Information is a crucial resource in gaining a sustainable, competitive advantage for modern business enterprises (Shokane, 2003). In a study by Okello-Obura et al. (2007), they noted that it was crucial to determine business information needs as part of a functional requirement in order to design an information system.
Empirical research showed a great reliance of entrepreneurs on their personal networks in venture growth. A very high preference was given to personal contacts as a source of reference (de Alwis & Higgins, 2001). Dodd (1997) found that entrepreneurs spent a significant amount of time developing and maintaining contacts and talking to other people about business.
According to several literatures, entrepreneurs possess particular personality traits, socioeconomic characteristics, and particular nature of business enterprise activities and enterprise development process (Bolton & Thompson, 2004; Bird, 1989; Bjerke, 2007; Shane, 2003; McClelland, 1961; Maimunah Ismail, 2001; Noor Rahamah Hj. Abu Bakar et al., 2007, Chan Kim Ling et al., 2006; Md Nor Othman et al., 2005).
The fact that after initial information gathering, exploitation is often the best way to gain further information about an opportunity is a key to understanding the role of entrepreneurs within the economy.
Some have characterized the birth of new firms and their selection for success or death through competition within markets as an evolutionary process (Jovanovic, 1982; Audretsch, 2002). Ventures that are well fitted to their environment succeed, while others fail. Entrepreneurs discover the fitness of their ideas and their own skills by launching ventures.
The information process of an organization is roughly equivalent to the nervous system of a human being. It flooded every part of the organization, as well as sensitive key areas of the environment.
The better the information an organization gathers about its performance, its capabilities, and its environment, the better the organization will perform and the more effectively it will be able to change (Lawler et al., 2006).
Recognizing the importance of having an effective information management will not be an option in the future; it is a requirement. Information is the basis for understanding in a firm. In many industries, information is becoming the most important factor in differentiating successful firms from unsuccessful firms (David, 2005: 301).
Recognizing business opportunities means gaining advantage over competitors. Typically, entrepreneur or business managers take too narrow-minded a view as to the sources of competition, usually focusing their attention on direct competitive rivals. But there are many other factors in the environment which influence this competitiveness.
For a business to gain competitive advantage, it must obtain information about all the business partners with which it has or intends to have business relationships. All of them could have a crucial influence on the financial success or failure of the business. So it is important to obtain as much information about competitors as possible.
 Skerbinjek, “The Role of Information for Recognising Business Opportunities.” Organizacija. 41.4 (2008): 145.