As illustrated in figure 1.1, the McMullen-shepherd model explains how knowledge and motivation influence two stages of entrepreneurial action. Signals of changes in the environment that represent possible opportunities will be noticed by some individuals but not others. Individuals with knowledge of markets add/or technology are more capable of detecting changes in the external environment, and if they are also motivated. They will allocate further attention processing this information. Others, however, will remain ignorant of the possibility. The result of Stage 1 is an individual’s realization that an opportunity exists for someone. The individual then needs to determine whether it represents an opportunity for him or her (Stage2).This involves assessing whether it is feasible to successfully exploit the opportunity given one’s knowledge and whether it is desirable given one’s motivation. In other words, does this opportunity for someone (third-person opportunity belief) represent an opportunity for me (first-person opportunity belief)M If the individual overcomes enough doubt to form (1) the belief that the situation represents an opportunity for someone in general, and then (2) the belief that the opportunity for someone is an opportunity for himself or herself personally, this individual may act.