The document discusses the essential skills entrepreneurs need to identify business opportunities, emphasizing the importance of environmental scanning and market analysis. It outlines processes for generating business ideas, screening potential opportunities, and assessing resources and capabilities. Additionally, it highlights the significance of understanding personal and firm-level factors that influence the feasibility and success of new ventures.

1. IDENTIFICATION OF BUSINESS
OPPORTUNITIES
By: SAKSHI RANA
(Lecturer)
DEPARTMENT OF ELECTRICAL ENGINEERING
IIMT COLLEGE OF POLYTECHNIC
GREATER NOIDA

2.  The ability to identify business opportunities is an
essential characteristic of an entrepreneur
 Opportunity- favorable position or a range for
advancement
OPPORTUNITY TO START A
BUSINESS

3.  Generating Ideas
 Screening Process
 Formulating the Concept of the Business
STEPS IN ARRIVING AT
BUSINESS OPPORTUNITY

4.  Source: Environment
 Scan & Understand the needs & wants of people
 Abraham Maslow -psychologist People generally have
different kinds of basic needs such as food, clothing,
shelter, safety , socialization, recognition for self-
esteem & self- fulfillment
GENERATING IDEAS

5.  Source: Environment
 Taking macro-perspective or viewing larger
environment where business will be situated (looking
at the Social, Technological, Economic, Environmental,
& Political)
GENERATING IDEAS

6. Looking Closely at the market
◦ Demand & Supply Gap Analysis
 Import-Export Movement
 Product Substitution
 Forward-Backward Industry Linkages
WAYS OF SCANNING THE
ENVIRONMENT

7.  Looking at People’s skills
Observe your Community
 Looking at Available Business Assistance Program
Visit DTI Office
Government & Private Institutions
Non-Government Organizations
WAYS OF SCANNING THE E
NVIRONMENT

8. Method
 Ad Hoc Scanning -short-term, infrequent & initiated by
crisis
 Regular Scanning -involve studies done on a more or
less regular basis
 Continuous Scanning -entails regular collection or
processing of data on a wide range of factors from
business environment
COLLECTING
INFORMATION

9.  Accessing Networks
 Public Meetings, Trade Fairs & Fora
 Focused-Group Discussion
 Key People Surveys
 Publications
 In-Depth Interviews
 Usage & Awareness Studies
MEANS OF COLLECTING
INFORMATION

10.  Personal-Level Screening
 Firm-Level Screening
Screening Process

11.  PERSONAL LEVEL SCREENING
◦ Personal Preference (committed)
 Educational & Training Background
 Work experience (degree of expertise &
knowledge)
 Business Network & Contacts (buyers,
suppliers or creditors)
 family Support Personal-Level Screening
Screening Process
SCREENING PROCESS

12.  FIRM LEVEL SCREENING
 Market
 Technology
 Availability of Skills
 Availability of Raw Materials
 Financial/Capital Requirement
 Profitability
 Government Support Screening
Process
SCREENING PROCESS

13. Resource Analysis
 Resources Strengths Weakness
◦ Money
 Materials
 Machines
 Methods
 Manpower
 Management
 Moment (time)
FORMULATING THE
CONCEPT OF THE
BUSINESS

14.  The Resource Analysis where strengths and
weaknesses are identified, indicates what the firm is
capable of doing at the start of the business.
 The strengths identify distinctive competencies of the
company which can work to its advantage.

15.  Environmental Analysis
The Environmental Analysis gives an indication
whether the business can survive or not.
FORMULATING THE
CONCEPT OF THE
BUSINESS

16.  Socio-Cultural
 Technological & Technical
 Economic
 Natural
 Political
 Peace & Order
 Population Trends
 Government Program
 Global Environment
Identifying Opportunities &
Threats in the Environment

17. Personal Values Analysis
 represent your philosophy, guiding principles,
outlook and aspirations for your business (non-
monetary values)
FORMULATING THE
CONCEPT OF THE
BUSINESS

18. Thank you