The Empirical Research On The Influence Mechanism Of The Prior Knowledge To The Opportunity Recognition

Since reform and opening, China’s economy and society has undergone enormous changes. More and more SMEs have developed and grown in the society. The SMEs have an important role in the national economy and social development. The process of SME development is the process of entrepreneurial development. Especially in recent years, the "entrepreneurship" is not only a hot topic in popular society, but also the officials of the government and academic researchers. Entrepreneurship becomes the focus of many people. But China’s current situation is that the survival-type entrepreneurship is still the subject of entrepreneurial activity. This is different from the United States and Europe.Opportunity recognition is an essential part of the entrepreneurial activities. It is also an important topic in the field of entrepreneurship research in recent years. The recognition and use of entrepreneurial opportunities is a double-edged sword, it needs to rational decision-making especially. In reality, the entrepreneurs will often get the entrepreneurial opportunities in blind. They make blind expansion and exacerbate with short-sighted behavior. In this paper, Opportunity recognition is the research center. In terms of emphasis on identifying opportunities, we pay more attention to the importance of entrepreneurs and policy makers in the role of the entrepreneur. In the article, we will emphasize the feasibility and profitability characteristics of opportunity recognition.In this study, we use the factor analysis test and validate the model, which is the two dimensional structure model of opportunity recognition. We have identified the feasibility and profitability of opportunity recognition. We also make the prior knowledge model, which are consisted three dimensions. That is, entrepreneurial experience, special interests, industry knowledge. The result of the paper will not only greatly enrich the prior knowledge of research, but also enriched the opportunity to identify the theory itself. Finally we draw important conclusions. The entrepreneurial experience, special interests and industry knowledge are positively significant role for recognition of opportunities. As richer of the priori knowledge, the entrepreneur will make the easier recognition of opportunities. These research findings have important practical significance. When entrepreneurs face the general uncertainty, the opportunities and challenges, they will make better use of their knowledge and resources. In this way, they will identify opportunities and gradually receive the profitable business. It also provides an important source of theoretical which can support the theory and give reference to the practice.