Various studies indicate that entrepreneurs tend to recognize opportunities and succeed within areas in which they have prior knowledge. Studies on entrepreneurs utilizing business planning, market orientation & environmental scanning processes show better firm performance and as a result those firms with a better understanding of its customers, competitors, and environment are less likely to fail.
Cooper, Folta, and Woo explored the area of “intensity” of information seeking by experienced vs. inexperienced entrepreneurs. One of their findings suggests that entrepreneurs “might gain greater emphasis upon gathering and utilizing external information as they enter unfamiliar fields.”
According to Brush’s research which surveyed entrepreneurs in manufacturing industries, nearly 100 percent use trade magazines and also many utilized competitors’ sales brochures and advertising, and general magazines and newspapers.
Entrepreneurship is the terminal stage of the entrepreneurial process wherein after setting up a venture one looks for diversification and growth. An entrepreneur is always in search of new challenges.
An entrepreneur is not a routine businessman he might not have resources but he will have ideas. He is innovative and creative. He can convert a threat into an opportunity. Small businessmen might shut- down or change his business if he anticipates losses but an entrepreneur will try again after analyzing the situation. On the other hand an entrepreneur can leave a perfectly running business to start another venture if he so desires.
 Christensen, P. and R. Peterson. “Opportunity Identification: Mapping the Sources of New Venture Ideas.”Frontiers of Entrepreneurship Research (1990).
 Shane, Scott and Frédéric Delmar. “Planning for the Market: Business Planning before Marketing and the Continuation of Organizing Efforts.” Journal of Business Venturing 19, (2004): 767–785.
 Brush, Candida. “Marketplace Information Scanning Activities of New Manufacturing Ventures.” Journal of Small Business Management 30, no. 4 (October 1992): 41-53