Opportunity–Based Entrepreneurship Theory: The opportunity-based theory is anchored by names such as Peter Drucker and Howard Stevenson. An opportunity-based approach provides a wide-ranging conceptual framework for entrepreneurship research (Fiet, 2002; Shane, 2000). Entrepreneurs do not cause change (as claimed by the Schumpeterian or Austrian school) but exploit the opportunities that change (in technology, consumer preferences etc.) creates (Drucker, 1985). He further says, “This defines entrepreneur and entrepreneurship, the entrepreneur always searches for change, responds to it, and exploits it as an opportunity”. What is apparent in Drucker’s opportunity construct is that entrepreneurs have an eye more for possibilities created by change than the problems. Stevenson (1990) extends Drucker’s opportunity-based construct to include resourcefulness. This is based on research to determine the differences between entrepreneurial management and administrative management. He concludes that the hub of entrepreneurial management is the “pursuit of opportunity without regard to resources currently controlled” (pp.2).
Elements of Opportunity
Based on literature review and very careful observation of the entrepreneurial environment the following elements of opportunity are identified.
Opportunities Are Often Tied to Specific Purposes: Opportunities are tied to specific purposes and circumstances. There is a specific purpose for every opportunity and in a given location. People have to meet certain individual, read book, listen to radio or tapes and do several other things in given locations. The privatization and commercialization processes in Nigeria open up investment opportunities based on current circumstance.
Opportunities Are Endless: Just like waves of the sea, life is a succession of opportunities (Dangote 2005). The opportunities that come on individuals or organization’s way may determine the rate of his/its growth or progress. They are arranged as interjection that terminates a phase and opens up the next. The Nigerian Enterprises Promotion Decree 1972 opened up wide opportunities for Nigerians to venture into entrepreneurial career. On the other hand the
1986 Structural Adjustment Programme (SAP) created many hardships and blocked several areas of opportunities for entrepreneurs.
Greatness or Success is a Product of Opportunity: Abioye (1996) noted that every greatness is a product of opportunity. That there were great names that had made marks in the generations who would never have been mentioned if it was not for an opportunity that came their way.
An Opportunity opens up to another: An opportunity well utilized opens up to another. Opportunities are in sizes and phases. Just as in the home, an outer door leads to an inner one so it is with opportunities. Dangote (2005) as pointed out above illustrates this point.
Opportunity Elevates people and organization: Abioye (1996) observed that opportunity does not reduce people rather it increases them. He illustrated it with the Biblical parable of a man with five talents. For utilizing well the opportunity of five talents he received the opportunity to use ten.
Opportunities have Companions: Another aspect of the concept of opportunity is it features of companionship. Opportunities are often enveloped in challenges. To refuse to rise up to challenges or not to see it when it comes ones way is to allow opportunity pass by unattended to (Batty, 1974).
Opportunities involves risk taking: Risk in this sense relates to deliberate departure from the known to the unknown. The individual forsakes what he/she has in the hope of getting a better one that awaits him or her (Schumpeter, 1934, Drucker 1985 and Tushman and Nelson, 1991).
Opportunity involves facing opposition: There is the fact of opposition to opportunity which is failure to utilize it. The reason why some live better than the others is their attitude to opportunities that come their ways. Some embrace theirs while others despise and toy with theirs. The key to success is to learn to emphasize ones advantages and de-emphasize what looks like disadvantages. (Kilby, 1971 and Inegbenebor, 1995).
Opportunity may be in form of Luck: People often say that an element of lack is involved in entrepreneurship. This, others call destiny. However, any destiny not given an appropriate drive will lie dormant and impotent. Every destiny is to be driven to its destination (Batty, 1974).
Exploitation of opportunity involves discipline: This relates to having a sense of denial and control. Discipline places a nonnegotiable and uncompromising demand on people. By discipline, one responds to issues of life not as he or she wants or likes it to be, but as they are required or needed to be done. One refuses to respond to emotions in order to face the realities of life (Abioye, 1996). It requires disciplines in man, money and material management (Stevenson and Sahlman, 1990).
One should expect opportunity always: To look for opportunity as a matter of necessity is a normal thing to do. It is entrepreneurship. This is because opportunity is to be expected always. It is this expectation that translates pictures into reality. What you do not expect you cannot see. Therefore, one should always expect business opportunity (Meredith, Nelson and Neck, 1990).
