Inside or Outside the Box? Convergent and Divergent Thinking and the Entrepreneurial Process

Creativity plays a crucial role in the entrepreneurial process since it aids in the development of novel and feasible opportunities. We develop a series of propositions linking the preference for convergent and divergent thinking, both essential for creativity to occur, to the entrepreneurial process consisting of opportunity identification, evaluation and exploitation. Specific propositions suggest that a preference for convergent thinking is most useful for opportunity recognition, feasibility analysis, decision speed, and speed to market. In contrast, a preference for divergent thinking positively affects opportunity creation and the decision to exploit an opportunity. A balanced use of both types of thinking is better suited for opportunity discovery, business planning and resource gathering.