Module 2: The Opportunity Recognition Process - Vocabulary Flashcards

Vocabulary flashcards covering key terms related to opportunity recognition and startup concepts from the lecture notes.

Opportunity (Barringer & Ireland 2010)

A favourable set of circumstances that creates a need for a new product, service or business.

Four essential qualities of an opportunity

Attractive, timely, durable or sustainable, and adds value to customers; anchored in products, services, or a business.

Opportunity recognition

The process of identifying favourable circumstances that could become a new product, service, or business.

Tourism opportunities

Examples include eco-tours, day river cruises, city bus tours, cultural tours, and car rental services.

Manufacturing opportunities

Examples include distribution of locally produced clothes/shoes to city outlets, export of local commodities, transport services for agriculture, and building contract services.

Retail opportunities

Examples include fast-food restaurants, boutiques selling in-demand offshore products, and electronics stores.

High Tech Opportunities

Examples include computer sales/repair, computer schools, e-learning services, programming and gaming services, and Internet cafés.

Observing Trends

An approach to opportunity recognition that analyzes major trends to identify opportunities.

Problem-Solving (approach)

An approach to opportunity recognition based on solving residual or existing problems.

Gaps in the marketplace (Niche market)

Gaps occur when needs of a small group are ignored by mainstream providers, signaling a potential opportunity.

Opportunity gap

Difference between what’s available and what’s possible, leading to new business ideas.

Trend

The general direction in which something tends to move; current fashion or tendency.

Economic forces

Factors like the state of the economy, disposable income, and consumer spending that shape opportunities.

Social forces

Social and cultural trends, demographics, and what is considered 'in' that influence opportunities.

Technological advances

New or emerging technologies and new uses of existing technologies that create opportunities.

Political action and regulatory change

Shifts in policy or regulation that open up new business opportunities.

Opportunity gap (definition)

Difference between what's available and what's possible, prompting new ventures.

MVP (Minimum Viable Product)

The simplest version of a product used to test feasibility with real customers.

Pitch deck

A concise presentation used to summarize the business idea, team, product, and model to investors.

Startup

A young company formed to develop a product or service and bring it to market; may be technology‑intensive.

SME (Small and Medium-sized Enterprise)

A business of smaller scale that often focuses on local/national markets and may rely less on external funding.

Scalability

The potential for rapid growth and expansion with relatively small increases in cost.

Young talent

Startup environments tend to attract young, tech‑savvy people.

High risk

The startup venture carries significant risk of failure if the idea doesn’t catch on.

Pre-seed stage

Early stage focused on developing a minimum viable product and laying foundations.

Seed stage

Stage where the product takes shape and is tested by real customers; pitches attract investors.

Early stage

Phase focused on refining the product based on feedback and building key relationships.

Growth stage

Product is validated; rapid growth, more staff, and a need for positive cash flow.

Expansion stage

Market consolidation and geographic or niche expansion; requires more investments and partnerships.

Exit stage

Sale of the startup, going public, or acquisition by another company.

Unicorn startup

A scalable startup valued at over $1 billion.

Lifestyle startups

Businesses created around the founder’s lifestyle and passions, often profit‑oriented but not primarily venture‑scale.

Small business startups

Entrepreneurs who work for themselves with the aim of stable income rather than rapid scale.

Scalable startups

High-growth startups aiming to disrupt markets and often pursuing IPOs; require substantial external capital.

Buyable startups

End goal is to be bought by a larger company, usually with lower capital needs.

Large company startups

Startups that originate inside a large company and leverage existing resources and markets.

Social startups

Entrepreneurs blend business with social impact, often pursuing CSR/ecopreneurship.

Family and Friends funding

Initial capital from founders’ close network—informal but common.

Business Angels

Wealthy individuals who invest early in exchange for equity and often provide mentorship.

Seed capital

Early funding used before profits, based on potential of idea and team.

Venture capital

Investment by specialized funds in early-stage startups with high growth potential.

Private equity

Investment capital for startups nearing consolidation that supports expansion.

External causes: Accidental discovery

Ideas can emerge serendipitously, as with the Post-it note story.

External causes: ICT changes

Industry changes driven by advances in information and communications technology.

External causes: Changing perceptions

Social shifts (e.g., health trends) that create new venture opportunities.

External causes: Economic change

Economic shifts (e.g., energy crisis) that spur new venture ideas.

External causes: Political change

Policy or law changes that enable new opportunities (e.g., mandated training programs).

CSR / ecopreneurship

Combining corporate social responsibility with business growth and environmental sustainability.

Knowledge engineering

Formation and networking of knowledge considered a key asset of the 21st century.

Disruptive innovation

An innovation that creates a new market and disrupts existing incumbents.

Sustaining innovation

Improvements that help incumbents maintain or grow their market share.