Chapter 2

1 what is an opportunity
- it is a favorable set of circumtances that create a need for a new product,services or business

+ 4 essential quality of opportunity:

* attractiveness
* timely
* durable
* anchored in a product/ service or business that create or add values to its buyers or end
users

2 three ways to identify an opportunity

- observing trends: + economic forces
+ social forces
+ Technological advances
+ political action and regulatory changes
Economic forces social forces Technological political action and
advances regulatory changes
- state of the economy - social and cultural - new technologies - new changes in
- level of disposable trend - emerging political arena
income - demographic technologies - new laws and
- consumer spending changes - new use of old regulations
patterns - what people think technology
is”in”

- solving problem: sometimes identifying opportunities simply involves moticing a problem

and finding a way to solve it
- gaps in the marketplace: a gap in the marketplace is often created when a product or
services its needed by a specific group of people but doesn’t represent a large enough martket
to be of interest to maintain retailers or manufacturers

3. personal characteristics of the entrepreneur

- prior indusry experience
- cognitive factors
- social networks: + strong tie >< weak tie relationship
+ nature of strong tie and weak tie relationship
- creativity