ENTREPRENEURIAL ACTION (The McMullen-Shepherd model)

It explains on how knowledge and motivation influence two stage of entrepreneurial

action. Signal of changes in the environment that represent possible opportunities will be

noticed by some individuals but not others. Individuals with knowledge of markets and

technology are more capable of detecting changes in the external environment, and if

motivated will allocate further attention to processing this information. The result of stage 1

is an individuals realization that an opportunity exists for someone. The result of stage 2 is

the individual then needs to determine whether it represents an opportunity for him or her.