Module 1 - Video 1

Question 1

What is opportunity identification? What are the 2 schools of thought surrounding it?

Answer 1

Opportunity identification: where the ideas that entrepreneurs have come from.

2 Schools of thought:
1. Ideas are market imperfections that need to be identified by entrepreneurs; generic: everyone has access to these ideas

2. Ideas are created out of the process an entrepreneur follows → effectuation

Question 2

What are the 7 sources of ideas for new ventures?

Answer 2

Trend observation

Work experience

Hobby or personal interest

Chance happening or serendipity

Perceptual changes

Education and expertise

Industry and market changes

Question 3

As a source of ideas for new ventures, what types of trends can entrepreneurs observe?

Answer 3

Societal trends: aging demographics, health and fitness growth

• Ex. a healthcare professional creates a software using artificial intelligence to detect and eventually predict falls at elder-care facilities.
• Ex. switching a fruit orchard from a B2B model to B2C based on COVID trends (people want to be outdoors, there is a fruit-picker shortage in the labour market)

Technology trends: mobile technology, e-commerce, internet advances, AI

Economic trends: higher disposable incomes, dual wage-earner families

Government trends: increased regulations, terrorism

Question 4

As a source of ideas for new ventures, how can work experience help an entrepreneur find a new idea? Provide an example.

Answer 4

More than half of all new venture ideas emerge from the experiences entrepreneurs have working in the industry
* Ex. Chester Carlson created the copy machine. A lawyer and physicist, his experience in law showed him the need for clear copies of documents and physics gave him the technical know-how

Question 5

As a source of ideas for new ventures, how can chance happening or serendipity help an entrepreneur find a new idea? Provide an example.

Answer 5

Ex. post it notes, silly putty, microwaves, etc.

Question 6

As a source of ideas for new ventures, how can perceptual changes in people’s interpretation of facts and concepts help an entrepreneur find a new idea? Provide an example.

Answer 6

Consumer need to be healthy and physically fit creates a demand for both health foods and health facilities

Consumer desire to better use their personal time creates demand for the travel industry and personal organizers

Question 7

As a source of ideas for new ventures, how can education and expertise help an entrepreneur find a new idea? Provide an example.

Answer 7

Entrepreneurs can tap into their own expertise to create new ventures (Joy Mangano and the Miracle Mop)

Question 8

As a source of ideas for new ventures, how can industry and market changes help an entrepreneur find a new idea? Provide an example.

Answer 8

Industry & Market Changes are shifts in the marketplace caused by changes in:

• Consumer attitudes
• Advances in technology

Ex. Food industry: sustainability, local food movement, trust issues
Ex. Health-care industry: changing to personalized, data-driven, patient-centered, home-based health care

Question 9

Which process helps the entrepreneur determine whether they are solving the right problem?

Answer 9

The problem definition procedss

Question 10

Whatt are the four steps in the problem definition process?

Answer 10

Establish a need for a solution

Justify the need

Contextualize the problem

Write the problem statement