Examination of Opportunity Identification by Nascent Entrepreneurs in South – Western Nigeria: An Effectuation Perspective

Abstract

This study focused on examination of opportunity identification by nascent Entrepreneurs in South–Western Nigeria using effectuation perspective. The study determined whether alertness affect opportunity identification by nascent entrepreneurs in South-Western Nigeria. It also examined the effect of social network on opportunity identification by nascent entrepreneurs in South-Western Nigeria. The study was carried out using a quantitative methodology through administration of a structured questionnaire. The data gathered was analyzed using descriptive and inferential statistic such as percentages, one sample chi-square test at 0.05 level of significance and effectuation framework logics, with the aid of statistical package for social sciences (SPSS) version 20. The study was conducted in six states of south-western Nigeria that is Lagos, Ogun, Oyo, Osun, Ondo and Ekiti. The results show that: alertness can lead to opportunity identification; social networks such as interactions with friends and acquaintances, family and relations and social clubs enhance opportunity identification and establishing contacts with customer and financiers also lead to opportunity identification. This study has contributed to literature on opportunity identification and effectuation theory given that studies done in this area are mostly in developed countries.

Keywords: Effectuation theory, Nascent Entrepreneur, Opportunity Identification.

*This work was sponsored by TETFUND Institutional Base Research Grant *