Unit 3: Business Opportunity Seeking, Screening, and Seizing Lesson 1

The 3S of Opportunity Spotting & Assessment

1. Opportunity Seeking – The first step in entrepreneurship, where an entrepreneur identifies potential business ideas.

2. Opportunity Screening – The second step, which involves analyzing and selecting the best business opportunity based on feasibility and potential success.

3. Opportunity Seizing – The final step, where the entrepreneur commits to and takes action on the chosen opportunity.

Entrepreneurial Opportunity Seeking

Entrepreneurs are known as "innovative opportunity seekers" because they possess a spirit of inquiry that helps them determine which products or services are most needed in the marketplace.

Sources of Business Opportunities

External (Macro-Environmental) Sources

External factors that influence a business but are beyond its control. These factors create opportunities but can also pose threats.

Internal (Micro-Environmental) Sources

Factors within the business that can be controlled by management, including available resources that affect business operations.

Common Sources of Business Opportunities

1. Consumer Preferences and Interests – Changes in consumer tastes and preferences can create new business opportunities.

2. Technological Discoveries and Advancements – Innovations in technology provide new ways to develop and market products.

3. Economic Trends – Shifts in the economy, such as rising income levels or recessions, impact demand for goods and services.

4. Government Policies and Regulations – Laws and regulations can create opportunities for businesses to develop compliant products and services.

5. Social and Cultural Changes – Evolving lifestyles and societal trends can open new market opportunities.

Key Questions in Entrepreneurship

1. Why is opportunity seeking a crucial phase in entrepreneurship?

   • It ensures that an entrepreneur identifies viable business ideas before investing time and resources.

2. What happens when an entrepreneur does not fully utilize various sources of opportunities?

   • They may miss profitable business ideas or fail to adapt to changing market conditions.

3. How is an entrepreneur different from an ordinary businessman?

   • Entrepreneurs focus on innovation and opportunity-seeking, while businessmen primarily manage existing operations.

4. What is the first step in seeking a business opportunity?

   • Opportunity Seeking – identifying potential business ideas.

5. How do macroenvironmental and microenvironmental sources of opportunities differ?

   • Macroenvironmental sources are external and beyond a business’s control.

   • Microenvironmental sources are internal and can be managed by the business.