Opportunity evaluation and changing beliefs during the nascent entrepreneurial process

Abstract

This article explores an important but less understood part of the nascent entrepreneurial process, the changes that occur to beliefs associated with continuing evaluation of the opportunity and related learning. Using samples from the Panel Study of Entrepreneurial Dynamics, we demonstrate that engaging in planning activities by nascent entrepreneurs as they proceed through the process is associated with a decrease in perceptions of environmental uncertainty but an increase in perceived individual self-efficacy and business performance expectations. Overall, our evidence is consistent with a dynamic view of the nascent stage of the entrepreneurial process characterized by ongoing significant changes in beliefs.

Perceiving ‘capability’ within dynamic capabilities: The role of owner-manager self-efficacy

“…Extant studies into perceived self-efficacy in the entrepreneurship domain have largely focussed on either or both of two areas: first, factors that influence self-efficacy, such as counterfactual thinking (Arora, Haynie and Laurence, 2013), elements of strategic decision making processes (Forbes, 2005), business planning activities (McCann and Vroom, 2015), entrepreneurship education (Sánchez, 2013;Zhao, Seibert and Hills, 2005), pull entrepreneurship (Dalborg and Wincent, 2015), gender (Wilson, Kickul and Marlino, 2007), and national culture (Shneor, Camgöz and Karapinar, 2013). The second area focuses upon effects of selfefficacy; for example: the influence self-efficacy may have upon an individual's intention to become an entrepreneur (Bacq, Ofstein, Kickul and Gundry, 2016;Lanero, Vázquez and Aza, 2015), entrepreneurial orientation (Poon, Ainuddin and Haji Junit, 2006), and entrepreneurial passion (Dalborg and Wincent, 2015).…”

An Empirical Juxtapose of the Effects of Self‐image on Entrepreneurial Career along the Spectrum of Nascent to Actual Entrepreneurs

“…Transferring this conversation to within the entrepreneurship literature, this study examines the selfimages of entrepreneurs. Understanding more about these self-images is critical because they represent the fundamental building blocks (Fishbein and Ajzen, 1975) of specific beliefs and explain both entrepreneurial intentions and behaviors (McCann and Vroom, 2015). In accordance with the evidence on distinct differences in the self-images of entrepreneurs (Mitchell and Shepherd, 2010), this study compares the current beliefs of individuals attempting to become entrepreneurs (with low and high intentions) with the current beliefs of actual entrepreneurs.…”

“…The decision to become an entrepreneur involves a process of imagining the self under various alternative outcomes. McCann and Vroom (2015) emphasize the mental representations formed during the nascency period and provide evidence of the changes in beliefs. In other words, the initial beliefs of individuals attempting to become entrepreneurs may continue or become disentangled as they evolve through the entrepreneurial gestation process.…”

“…Understanding more about these self-images is critical because they represent the fundamental building blocks (Fishbein and Ajzen, 1975) of specific beliefs and explain both entrepreneurial intentions and behaviors (McCann and Vroom, 2015). Understanding more about these self-images is critical because they represent the fundamental building blocks (Fishbein and Ajzen, 1975) of specific beliefs and explain both entrepreneurial intentions and behaviors (McCann and Vroom, 2015).…”

“…Understanding more about these self-images is critical because they represent the fundamental building blocks (Fishbein and Ajzen, 1975) of specific beliefs and explain both entrepreneurial intentions and behaviors (McCann and Vroom, 2015). McCann and Vroom (2015) emphasize the mental representations formed during the nascency period and provide evidence of the changes in beliefs. Why?…”