Recognize Potential Market
The creation of an entrepreneurial idea leads to the identification of entrepreneurial opportunities, which in turn results in the opening of an entrepreneurial venture.
ESSENTIALS IN ENTREPRENEUR’S OPPORTUNITY – SEEKING
*The basic foundation that the entrepreneur must have in seeking opportunities.
Entrepreneurial mind Frame. Allows the entrepreneur to see things in a very positive and optimistic way in the midst of difficult situation; being risk taker
Entrepreneurial heart flame. entrepreneurs are driven by passion; they are attracted to discover satisfaction in the act and process of discovery.
Entrepreneurial gut game. Refers to th3e ability of the entrepreneur of being intuitive; aka intuition, means confidence in one self.
Sources of Opportunities.
Changes in the environment. entrepreneurial ideas arise when changes happen in the external environment.
External Environment. Refers to the physical environment, societal environment, and industry environment where the business operates.
Climate. The weather conditions.
Natural Resources. Such as minerals, forests, water and fertile land that occur in nature and can be used for economic gain.
Wildlife. includes all mammals, birds, reptiles, fish, etc., that live in the wild.
The Societal Environment
Political Forces. includes all the laws, rules, and regulations that govern business practices as well as the permits, approvals, and licenses necessary to operate the business.
Economic Forces. Such as income level and employment rate.
Sociocultural forces. Customs, lifestyles and values that characterize a society.
Technological Environment. New inventions and technology innovations.
The Industry Environment of the Business. are Competitors, Customers, Creditors, Employees, Government, Suppliers.
Technological Discovery and Advancement. A person with a entrepreneurial interest sees possibility of business opportunities in any new discovery or because of the use of latest technology.
For example, an individual with knowledge in repair and installation of a machine engine discovers additional engine parts that considerably reduce fuel consumption
Government’s Thrust, Programs, and Policies. The priorities, project, programs, and policies of the government are also good sources of ideas.
For example, the use of firecracker to celebrate New Year’s Eve is strictly prohibited.
People without entrepreneurial interest will view the ordinance as a plain restriction. However, for an entrepreneur, it is a business opportunity to come up with a new product that will serve as a substitute for firecrackers.
People’s Interest. The interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas, like the increasing number of Internet Cafés at present could lead to the strong attachment of young people to computers.
Past Experiences. The expertise and skills developed by a person who has worked in a particular field may lead to the opening of a related business enterprise.
For example, an accountant who has learned the appropriate accounting and management skills and techniques in a prominent accounting firm can start his/her business venture by opening his/her own accounting firm.
Forces of Competition Model. aka as the “five forces of competition. An industry environment is a competitive environment.
Competition. the act or process of trying to get or win something.
Five Forces of Competition. Buyers. Potential new entrants. Rivalry among existing firms. Substitute Products, and Supplier.
Buyers. The ones that pays cash in exchange of your goods and services.
Potential New Entrants. Is defined as companies or businesses that have the ability to penetrate or enter into a particular industry.
Rivalry among Existing Firms. Rivalry is a state or situation wherein business organization are competing with each other in particular market.
Substitute Products. one that serves the same purpose as another product in the market.
Suppliers. Are the one that provide something that is needed in business operations such as office supplies and equipment.
