REVIEWER IN HBN 123 ● Identification of opportunities

BUSINESS OPPORTUNITIES ● Identification of threat

Entrepreneurial process ● Optimum use of resources

-The entrepreneurship is a continuous process ● Survival and growth

that needs to be followed by an entrepreneur
● To plan long-term business strategy
to plan and launch the new ventures more
efficiently. External sources of Business opportunities

1. SOCIOCULTURAL FACTORS
2. TECHNOLOGICAL ADVANCEMENTS
3. ECONOMIC GROWTH OR DECLINE
4. POLITICS AND LEGAL FACTORS
5. INDUSTRY TRENDS
6. NEW DISCOVERY OR NEW KNOWLEDGE
7. FUTURISTIC OR UNEXPECTED
OPPORTUNITIES
8. CONSUMER PREFERENCES
9. COMPETITORS
10. SOCIETAL PROBLEMS OR IRRITANTS IN
THE MARKET
DISCOVERY (scanning the market) 11. PHYSICAL LOCATION OF THE
● An entrepreneurial process begins with ENTREPRENEUR
the idea generation, wherein the SOCIOCULTURAL FACTORS
entrepreneur identifies and evaluates
the business opportunities. ◂ Social and cultural factors affecting
business include belief systems and
● Evaluate the efficiency of an practices, customs, traditions and
opportunity by continuously asking behaviours of all people in given
certain questions to himself, such as, country, fashion trends and market
whether the opportunity is worth activities influencing actions and
investing in, is it sufficiently attractive, decisions.
are the proposed solutions feasible, is
there any competitive advantage, what “When an individual creates a business in a
are the risk associated with it. specific cultural environment, this business
reflects that cultural environment, for example
WHY IT IS IMPORTANT TO SCAN THE MARKET? characteristics such as strategic orientation and
MARKET SCANNING growth expectations for the business.” -Sage
Journals
-process of continually and actively monitoring
the external environment in order to identify
customer needs, anticipate competitive actions,
and, identify technological changes which will
provide new market opportunities or market
disruptions
TECHNOLOGICAL ADVANCEMENTS
◂ Technological advances continue to
demand that businesses grow, shift and
adapt in order to stay competitive in
today's rapidly changing marketplace.
● Business Management Applications
● Mobile Apps
● Other Social Networks
● E-commerce
ECONOMIC GROWTH OR DECLINE
The economy includes all activities in a country
concerned with the manufacturing, distribution
and the use of goods and services. Economic
climate has a big impact on businesses. The
level of consumer spending affects prices,
investment decisions and the number of
workers that businesses employ.
The economic climate affects businesses in four
main ways:
● unemployment
● changing levels of consumer income
( cost of borrowing money or the
amount a saver receives in interest.)
● interest rates
● tax rates
POLITICS AND LEGAL FACTORS
Political factors involve the decisions and laws
that governments make.
● Tax
● Laws
● Political stability
Governments can raise or lower corporation
tax, which will impact on profits.
They can also affect businesses by increasing
value-added tax on products or business rates.
INDUSTRY TRENDS
Comparison of industry data over a set time
period, designed to recognise any consistent
trends or results that could be used to map your
business strategy – aligning it with the general
direction of your industry.
Market trends tend to be heavily influenced by
consumer habits and behaviours. To determine
the moves that could have a direct impact on
your overall business performance.
e.g.: E-commerce, Environmental Consulting,
Internet Publishing & Broadcasting,
IT Consulting, Mobile & Social Gaming and etc.
NEW DISCOVERY AND NEW KNOWLEDGE
Innovative new businesses with high impact
potential will generally exploit the changing
business environment. These new opportunities
are built upon the identification of one or more
of the following:
● New or underserved market
● New product or service
● New channels to market
FUTURISTIC AND UNEXPECTED
OPPORTUNITIES
The market place is the number one area to
look for opportunities. An Entrepreneur should
be constantly studying the market.
CONSUMER PREFERENCES
Knowing and understanding your customer’s
preferences before they buy allows you to
create an even bigger opportunity.
For instance: an auto repair center may stay
open later at night or on the weekends to
accommodate their customers’ work schedules.

COMPETITORS

● Knowing who your competitors are, and

what they are offering, can help you to
make your products, services and
marketing stand out.
INTERNAL SOURCES OF BUSINESS
● You can use this knowledge to create
OPPORTUNITIES
marketing strategies that take
advantage of your competitors' 1. TALENTS/SKILLS/HOBBIES/EXPERTISE/
weaknesses, and improve your own ACADEMIC BACKGROUND
business performance. 2. FINANCIAL CAPACITY
3. PROCESS/OPERATIONAL CAPACITY
● You can also assess any threats posed
4. LEADERSHIP AND PEOPLE
by both new entrants to your market
MANAGEMENT
and current competitors.
5. ENTREPRENEURIAL
SOCIETAL PROBLEMS AND IRRITANTS IN THE ATTITUDE/CHARACTER
MARKET 6. VISION AND STRATEGY

● Social problems should not only be

points to complain about, but great
TALENTS/SKILLS/HOBBIES/EXPERTISE/
sources for business opportunity and
ACADEMIC BACKGROUND
profit.

● Businesses or aspiring entrepreneurs

should embrace any social change
which result in a problem for the people
as an opportunity to convert that
change into innovation – thus
converting the change into a new
business.
PHYSICAL LOCATION OF THE ENTREPRENEUR
● Business location affects your
income,expenses and opportunities.
● The Right Community
● Visibility
● Accessibility/ Convenience
●The very first place to start looking for
business ideas and opportunities is to look
within yourself. Self-examination is an
important thing that can help in reaching to
different decisions.
●It is important to examine your own skills,
talent or passion that can fit into the business.
Therefore, such businesses, which corresponds
according to your skills is the most appropriate
and are expected to be successful in future.-
Advergize
FINANCIAL CAPACITY
●Abilities needed for an individual
independently to manage financial affairs in a
manner consistent with personal self-interest
and values.
●To absorb losses with its own funds or surround it. Each individual entrepreneur has a
borrowed funds without major disruption. This unique picture of what the venture will become.
value often comes into play when an
Entrepreneurs attempts to find the appropriate
retention amount.

PROCESSES/OPERATIONAL CAPACITY

●What you can produce in a given amount of

time?

● Your operational capacity depends on a lot of

things: resources,efficiency, etc.

LEADERSHIP AND PEOPLE MANAGEMENT SKILLS

●A successful business owner needs to be both

a strong leader and manager to get their team
on board to follow them towards their vision of
success.

●Leadership is about getting people to

understand and believe in your vision and to
work with you to achieve your goals.

● Managing is more about administering and

making sure the day-to-day things are
happening as they should.

ENTREPRENEURIAL ATTITUDE/CHARACTER

●A positive attitude and outlook is a must for

successful entrepreneurs. The mindset of an
entrepreneur sets the tone for the rest of the
organization and influences entreprise culture.

●Entrepreneurs should be passionate about

their ideas, goals and their business. This
passion is what drives them to do what they do.

VISION AND STRATEGY

●The Vision answers the simple question "Why

are we here?", it is the GOAL.

●Strategy tells you how a company is going to

achieve (or maintain) its Vision.

●What you want your venture to become, what

this venture will look like, what the driving
forces are, and what values and culture should