Entrepreneurship Lesson 2: Recognize a Potential Market

Vocabulary flashcards covering key concepts from Entrepreneurship Lesson 2: Recognize a Potential Market.

Entrepreneurial opportunity seeking

The process of identifying and evaluating business opportunities by recognizing market problems and proposing products or services to meet needs.

Market problem

A gap or issue in the market that a product or service can solve.

Proposed solution

An idea for a product or service designed to meet a market need and with potential profitability.

Best product or service

The option that most effectively meets the market need while generating profit.

Entrepreneurial mind frame

A positive, optimistic mindset that enables risk-taking and problem-solving in difficult situations.

Entrepreneurial heart flame

The passion that drives entrepreneurs toward discovery and goal achievement.

Entrepreneurial gut game

Intuition and self-confidence; belief that goals can be reached.

Sources of opportunities

Various origins of entrepreneurial ideas, including changes in the environment, technology, government policies, people’s interests, and past experiences.

Changes in environment

Shifts in external conditions that create new opportunities; includes physical, societal, and industry environments.

Physical environment

Climate, natural resources, and wildlife.

Climate

Weather patterns affecting business opportunities.

Natural resources

Minerals, forests, water, and fertile land available for economic use.

Wildlife

Animals living in natural habitats.

Societal environment

Forces such as political, economic, sociocultural, and technological factors shaping business.

Political forces

Laws, regulations, permits, and licenses governing business.

Economic forces

Income levels, employment rates, and other macroeconomic factors.

Sociocultural forces

Customs, lifestyles, and values of a society.

Technological environment

New inventions and technology developments.

Industry environment

The competitive arena including competitors, customers, creditors, employees, government, and suppliers.

Technological discovery and advancement

Innovations and progress in technology that create opportunities.

Government’s thrust, programs, and policies

Government priorities and rules that can inspire ideas or create market opportunities.

People’s interest

Hobbies, preferences, and consumer trends that can spark business ideas.

Past experiences

Skills and knowledge gained in prior work that can lead to new ventures.

Five forces of competition

Porter’s framework identifying the competitive pressures in an industry: buyers, potential entrants, rivalry, substitutes, and suppliers.

Buyers

The customers who purchase goods/services; they can have strong bargaining power depending on market conditions.

Potential new entrants

Firms that could enter the industry; threats depend on barriers like capital requirements, policy, distribution channels, economies of scale, product differentiation, and switching costs.

Rivalry among existing firms

Competition among current players; intensity influenced by number and diversity of rivals, product characteristics, capacity, fixed costs, and industry growth.

Substitute products

Alternative products that satisfy the same need; threat increases when switching is easy, preferences change, differentiation is low, substitutes improve, or price is lower.

Suppliers

Providers of inputs; power depends on factors like forward integration, concentration, available substitutes, switching costs, and uniqueness.