneurial intention will be directly dependent on how desirable the opportunity is for the entrepreneur. Also, how feasible the opportunity seems in light of the available and acquired resources (knowledge about …). Having an intention to start a new venture, however, does not always transforms into action to start the venture (acting on the intention).
Entrepreneurial action is a behavioural response to a judgemental decision that is made about an opportunity. It therefore represents the action in response to the entrepreneurial intention. Entrepreneurial action usually is driven by the knowledge that the entrepreneur has. Knowledge about the opportunity, the market, or the regulatory controls such as regulatory knowledge, industry knowledge, knowledge about the target market and potential customers, knowledge about potential competitors etc. Entrepreneurial action is also driven by motivational factors. Asking questions such as why does the individual want to start a new venture? Reasons might be to generate profit and pursue wealth, or to drive a social cause. A social cause means, the delivery of benefits to a community through a unique business model. And yet, allow the extraction of financial value also to grow the business.
Entrepreneurial action relies on the entrepreneur’s knowledge and their motivation to pursue the opportunity. In fact, if no action occurs, it is considered by many not to be entrepreneurial. An intention without action is not viewed as entrepreneurship.
Therefore, Nap-it out and start-it up…