Entrepreneurship Development & Recognizing Opportunities. entrepreneurship development & recognizing opportu , entrepreneurship development & recognizing opportu , innovation and entrepreneurship , tactics/ strategies for identifying opportunities , identify problems and needs , research demographics , lifestyles , and habits , watching trends , : social forces , economic forces , first approach: observing trends , cognitive factors , social networks , creativity , full view of the opportunity recognition process , third approach: finding gaps in the marketplace , second approach: solving a problem , establish a personal network , entry strategies , political action and regulatory changes2 of 2 , technological advances , what is an opportunity? , three ways to identify an opportunity , brainstorming , focus groups , library and internet research , other techniques , creative sources of ideas , watch for demographic changes

1. Entrepreneurship
Development &
Recognizing Opportunities
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2. What do you mean by
Entrepreneurship development?
Generally Entrepreneurship development is concerned with the study of
entrepreneurial behavior, the dynamics of business set-up,
development and expansion of the enterprise.
• Entrepreneurship Development (ED) refers to the process of enhancing
entrepreneurial skills and knowledge through structured training and
institution-building programs.
• It basically aims to enlarge the base of entrepreneurs in order to hasten the
pace at which new ventures are created. This accelerates employment
generation and economic development.
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3. Role/Importance/Significant of entrepreneur or entrepreneurship in the economic
development / Benefits of entrepreneurship development /Role of Entrepreneurs in
Economic Development/ how entrepreneurship development can contribute to
economic development of any country
• Utilization of Resources
• Create employment opportunity
• Improvement of per capita income
• Balancing the regional development
• Coordinating the factors of production
• increases the standard of living
• Reducing the concentration of economic power:
• Increase export
• Entrepreneurship fosters economic growth
• And So On……………..
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4. Step/Stage/Process of entrepreneurship development OR
Entrepreneurial process:
• The process of pursuing a new venture is embodied in
entrepreneurial process, which involves more than just
problem solving in a typical management position.
• “Entrepreneurial process is the process of creating
something new with value by devoting the necessary
time and effort; assuming the accompanying
financial, psychic, and social risks and uncertainties;
and receiving the resulting rewards of monetary and
personal satisfaction.
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5. The process has four distinct phases:
1. Identification and evaluation of the opportunity
2. Development of the business plan
3. Determination of the required resources
4. Management of the resulting enterprise
• Please see the Book, page number (10-13)
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6. 2-6

7. Sources of new ideas:/ Common
sources of New venture:
• Consumers
• Existing companies
• Existing products and services
• Distribution channels
• Government
• Research and development
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8. Methods of generating ideas and solving
problems:
• Creative idea can be generated through using creative problem
solving techniques: Page -114
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9. Innovation and Entrepreneurship
Schumpeter has firmly expressed his opinion that the function of
entrepreneurship is innovation.
• Innovation of new product.
• Innovation of new technology.
• Innovation of new process of production
methods.
• Exploration of new markets.
• Searching for the new sources and supply.
• Innovation of industrial reconstruction method.
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10. Overview:
• In today’s fast-paced business environment ,
entrepreneurial success is directly related to one’s ability
to identify opportunities resulting from rapid change
and new trends
• The ability to recognize new opportunities and to think
creatively is essential for success in today’s market.
• One way to identify business opportunities is to study
current trends that provide opportunities for
entrepreneurs.
• To Succeed, entrepreneurs must continually
recognize, monitor, and stay abreast of what is going
on in the economy, government, society and
technology.
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11. Researching Opportunities
• What is An Opportunity?
• An opportunity is a favorable set of circumstances that
creates a need for a new product, service, or business.
• Difference between an opportunity and an
idea.
– An idea, as we defined it, is “Something imagined
or pictured in the mind”. The difference is that an
idea may or may not represent an opportunity.
You generate ideas by thinking creatively.
Opportunities are ideas that have commercial potential.
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12. Tactics/ Strategies for Identifying
opportunities
Entrepreneurs identify opportunities for
business concepts by using the following
tactics
1. Study Markets, Industries, and Competition
2. Research Demographics, Lifestyles, and Habits
3. Identify Problems and Needs
4. Watching Trends
5. Establish a Personal Network
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13. 1. Study Markets, Industries, and Competition
 Monitor Society, Industry, and the Marketplace:
(Consumer tastes, Life style, Habits are volatile)
 Examine New knowledge (Trade journals, browse
libraries and book stores, talk to people)
 Study the Competition
 Read Constantly (Spend one third of Business time
on reading)
 Make use of Commercial Research
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14. 2. Research Demographics, Lifestyles, and
Habits
• Keep Abreast of Demographic Changes
(Birthrate, age, gender, occupation, geographic location:
recreational facilities, living centers etc.)
• Engage in People Watching- (observing people can
bring meaningful insights for new opportunities: In a occasion or
social functions entrepreneurs do more than make small talk; Ask,
listen and observe the people)
Story of Fly…….
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15. 3. Identify Problems and Needs
Entrepreneurs always try to find the gap in the market
(make a list of daily nuisances that people
experience or difficulties in society)
• Look for unexpected
• Study problems (can something be done better,
more quickly or cheaply)+
• Examine position within the industry
• Identify a growth industry (Cable
Television services and Online TV/ WIFI)
• Identify people’s needs (Is there any niche market
whose needs have not been addressed?) 2-15

16. Real Story of Pet Products
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17. 4. Watching Trends
• Trade and Industry associations
• Media
• Entrepreneurs (Insight: Ask Current entrepreneurs)
• Make a difference between fad and fashion
Market Trends That Impact Business:
 Changing Demographics
 Technology
 Information Explosion
 Search for Simplicity
 Outsourcing
 Service Based Economy
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18.  Health and Fitness
 Consumer connectivity
 Urbanization
 Time Scarcity
 Eco products
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19. 5. Establish a Personal Network
Page: 50
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20. Entry Strategies
• After identifying opportunities , it is time to evaluate
these opportunities and examine ways to convert an
opportunity into a business.
• Sometimes opportunities require a specific entry
strategies.
• An entry strategy is simply the approach to getting
started.
• An entry strategy must match the entrepreneur’s
situation, resources and goals.
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21. Entry Strategies
• Have a Customer in Hand
• Transition a Hobby/Interest into a Business
• Build on Skills and Professional Abilities
• Invent a Product/Service
• Become a Franchisee or Licensee
• Buy an Existing Business
• Use Technology Systems
• Look at Other Opportunities
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22. Assessment Process
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23. 2-23

24. Evaluation or Assessment criteria for opportunities- Using personal vision evaluation Grid
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25. Current Entrepreneurial Trends
Section 3.1 Understanding Entrepreneurial Trends 25
Internet businesses
service businesses
home-based businesses
socially-responsible non-profit
businesses
corporate ventures
strategic alliances
technology
outsourcing

26. What is An Opportunity?
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Opportunity Defined
An opportunity is a favorable
set of circumstances that
creates a need for a new
product, service, or business.
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27. What is an Opportunity?
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Four Essential Qualities of an Opportunity
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28. Three Ways to Identify an Opportunity
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29. First Approach: Observing Trends
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• Observing Trends
– Trends create opportunities for entrepreneurs to pursue.
– The most important trends are:
• Economic forces
• Social forces
• Technological advances
• Political action and regulatory change
– It’s important to be aware of changes in these areas.
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30. First Approach: Observing Trends
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Environmental Trends Suggesting Business
or Product Opportunity Gaps
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31. Trend 1: Economic Forces
Economic trends help
determine areas that are
ripe for new start-ups and
areas that start-ups should
avoid.
Example of Economic Trend
Creating a Favorable Opportunity
• A weak economy favors
start-ups that help consumers
save money.
• An example is GasBuddy.com,
a company started to help
consumers save money on gas.
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32. Trend 2: Social Forces
Social trends alter how
people and businesses
behave and set their
priorities. These trends
provide opportunities for
new businesses to
accommodate the
changes.
Examples of Social Trends
• Aging of baby boomers
• The increasing diversity of
the workplace
• Increasing interest in social
networks such as Facebook
and Twitter
• An increasing focus on health
and wellness
• Increasing interest in “green”
products
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33. Trend 3: Technological Advances
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Advances in technology
frequently create business
opportunities.
Examples of Entire Industries
that Have Been Created as the
Result of Technological
Advances
• Computer industry
• Internet
• Biotechnology
• Digital photography
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34. Trend 3: Technological Advances
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Once a technology is
created, products often
emerge to advance it.
Example: H20Audio
An example is H20Audio, a
company started by four
former San Diego State
University students, that
makes waterproof housings
for the Apple iPhone and
iPod.
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35. Trend 4: Political Action and Regulatory
Changes
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Political action and
regulatory changes also
provide the basis for
opportunities.
General Example
Laws to protect the environment
have created opportunities for
entrepreneurs to start firms that
help other firms comply with
environmental laws and
regulations.
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36. Trend 4: Political Action and Regulatory
Changes
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Company created to help
other companies comply
with a specific law.
Specific Example
The No Child Left Behind Act
of 2002 requires states to
develop criterion-based
assessments in basic skills to be
periodically given to students in
certain grades. Kim and Jay
Kleeman, two high school
teachers, started Shakespeare
Squared, a company that helps
high schools comply with the
act.
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37. Second Approach: Solving a Problem
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• Solving a Problem
– Sometimes identifying opportunities simply involves
noticing a problem and finding a way to solve it.
– These problems can be pinpointed through observing trends
and through more simple means, such as intuition,
serendipity, or change.
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38. Second Approach: Solving a Problem
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• A problem facing the U.S. and
other countries is finding
alternatives to fossil fuels.
• A large number of
entrepreneurial firms, like
this solar farm, are being
launched to solve this problem.
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39. Third Approach: Finding Gaps in the
Marketplace
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• Gaps in the Marketplace
– A third approach to identifying opportunities is to find a
gap in the marketplace.
– A gap in the marketplace is often created when a product or
service is needed by a specific group of people but doesn’t
represent a large enough market to be of interest to
mainstream retailers or manufacturers.
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40. Third Approach: Finding Gaps in the
Marketplace
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Product gaps in the
marketplace represent
potentially viable
business opportunities.
Specific Example
In 2000 Tish Cirovolv
realized there were no guitars
on the market made
specifically for women. To
fill this gap, she started Daisy
Rock Guitars, a company that
makes guitars just for women.
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41. Personal Characteristics of the Entrepreneur
Characteristics that tend to make some people better at
recognizing opportunities than others
Prior Experience Cognitive Factors
Social Networks Creativity
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42. Prior Experience
• Prior Industry Experience
– Several studies have shown that prior experience in an
industry helps an entrepreneur recognize business
opportunities.
• By working in an industry, an individual may spot a market niche
that is underserved.
• It is also possible that by working in an industry, an individual
builds a network of social contacts who provide insights that lead to
recognizing new opportunities.
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43. Cognitive Factors
• Cognitive Factors
– Studies have shown that opportunity recognition may be an
innate skill or cognitive process.
– Some people believe that entrepreneurs have a “sixth
sense” that allows them to see opportunities that others
miss.
– This “sixth sense” is called entrepreneurial alertness, which
is formally defined as the ability to notice things without
engaging in deliberate search.
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44. Social Networks
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• Social Networks
– The extent and depth of an individual’s social network
affects opportunity recognition.
– People who build a substantial network of social and
professional contacts will be exposed to more opportunities
and ideas than people with sparse networks.
– Research results suggest that between 40% and 50% of
people who start a business got their idea via a social
contact.
• Strong Tie Vs. Weak Tie Relationships
– All of us have relationships with other people that are
called “ties.” (See next slide.)
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45. Social Networks
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• Nature of Strong-Tie Vs. Weak-Tie Relationships
– Strong-tie relationship are characterized by frequent
interaction and form between coworkers, friends, and
spouses.
– Weak-tie relationships are characterized by infrequent
interaction and form between casual acquaintances.
• Result
– It is more likely that an entrepreneur will get new business
ideas through weak-tie rather than strong-tie relationships.
(See next slide.)
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46. Social Networks
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Strong-Tie Relationships Weak-Tie Relationships
These relationships, which
typically form between like-
minded individuals, tend to
reinforce insights and ideas
that people already have.
These relationships, which
form between casual
acquaintances, are not as
apt to be between like-
minded individuals, so one
person may say something
to another that sparks a
completely new idea.
Why weak-tie relationships lead to more new business ideas
than strong-tie relationships
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47. Creativity
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• Creativity
– Creativity is the process of generating a novel or useful
idea.
– Opportunity recognition may be, at least in part, a creative
process.
– For an individual, the creative process can be broken down
into five stages, as shown on the next slide.
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48. Creativity
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Five Steps to Generating Creative Ideas
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49. Full View of the Opportunity Recognition
Process
Depicts the connection between an awareness of emerging trends
and the personal characteristics of the entrepreneur
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50. Techniques for Generating Ideas
Brainstorming Focus Groups
Library and
Internet Research
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51. Brainstorming
• Brainstorming
– Is a technique used to generate a large number of ideas and
solutions to problems quickly.
– A brainstorming “session” typically involves a group of
people, and should be targeted to a specific topic.
– Rules for a brainstorming session:
• No criticism.
• Freewheeling is encouraged.
• The session should move quickly.
• Leap-frogging is encouraged.
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52. Focus Groups
• Focus Group
– A focus group is a gathering of five to ten people, who
have been selected based on their common characteristics
relative to the issues being discussed.
– These groups are led by a trained moderator, who uses the
internal dynamics of the group environment to gain insight
into why people feel the way they do about a particular
issue.
– Although focus groups are used for a variety of purposes,
they can be used to help generate new business ideas.
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53. Library and Internet Research
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• Library Research
– Libraries are an often underutilized source of information
for generating new business ideas.
– The best approach is to talk to a reference librarian, who
can point out useful resources, such as industry-specific
magazines, trade journals, and industry reports.
– Simply browsing through several issues of a trade journal
or an industry report on a topic can spark new ideas.
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54. Library and Internet Research
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Large public and
university libraries
typically have access to
search engines and
industry reports that would
cost thousands of dollars
to access on your own.
Examples of Useful Search
Engines and Industry Reports
• BizMiner
• ProQuest
• IBISWorld
• Mintel
• LexisNexis Academic
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55. Library and Internet Research
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• Internet Research
– If you are starting from scratch, simply typing “new
business ideas” into a search engine will produce links to
newspapers and magazine articles about the “hottest” new
business ideas.
– If you have a specific topic in mind, setting up Google or
Yahoo! e-mail alerts will provide you with links to a
constant stream of newspaper articles, blog posts, and news
releases about the topic.
– Targeted searches are also useful.
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56. Other Techniques
• Customer Advisory Boards
– Some companies set up customer advisory boards that meet
regularly to discuss needs, wants, and problems that may
lead to new ideas.
• Day-In-The-Life Research
– A type of anthropological research, where the employees of
a company spend a day with a customer.
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57. Encouraging New Ideas
• Establishing a Focal Point for Ideas
– Some firms meet the challenge of encouraging, collecting,
and evaluating ideas by designating a specific person to
screen and track them—for if it’s everybody’s job, it may
be no one’s responsibility.
– Another approach is to establish an idea bank (or vault),
which is a physical or digital repository for storing ideas.
• Encouraging Creativity at the Firm Level
– Creativity is the raw material that goes into innovation and
should be encouraged at the organizational and individual
supervisory level.
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58. Protecting Ideas From Being Lost or Stolen
• Step 1
– The idea should be put in a tangible form such as entered
into a physical idea logbook or saved on a computer disk,
and the date the idea was first thought of should be entered.
• Step 2
– The idea should be secured. This may seem like an obvious
step, but is often overlooked.
• Step 3
– Avoid making an inadvertent or voluntary disclosure of an
idea, in a manner that forfeits the right to claim exclusive
rights to it.
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59. Creative Sources of Ideas
To identify creative ideas:
Observe the world around you.
Watch for demographic changes.
Be an avid reader.
Consider your interests, hobbies, and work
experiences.
Consult outside sources of information.

60. Watch for Demographic
Changes
It is important for
entrepreneurs to
understand
demographics and
demographic trends.
demographics personal
characteristics that describe
a population by age,
gender, income, ethnic
background, education, and
occupation, among others