TOPIC 3: ENTREPRENEURIAL OPPORTUNITIES Flashcards
________is an apparent way of generating value through _____________________________________, and even processes that have not been previously exploited.
Opportunity
unique, novel, or desirable products, services
Explain the three forms of values
Economic value: capacity to generate profit
social value: address a social need
environmental value: opportunity
protects or preserves the environment.
Explain what is ideas
All ideas are not equal. Part of recognizing an opportunity is the ability to evaluate ideas and identify those with the highest likelihood of success
One framework for doing this is to rate an idea on four different dimensions:
innovation, an invention, an improvement, or irrelevant.
Of these, __________ and __________ are high in novelty, while _________and _______ideas are low in novelty.
innovations, inventions
improvements, irrelevant
__________ by definition, score highly for novelty; but if an does not reach the market or appeal to consumers
Inventions
Inventions that succeed in finding
a market move to the __________ stage.
innovation
Innovations and inventions are often paired together, but the difference between them lies in ___________.
demand
Ideas do not always need to be unique or novel to appeal to customers. There are many ideas that focus on ___________.
improvement
There are ideas that fall into the ________ category, scoring low on both novelty and usefulness.
irrelevant
Making an idea a reality is a process that involves ______, __________, ____________, and a great deal of
_________, which can seem a little daunting to many of us.
time, resources, commitment, and work
Researchers have defined many formal methods of idea generation. Out of these, we have chosen seven main strategies that we believe are effective in the generation of new ideas for entrepreneurs. They include the following:
Analytical strategies
Search strategies
Imagination-based strategies
Habit-breaking strategies
Relationship-seeking strategies
Development strategies
Interpersonal strategies
________involve taking time to think carefully about a problem by breaking it up into parts or looking
at it in a more general way to generate ideas about how certain products or services can be improved or made more innovative.
analytical strategies
_________involve using memory to retrieve information to make links or connections based on past experience that are relevant to the current problem using stimuli.
search strategies
________involve suspending
disbelief and dropping constraints to create unrealistic states, or fantasies.
imagination-based strategies
_________are techniques that help to break our minds out of mental fixedness to bring about creative insights.
habit-breaking strategies
___________involve consciously making links between concepts or ideas that are not
normally associated with each other.
relationship-seeking strategies
___________are employed to enhance and modify existing ideas to create better alternatives and
new possibilities.
development strategies
____________ in which group members collaborate to come up with new or improved ideas.
interpersonal strategies
___________ a concept that assumes that opportunities exist independent of entrepreneurs and are waiting to be found.
finding approach
The finding approach views decisions as___________
risky
____________a concept that assumes that opportunities do not exist independent of
entrepreneurs but are instead a product of the mind.
building approach
Differentiate the finding approach and building approach based on
a. Origin of Opportunities
b.Assumptions
c. Methods of Identification
d. Role of the Entrepreneur
e. Decisions
Building Opportunities
a. Origin of Opportunities
Finding: Changes in technology, markets, consumer tastes, government regulations, demographics
Building: Prior knowledge and experience
b. Assumptions
Finding: The opportunity exists and is waiting to be identified
Building: Opportunities don’t exist until they are created
C.Methods of Identification
Finding: Search and scan the environment
Building: Build networks
D. Role of the Entrepreneur
Finding: Be alert to changes in the environment
Building: Take action; continuous learning and iteration
E.Decisions
Finding: Perceived as risky
Building: Perceived as uncertain
_______________ is one of the key influences of opportunity identification.
Access to the right information
In the finding approach, entrepreneurs often engage in _____________ to discover existing opportunities.
active search
This implies, in accord with the
finding approach, that the opportunity is already present in the environment and can be discovered through a __________ search.
systematic
Such discovery is made by those
entrepreneurs who have _________, the ability to identify opportunities in their environment. T
alertness
Some researchers believe that entrepreneurs may be more adept at spotting opportunities than nonentrepreneurs for several reasons:
-they have access to more information,
-they may be more prone to pursuing risks rather than avoiding them, and
-they may possess different cognitive styles from those of non-entrepreneurs
____________are ways in which people solve problem
Cognitive strategies
__________are ways and patterns of thinking
cognitive sytles
Cognitive styles attributed to successful entrepreneurs include a higher degree of ________, _______, and ___________
intelligence, creativity and self-efficacy
Researchers have identified two major factors in the building of opportunities:
prior knowledge and pattern
recognition.
__________ is preexisting information gained from a combination of life and work experience
Prior knowledge
______________: the process of identifying
links or connections between apparently unrelated things or events. Pattern recognition takes place when people “connect the dots” in order to identify and then build on opportunities.
Pattern recognition
In __________, pattern recognition is thought to be one of the ways in which
we attempt to understand the world around us.
Cognitive science
Typically, entrepreneurs go
through three processes before they are able to identify an opportunity for a new business venture:
Idea generation, creativity, opportunity recognition
Finally, the ________________________ stage allows us to sort out the remaining
ideas for both newness and usefulness, and also assess them for their ability to generate economic value.
opportunity recognition
Production of ideas for something new.
Idea generation
Production of ideas for something new that is also potentially useful
Creativity
Recognition that ideas are not only new and potentially useful, but also have the potential to generate economic value
opportunity recognition
Researchers have identified four approaches that we can practice to enhance our creativity with the purpose of transforming our ideas into opportunities.
SEEC: securing, expanding,
exposing, and challenging
the capacity to focus
on and sustain new ideas.
securing
broadening or acquiring new skills
expanding
opening ourselves to circumstances and events
exposing
overcoming past failures by braving new
encounters
challenging
Similar to alertness, _________ involves being consciously aware of possibilities, but also focuses on the deliberate capture of those ideas that sometimes have a habit of drifting in and out of our minds before we have a chance to focus on them. A useful way of securing those ideas is to
keep a written log of opportunities that you observe during your daily activities, which is a simple but effective way to record ideas for later use.
securing
_________skills enables people to generate ideas and share knowledge. A useful exercise carried out in a group setting is to list recent problems you have encountered in your daily life and design some possible solutions, which are then shared with the class for further discussion and feedback.
expanding
Entrepreneurs tread a fine line between structure and turbulence, and so it is useful to build resilience by ____________ ourselves to diverse and fluctuating circumstances and events. This exposure builds our ability to function in an
unstructured and uncertain environment. Brainstorming and becoming a consumer of information about creativity are productive ways of building exposure.
exposing
We all fail at times, and the important thing is not how often we fail but how well we recover. Further, we must not let past failures stop us from ________ ourselves to make new efforts and try new things. Learning from failure can lead to enhanced creativity and further idea identification.
challenging
