ENTREP REVIEWER

Entrepreneurship - All about openness to new ideas, new opportunities, and new ways of acting on
them.
This is demonstrated time and again by countless entrepreneurs’ stories, regardless of the diversity
of their industries, whether for
profit or nonprofit, whether a startup or within an existing corporation.
OPPORTUNITY
A way of generating value through unique, novel, or desirable products, Services
Economic Value: the capacity to generate profit
Social Value: help to address social needs or create social goods
Environmental Value: it is existing if the opportunity protects the environment
JASMINE VALENCIA

She starts her own music marketing agency after realizing that she is offering a little too much help
for free.

JV AGENCY is a marketing company handling campaigns for all levels of musicians from all genres.

"Replace the word “failure” with lesson”

Entrepreneurial mindset - is what enables us to envision how a new product or service can generate
value for a niche, an age group or interest segment, a geographic area, or a larger population.

Degree of novelty means

Implementation by a firm of a new or significantly improved good or service that was already
available from its competitors in the market.

Idea Classification Matrix

Innovation- a new idea, method or device.

Invention- the act of bringing ideas or objects together is a novel way to create something that did
not exist before.

Improvement- Based on enhancing existing products Product has been revisited and improved on.

Irrelevant- Scoring low on both novelty and usefulness

 A successful idea scores highly if the product or service is novel, useful and valuable
 Opportunities spring from ideas, but not all ideas are opportunities

OPPORTUNITIES START WITH THOUSANDS OF IDEAS

The way to get good ideas is to get lots of ideas and throw the bad ones away. Different strategies
can be employed and not all will work for you - Linus Pauling, Nobel Laureate in Chemistry

Eli Whitney invented the cotton gin in 1793 Concrete (Developed by the Romans around 300 BC)
Optical Lense (Another ancient Roman discovery, made practical in 13th century Europe)
Gunpowder (invented jn the 19th century in China. Vaccination (First developed in the 1700s but not
widely implemented until more than a century later)

SEVEN STRATEGIES FOR IDEA GENERATION

1. Analytical Strategies - taking time to think carefully about a problem by breaking it up into parts or
looking at it in a more general way.
2. Search Strategies - using a stimulus to retrieve memories in order to make links or connections
based on personal experience that are relevant to the current problem.
3. Imagination-based Strategies - suspending disbelief and dropping constraints in order to create
unrealistic states or fantasies.

4. Habit-Breaking Strategies - are techniques that help to break our minds out of mentalfixeness in
order to bring about creative insights.

5. Relationship-Seeking Strategies - involved consciously making links between concepts or idea that
are not normally associated with each other.

6. Development Strategies - are employed to enhance and modify existing ideas in order to create
better alternatives and new possibilities.

7. Interpersonal Strategies - required group interaction; ideas are generated as a group and the
group builds on each other's ideas.

FOUR PATHWAYS TO OPPORTUNITY IDENTIFICATION

FIND PATHWAY- A pathway that assumes that opportunities exist independent of entrepreneurs and
are waiting to be found

SEARCH PATHWAY- A pathway used when entrepreneurs are not quite sure what type of venture,
they want to start so they engage in an active search to discover new opportunities.

EFFECTUATE PATHWAY- The effectuate pathway is more about creating opportunities rather than

simply uncovering them. To identify opportunities, this approach advocates using

what you know, whom you know, and who you are.

DESIGN PATHWAY- The final pathway, the design pathway, is one of the most complex, yet it can be
the most value-creating approach. It can uncover high-value opportunities because

the entrepreneur is focusing on unmet needs of customers-specifically, latent Needs.

OPPORTUNITIES THROUGH ACTIVE SEARCH AND ALERTNESS

ACTIVE SEARCH- Entrepreneurs discover opportunities when they search for them in the existing
markets. This means that they observe technological, economic, or social trends. They observe the
changing environment and events in their professional or daily life.

Alertness

 is the ability to identify opportunities in their environment.

 This means that entrepreneurs do not necessarily rationally and systematically search their
environment or their particular information sets for opportunities. Rather, they become
alert to existing opportunities through their daily activities.
FROM IDEA GENERATION TO OPPORTUNITY RECOGNITION

Entrepreneurship is the process of creating and managing a new venture with the aim of making a
profit. Idea generation is the first step towards entrepreneurship, as it is where the entrepreneur
comes up with a unique idea that can be developed into a business opportunity.

Idea generation- is the process of coming up with new and innovative ideas that can be turned into
profitable opportunities.

Opportunity recognition- is the process of identifying and evaluating the potential of an idea to
create a profitable business opportunity.

The following are some methods that entrepreneurs can use to recognize

potential opportunities:

 Market Research
 SWOT Analysis
 Feasibility Study

LESSON FIVE- Evaluating and Acting on Opportunities

Business Model- A firm's business model is its plan or diagram for how it competes, uses its
resources, structures its relationship, interfaces with customers, and creates value.

Note: The term "business model" is used to include all the activities that define how a firm competes
in the marketplace.

DELL'S BUSINESS MODEL

Beyond Its Own Boundaries.

-It's important to understand that a firm's business model takes it beyond its own boundaries.

-Almost all firms partner with others to make their business models work.

-In Dell's case, it needs the cooperation of its suppliers, customers, and many others to make its
business model work.

The Importance of Business Models

Having clearly articulated business model is important

because it does the following:

-Serves as an ongoing extension of feasibility analysis. A business model continually asks the
question, "Does this business make sense?

-Focuses attention on how all the elements of a business fit together and constitute a working
whole. (Holistic View)

-Describes why the network of participants (needed to make a business idea viable) is willing to work
together.
Four Parts of Business Model

THE OFFERING- The first part of the business model. which identifies what you're offering a
particular customer segment

Customer value proposition (CVP): a statement that describes exactly what products or services your
business offers and sells to customers.

Customers include the people who populate the segments of a market that you're offering.

Infrastructure- include people, product, technology, resources.

Financial Viability- Defines the REVENUE and COST structures a business needs to meet its operating
expenses and financial obligations.

How business model emerged

The Value Chain (a diagnostic tool

•Value chain analysis is also helpful in identifying opportunities for new businesses.

Components of Business Model

Core strategy

- Business mission

-Product/market scope

-Basis for differentiation

Strategic Resources

-Core competencies

-Strategic assets

Partnership Network

-Suppliers

-Partners

-Another key relationship

Customer Interface

-Target customer

-Fulfillment and support

-Pricing structure

•The Customer Value Proposition, or CVP, is perhaps the most important part of your business
model. The key word in CVP is "CUSTOMER"

Types of Value Propositions

ALL-BENEFITS (focus is on the product)

POINTS-OF -DIFFERENCE (focus is on the competition)

RESONATING-FOCUS (focus is on the customer)

Customer segmentation is the process of dividing a large and diverse customer base into smaller
groups or segments.

PRODUCT DIFFERENTATION- Creating unique features, benefits or design elements that set a
product apart from competitors in the market.

Market type refers to the nature and characteristics of a specific market based on factors such as
competition, product differentiation, and market size.

Mass Market- A large and diverse market with many customers who share similar needs and
preferences.

Niche Market- A smaller, more specialized market segment with specific needs or preferences.

Segmented Market - A market divided into smaller subgroups, each with unique needs and
preferences.

Diversified Market- A market in which a company offers a variety of products or services that cater
to different customer segments or markets.

Multisided Market- A market in which a platform connects different groups of customers who have

complementary needs.

The Business Model Canvas (BMC) is a strategic management tool to quickly and easily define and
communicate a business idea or concept.

Four major parts of Business Model Canvas

-The Offering constitutes the value proposition.

-Customers relate to Customer segments, channels, and customer relationships.

-Infrastructure includes key activities, key resources, and key partners.

-Financial viability includes cost structure and revenue streams.

1. Customer Value Proposition - It is designed to solve a customer problem or meet a need.

2. Customer Segments basically groups of people and companies you are trying to reach out to.

3. Channels - The value proposition is delivered through communication, distribution, and sales
channel.

4. Customer Relationship - represents how you are going to interact with different customer
segments.

5. Key Activities- What are the most important activities that the company participates in to get the
job done?

6. Key Resources- Resources are what you need to develop the business, Create products and
services.
 7. Key Partners - Entrepreneurs are not able to do everything by themselves, so partnering is a
logical option.

8. Revenue Streams- is responsible for sales and represents sources from which your company
generates money.

9. Cost Structures - It represents all Expenses required to execute and run the business model.