ECON 1 Lecture Notes - Lecture 10: Birds Eye View, Counterfactual Thinking, Prima Facie
Document Summary
It"s placed in the context of equilibrium and change. Inspire entrepreneurs to act action breeds new ideas. Impetus for new action as initial assumptions and intuition about future possibilities gradually replaced by experiential facts and juxtaposition of circumstances. In substantive terms opportunity comprises the perpetuation of a cycle of venture ideas and actions orientated towards the formation and sustenance of market relationships. Information asymmetries versus exogenous shocks: supply versus demand-side changes, productivity enhancing versus rent-seeking. Information context situational ambiguity prospective entrepreneurs have to deal with. The person behind an opportunity: generation of venture ideas is creative process, affected by various individual characteristics. Knowledge: positive relationship between knowledge and creativity, positive relationship between prior knowledge and opportunity recognition, contingent upon one"s mode of learning & thinking, knowledge necessary but not sufficient condition for recognition of opportunities. Creative process: five stages of the creative process, preparation. Involving feedback loops between the stages of preparation, incubation and insight.
