IDENTIFYING BUSINESS OPPORTUNITY

ENTREPRENEURIAL MOVEMENT BEGAN IN INDIA IN 1960’S WITH setting up of National Institute of

Small Industry Extension Training. Ministry of Micro, Small and Medium industries has set up some
landmark institutes like Entrepreneurship Development institutes specifically for training in
entrepreneurship. THE MINISTRY HAS BEEN GUIDING, MENTORING AND PROVIDING FUNDING SUPPORT
TO NEW ENTERPRISES.

THE MAKE IN INDIA POLICY IS PROVING TO BE A CATALYST TO THE INDIA’S DOMESTIC MANUFACTURING
SECTOR. ENDEAVORS TO BETTER THE EASE OF DOING BUSINESS RANKING IS ONE MEANINGFUL
INITIATIVE TOWARDS BRINGING MORE PEOPLE INTO THE ENTREPRENEURIAL ENVIRONMENT.

THE PRESENT GOVERNMENT HAS TAKEN SOME MEANINGFUL DECISIONS TO ENCOURAGE

ENTREPRENEURSHIP. THIS IS THE RIGHT TIME TO START AN ENTERPRISE WITH GOVERNMENT
ANNOUNCING RS 10000 CRORES AS STARTUP FUND.

Demographic
-MORE THAN 40 PERCENT OF THE POPULATION IS YOUNG AND HAS DIVERSE DEMANDS.

-SPORTS PRODUCTS AND FOOD, FOOD PROCESSING, CONVERGENCE GADGETS, ACCESSORIES, TRAVEL,
TRAINING , HOUSING, HOUSEKEEPING, ACCESSORIES, GARMENTS ARE SOME PRODUCTS IN WHICH
THERE CAN BE STARTUPS

-CONSIDERING INDIA’S PER CAPITA INCOME, THERE IS A NEED TO MAKE NICHE AS WELL AS LOW-COST
PRODUCTS.

Ecological
-MECHANISMS TO STORE, CLEAN AND DELIVER WATER ARE INCREASINGLY BECOMING IMPORTANT,
THEREBY GENERATING BUSINESS OPPORTUNITIES.

-TOTAL POTENTIAL BUSINESS IN WATER IS ESTIMATED TO BE US$ 30 BILLION ANNUALLY

-WATER ATM IS ONE SUCH INNOVATIVE PRODUCT DEVELOPED TO REGULATE THE USE OF WATER.USE
OF BOTTLED WATER AND PURIFIERS IS SEEN TO BE INCREASING, OPENING OPPORTUNITIES OF BUSINESS

-USE OF RENEWABLE ENERGY DEVICES IS GROWING, THEREBY CREATING EXCELLENT PROSPECTS FOR
SUSTAINABLE BUSINESS. E.G SOLAR PANELS AND LAMPS, WATER HARVESTING TOOLS

-NEED FOR POLLUTION PREVENTIVE DEVICES SUCH AS AIR FILTER ARE ON RISE. OXYGEN PARLORS ARE
NOVEL WAYS OF PURIFYING HUMAN BODIES, AND THE DEMANDS FOR SUCH FACILITIES WILL STEADILY
SCALE UP.
Manufacturing
OUTSOURCING, E-COMMERCE, CONSUMER CONNECT HAVE BECOME AN

INTEGRAL PART OF THIS SECTOR AND ALL OF THESE HAVE INNUMERABLE BUSINESS OPPORTUNITIES
FOR BUDDING ENTREPRENEURS.

-E-COMMERCE HAS OPENED UP ABUNDANT OPPORTUNITIES BY PROVIDING A INFINITE CONSUMER

BASE. ENTERPRISE LIKE POWER2SME.COM, THE FIRST BUYING CLUB FOR SME’S IN INDIA IS AN EXAMPLE
OF EMERGING INNOVATIVE BUSINESS MODEL THAT HELPS SME’S TO BENEFIT FROM ECONOMIES OF
SCALE THROUGH COLLECTIVE BUYING FROM A LARGE NETWORK OF MANUFACTURERS.

‘Business opportunities are like buses, there’s always another one coming’

DIMENSIONS (D) FOR OPPORTUNITIES

IDENTIFICATION

D1 Economic profile of India is changing

D2. Changes in the Business environment: Global and National, Economic, Marketing, Technological,
Ecological, Social and Cultural , Demographic

D3 Developments in the sectors of the economy-Agriculture, Service and Manufacturing

D4 Observing problems and providing solutions

D5 Converting hobby into an enterprise

D6 Franchising- Ready mix

D7 Business opportunities post Covid 19

D1: Economic profile of India is changing towards fostering entrepreneurship .

Entrepreneurial movement began in India in 1960s with setting up of National Institute of Small Industry
Extension Training. Several steps have been taken since then to build a startup eco system in India.
Ministry of Micro, Small and Medium industries has set up some landmark institutes like
Entrepreneurship Development institutes specifically for training in entrepreneurship. The Ministry has
been guiding , mentoring and providing funding support to new enterprises. Year 1991 was the year of
major reforms which accelerated the growth of Indian economy and paved way for many private
individuals to start their businesses. India is considered as the fastest emerging economy of the world
next to China with steadily increasing growth rate. The present government has taken some meaningful
decisions to encourage entrepreneurship. This is the right time to start an enterprise with Government
announcing Rs 10000 crores as startup fund. The Make in India policy is proving to be a catalyst to the
India’s domestic manufacturing sector. Endeavors to better the ease of doing business ranking is one
meaningful initiative towards bringing more people into the entrepreneurial environment. Innumerable
opportunities will be generated for new enterprises and startups in core or ancillary industries/services.

D2. Changes in the environment: In the last decade radical transformations are witnessed in
technological, demographic, ecological, social, cultural and market environment. These changes are
creating infinite business opportunities. Technology is changing rapidly. Digitalization , ecommerce,
distance learning, e-learning, automation, E-Systems are new ways of business and they hold
tremendous business potential .E-commerce firm like Flipkart has provided business opportunities to a
lot of household firms. ’One innovative business creates many new enterprises ’ is the present
scenario (give examples) . Changes in the demography has huge potential for several innovative
businesses. More than 40 percent of the population is young and has diverse demands. Sports
products and food, food processing, convergence gadgets, accessories, travel, training , housing,
housekeeping, accessories, garments are some products in which there can be startups . Considering
India’s per capita income, there is a need to make niche as well as low cost products. Ecological
changes- Natural resources have always been an integral part of human survival. But they are scarce.
Mechanisms to store, clean and deliver water are increasingly becoming important, thereby
generating business opportunities. Total potential business in water is estimated to be US$ 30 billion
annually (A.Tilotia,Kotak institutional equities, May 2010). Water ATM is one such innovative product
developed to regulate the use of water. Use of bottled water and purifiers is seen to be increasing,
opening opportunities of business. Use of renewable energy devices is growing , thereby creating
excellent prospects for sustainable business. E.g Solar panels and lamps, water harvesting tools .Need
for pollution preventive devices such a air filter are on rise. Oxygen parlors are novel ways of purifying
human bodies, and the demand for such facilities will steadily scaleup. Social and cultural
environment in India has evolved to be more dynamic. Nuclear and working families, increased
literacy rate, high incomes are changes seen in urban as well as rural areas. Tastes of these consumers
has leveraged and so businesses like wedding planners, event management, entertainment, festival
products ,tourism ,spiritual products and services will always be in demand. The changing marketing
environment has huge potential for businesses. Advertising , promotion, branding, packaging have
become a way of life. Events, publications, printing, packaging require innovations in delivery. Health
food is the new eating mantra and entrepreneurs like Priya Parab founder of Vihaan Natural Health
care(P) ltd is successfully venturing into this area with STROMBSS brand.
Wellness and Yoga industry

D3: Changes in the sectors of Indian economy- Three prominent sectors of Indian
economy have been developing gradually, paving way for innumerable business opportunities.
Agriculture, the most prominent sector in India has some unexplored business prospects such as agri
tourism and organic farming. Technology has become an essential part of farming, thereby creating
opportunities in e- services to farmers. Supply chain is an essential aspect of farming and entrepreneurs
can engage in cold storage, warehousing, transport and even bar code manufacturing. Manufacturing
sector has incorporated new ways of functioning. Outsourcing, e-commerce, consumer connect have
become an integral part of this sector and all of these have innumerable business opportunities for
budding entrepreneurs. E-commerce has opened up abundant opportunities by providing a infinite
consumer base. Enterprise like Power2sme.com , the first buying club for SME’s in India is an example of
emerging innovative business model that helps SME’s to benefit from economies of scale through
collective buying from a large network of manufacturers.

D4 : Observing problems and providing solutions-According to estimates by India’s

Central Pollution Control Board, as much as 69% of India’s water goes untreated. Need for water is
imperative. Therefore waste recycling is an area of business that can be dwelt into. Water ATM is an
innovative product developed by Indian entrepreneurs to manage the use of water.

Bhavnesh Desai, founder of I-initiative, engages in making this and installing it in villages to optimize the
use of water. And this is a solar energy operated product. THRIVE solar energy pvt ltd is one such
innovative business which provides sustainable lighting solutions. ‘Swatch Bharat Abhiyan’ has opened
avenues for many businesses. Sanitation being one. Toilets and ancillary products will be in demand as
their utility expands. The business model of ‘Samagra sanitation’ is based on this idea. Cleanliness
devices to chemicals will always be wanted ,so entrepreneurs can think of venturing here. Housekeeping
is a thriving business today as hygiene becomes a priority in the households as well as corporates.
Redbus too has evolved out of a challenge of public transport. Making of fuel efficient stove as an
alternative for wooden chullah is a solution to a grave problem in rural households. India is a land of
challenges and therefore opportunities of ‘sustainable business’ could be emulated manifolds.

D5: Converting hobby or a passion into an enterprise- The best way to know what
business
should be done is to cash your hobbies.

PASSION DRIVES A SUCCESSFUL ENTERPRISE

You love baking...start a bakery, collecting antiques is your passion commercialize it.Organising events
gives joy, just plunge into it. Guy Kawasaki believes that ‘Passion drives a successful enterprise’. Vandan
Kabra’s Fountainhead School is the product of his passion for education. Chumbak is another venture
started by Shubhra Chaddha out of her passion for magnets.Treepublic is another enterprise with a
mission of planting trees which is an outcome of passion.And they are all successful!

D6: Franchising – ‘Ready to start’ business model is a slightly easier way to venture into
entrepreneurship.This is the best way to get started if you have the urge but no business model in place.
Finance and intent are the two key inherent resources a prospective entrepreneur needs to possess.
www.franchiseindia.com gives details of varied franchisee opportunities and as per an entrepreneurs
investment ability he/she can select one. ‘Café nine’ is a local food joint in Pune, with a franchisee
model( not yet listed on the franchiseindia website) ,which has provided business opportunities for
twenty entrepreneurs. an entrepreneur is a courageous choice but not difficult. As the global economy
slumbers into recession (specially the EU), India along with other Asian economies have taken off the
runway. Consumerism in India is thriving creating markets for new products. Startup ecosystem is
conducive and catalyzed by youth optimism . Grab the opportunity, take the plunge and get started!

D7: New business opportunities amid Covid -19

1. Health drinks and food.

2. Sanitizer

3. Masks

4. Online education app.

5. Ecommerce marketplace.

6. Online booking

7. Insurance industry.

8. Mobile applications like gaming.

9. Pickup and Delivery.

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g4lN4XEw&ved=2ahUKEwjq_PWQhujqAhUXOisKHeZMAMEQwqsBMAd6BAgKEAY&usg=AOvVaw2CFZix
M0c_8A2utcShz_TO

Author: Dr.Sharayu B, Symbiosis College of Arts and Commerce

Business Opportunities can also be identified in following ways

• Identify Market Inefficiencies

When looking at a market, consider what inefficiencies are present in the market. Do you have
an idea on how to correct these inefficiencies? Consider the example of FedEx or Agency FAQs.
FedEx identified inefficiencies in the package delivery market and strived to correct this
inefficiency by providing fast and reliable delivery of packages. This spawned the creation of the
courier industry as we know it today. Similarly, Agency FAQs saw that there was an unmet need
in the market. There was no information portal for professionals working in the advertising
sector. They aimed to fill that gap and now they are one of the largest websites in that segment.
• Remove Key Hassles
Take a look at some of the key hassles customers face when buying or using a product or a
service.You don’t necessarily have to have a new product or service. You can be innovative and
improve a product, a service or a business process.. Purchasing processes in some products
categories are still a major source of irritation for customers.
Think how you can improve and provide a superior alternative.For example, look at how the
search engine market developed. There were millions of websites on the Internet and it was
often very hard for customers to find what they were looking for. Searching an index of
webpages (on Google, or Yahoo) made it much easier for customers to find information they
were seeking.

• Customers Desire to Experience Something New

You may or may not have a new business idea or business process to serve a market. And
perhaps there are no market inefficiencies for you to exploit. But sometimes, gaging the
customers’ desire to experience something new can be a successful strategy. Can you innovate
on customers’ experience in existing business models?

• Pick a Growing Sector/Industry

• When considering a new business, it is important to look at whether or not your idea is in
a growing sector or industry. For example, a lot of start-ups in the IT sector in India did very well
because there was huge demand in that industry and the growth was outpacing other industries.
Investing in a stagnant sector/industry may not best serve your interests, unless you identify a
market inefficiency that you can exploit.

• Product Differentiation
Creating superior products or services vs. alternatives is important for winning in the market
place. What factors will set your product apart from the existing ones? If there is no such
differentiating factor, your potential customers may just stick to the existing product rather than
adopt yours.
Cash Flow Considerations
At the start-up stage, cash flow considerations are just as important as any other business
function. If you run out of cash, despite holding inventory or other assets, your business will risk
failure. There are some types of businesses in which cash is typically held up for a long time. If
you are in manufacturing for example, your cash flow can be held up for long periods of time, or
money may be stuck in receivables. When picking the right business, you should consider one
that provides fairly regular cash inflows and with slower outflows (if possible). It is imperative
that you understand the need for constant cash flow in your business. Without cash flows, no
matter how good your idea or business process is, you might be destined for failure.

• Is it a Seasonal Business?
 • When picking a new business - consider whether it is seasonal or the year round.If you do
decide on a seasonal business, you will need to consider how to operate during off season
months. Managing the cash you make during the season will help you get through off-season.
Financial planning will be of utmost importance.

http://https://youtu.be/bNpx7gpSqbY