Great Minds Think Alike, Fools Seldom Differ: An Empirical Analysis of Opportunity Assessment in Technology Entrepreneurs

Abstract

This study extends the literature on self-employment and entrepreneurship by offering empirical insights into the factors that influence technology entrepreneurs at the early stages of the new venture creation process. Specifically, this research focuses on how technology entrepreneurs assess opportunities at the start of the process. Using data from technology entrepreneurs in Ireland, we analyze differences between part-time entrepreneurs and full-time entrepreneurs and discover that not all entrepreneurs attach importance to activities that were previously considered fundamental. While we confirm that opportunity cost, market assessment, and financial analysis are critical and ever-present, we argue that aspiring technology entrepreneurs must be cognizant that when employment-related costs are included as a dimension of opportunity costs, the level and importance of opportunity costs rise for both part-time and full-time entrepreneurs. We also find that whether nascent entrepreneurs work full-time or part-time on the new venture has an impact on which activities are completed and at what point of the process they are completed. For example, we show that part-time entrepreneurs identify markets earlier than full-time entrepreneurs whereas the opposite is true when it comes to financial data preparation. We argue that a greater understanding of these issues will help technology entrepreneurs to make informed decisions. As a result, our findings may influence an aspiring entrepreneur’s decision to start a new venture. They also have ramifications for investors and support services. Consequently, we discuss theoretical contributions, practical ramifications, and future research possibilities.