Lesson 2 Flashcards
What should a future entrepreneur should keep in mind?
a business must be firmly established on existing business opportunities.
Nonetheless, there can be no business opportunities in the absence of an entrepreneurial idea.
What are the entrepreneurial sources ideas?
- Changes in the Government
- Government’s programs and policies
- Technological discovery and
advancement - People’s interests
- Past Experiences
The requirement for businesses to cater for disabled people, by building ramps into offices, shops etc. Also This design and implementation of workplace and environmental regulations.
Changes in the Government
What are the 4 steps of entrepreneurial process?
Step 1 : Opportunity Spotting and Assessment with the 3S
Step 2: Developing a Business Plan
Step 3: Determining the Capital Needed
Step 4: Running the business
What are the key 5 terms ?
Needs, Wants, Demand, Opportunity, Idea
level of desire or need in particular good or service. It is also a want becomes a demand when there is an increasing number of people who wished to acquire the purchasing power to buy it.
Demand
Something people must have for survival or to strive for a certain necessity. These may vary on the external situation of the person as it may include food, water, medicine, clothing, security, house, and others.
Needs
Simply anything that would satisfy a person’s desire whether necessary or not.
Wants
An entrepreneur’s business idea that can potentially become a commercial product or service in the future.
Opportunity
It is a result of a creative thinking process.
Idea
What are the 3s?
Seeking, Screening, Seizing
is the first step and is the most difficult process of all due to the number of options that the entrepreneur will have to choose from
Step 1: Seeking
What are the 2 various sources?
a. Macro-environmental Sources
b. Micro-market Sources or Micro- environment Sources
The environment in which a business operates is a major consideration in determining an organization’s design
Business Environment
These are sources outside of the business that the owner has very little control. These are also the larger societal forces that may directly and indirecty the business.
Macro environmental Sources
What are the Macro Environment Sources?
- Political
- Socio-Cultural
- Economic
- Technological
- Environmental
- Demographic Factors
- Legal
Government policies and administrations:
- Corruption level
- Tax policy
- Government effectiveness
- National Minimum Wage
- Corporate Taxes
Political
The general view of locality’s traditions, customs, beliefs, norms and perceptions.
Socio-Cultural
These include income, expenses and resources that can influence the cost of doing business and generating income. (growth rate, labor costs, interest rates)
Economic
- Use of mobile devices in establishing a more relationship with customers.
- Making technology more convenient by incorporating AI technology.
- Voice command function
Technological
The environmental standards or will just be a hazard to people, animals or nature.
Environmental
These are the characteristics of the people on the target market.
- Age
- Gender
- Education
- Income
- Social Class
Demographic Factors
These are government laws and regulations that could restrict or allow business activities.
Legal
- Anti-discriination Law
- Employment Law
- National Minimum Wage Law
- Copyright and Patent Laws
- Health and Safety Laws
Legal
What are the sources of Micro- Market ?
- Customers
- Suppliers
- Competitors
- Intermediaries ( Distributors, Wholesalers, Retailers, Online Selling)
- Some Publics
The process of cautiously selecting the best opportunity and the selection will depend on the entrepreneur’s.
Step 2 : Screening
The entrepreneur should say NO to an opportunity if it does not contain any of the business opportunity elements which are ?
- Has superior value to customers
- Solves a compelling problem, issue, need or want.
- Is a potential cash cow
- Matches with the entrepreneur’s skills, resources, and risk appetite.
The “pushing through” with the chosen opportunity.
Step 3 : Seizing
Is the process of positively improving an existing product or service.
Innovation
Turning an idea into a solution that adds value from a customer’s perspective.
Innovation
These are the innovations that occur infrequently; must be protected by a patent, a trade secret, or a copyright.
Break through Innovation
These are the innovations that occur more frequently, technological advancements of an existing product or service.
Technological Innovation
These are innovations that occur ordinarily.
This means that the market has a strong influence on the implementation of the innovation.
Ordinary Innovation
What should an entrepreneur should establish?
A new product or service offered will provide TRUE VALUE to the customers and influence their behavior
“ When you speak to everyone, you speak to one”
Meredith Hill
is defined as ‘the systematic design, collection, interpretation, and reporting of information to help entrepreneurs solve marketing problems or take advantage of business opportunities from the consumer data.
Consumer Analysis
Why is it important that an entrepreneur must know his or her target market?
to focus his or her business strategy to a smaller market.
What are the demographics customers characteristics?
- Age
- Gender
- Income level
- Family size
- Culture and tradition Health
- Occupation
- Educational background Social class
- Religion
- Tace
- Generation
- Nationality
- Family size
What are the customers geographic location?
- countries
- regions
- cities
- climate
- ethnic group
What are the customers psychographic personality?
- hobbies
- leisure activities (social class)
- psychological or personality traits
- lifestyle
- brand concept
What are the customers behavioral buying preferences?
- knowledge and attitudes
- response to a product
- changing attitudes
- purchase patterns
- buying preferences in terms of features, priorities, brand, and travel time.
- occasion
What are the customers behavioral buying preferences?
- How do they react to products/ services offered by different companies?
- What is their attitude towards new products or services?
- Are they impulsive or wise buyers?
