The Phantom Opportunity

Bridging the Gap Between Idea and Equity Investors

Authors

  • Michael Caston University of Denver, Denver, CO, United States
  • Clint Purtell Oklahoma State University, Stillwater, Oklahoma, United States
  • Lee Grumbles Oklahoma State University, Stillwater, Oklahoma, United States
  • Nicole Flink Weber State University, Ogden, Utah, United States

DOI:

https://doi.org/10.30800/mises.2019.v7.1221

Keywords:

Entrepreneur, Opportunity, Discovery, Perception, Resources

Abstract

Kirznerian entrepreneurs are described as alert individuals apt to identify opportunities through subjective inferences based on industry competition, price inequality, and interaction with other market actors. They are poised to identify and exploit opportunities that may not currently exist. We extend this notion of alertness towards the unknown by introducing the “phantom opportunity” concept, extending prior research. Although entrepreneurs may initially perceive a new venture idea, it cannot manifest itself as opportunity until other parties legitimize it by mutually perceiving it as such, thus committing resources. For example, investors may mentally simulate, contributively co-create or modify a proposed opportunity before committing the necessary funding to launch the entrepreneur’s perceived idea. This paper extends Kirzner’s view of perception and opportunity as related to the modern entrepreneurs’ struggle to define, legitimize and realize an opportunity.

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Author Biographies

Michael Caston, University of Denver, Denver, CO, United States

Michael Caston is on the faculty at the University of Denver teaching courses in innovation and entrepreneurship. Michael is also an entrepreneur serving as a partner in a product development firm, CAMIC designs.

Clint Purtell, Oklahoma State University, Stillwater, Oklahoma, United States

Clint Purtell is a PhD student (ABD) at Oklahoma State University. Clint is an accomplished corporate executive with experience in corporate dev, strategic sourcing/procurement & supply chain.

Lee Grumbles, Oklahoma State University, Stillwater, Oklahoma, United States

Lee Grumbles is a doctoral candidate at Oklahoma State University’s Ph.D. in Business for Executives Program. Works in Houston, TX as a Vice President in Commercial Lending

Nicole Flink, Weber State University, Ogden, Utah, United States

Nicole Flink is an Instructor of Professional Sales at Weber State University and a doctoral candidate at Oklahoma State University’s Ph.D. in Business for Executives program.

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Published

2019-11-07

How to Cite

1.
Caston M, Purtell C, Grumbles L, Flink N. The Phantom Opportunity: Bridging the Gap Between Idea and Equity Investors. MisesJournal [Internet]. 2019 Nov. 7 [cited 2024 Mar. 28];7(3). Available from: https://revistamises.org.br/misesjournal/article/view/1221

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Original Research Articles