A potential market is the part of the market you can capture in the future.

Your potential market includes the groups that do not currently your customers but
could become customers in the future.
They might become your customers because you expand your available products or
services, or because you begin marketing your current products and services in a new
way and to new groups of buyers.

Market problems are the target market's stated or silent problems.

This could refer to existing inefficiencies, awkward workflows or non-optimal
solutions. The key to finding a market problem is to listen for frustrations, or “if only”
statements, that arise during interviews.
Businesses should start by knowing the consumer's interests, desires and
needs. It’s easier to sell what consumers want and need than try to sell something
they don’t see the benefit in buying. In a fastmoving world, it should be a competitive
edge having the chance of monitoring the market, detecting what can be a source of a
profitable new business.

Market needs inform organizations about what products develop, for what
customers, at what cost, through which distribution channels, reducing the
uncertainty that a new product/service development always brings with it.

Identify the Market Problem

In building product, entrepreneurs can meet customers’ needs. In identifying market
problem, the following can be considered:
1. Existing customers
2. Target market users
3. Prospects
Questions:
- Why is it significant for the entrepreneurs to clearly identify and define the
customers of his proposed business venture?

- If you were an entrepreneur, how can you convert prospect to be your

purchasing customer?

- How to evaluate market problems?

1. Consider if the market problem is urgent.

2. Evaluate if the market problem is pervasive or easily diffused.
3. Determine if the buyers will pay to have this problem solved.
Now if the answer is “Yes” to all of the preceding questions, then the entrepreneur
has identified a problem that is worth solving. He has to investigate whether his
competitor is already solving this problem, otherwise he might not have a competitive
edge in the market.
Think of a possible business venture that you want to open. Use these as a guide.

1. Consider if the market problem is urgent.

2. Evaluate if the market problem is pervasive or easily diffused.
3. Determine if the buyers will pay to have this problem solved.

The creation of entrepreneurial ideas leads to the identification of

entrepreneurial opportunities, which in turn results in the opening of an
entrepreneurial venture.

The entrepreneurial process of creating a new venture is presented in the diagram

below. (Aduana, 2017)

Creation of Identification of Opening of

Entrepreneurial Ideas Entrepreneurial Opportunities Entrepreneurial Venture

3S of Opportunity Spotting and Assessment SEEKING, SCREENING And SEIZING

Entrepreneurs are innovative opportunity seekers. They have endless curiosity

to
discover new or different ideas and see whether these ideas will work in the
marketplace.

Opportunity Seeking- the process of spotting, evaluating and pursuing relevant and
sustainable revenue and profit generating activities in the marketplace.
Seeking the opportunity. The following are some of the sources of opportunities:
1.Changes in the environment
Entrepreneurial ideas arise when changes happen in the external environment.
External environment refers to the physical environment, societal environment, and
industry environment where the business operates.

2. Technological Industry and Advancement

A person with entrepreneurial interest sees possibility of business opportunities in
any new discovery or because of the use of latest technology.

3. Government’s thrust, programs, and policies.

The priorities, projects, programs, and policies of the government are also good
sources of ideas.

4. People’s interest
The interest, hobbies and preferences of people are rich source of entrepreneurial
ideas.

5. Past experiences
The expertise and skills developed by a person who has worked in a particular field
may lead to the opening of related business enterprise.

Explain how the different sources of opportunities create business by citing specific
situations.

Screening the Opportunity

 Opportunity screening is the process of cautiously selecting the best
opportunity.
 The selection will depend on the entrepreneur’s internal and external intents.

Seizing the Opportunity

 Opportunity seizing is the “pushing through” with the chosen opportunity.
Entrepreneurs should make the best out of this opportunity, and they should
exert effort and full dedication for the success of the new venture.

SEEKING, SCREENING, and SEIZING are the framework that most of the promising
entrepreneurs use to finally come up with the ultimate product or service suited for
specific opportunity.
Opportunity is an entrepreneur’s business idea that can potentially become a
commercial product or service in the future. Once the 3S of opportunity spotting and
assessment have been diligently done, the entrepreneur should now be ready to
prepare a comprehensive business plan that covers marketing, operations, and
financial plans.

Market need analysis. In analyzing the market need, the following questions should be
asked:
1. Who will get interested in my product?

2. What does the market need or want?

 3. Who is buying the product? What and how much? Or how, where and why are
they buying those goods or services?

Market Analysis is a quantitative and qualitative assessment of a market ability to

respond positively. How to do a Market Analysis?

The following activities are recommended:

1. Demographic and Segmentation
Demographic is the statistical characteristics of human population used specially
to identify markets. Segmentation is the process of dividing into segments with similar
characteristics.
2. Target market
3. Market need
4. Competition is the act or process of trying to get or win something.

Determining the marketability of a business is typically done in the context of

creating a business plan and performing an analysis of the competition. It requires
research in the areas of marketability. Consider whether the business offers a new
solution to an old problem or complements an emerging trend. Untapped markets that
are profitable are few. Understand the benefits of a product or service offers compare
to others. Focus on ‘benefits” of what your product or service does.
Source: Entrepreneurship for SHS Applied Track Subject, Acierto, M.A.,2017