A new approach to evaluating entrepreneurial opportunities

Abstract

Purpose In order to answer which opportunities are better to pursue, the purpose of this paper is to propose and empirically test a decision-making model for evaluating and selecting entrepreneurial opportunities. Design/methodology/approach First, the authors identified common evaluation criteria through a systematic review of 45 high quality articles published in top entrepreneurship and management journals between 2000 and 2017. Second, fuzzy screening technique has been employed to offer the decision-making model. Third, the authors used data of six evaluations provided by five experts at a medium-sized biotech firm to test the model. Findings The study shows that common decision criteria for evaluating entrepreneurial opportunities fall into seven categories. According to these criteria and using fuzzy screening technique, a multi-expert multi-criteria decision-making (ME–MCDM) model has been suggested for evaluating and selecting opportunities. Practical implications This model can be served in situations in which decision makers should select a small number of opportunities among the larger set with regard to opportunity profile and minimal information. More opportunities and more decision makers can be included in the model. When the number of opportunities and decision makers are high, it is possible to use programming for fast, accurate and easy calculation. Originality/value This study is the first systematic review of opportunity evaluation criteria. It is also the first considering opportunity evaluation as a multi-expert decision-making process.

New Fuzzy Entropy Measure of Order α

“…Another possible topic for future research is to use entropy of orderα in fuzzy setting for multi criteria decision making problems which has an application in evaluating entrepreneurial opportunities, for more on this interesting topic, see Adel Rastkhiz, 2018.…”

The heavy cost of kumbaya–understanding the survival implications of nascent venture ownership structure

“…Caliendo et al , 2009; Carter et al , 2003; Davidsson, 2006; McCann and Vroom, 2015; Reynolds, 2007). A number of studies focus on nascent entrepreneurs in the context of idea creation, opportunity recognition, or whether to pursue an identified opportunity (Adel Rastkhiz et al , 2019; Dimov, 2010). However, the current study focuses on how founders assemble resources and how the new venture progresses; decisions which come after typical preliminary idea creation and opportunity pursuit decisions.…”

Interdisciplinary Team-Based Learning: An Integrated Opportunity Recognition and Evaluation Model for Teaching Business, Engineering and Design Students

“…The teams integrate their knowledge, by using a multi-criteria decision matrix to represent the logical relationships between the multiple evaluation criteria reflected by their various discipline-specific prototypes of the opportunity evaluation process. Using a multi-criteria decision analysis (MCDA) approach provides decision makers with a way to evaluate and identify the best alternative(s) from a set of entrepreneurial opportunities, each of which is characterized by multiple criteria (Rastkhiz et al., 2019; Wood & Williams, 2014). The multi-criteria decision matrix is a powerful tool because it allows the team to have an explicit and visual representation of the various opportunities which are being assessed across multiple dimensions.…”