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CHAPTER 2
ENTREPRENEURIAL
IDEAS
& OPPORTUNITIES
CLO 1
Explain clearly the concept of entrepreneurship, business ownership ...
Definition of business idea and
opportunities
Business concept that result in profits if it is
turned into tangible produ...
Primary sources of business ideas and
opportunities
Refer to information gathered directly
Primary source
Observation
Experiments
Data is gathered by observing & recording
Observation method-’what’ is happening
...
Primary source
 With customers, suppliers, competitors and
industry experts.
 Two types of interview:
-personal :need t...
Secondary source
References
Published information from library, internet and
paid data base services which provide inform...
Process of recognizing, analyzing and
choosing a business opportunity
There are six major steps in recognizing, analyzing...
Step 2
Scanning the business environment
Demographic such as population structure, income
and taste.
-demographic is a st...
Local resources
-there are still abundance of local resources that
are untapped and have potential to be
investment oppor...
Data on import export
-continuous increase in the value and quantity of
imported and exported products and services.
-e.g...
Development projects
-developmental programmed by government or firm
opened up business opportunities.
-e.g. Putrajaya. T...
Step 3
experience
knowledge
skill financial ability
interest
networking
Performing self evaluation
Step 4
Assessing society values, community response and
society acceptance.
Step 5
Choosing business opportunities
Legali...
Capital requirement
-any form of employed to produce more wealth firm.
-types of capital:
Permanent capital Use to buy as...
Risk
-should be aware of the risk that will be face in the venture.
-risk faced by entrepreneur:
* difficulties in enteri...
Approaches to seeking
business ideas
Fulfilling needs
and interest
Observing
changes
in the community
Diversifying
The usa...
Guideline in choosing a business idea
and opportunity
Guideline in
choosing a
business idea
and opportunity
Data collectio...
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PB201 - ENTREPRENEUSHIP Chapter 2

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Chapter 2 ..by Polimas

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PB201 - ENTREPRENEUSHIP Chapter 2

  1. 1. CHAPTER 2 ENTREPRENEURIAL IDEAS & OPPORTUNITIES CLO 1 Explain clearly the concept of entrepreneurship, business ownership and procedures in setting up a business in case study given.
  2. 2. Definition of business idea and opportunities Business concept that result in profits if it is turned into tangible product or service. Opportunity is the potential to create something new that involve changes in knowledge, technology, economy, politics, social and demographic. A successful entrepreneur is one who capture opportunities.
  3. 3. Primary sources of business ideas and opportunities Refer to information gathered directly
  4. 4. Primary source Observation Experiments Data is gathered by observing & recording Observation method-’what’ is happening E.g.: individual sitting at focus location every day for a week and counting the numbers of people. Make a number of sample products and provide them to a small group of customer. The result of this experiment can be used to determine how well the product.
  5. 5. Primary source  With customers, suppliers, competitors and industry experts.  Two types of interview: -personal :need to be friendly and polite  not to influence the interviewee’s responses -telephone: need to include alternative way to make interviewee understand the question. Interview Surveys  Develop questionnaire wit respect of target market.  The question should be specified limited and straight word answer like yes or no, excellent, good and poor.
  6. 6. Secondary source References Published information from library, internet and paid data base services which provide information of market growth, overall industry perspectives and customer profile. Mass media & electronic media Advertisement & information in newspaper, magazine & internet. Reliable Existing data which reliable E.g.: information from annual report
  7. 7. Process of recognizing, analyzing and choosing a business opportunity There are six major steps in recognizing, analyzing and choosing a business opportunity. Step 1 Recognizing customer needs and wants -entrepreneur has to be sensitive to identify. customer need and wants. -a need is something basic in life. e.g. food, clothing, house. -wants are something that is more than basic need. e.g. radio, laundry service.
  8. 8. Step 2 Scanning the business environment Demographic such as population structure, income and taste. -demographic is a study of characteristic people in population . -predicts the product or service that might bought from them. -based on the structure, income and taste of population -e.g the needs and wants of children will not be same as adults. -e.g Malaysia community prefer to buy their meals and not cook at home. So it increase demand of instant food.
  9. 9. Local resources -there are still abundance of local resources that are untapped and have potential to be investment opportunities. e.g clay that can be used to create vase, ceramic and others. New government policies and regulation -can identify business opportunity by refering to the existing law and government regulation. e.g rules and regulation for speed trap, the black box for express busses.
  10. 10. Data on import export -continuous increase in the value and quantity of imported and exported products and services. -e.g the pattern of import and export can provide information pertaining to business opportunities. There is a chances to offer new product. Industrial linkages -identify the industry that requires input from other industries. -develop an interaction or linkage among industries. -e.g. education industry in Malaysia will develop of new products and services such as stationary, tuition centre and bus/van service.
  11. 11. Development projects -developmental programmed by government or firm opened up business opportunities. -e.g. Putrajaya. The government complex created a market need of product and service. Technological breakthrough -create new markets and opportunities for business. -e.g. hand phone technology Mass media and electronic media -advertisement and information in newspaper, internet etc.
  12. 12. Step 3 experience knowledge skill financial ability interest networking Performing self evaluation
  13. 13. Step 4 Assessing society values, community response and society acceptance. Step 5 Choosing business opportunities Legality -business idea must be approved by the law. e.g. cigarette business Competitors -must really analyze his competitors in industry. Capital requirement -any form of employed to produce more wealth firm
  14. 14. Capital requirement -any form of employed to produce more wealth firm. -types of capital: Permanent capital Use to buy asset e.g., building, machine, land Working capital Use to support business operation in short time. e.g, raw material, pay bill, salaries Plantation capital Used to help small business
  15. 15. Risk -should be aware of the risk that will be face in the venture. -risk faced by entrepreneur: * difficulties in entering the business field * danger the amount of capital invested * amount of profit that can be gained * management of energy resources * the product’s potential in market -two types of risk * business risk-beyond the control of entrepreneur * financial risk-credit, level of cash liquidity, loan, currency exchange Step 6 Construct the business plan
  16. 16. Approaches to seeking business ideas Fulfilling needs and interest Observing changes in the community Diversifying The usage of goods Analyzing life problems Using the latest technology Observing and establishing network
  17. 17. Guideline in choosing a business idea and opportunity Guideline in choosing a business idea and opportunity Data collection and research Hiring of a workforce if necessary Confidence and good time management Funding Establishment of linkage or networks Preparation of a complete business plan

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