Sources of ideas and opportunity identification among entrepreneurs and innovators in South Africa

Abstract

Innovation and entrepreneurship are quite topical for South Africa given its poor GDP growth performance and the benefits that would flow to the South African population if these activities are consistently and successfully pursued. Even though South African early-stage entrepreneurs remain innovative, innovativeness and entrepreneurship levels are still very low. It is arguable that the low levels of innovation and entrepreneurship are the result of a lack of awareness of the sources of ideas and factors that contribute to the recognition of opportunities. The purpose of this research was to investigate some of the factors that contribute to the generation of ideas and recognition of opportunities, as well as establish some of the positive aspects and negative aspects of each factor at a holistic level. Qualitative research, in the form of face to face semi-structured in-depth interviews, was conducted with 11 South African innovators and entrepreneurs. The research found that several primary factors contribute to the recognition of opportunities. The main finding from this research was that the desire to solve problems is a leading factor in the generation of ideas and recognition of opportunities. Of equal importance to opportunity recognition and innovation were goals and aspirations. There was also an emphasis on artistic creativity and adoption as antecedents of innovation. Networking, though not commonly seen as a key factor by some respondents in the identification of opportunities, was also seen as an important precursor for innovation. Furthermore, the research found that a number of these antecedents may offer unique solutions and benefits, including the acceleration of the identification of ideas and opportunities. On the other hand, none of the antecedents is sufficient for innovation, as each antecedent has a caveat that can restrain innovation and it is important that entrepreneurs and innovators are aware of these restraints. Also, each of the antecedents potentially offers and allow expert areas of innovation, with innovators becoming very experienced in a particular antecedent as an area of innovation. Consequently, the innovator may continually gravitate towards or focus on Research Article: Sources of Ideas and Opportunity Recognition Tina K. Phiri (1603974) 6 1) artistic creativity, 2) seeking new interests, 3) known problems, 4) goals, 5) science or technology, 6) adoption, 7) synthesis, 8) personal experiences, or 9) networking, to identify opportunities. The recommendations are that future research can examine whether such antecedent-based ideation, opportunity recognition and innovation specialisation exist among entrepreneurs and innovators, the extent by which innovators specialise in their innovation skills, and the extent by which innovators stick to their type, style, or specialisation of innovation.