Exploring the Minds of Future Change Makers : Nascent Entrepreneurs and Opportunity Evaluation

Abstract: Background: Entrepreneurship plays an indispensable role in today’s society. Especially, the creation of new ventures promotes economic growth and new opportunities. Hereof, Sweden is viewed as a role-model, since it is one of the most innovative and entrepreneurial active countries in the world. Almost 6% of Sweden’s inhabitants are currently characterized as nascent entrepreneurs and thus, are engaged in early entrepreneurial activities without having started an official venture yet. Considering the fact that nascent entrepreneurs have no prior entrepreneurial experience while facing uncertain environments, they have to evaluate the attractiveness of new venture ideas and decide whether they are worth to pursue or to drop them. Purpose: The purpose of this thesis is to explore the evaluation approach of nascent entrepreneurs in the light of new venture ideas. More precisely, we want to investigate what kind of approaches they make use of when evaluating the attractiveness of those ideas and their motives behind the approaches. Method: This thesis is of qualitative nature while following an inductive approach and conducting a multiple case study with ten cases of different nascent entrepreneurs. The data is collected through semi-structured interviews, which were conducted in personal face-to-face meetings. For analysing the empirical findings, we engaged in within-case and cross-case analyses, where we identified and analysed common patterns and differences across the cases. Conclusion: All of the research respondents apply a variety of evaluation approaches, where they make use of their cognition as a means of judging and assessing the attractiveness of new venture ideas. Besides utilizing their social network, existing knowledge and future estimations, all nascent entrepreneurs are using heuristic rules-of-thumb for evaluating the idea attractiveness. Thereby, we identified Passion, Monetary Incentives, Resources and Market Potential as the most outstanding rules-of-thumb in the clear majority of the cases.