Lesson 2 Recognize a Potential Market

Question 1

Entrepreneurial Process of Creating New Venture

Answer 1

Creation of an entrepreneurial idea leads to the identification of entrepreneurial opportunities, which in turn results in the opening of an entrepreneurial venture.

Question 2

Essentials in Entrepreneur’s Opportunity Seeking

Answer 2

1. Entrepreneurial Mind Frame
2. Entrepreneurial Heart Flame
3. Entrepreneurial Gut Game

Question 3

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.

Answer 3

Entrepreneurial Mind Frame

Question 4

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.

Answer 4

Entrepreneurial Heart Flame

Question 5

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.

Answer 5

Entrepreneurial Gut Game

Question 6

Sources of Opportunities

Answer 6

1. Changes in the Environment
   1.1. The Physical Environment
   1.2. The Social Environment
   1.3. The Industry Environment
2. Technological Discovery and Advancement
3. Government Thrust, Programs, and Policies
4. People’s Interest
5. Past Experiences

Question 7

Entrepreneurial ideas arise when changes happen in the external environment. A person with an entrepreneurial drive views these changes positively.

Answer 7

Changes in the Environment

Question 8

Refers to the physical environment, societal environment, and industry environment where the business operates.

Answer 8

External Environment

Question 9

The Physical Environment

Answer 9

a. Climate
b. Natural Resources
c. Wildlife

Question 10

The weather conditions.

Answer 10

Climate

Question 11

Minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.

Answer 11

Natural Resources

Question 12

Includes all mammals, birds, reptiles, fish, etc., that live in the wild.

Answer 12

Wildlife

Question 13

The Social Environment

Answer 13

a. Political Forces
b. Economic Forces
c. Sociocultural Forces
d. Technological Environment

Question 14

Includes all the laws, rules, and regulations that govern business practices as well as the permits, approvals, and licenses necessary to operate the business.

Answer 14

Political Forces

Question 15

Income level and employment rate.

Answer 15

Economic Forces

Question 16

Customs, lifestyles and values that characterize a society.

Answer 16

Sociocultural Forces

Question 17

New inventions and technology innovations.

Answer 17

Technological Environment

Question 18

The Industry Environment

Answer 18

a. Competitors
b. Customers
c. Creditors
d. Employees
e. Government
f. Suppliers

Question 19

A person with entrepreneurial interest sees possibility of business opportunities in any new discovery or because of the use of latest technology.

Answer 19

Technological Discovery and Advancement

Question 20

The priorities, projects, programs, and policies of the government are also good sources of ideas.

Answer 20

Government Thrust, Programs, and Policies

Question 21

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.

Answer 21

People’s Interest

Question 22

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.

Answer 22

Past Experiences

Question 23

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.

Answer 23

Forces of Competition Model

Question 24

It is the act or process of trying to get or win something.

Answer 24

Competition

Question 25

Forces of Competition Model

Answer 25

1. Buyers
2. Potential New Entrants
3. Rivalry Among Existing Firms
4. Substitute Products
5. Supplier

Question 26

The ones that pay cash in exchange for your goods and services.

Answer 26

Buyers

Question 27

Defined as companies or businesses that have the ability to penetrate or enter into a particular industry.

Answer 27

New Entrant

Question 28

A state or situation wherein business organizations are competing with each other in a particular market.

Answer 28

Rivalry

Question 29

One that serves the same purpose as another product in the market.

Answer 29

Substitute

Question 30

The one that provide something that is needed in business operations such as office supplies and equipment.

Answer 30

Suppliers

Question 31

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.

Answer 31

Entrepreneurial Process

Question 32

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.

Answer 32

Entrepreneurial Ideas

Question 33

Refers to the local government (municipality, city, or provincial) or the national government and its branches.

Answer 33

Government

Question 34

The process of considering, evaluating, and pursuing market-based activities that are accepted to be beneficial for the business.

Answer 34

Opportunity Seeking

Question 35

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.

Answer 35

Sources of Opportunity