Tan, Denise Margarette P.
can exist on paper or in the form of ideas.
usually related to the entrepreneur’s work
experiences, hobbies, or social environment.
can be found in many ways and in many
Many people see opportunities but only
entrepreneur acts upon them.
Business idea is a business concept that
results in profits if it is turned into a tangible
product or service.
Opportunity also defined as the potential to
create something new that involves change in
knowledge, technology, economy, politics, social, a
nd demographic conditions.
Sources of business ideas and
refer to first-hand data or
information gathered directly
Observation ~ data is gathered by observing and
recording the respondent’s actions in
Experiments - experiments or product sampling is
Interviews - field research covers interviews with
customers, suppliers, competitors, and industry experts.
Surveys - refers to the development of a short
questionnaire with respect to the targeted product.
- the questions should be very specific.
involved gathering data that have already
been compiled and are available.
it is initially conducted for one purpose using
existing data which is :-
~ available references
~ mass media and electronic media
Reliable existing data
- information obtained from annual report of companies.
- an entrepreneur can use reference such as publish information
from then library, internet and so on.
Mass media and electronic media
- advertisement and information in the newspaper, magazines and
Information on raw materials can be a business opportunity for an
PROCESSING OF REGONIZING, ANALYSING
AND CHOOSING A BUSINESS
To determine if the venture can make profits
and sustains its competitiveness.
Each opportunity must be carefully screened
Evaluation is the most critical element in the
Process in recognizing, analyzing and
choosing business opportunity
a) Recognizing customer
needs and wants
d) Screening or
c) Performing self-assessment
b) Analysing or scanning
f) Preparing or constructing
a business plan
income, and taste
e) Matching societal
values, community’s response or
Study on local resouces
Import and export data
by the public and
policies and regulations
Mass media and
financial risk such as
credit, cash liquidy,
loan and currency
capital and growth
Recognizing Customer Needs And
An entrepreneur has to be sensitive in
identifying the needs and wants of customers.
A need is something basic in life.
Wants are something that is more than a
Choosing a business opportunity
Criteria that must be choose by entrepreneur in
business opportunity is :-
The sugestion of business ideas must be prove by the
Those who are in the same business
Have a potential to serve the entrepreneur ‘s
Entrepreneur can identify competitors by asking
customers from his existing business.
Competitors are identify ~ the entrepreneur should
identify the strengths and weaknesses of his
competitors in term of organizational terms.
the amount invested in the company.
Three types of capital :
a) Fixed or permanent capital
Fixed capital is the amount of the capital that been
used to buy the asset of in the company.
b) Working capital
Referred to as operating capital
Also known as assets of business that can be used to
supports business operations.
Often used to pay bills and salaries, to buy
inventories and others.
c) Plantation or growth capital
Not related to current business situation.
Used to help small business change its primary
Define as a period of uncertainly experienced by a
business as a result of unforeseen events which
lead to either poor earnings and resultant failure.
Entrepreneur should be aware of the risks.
Risks face by entrepreneur based on the following
The level of difficulties in entering the business
The size or amount of capital to be invested
The amount of profit that can be gained from
The ability and competency of existing
workforce or human resources in managing the
Management of energy resources
The product’s potential to penetrate the market
In creating or searching for business opportunities,
one must consider the following factors:
1. The needs of the community – What products
are in demand?
2. Available resources – Do you have money for
capital? Do you have equipment and facilities?
3. Skills and interests – Does the particular
business activity meet your interest?
4. Market - where will you sell your products? Who will
buy your products?
5. Supplies or raw materials – Are materials
6. Manpower – Are expert workers available?
7. Technology – Is your product or service new or
Sources: retrieved from www.slideshare.com and
Villanueva, C.A. et al. effective technology and
home economics textbook.