Factors determining entrepreneurial opportunity recognition and the significant role of education and training

Abstract

Purpose

The purpose of this paper was to determine the factors that enable entrepreneurial opportunity recognition and the significant role of education and training in enhancing opportunity recognition.

Design/methodology/approach

This paper follows a systematic literature review method to answer the research questions. A systematic literature review allows us to determine the work carried out to date, how it was done, assess literature and report all relevant research. The authors have used the Preferred Reporting Items for Systematic and Meta-Analysis procedure.

Findings

The findings of this study showed that prior knowledge, social networks, external environment, entrepreneurial alertness, creativity, self-efficacy and entrepreneurial passion are the main factors that play a role in the opportunity recognition process. The authors were also able to establish the importance of education and training in enhancing opportunity recognition. Experiential learning is at the forefront of education methods used to improve prior knowledge and experience that directly impact the ability to recognize entrepreneurial opportunities.

Practical implications

The paper provides human resource development practitioners and entrepreneurship educators with factors that determine entrepreneurial opportunity recognition. It pinpoints the factors that can be exploited in enhancing employees and novice entrepreneurs’ ability to recognize viable entrepreneurial opportunities.

Originality/value

Opportunity recognition is recognized as the first step in the entrepreneurship process. Therefore, it is crucial for entrepreneurs to have the ability to recognize opportunities that are viable. Understanding the factors that contribute to a successful opportunity recognition is important. In addition, the role of education and training in opportunity recognition and enhancing entrepreneurial opportunity recognition cannot be overlooked.