Ramoglou, S., & McMullen, J. S. (2024). “What Is an Opportunity?”: From Theoretical Mystification to Everyday Understanding. Academy of Management Review, 49(2), 273–298. https://doi.org/10.5465/amr.2020.0335
Summary
Ramoglou and McMullen (2024) tackle a deceptively simple but persistently confusing question in entrepreneurship: What is an opportunity? While businesspeople use this term daily, scholars have debated for decades whether opportunities are discovered, created, imagined, or constructed. The result has been theoretical clutter and a lack of clarity that often disconnects academic theory from real-world practice.
The authors argue that this confusion arises from a flawed way of thinking about opportunities—as if they are “things” that exist independently in the world. Instead, drawing from the work of philosopher Ludwig Wittgenstein, they suggest that “opportunity” should be understood not as a concrete object but as a way of speaking—a linguistic expression entrepreneurs use to express possibility, intent, and belief.
They propose the ABC framework to help make sense of how the term “opportunity” is used in everyday entrepreneurial language and practice:
- A is the desirable Aim or outcome (e.g., launching a profitable product).
- B is the Behavior or course of action (e.g., building and marketing the product).
- C is the Condition or context that makes the outcome achievable (e.g., emerging demand, available technology, lack of competition).
Rather than asking, “What is an opportunity?”, the more useful question becomes, “Do I believe that taking action B under condition C will lead to outcome A?” This shift grounds the concept of opportunity in real-world decision-making and helps entrepreneurs focus on how to act, not how to define abstract terms.
Opportunity Is Not a “Thing”
The article’s central message is that an opportunity is not a “thing” that exists out there in the world, like a product you can hold or a location on a map. Instead, it is a way of talking about the possibility of achieving a desirable outcome through action in specific conditions.
This may seem subtle, but it has major implications. When entrepreneurs say “this is a great opportunity,” they’re not pointing to a fixed object—they are expressing a belief: that a particular action could lead to a positive result, given what they know about the current situation. For example, launching a food delivery app in a growing college town may be described as “a good opportunity” not because there is a tangible “thing” to see, but because the entrepreneur believes that the timing, location, and market need align.
Thinking of opportunities as objects causes unnecessary confusion and theoretical baggage. It leads to arguments about whether opportunities are discovered (like gold in the ground) or created (like a startup idea). But everyday entrepreneurs rarely think this way. They simply act when they believe something good could come from it. The authors argue that we should follow this practical use rather than abstract academic debates.
Language Can Be Misleading
Ramoglou and McMullen emphasize that the way we use language shapes the way we think. In everyday conversation, we often treat abstract concepts like tangible objects. For example, we say “the opportunity passed me by,” or “I grabbed the opportunity,” as though opportunity were something physical. These are useful expressions, but they mislead us when we start taking them literally.
Scholars have made this mistake by treating “opportunity” as something with fixed properties that must be defined and categorized. This leads to convoluted theories and disagreements: Are opportunities discovered or created? Can they exist without an entrepreneur? Can we measure them objectively?
Instead of wrestling with these abstract dilemmas, the authors argue we should observe how people actually use the word. Entrepreneurs rarely ask, “What kind of opportunity is this?” They ask, “Can this work?” or “Should we go for it?” Language is a tool, not a mirror of metaphysical truth. Entrepreneurs use the word “opportunity” to express confidence, commitment, or hope—often as a way of getting others (investors, cofounders, employees) on board.
The ABC Model of Entrepreneurial Logic
To replace metaphysical confusion with practical clarity, the authors propose the ABC model as a way to understand what someone means when they talk about an opportunity.
- A: Aim (Desirable Outcome)
This is what the entrepreneur wants to achieve—a profitable venture, a social impact, a breakthrough product. For example, an entrepreneur may aim to “build a mobile app that simplifies meal planning for working parents.” - B: Behavior (Course of Action)
This refers to the steps or strategy the entrepreneur intends to pursue to reach the desired outcome. It could involve building a prototype, talking to customers, or launching a minimum viable product. - C: Conditions (Beliefs About Feasibility)
These are the environmental or contextual factors that make the entrepreneur believe success is possible. It includes trends, market gaps, new technologies, or personal capabilities. For example, a rising demand for healthy eating apps and improved mobile interfaces may form the conditions that support the belief that success is possible.
The “opportunity,” then, is shorthand for the entrepreneur’s belief that A can be achieved by doing B, because C holds true. It’s a way of saying, “Given what I know now, this is worth pursuing.”
This model is refreshingly grounded. It doesn’t assume entrepreneurs are scanning for perfect market gaps or constructing visions from scratch. It simply reflects how real people assess whether a course of action seems worthwhile based on their goals and understanding of the world.
Why This Matters for Entrepreneurs and Managers
Understanding opportunity as possibility, not as a fixed entity, frees entrepreneurs and managers from overcomplicating their decisions. It moves the conversation from “What is an opportunity?” to “What are we trying to do, what action are we taking, and do we believe the conditions are right?”
This has several benefits:
- It reduces paralysis in situations where you’re unsure if something is a “real” opportunity.
- It encourages experimentation, since you focus on what’s possible rather than what’s provable in advance.
- It promotes clear team communication, because you can explicitly state your A, B, and C.
- It aligns decision-making with reality, since the world is often ambiguous and fast-changing.
Whether you’re launching a new product, expanding into a new market, or just trying to seize a new customer segment, the ABC model helps frame the logic behind your choices—and opens the door to reevaluation when conditions shift.
10 Practical Insights for Business Owners and Managers
- Treat opportunities as beliefs, not objects. Focus on your assumptions and logic, not whether an “opportunity” exists out there.
- Always clarify your A-B-C. What outcome are you aiming for? What actions will you take? Why do you believe it’s achievable?
- Don’t wait for certainty. You’ll never have perfect knowledge. What matters is whether you believe success is possible and worth pursuing.
- Use language intentionally. When you say “this is a good opportunity,” explain what you mean in terms of expected outcomes and feasibility.
- Test conditions, not just ideas. Validate whether the enabling factors (C) are really in place through customer research or prototyping.
- Deconstruct failure constructively. When something fails, ask whether the issue was the goal (A), the execution (B), or a false assumption about the environment (C).
- Reject rigid definitions. Avoid getting stuck in discovery-vs.-creation debates. Focus on acting in ways that produce results.
- Frame discussions clearly with partners and investors. Articulate what you believe can be achieved and why now is the right time.
- Update your ABC over time. As conditions change or new information comes in, be willing to revise your assumptions and course of action.
- Empower your team to act on possibilities. Encourage initiative by using the ABC framework as a shared way of evaluating ideas across the business.
Closing Thought
Ramoglou and McMullen’s article helps us stop chasing the illusion of “finding” or “defining” the perfect opportunity. Instead, it invites us to engage in grounded, actionable thinking: define your goal, plan your action, and test your assumptions. That’s what entrepreneurs really mean when they say something is “an opportunity.”
When you see a new business idea forming or someone says, “I think there’s a real opportunity here,” don’t ask for a textbook definition. Ask: What’s the goal (A)? What are we prepared to do (B)? And what makes us believe it can work (C)? That’s the language of real entrepreneurial judgment—and long-term strategic thinking.