Introduction

The purpose of this chapter is to explore concepts of complex systems and how these can be instrumental in generating entrepreneurial opportunities. The focus is on how opportunities are created by changing stability levels within our social systems, of which many have occurred and are continuing to occur. The chapter includes sections on the application of complexity theory to entrepreneurship. It further discusses the resilience of natural systems and the lessons that can be learned in terms of the breakdown of systems.

The world has undergone a number of changes to its complex systems which provide context for individuals and enterprises, and with each change to the level of stability it produces entrepreneurial opportunities. A consideration of complex systems in the operation of the world and society demonstrates these changes of stability levels and highlights the dynamic state of dominant systems in society and business. An example of natural system changes can be drawn from observing the biosphere, starting with 540 million years ago through to the present. In more recent times there have been changes to socio-technical systems which provide entrepreneurial opportunities. This chapter will propose a model of stable and unstable systems; it will model both smooth changes and catastrophic changes and will provide an explanatory model from resilience of the natural world; it will propose tools to model social and business systems; and it will recognise some of the key parameters which affect stability and change.

The analysis in this chapter will assist entrepreneurs as they continually search for opportunities. Social breakdown and changes in business can be studied from the perspectives of a system experiencing changing stability levels. Gunderson and Holling (2002, pp. 93-4) illustrate this. The chapter develops this idea by arguing that entrepreneurial opportunities are generated by addressing emergence as a reconfiguration of complex systems after adaptation due to environmental changes. This section sees entrepreneurial opportunities being released by the process of complex systems adapting, and hence moving from one level of stability to another in their adjustment to environmental pressures. Such pressures can be induced by external systems including financial and economic, technological, political, social and cultural, legal, religious and any other major external forces, or a combination of these forces.