PERCEPTIONS OF AND DECISIONS ABOUT MARKET OPPORTUNITIES: COMPARING MANAGERS AND ENTREPRENEURS

Abstract

Consideration of risk and potential are crucial elements in decisions to develop new products or enter new markets, whether in established firms, or in an entrepreneur's quest to start a new firm. Entrepreneurial folklore has long viewed entrepreneurs as bold and brash risk-takers, willing to defy all odds in their efforts to develop new technologies or find new market niches that will prove hospitable to their emerging firms. Conversely, managers in many established firms are thought to be risk averse, preferring to introduce line extensions or product modifications instead of riskier, but more innovative, possibly higher potential, new products (Coo per 1984). Our study seeks to better understand any possible differences between managers in established firms and entrepreneurs in the degree to which they perceive market opportunities differently, as well as any differences in their decision-making as they contemplate entry into new ventures.