Lesson 2 Recognize a Potential Market Flashcards
Entrepreneurial Process of Creating New Venture
Creation of an entrepreneurial idea leads to the identification of entrepreneurial opportunities, which in turn results in the opening of an entrepreneurial venture.
Essentials in Entrepreneur’s Opportunity Seeking
- Entrepreneurial Mind Frame
- Entrepreneurial Heart Flame
- Entrepreneurial Gut Game
This allows the entrepreneur to see things in a very positive and optimistic way in the midst of difficult situation. Being a risk-taker, an entrepreneur can find solutions when problems arise.
Entrepreneurial Mind Frame
Entrepreneurs are driven by passion; they are attracted to discover satisfaction in the act and process of discovery. Passion is the great desire of an entrepreneur to achieve his/her goals.
Entrepreneurial Heart Flame
This refers to the ability of the entrepreneur of being intuitive. This also known as intuition. The gut game also means confidence in one’s self and the firm belief that everything you aspire can be reached.
Entrepreneurial Gut Game
Sources of Opportunities
- Changes in the Environment
1.1. The Physical Environment
1.2. The Social Environment
1.3. The Industry Environment - Technological Discovery and Advancement
- Government Thrust, Programs, and Policies
- People’s Interest
- Past Experiences
Entrepreneurial ideas arise when changes happen in the external environment. A person with an entrepreneurial drive views these changes positively.
Changes in the Environment
Refers to the physical environment, societal environment, and industry environment where the business operates.
External Environment
The Physical Environment
a. Climate
b. Natural Resources
c. Wildlife
The weather conditions.
Climate
Minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.
Natural Resources
Includes all mammals, birds, reptiles, fish, etc., that live in the wild.
Wildlife
The Social Environment
a. Political Forces
b. Economic Forces
c. Sociocultural Forces
d. Technological Environment
Includes all the laws, rules, and regulations that govern business practices as well as the permits, approvals, and licenses necessary to operate the business.
Political Forces
Income level and employment rate.
Economic Forces
Customs, lifestyles and values that characterize a society.
Sociocultural Forces
New inventions and technology innovations.
Technological Environment
The Industry Environment
a. Competitors
b. Customers
c. Creditors
d. Employees
e. Government
f. Suppliers
A person with entrepreneurial interest sees possibility of business opportunities in any new discovery or because of the use of latest technology.
Technological Discovery and Advancement
The priorities, projects, programs, and policies of the government are also good sources of ideas.
Government Thrust, Programs, and Policies
The interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas, like the increasing number of Internet Cafés at present could lead to the strong attachment of young people to computers.
People’s Interest
The expertise and skills developed by a person who has worked in a particular field may lead to the opening of a related business enterprise.
Past Experiences
It is also known as the “five forces of competition”. An industry environment is a competitive environment. Regardless of what product or services you have, competition is always present.
Forces of Competition Model
It is the act or process of trying to get or win something.
Competition
Forces of Competition Model
- Buyers
- Potential New Entrants
- Rivalry Among Existing Firms
- Substitute Products
- Supplier
The ones that pay cash in exchange for your goods and services.
Buyers
Defined as companies or businesses that have the ability to penetrate or enter into a particular industry.
New Entrant
A state or situation wherein business organizations are competing with each other in a particular market.
Rivalry
One that serves the same purpose as another product in the market.
Substitute
The one that provide something that is needed in business operations such as office supplies and equipment.
Suppliers
Can be defined as the steps taken in order to begin a new enterprise. It is a step-by-step method one has to follow to set up a business.
Entrepreneurial Process
An innovative concept that can be used for financial gain that is usually centered on a product or service that can be offered for money.
Entrepreneurial Ideas
Refers to the local government (municipality, city, or provincial) or the national government and its branches.
Government
The process of considering, evaluating, and pursuing market-based activities that are accepted to be beneficial for the business.
Opportunity Seeking
Can be attained by assessing and looking at changes in the environment; technological discovery and advancement; government’s thrust, programs, and policies; people’s interest, and past experiences.
Sources of Opportunity
