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The IUP Journal of Entrepreneurship Development :
Entrepreneurial Cognition: A Model of New Venture Creation
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In the interactive view of entrepreneurship, entrepreneur and the entrepreneurial context are the two interdependent entities in the creation of new ventures. In this relationship, entrepreneurial cognitions are the entrepreneurís internal representations created of the entrepreneurial environment. The information collected from the environment is processed by cognitive structures of scripts, schemata, maps and images. The information processing is the mechanism by which an entrepreneurial opportunity is identified. Entrepreneurial decision making consists of selecting a suitable alternative of opportunity in the creation of new ventures.

 
 
 

New venture creation cannot always be a systematic process as it can also be a complex and idiosyncratic process (Sarason et al., 2006) where the emergence of entrepreneurial opportunities has always been a subject of different interpretations. Entrepreneurship researchers have varying views on the pattern of relationships between the entrepreneur and the entrepreneurial context and the mechanisms employed in the creation of an entrepreneurial outcome. The creation and the use of entrepreneurial cognitions hold a pivotal part in the whole process of entrepreneurship and this facet of entrepreneurship is examined here.

In the field of entrepreneurship, the construct of opportunity remains central even though the study of the origin and development of opportunity identification is approached from different perspectives (Wood and McKinley, 2010).

Entrepreneurial opportunities can be defined from the perspectives of entrepreneurs and entrepreneurial context. In the former opportunities are desirable and feasible cognitions and behaviors of entrepreneur (Wood and McKinley, 2010) and in the latter entrepreneurial opportunities are “situations in which new goods, services, raw materials, markets and organizing methods can be introduced through the formation new means, ends or means-ends relationship” (Eckhardt and Shane, 2003).

 
 
 

Entrepreneurship Development Journal, Entrepreneurial Cognition, A Model of New Venture, Conceptual Background of the Model, Cognitive Structures, Processes, Creation