CHAPTER 2: ENTREPRENEURIAL IDEAS AND OPPORTUNITIES
2.1 Definition of a Business Idea and Opportunities
A business idea and opportunity is a business concept that result in profits if it is turned into a
tangible product or service
Opportunity is also defined as the potential or create something new involves changes
knowledge, technology, economy, politics, social and demographic conditions
2.2 The sources of entrepreneurial ideas
can be obtained through primary and secondary sources
these sources will provide the types of information needed by an entrepreneur to effectively
identify opportunities or evaluate ideas
2.2.1 Primary Sources
refer to information gathered directly through observation, experiments, interviews
and surveys
i. observation
data is gathered by observing and recording the respondent’s actions in an activity
ii. Experiments
also known as product sampling
makes a number of sample products and provides them to a small group of consumers for
purpose of experimentation
the result of this experiment can then be used to determine how well the product received by
consumer
iii. Interviews
field research cover interviews with customers, suppliers, competitors and industry experts
this sources provides an insight on published facts
can be conducted in 2 ways which are:
a) personal interview
b) telephone interview
iv. Survey
refer to the development of a short questionnaire with respect to the targeted product
questions should be very specific
answer provided must be limited and straightforward, that is, either yes or no, excellent, good,
fair or poor and agree or disagree
2.2.2 Secondary Sources
refer to existing data which is reliable, available references and information obtained
from the mass media and electronic media
i. Reliable existing data
Examples: annual report, prospector, stock market
ii. References
Examples: book, journal, internet and paid database which provide information on market
growth, overall industry perspectives and customer profiles
iii. Mass media and electronic media
Examples: advertisement and information in the newspaper, magazines and the internet
2.3 Generating Process for Entrepreneurial Ideas
whether the opportunity is identified through input from consumers, business associates,
channel members or technical people each opportunity must be carefully screened and
evaluated
evaluation is the most critical element in the entrepreneurship
PROCESS IN RECOGNIZING, ANALYZING &
CHOOSING A BUSINESS OPPORTUNITY
a) Recognizing b) Analyzing c) Evaluating d) Screening e) Matching f) Preparing or
customer or scanning the self- or choosing of societal value, constructing a
needs and environment assessment in business community’s business plan
wants terms of opportunities response or
oneself people’s
acceptation
Demographics, population Experiences Competition
structure, income and taste Knowledge Legality
Study on local resources Skills Fixed capital requirement,
New government policies Financial ability working capital & growth
and regulations Interest opportunities
Import and export data Networking Business risk, financial risk
Industrial linkage such as credit, cash,
Development projects by the liquidity, loan and currency
public and private sectors exchange
Technological breakthrough
Mass media and electronic
media
2.4 Approaches to Seeking a Business Idea
As a newcomer in the business world, to enter the market is always a problem because most
of the business would have been monopolized by senior
the entrepreneur should conduct research and study the products market before starting the
business
there are many resources that can be used to get business ideas and these resources can be
obtained anytime and anywhere
APPROACHES TO SEEKING BUSINESS IDEAS
Fulfilling Analyzing life Diversifying Observing Using the Observing and
needs and problems the usage of changes in the latest establishing a
interests goods community technology network
i. Fulfilling Needs and Interests
ideas for setting up a business can be found from individual’s different needs or
interest that constantly changing
ii. Analyzing Life Problems
Problems experienced in life sometimes provide a good idea for starting a business if
the entrepreneur think creatively
iii. Diversifying the Usage of Goods
our community today prefers devices with multi-purpose usage
the concept of recycling is also a sources of starting business
iv. Observing Changes in the Community
who are alert with the changes in community’s lifestyle can see available needs and
opportunities
v. Using the Latest Technology
changes in technology can change the structure of the industry and the market
it will give an entrepreneur the opportunity to innovate his products or services
vi. Observing and Establishing a Network
if individuals are still attached their organizations, they can create a network at the
workplace and make it a source of searching innovative ideas
2.5 Guidelines in Choosing a Business Ideas and Opportunity
As a newcomer in the business world, to enter the market is always a problem because most
of the business would have been monopolized by senior
the entrepreneur should conduct research and study the products market before starting the
business
there are many resources that can be used to get business ideas and these resources can be
obtained anytime and anywhere
GUIDELINES IN CHOOSING A BUSINESS IDEAS
AND OPPORTUNITY
Data collection Preparation of Establishment Hiring of a Confidence
and research a complete of linkages or Funding workforce if and good time
business plan networks necessary management
i. Data Collection and Research
the entrepreneur should collect as much information as possible pertaining to the
business
they should carry out research in relation to the services, products or relevant
industries, methods to produce the output, competitors and obstacles that might hinder
the progress of the business
seeks advice from entrepreneurs who are already in the business or read journals,
books and any published material on business or attend any gathering of industrial
societies to keep informed with the latest and up to date information
ii. Preparation of a Complete Business Plan
An entrepreneur should prepare a complete business plan which includes the business
mission
a good business plan will enable him to focus on developing the business
iii. Establishment of Linkages or Networks
develop a linkage or network with other entrepreneurs when starts the business
has to bear in mind that effective networking will bring benefit to both parties
iv. Funding
must learn how to obtain funding from friends, family members, financial institutions
or the government
has to know the amount that is available, the amount that is needed to run the business
and the amount that is required to achieve profit
v. Hiring of a Workforce If Necessary
Workforce is an important asset to succeed in an entrepreneurial business
an entrepreneur should hire workers only when there is a necessity
vi. Confidence and Good Time Management
In order to initiate a business, an entrepreneur has to have confidence
being in the business is also time-consuming so managing time wisely are important
because can balance time between the business and social life
the entrepreneur has to identify the limit between business and personal life
