Opportunity Recognition - Module 3 Flashcards
It is a major prerequisite for innovativeness and entrepreneurial performance.
recognizing entrepreneurial opportunities
the first step in the entrepreneurial process
Opportunity Identification
ToF. Startups can achieve success without spotting opportunities.
False
a process that’s found in the way that individuals and businesses with an entrepreneurial mindset approach new business ventures or ideas.
Opportunity recognition
is a favorable set of circumstances that creates the need for a new product, service, or business idea
opportunity
Most entrepreneurial firms are started in one of two ways:
Internally stimulated and externally stimulated
An entrepreneur decides to start a firm, searches for and recognizes an opportunity, then starts a business
internally stimulated
An entrepreneur recognizes a problem or an opportunity gap and creates a business to fill it.
externally stimulated
___ is the point at which identifiable consumer demand meets the feasibility of satisfying the requested product or service.
Entrepreneurial opportunity
In what ways or cases that an opportunity is found?
- deliberate search
- emerges serendipitously
- recognizing a problem and making a deliberate attempt to solve the problem
Stated that entrepreneurs create value “by exploiting a new invention or, more generally, an untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products, by recognizing an industry” or similar means.
Joseph Schumpeter
entrepreneurial innovation is the disruptive force that creates and sustains economic growth, though in the process, it can also destroy established companies, reshape industries, and disrupt employment. He termed this force ___.
creative destruction
is the permanent reduction of a company’s labor force through the elimination of unproductive workers or divisions
downsizing
ToF. The dynamics of business impedes the economy and deteriorate our lifestyle, leading to other industries or products obsolete.
False
ToF. Berkeley argued that this cyclic destruction and creation was natural in a capitalist system, and that the entrepreneur was a prime mover of economic growth.
False
For Schumpeter, the goal was ___
to progress
methods for finding new business opportunities
- Develop a new market for an existing product.
- Find a new supply of resources that would enable the entrepreneur to produce the product for less money.
- Use existing technology to produce an old product in a new way.
- Use an existing technology to produce a new product.
- Finally, use new technology to produce a new product
are economic terms relating to the production of goods.
Supply and demand
_____ is the amount of a product or service produced.
Supply
____ is the consumer or user desire for the outputs, the products, or services produced.
Demand
_______ is the point at which identifiable consumer demand meets the feasibility of satisfying the requested product or service.
entrepreneurial opportunity
includes identifying a sizable target market interested in the product or service that has sufficient profitability for the venture’s financial success
feasibility
________________ was first applied in radars to track military submarines
microwave
technology
he accidentally melt a peanut bar in his pocket one day while tinkering with
the technology, the microwave was born
Percy Spencer
being used by real estate firms, package delivery services,
agriculture, underwater search and scientific research, security, surveillance, and more.
drone technology
He found a system to solve the problem of overnight package delivery in
founding Federal Express
Fred Smith
Identifying ________________ may be as simple as listening to customer comments such as “I wish my
virtual orders could be delivered more quickly.” or “I can never seem to find a comfortable pillow that
helps me sleep better.”
consumer needs
simple form of market research
customer feedback
- Increased access to capital through social media sources like crowdsourcing is having a significant impact on entrepreneurship in that it enables underserved people and communities who otherwise might not be able to start and own a business—to become entrepreneurs.
- Technological advancements continue to provide new opportunities, ranging from drones to artificial intelligence, advancements in medical care, and access to learning about new technology. For example, drone technology is being used to map and photograph real estate, deliver products to customers, and provide aerial security and many other services. Cell phones have spawned many new business opportunities for a wide range of cell phone accessories and related products, ranging from cell phone cases to apps that help make our cell phones faster for business and personal use.
- Increased globalization drives entrepreneurship by allowing importing and exporting to flourish. Globalization also helps spread ideas for new products and services to a world market instead of a local or regional market. Combined with the Internet and computer technology,
even small businesses can compete and sell their products around the globe. - Economic factors could include a strong economy that fuels other businesses. For example, growth in the housing market fuels growth for many housing-related products and services, ranging from interior decorating to landscaping as well as furniture, appliances, and moving
services.
Drivers of Opportunity
one of the main causes for start-up’s failure
lack of real need in the market
a big part of how you handle the issue of your company not making as much money as it realistically could be.
Identifying business problems
According to ______, “the real talent in entrepreneurship is finding the right problem, not building the right solution.”
Marius Ursache
Components to identify business problems
- It’s Important to Ask Yourself Questions
- Know What the Root Cause Is
- Get Some Insight
- Don’t Waste Time
Without addressing the customer’s problem to their complete satisfaction, you could open yourself up to scrutiny from many others in the future
It’s Important to Ask Yourself Questions
Beneath every problem is a deeper issue that has to be dealt with for the problem to be completely eliminated, rather than simply swept to the side.
Know What the Root Cause Is
If you leave the underlying cause of a problem in place, you run the risk of the immediate issue coming back time and again.
Know What the Root Cause Is
By consulting with people who are constantly exposed to parts of your business that you may not deal with every single day, you could potentially uncover issues that might have otherwise been allowed to persist.
Get Some Insight
It helps to get outside opinions. Talk to co-workers, customers, and entrepreneurs in the same industry, and anyone else who might be able to find issues that you could be missing.
Get Some Insight
Problems have a tendency to snowball if you let them, so you need to be proactive.
Don’t Waste Time
By having even a small role in every aspect of your business, you will have some idea of how things are run. That will expose you to the idiosyncrasies of that part of the business and show you what you can do about issues as they arrive.
Don’t Waste Time
