Entrepreneurship – Opportunity Recognition & Product Development

Vocabulary flashcards covering the lecture’s key terms on opportunity recognition, assessment, pathways, and product development.

Opportunity (Dictionary)

A situation or occasion that makes it possible to do something you want to do.

Opportunity (Business Perspective)

An exploitable set of circumstances with uncertain outcomes that requires commitment of resources and involves risk.

Opportunity Recognition

The series of phases an aspiring entrepreneur goes through before introducing a product or service to the market.

Opportunity Recognition Process

Wanting to do something, identifying conditions that allow it, and deciding or acting on those conditions to reach the objective.

Five Stages of Opportunity Recognition

A model that moves from Precondition, Conception, Visioning, Assessment, to Realization.

Precondition (Stage 1)

Preparatory phase in which the individual assesses personal knowledge of the market.

Conception (Stage 2)

Gestation phase where entrepreneurial intentions and ideas are generated using logic, creativity, or both.

Visioning (Stage 3)

Stage that gives the individual a hunch that an idea may become a viable business opportunity.

Assessment (Stage 4)

Evaluation phase to judge whether the envisioned idea can realistically be achieved.

Realization (Stage 5)

Production of a prototype that materializes the opportunity into tangible form.

Market Awareness

Prior personal exposure to market components, including customers and suppliers.

Entrepreneurial Readiness

An individual’s alertness and traits that prepare them to start a business venture.

Connections (Networks)

Diverse relationships that heighten one’s ability to recognize business opportunities.

Opportunity Assessment

Process of evaluating the likelihood that an identified opportunity can actually be realized.

Product or Service (Assessment Element)

Potential of introducing a new offering to the market.

Market Opportunity

Appraisal of the market’s characteristics and demand for the proposed product or service.

Costing and Pricing

Determining if consumers find the product valuable and affordable relative to production cost.

Profitability

Expected financial gain after considering market reception and production expenses.

Resource Requirements

All inputs needed to produce the product or service.

Intermediate Inputs / Raw Materials

Basic materials directly used to make the product.

Factor Inputs / Processing Inputs

Labor, capital, and technology employed in the production process.

Risks (Assessment Element)

Uncertainties a business faces during its operations.

Entrepreneurial Commitment

The individual’s determination to pursue and realize the business idea.

Opportunity Pathways

Two alternative routes—Rational or Intuitive—for turning opportunities into ventures.

Rational (Traditional) Approach

Systematic, step-by-step procedure for implementing a business opportunity.

Intuitive Approach

Starting with recognition and quickly seizing an opportunity based on a sensed feasibility.

Product Planning and Development Process

Sequence from idea generation to commercialization that prepares a product for the market.

Idea Stage

Formation of business ideas from entrepreneurial intent using logic and creativity.

Concept Stage

Refinement and visualization of an idea as a tangible business opportunity.

Product Development Stage

Creation of a prototype that concretizes the business concept.

Test Marketing Stage

Limited market introduction of the prototype to obtain feedback before full launch.

Product Life Cycle

Stages a product passes through after commercialization: Introduction, Growth, Maturity, Decline.

Introduction (PLC)

Initial market launch following successful testing and positive feedback.

Growth (PLC)

Period of repeated purchases and sustained demand from new and existing buyers.

Maturity (PLC)

Stage where the product is widely accepted, with strong brand loyalty and stable sales.

Decline (PLC)

Phase when market saturation and exhausted innovation lead to diminishing demand.