Business opportunity

1. CHAPTER EIGHT
BUSINESS OPPORTUNITY

2. What is a Business Opportunity
 A business opportunity is a situation or chance
that exists in an environment where an
entrepreneur can take the advantage to invest
his/her resources to offer marketable products
or services.
 A business opportunity arises when the needs
or wants of customers are not satisfied
 Also, an opportunity can arise when there is
business problem left unsolved.

3. Any business opportunity can came up with
●Product or service is still not in existence
●Product or service is already in the market but failed to
satisfy the customers – so need to be improved
Types Of Market Gaps

4. ● Product or service is still not in existence
● Product or service is already in the market but failed to
satisfy the customers – so need to be improved
TYPES OF SITUATIONAL
FACTORS

5. • An entrepreneur can recognize business opportunities in his/her
environment using his/her entrepreneurial skills
•
The presence of unfulfilled needs and want and/or problems
alerts the entrepreneur to the potential opportunity.
•
The entrepreneur later creates a business that is able to fulfill the
needs or want and/or solve the problem.
EMERGENCE OF
OPPORTUNITY

6. Business opportunities can be sourced from;
 The Environment – the natural resource base of an area
 Population - occupational pattern, socio economic background
 Current business Situation- trading and business activities in
the area and the trends for new demands of goods and services
 Target market – expectations of the target group in terms of
their skills, knowledge, and financial resources
Sources of Business Opportunity

7. Opportunity identification is a process that involved the
search for and discovery of business opportunities.
OPPORTUNITY IDENTIFICATION
APPROACH TO OPPORTUNITY
IDENTIFICATION
1. Observe changes in the environment
2. Recognize a need that customers have that is not being satisfied
3. Recognize problems and find ways to solve it

8. OBSERVING CHANGES IN THE
ENVIRONMENT
Changes in the environment give rise to needs and wants and/or
problems, and an opportunity emerges
Important environment forces to observe include:
1. Economic forces
2. Social forces
3. Technological advances
4. Political and regulatory statues

9. RECOGNIZE NEEDS AND WANTS
● Opportunity occurs whenever there is a need and want
to fulfill. The term “needs” refer to basic needs that the
consumer must have in order to live while the term
“wants” refers to a personal desire for something that is
more than a basic need.

10. RECOGNIZE PROBLEM AND FIND
SOLUTION
OPPORTUNITY IDENTIFICATION PROCESS
Search for
Changesin
the environment
Recognize
needs and
wants, in
thepeople
Discover an
Opportunity

11. RECOGNIZE PROBLEM AND FIND
SOLUTION
OPPORTUNITY IDENTIFICATION PROCESS
Search for
Problem
in the
market
Recognize
a possible
solutions
Discoveryof
Opportunity

12. ABILITY TO SEARCH AND DISCOVER
BUSINESS OPPORTUNITIES
● Experience and exposure
● Knowledge and skills
● “Special alertness”
•Social network
•Creativity
•Vigilant
MECHANISM TO IDENTIFY OPPORTUNITIES
•
•
•
•
Customers
Retailers and distributors
Business associates
Bankers
•
•
•
Consultants
Employees
Others
•
EVALUATION AND SELECTION PROCESS
The evaluation and selection process involves judging the viability of the
opportunity and assessing its potential.

13. CRITERIA FOR EVALUATION AND
SELECTION
1. Can make money and has potential for growth
2. Less competition
3. Good fit between entrepreneur and opportunity
4. Has competitive advantage
5. Workable and efficient
6. Not against the norms and values of the community
7. Conform with laws and regulations

14. Business Opportunities Selection
Criteria
• An entrepreneur’s first task after assessing himself/herself is
to identify and select an attractive business opportunity.
An acceptable business opportunity is a arrangement of:
 Confirmed need in the community;
 Capability of an entrepreneur;
 Availability of resources to develop the business
opportunity

15. The Existence of Needs in the Community
• A good idea is a good seed from a business
opportunity.
• Growing the idea into a business opportunity requires
confirming that whatever is proposed from production
must have a market need.
• If the need is already confirmed from you then it cuts
down on your costs.
• If not, you are required to carry out an environmental scan.

16. Entrepreneur’s Capability
 You as an entrepreneur have certain level of
knowledge, skills, values, experience and various
traits-personality-characteristics.
 It is obvious/clear certain business opportunities will go
well with your personality others will not.
 It is obvious/understandable that you need to match
given business opportunities with your personality profile.

17. Availability of Resources
• To develop a business idea into a business
opportunity you will need resources.
• The resources needed may be special skills,
technology, raw-materials, infrastructure
and finance.

18. •Group discussion
questions

19. • u fadhiista kooxo kooxo
• Koox kaste waxa ay ka koobnaanaysaa inta
u 3 illaa 6 arday
• Koox kaste iyaga ayaa is xulanaya
• Haddii ardayda qaarkood soo hadhaan ha
ku kala biiraan kooxaha ay doonaan ama
ha samaystaan koox iyaga u gaar ah

20. • Koox kaste waxa ay keenaya laba
fursad gaancsi oo ka bannaan
deegaankooga
• Ugu yaraan hal fursad ganacsi ayaa
la xidhiidha xirfadda ay baranayaan

21. • Sheeg oo sharrax fursad kaste in;
1: ma nooc fursad ganacsi oo cusub baa
Mise
2: ganacsi hore u jiray oo u baahan
horumarin ama wax ka baddelid

22. Waa maxay isha ( source) fursadda
ganacsi ee kooxdiinu soo bandhigtay

23. • Ma tahay fursad ganacsi oo macquula?
• Sharrax idinka oo ku qiimaynaya
saddexda shuruudood ee ugu
muhiimsan qiimaynta fursadaha
ganacsi

24. •Nasiib wacan