1ST CHAP

Question 1

WHAT IS BUSINESS OPPORUNITY

Answer 1

IT IS AN ECONOMIC IDEA WHICH CAN BE IMPLEMENTED TO FORM A BUSINESS ENTREPREISE AND EARN PROFITS

Question 2

Elements of a business opportunity

Answer 2

-Assured market scope
-An attractive and acceptable rate of return on investment
-Practicability of the idea
- Competence of the entrepreneur to encash it
- Potential of future growth

Question 3

what is the entrpreneurial process

Question 4

what is sensing entrepreneurial oppruintinities

Answer 4

Sensing entrepreneurial opportunities is thus a process of converting an idea into an opportunity and then into an enterprise

Question 5

Factors involved in sensing opportunities-

Answer 5

Factors involved in sensing opportunities
To sense an entrepreneurial opportunity, an entrepreneur employs his/her sharpened skills of observation, analysis and synthesis to identify an opening. The most important factors involved in the process are:
1. Ability to perceive and preserve basic ideas which could be used commercially
2. Ability to harness different sources of information
3. Vision and creativity

Question 6

WHAT IS BUSINESS ENVIORNMENT

Answer 6

Business environment may be defined as all those conditions and forces external to a business unit under which it operates. Entrepreneurship does not emerge and grow spontaneously. Rather, it is dependent upon several economic, social, political, legal and other factors.

Question 7

WHAT IS ENVIORNMENT SCANNING

Answer 7

Careful monitoring of an organization’s internal and external environment for detecting early signs of opportunities and threats that may influence its current and future plans.

Question 8

ENVIORNMENT ANALYSIS

Answer 8

Environment analysis is the process of monitoring the economic and non-economic environment, to determine the opportunities and threats to an organisation. Such an analysis involves data collection, information processing and forecasting to provide a rational basis for developing goals and strategies for business survival and growth.

Question 9

SOURCES OF INFO FOR ENVIRONMENTAL SCANNING

Answer 9

Information for environmental scanning can be collected from several sources. These include
a) verbal information from customers, wholesalers, retailers, distributors, consultants, etc.
b) records of companies
c) government publications
d) publications by various financial institutions
e) formal studies conducted by strategic planners

Question 10

ENTREPRENEURSHIP ENVIONRMENT

Answer 10

Entrepreneurship environment refers to the various forces within which various small, medium
and large enterprises operate. These factors exert influence upon each other and do not operate in isolation

Question 11

whar is a problem

Answer 11

A problem is a roadblock in a situation, something that sets up a conflict and forces you to find a solution. When an entrepreneur identifies such a road block, he/she is said to have identified the problem.

Question 12

Uses of problem Identification

Answer 12

It helps the entrepreneru to-
-bring out new products
in the market
-increase employment generation
-increase national income (of the country)
-understand the problems and needs in the market
-be creative

Question 13

what are idea fields

Answer 13

By following different ways for generating ideas an entrepreneur collects a number of ideas. The process of generation of ideas can be streamlined by developing an awareness for different „idea fields‟. This will help the entrepreneur in enlarging the scope of thinking, at the same time structuring the ideas according to convenient frames of reference.
Idea Fields can be described as: ‘Convenient frames of reference for streamlining the process of generation of ideas.’

Question 14

various sources of idea fields

Answer 14

natural
existing products or services
trading related
creative efforts
service related
market or demand driven.

Question 15

explain natural resource idea field

Question 16

explain existing products and services idea fields

Answer 16

A great business idea combines skills with imagination and market demand. A business opportunity or idea often comes from everyday problems that someone solvesEntrepreneurs who look at ways to make an existing product or service better can be as successful as those who create or invent products.There is a constant and consistent effort on the part of all entrepreneurs to improve the products and services already existing in the markets.
Often, a company will improve or change its existing products. There are many reasons for doing this. It can make a substantial difference in the success of the company and even take it in a whole new direction There are a number of pros to changing or improving your existing product line, including:Keep up with the competition: If you provide services or products in an industry that is constantly changing, it’s important to stay aware of the latest in industry trends so you can continue to be competitive; for example, you own ahairproductsupply store that sells flat irons for straightening hair. More and more places are selling ceramic irons as hair experts say they are better for hair. In this case, it would be advantageous to update the products to reflect the latest in technology.Increase sales: The main reason people will change and improve their existing product line is to increase their sales and ultimately, their revenue. By adding to the product line, you can take your company in a new direction by increasing sales

Question 17

explain market driven or demand driven ideas

Answer 17

one of the important methods for generating ideas is to carry out a market research. Such a study yields valuable data about trends of supply, demand and consumer preferences.
Market research is any organized effort to gather information about target markets or customers. It is a very important component of business strategy. The term is commonly interchanged with marketing research; however, expert practitioners may wish to draw a

distinction, in that marketing research is concerned specifically about marketing processes, while market research is concerned specifically with markets.
Market research is a key factor to maintain competitiveness over competitors. Market research provides important information to identify and analyze the market need, market size and competition.

Question 18

TRADING RELATED IDEAS

Answer 18

TRADE NOWADAYS IS NOT LIMITED TO THE ORDINARY GROCER AND DISTRIBUTOR OUTLETS. WITH INCREASING CONSUMERISM TRADE HAS EXPANDED TO IMPORT TRADE, EXPORT TRADE, AND EVEN E COMMERCE. IN SIMPLE TERMS TRADE IS BUYING GOODS AND SELLING IT TO THE CUSTOMERS FOR A PROFIT, A TRADING ENTREPRISE IS MUCH EASIER TO LAUNCH AND LESS RISKY. BUT A TRADER MUST BE AWARE OF THE TRENDS IN THE ECONOMY, AND NEW TRADERS HAVE TO AQUIRE THE SKILL-SET, AND KNOWLEGDE TO COMPETE WITH LARGE DEPARTMENTAL STORES AND CHAIN STORES.

Question 19

SERVICE SECTOR IDEAS

Question 20

CREATIVE EFFORTS

Answer 20

We have seen that creativity is an important and key component of the talents and abilities needed for an entrepreneur. Apart from applying creativity to spot and harness opportunities, it can also be applied to develop new products and services.
There are basically five ways in which creative ideas can be generated:
1. Develop a new product or service.
2. Improve an existing product or service
3. Find a new process or resource for manufacturing a product.
4. Find new markets for existing products or services.
5. Find a new use of an existing product or service.
A

Question 21

legal factors

Answer 21

t includes discrimination law, consumer law, antitrust law, employment law, and health and safety law.
(ii)These factors can affect how a company operates, its costs, and the demand for its products.

Question 22

objectives of problem identification

Answer 22

 It should clearly state the problem
 Identify target group facing the problem
10
 Find the market acceptability of the solution to the problem

Question 23

Uses of problem Identification

Answer 23

1. Bring out new products in the market
2. Understand the problems and needs of the market
3. Be creative
4. Increase employment generation
5. Increase national income (of the country)

Question 24

idea generation

Answer 24

is the process of creating, developing and communicating ideas which are abstract, concrete of visual. it includes, process of constructing through the idea, developing the process, bringing the concept to reality

Question 25

idea fields

Answer 25

By following different ways for generating ideas an entrepreneur collects a number of ideas. The process of generation of ideas can be streamlined by developing an awareness for different „idea fields‟. This will help the entrepreneur in enlarging the scope of thinking, at the same time structuring the ideas according to convenient frames of reference.
Idea Fields can be described as: ‘Convenient frames of reference for streamlining the process of generation of ideas.’

Question 26

what should an entreprenuer ensure before selecting a business opporunity

Answer 26

• good market for the product he is going to produce
• attractive return on investment

Question 27

where can opportunities be derived from-

Answer 27

from the needs and problems of the society

Question 28

sources that lead to emergence of basic ideas

Answer 28

PICCI
PROBLEMS- when a problem exists an idea leads to a solution to that problem it emerges as a business opportunity.
CHANGE- change in social legal technological aspects leads to new opportunities to start a business
INVENTION- new products or services lead to the emergence of business opportunity
COMPETITION
INNOVATION

Question 29

VISION AND CREATIVITY

Answer 29

creativity in generating a solution and vision. Entreprenuers must identify problems to generate the solution. Their need to convert solutions into business opoportunity helps them move forward and overcome all obstacles- entrepreneurs constantly
excersise control over their business
make a difference
overcome adversity

Question 30

benefits of enviornement scanning

Answer 30

idenitification of opportunity to get first mover advantage- if a business is in touch with their changing enviornment it allows them to identify opportunities and develop strategies to capitalize on them at the earliest. Eg- volvo 74% share in luxury bus segment as it entered indian market earlier

formulation of strategies and policies- enviornemnt scanning helps detect early threats and opportunities, this serves as the basis for formulating strategies to counter threats and capitalize on opportunities

tapping useful resources- If a business has thorough knowlege of their external business envionrment it helps them tap into raw material, technology and even fincnacial resources in the market at economical prices at the right time

better performance- proper understanding and knowlege of the verious elements of business enviorment is essential to counter threats at the earliest and capitalize on opportunities for the improvement in performance of the enterprise

sensitization of the entreprenuers to cope up with rapid changes- a proper understanding and awareness of the changing enviorment sensitizes the entrepreneur to cope up with changes in technoglogy, competition, government policies, trends in demand of customers etc. ex- change in clothing trends.

image building- sensitivity to the external business enviornment allows entreprenuers to come up with those products and services according to the needs and requirements of the people this helps build reputation in the eyes of the public and builds the image of the enterprise. eg- call radio taxis w gps service , online booking etc.

Question 31

entrepreneruship enviornment

Answer 31

refers to those forces within which the small medium and large enterprises operate they all exert influence upon one another and dont work in isolation

Question 32

what is idea generation

Answer 32

it is the process of creating, developing and communicating ideas which are abstract concrete or visual. it includes constructing through the idea,
innovating the concept
developing the process,a dn bringing it to reality.

Question 33

idea fields

Answer 33

the process of generating ideas can be streamlined by developing an awarness for various idea fields. This can help the entrepreneur enlrage his scope of thinking whil e structuring ideas according to convinient frames of reference. idea frames can be refered to as convinient frames of reference for streamiling the process of generation of ideas.

Question 34

various sources of ideas fields

Answer 34

natural resources
market or demand driven
creative efforts
trading related
service related
existing products of services

Question 35

explain the idea field natural resources

Answer 35

ideas can be generated based on natural resources. Products can be desried from agriculture, horticulture, animal husbandry, wind, sun etc. eg. lumber who’s existing use is timber, but its potential use is furniture. eg soil, who’s current use is as clay but it has the potential to be used as cermaics.

Question 36

explain the idea field of existing product or service

Answer 36

a great business idea combines skills with imagination and market demand. a business opportunity or idea comes from every day problems that someone solves.

entrepreneurs who look to make an existing product or service better can become just as succesful as its inventors.

Although it may seem that only good can arise from developing, adding to an existing product, if not done skillfully, problems may arise.

However its benefits include- keeping up w competition- if our company offers products and services in an industry which is constantly changing we must keep up with the latest trends. eg ceramic hair straightners

increase in sale- the other main reason business expands their line of products is to increase sales, and therefore revenue. eg expanding a tutoring business.

increasing sales

Question 37

explain market driven or demand driven ideas

Answer 37

the most important method of generating ideas is through market research. it yeilds information about the target market, trends and consumers.

it is often interchanged with the term marketing research. market research provides information about the market while marketing research is concerned with the marketing process.

market research provides information about the trends of demand and supply, size and comptition
it helps mainatin competitiveness over competitors

whatever the source of information about the market it is a primsing field to generate ideas

Question 38

explain trading related ideas

Answer 38

nowadays trading is not limited to the ordinary grocer and distributer.
with increased consumerism trading’s scope has expanded, local trade, import ad export and e commerce is widening it
in simple terms trading is buying and selling of goods for a profit
an advanatage of trading enterprise is it is much easier to launch and less risky
however it is necessary for prospeticve traders to know the trends in the economy, with increased competition from chain stores and large depratmental stores, an umbrella market has formed new entrants must accquire the knowlege and skills reauired to manage and expand business opportunity

Question 39

service sector ideas

Answer 39

entrepreneurial opportunities are not only restricted to manufactureers even service sectors is the most growing field these days thanks to emergeing knowlege and development in IT. NEW OPPORTUNITIES INCLUDE-
indian fast food/finger food
family dinner
sandiwhc parlours
ice cream and juice beverage parlour
personalised grooming-
the biggest player in terms of personalised grooming, is habibs.
career counselling centres- with over 25 million births per year and 3 million from these going to continue education after 12th, having no idea about job and vocational trends, this is a rapidly growing opportunity.

Question 40

WHAT IS THE CREATIVE EFFORTS

Answer 40

CREATIVITY IS A KEY COMPONENT IN THE SKILLS AND ABILITIES OF AN ENTREPRENEUR
5 WAYS IN WHICH CREATIVE IDEAS CAN BE GENERATED
DEVELOP A NEW PRODUCT OR SERVICE
IMPROVE AN EXISTING PRODUCT OR SERVICE
FIND A NEW METHOD TO MANUFACTURE PRODUCTS
FIND A NEW MARKET FOR EXSITING PRODUCTS OR SERVICES
FIND A NEW USE FOR EXSITING PRODUCTS OR SERVICES

most often creative products and services are formed as a result of problem solving. eg over tightening of screw led to damage of fixtures, hence someone created self tightening screwdrivers.

Question 41

steps in idea and opportunity assesment

Answer 41

1- product identification; an idea should lead the entrepreneur to a product which he can develop or sell.
first step is to obtain a concept of the product she can sell.
if it is an already existing product she should idenityf the reason for introducing it
eg pendrive bracelet for teachers.

application and use- ideas should be examined for the real life use and application. if it is an already exsiting product in the market, the entrepenreur must identify its current use and how it can be modified for betetr use.

level of operation-
this is an important step in product/service identification, based on the use of the product/service the entreprenuer will decide wether it has to be manufacted in a cottage small scale or large industry

cost- the sale price is determined by factors such as per unit cost of producing a unit of the product and its compariosn with other competitors prices.

COMPTITION- any product or service will face comptition in the market. so this competition should be determined by market assemesent of trends.

technical complexity- the type of technology to be used, and its availibity have to be determined.

annual turover and profit margin- ideas also have to be examined on the basis of annual turnover and profit. this will indicate its market share.

Question 42

whats the creative process?

Answer 42

idea germination
preparation
incubation
illumination
verification

idea germintaion-
this is the seeding stage of a new idea.
this is when the entreprenuer realises there is an opportunity existing. it takes place accoridng to the interest and curiosity of the entrepreneur,and the opportunity is explored and exploited to its best potenatial
eg mansukhbai prajapati wanted to make a clay fridge that didnt run on eletricty. he was exploring the idea of an eco friendly fridge

preparation- according to the entrepreneurs intrest and curiosity the need of the product or service is adjudged, if it si the introduction of a new product or service market research is conducted. entreprenuers foresee the future of their profuct as the seed of idea has taken off.

incubation- this is the transition period. where there is subconscious assimiliation of information the entreprenuer starts thinking abt the idea in his subconscious mind.

illumination- the idea resurfaces in a realistic way and the entrepreneur, the entreprenuer gives it a viable plan to bring it to shape and starts collecting funds, and raw material.

verification- this is the validation or testing stage where the product is examined on the basis of its value. this is the most hardest step in the creative process and obstructions begin to arise. its the developing stage where knowlege isdevelopef into appkication

innovation - translation of a usefull idea into an application which has commerical value. details of the entreprise are worked out, and makreting strategies r developed