Lesson 2 (soures of opportunity) Flashcards
Entrepreneurial ideas arise when changes happen in the external environment.
CHANGES IN THE ENVIRONMENT
3 types of changes in environment
Physical
Societal
Industry
3 types of physical environment
climate
natural resources
wild life
is is the weather conditions
climate
such as minerals, forests, water and fertile land
that occur in nature and can be used for economic gain.
natural resources
includes all mammals, reptile, fish etc. that live in the wild.
wild life
4 types of societal environment
political forces
economic
sociocultural
technology
includes all the laws, rules, and regulations that govern the
business practices as well as the permit, approval, and licenses necessary to open the business.
political forces
income level and employment rate
economic forces
customs, lifestyles and values that characterize a society.
sociocultural forces
new technology and new innovations.
technology environment
6 types of industry envirenment
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 source of ideas.
GOVERNMENT THRUST, PROGRAMS AND POLICIES
the interest, hobbies, and preferences of people are rich sources of
entrepreneurial ideas,
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 the act or process of trying to get or win something.
COMPETITION
FIVE FORCES COMPETING WITHIN THE INDUSTRY
Buyers
Potential New Entrants
Rivalry Among Existing Firm
Substitute Products
Supplier
