Abstract:
Entrepreneurs have to constantly make decisions about the various
opportunities available to them. Bad decisions can lead to the failure of a
business while good decisions will enable the business to grow and make a
positive contribution to society and the economy. Understanding how
successful entrepreneurs make decisions about business opportunities will
assist other entrepreneurs because this knowledge will equip them to run their
own businesses more successfully.
In this particular research study, twelve successful entrepreneurs were
interviewed and asked about the way in which they make decisions about
business opportunities. Through a process of thematic analysis, the data
collected was woven into an innovative Grounded Theory that identified and
explained the heuristics entrepreneurs use when making decisions about
opportunities.
Seven heuristics emerged from the data and were ordered according to the
frequency of observation. The two most common heuristics included inputs
required/outcomes desired and formal/emotional processes. The five less
frequent heuristics were classified as influence, environmental factors, risk and
control, commitment and balance.
An additional insight that was gained through the research process was that the
entrepreneurial idea itself contributes little to the overall success of the business
and an “action-orientated” focus was a far better contributor to ultimate success
