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ASSIGNMENT 1A- Entrepreneur Interview Project- Literature Review

Introduction
Based on the background study and criteria given for research, selecting an entrepreneur was initially a challenge but after we recognised our potential entrepreneur and matched it to the relation for the coursework we began our detailed analysis and gathering more information. Twenty years ago in one of Perth’s prominent suburbs, South Perth Domenic and Lucy Scutti saw an opportunity to start a small deli store selling Fruits and Greengroceries naming it after their Last name ‘Scutti’. Today the deli has expanded into a ‘mini market’ with all kinds of gourmet delicacies from Australia and abroad. This includes prepared meals and dishes for either onsite dining or takeaway. They also boast a newly open coffee shop in 2008. The mini-market has been known for its special European products comprising of the finest oils, vinegars, pastas and much more. Its main focus is now to diversify from selling predominantly fruit & vegetables into expand its products into unique lines sourced from all parts of the globe. Domenic and Lucy Scutti are passing on to their sons Nick and Michael who are already helping in the business running’s, Domenic wants his kids to follow the attributes of providing exceptional customer service. Nick and Michael desire is to be “We want to be seen, and known, as a Mecca for the most comprehensive selection of local Australian produce and fine continental European foods in Perth”.(Our story,2012)

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F 2008). demographics.15552664. comparing patterns in technology. markets. since the results come from direct process of opportunity recognition process. 104). Alertness to opportunities and prior knowledge of a market. (Robert 2006. 2012). Importance All business enterprise start out had an idea. the successful entrepreneur-to-be should be on the lookout for good opportunities rather than good ideas (Ralf. industry or customer are ways in which these events and trends are recognised and relate to an idea for the new products and services.W. 2 Ronak Shah. Hence. They are several ways that Entrepreneurs identify diverse opportunities ways.Opportunity recognition My definition: Opportunity recognition is when an entrepreneur recognises a potential for a new business opening to invest into or establish into the market. not all ideas are good opportunities and thus does not necessarily lead into a good venture. Starting from the idea “The basic idea of opportunity recognition is that profitable business ideas surround us on a daily basis but they are only recognized by people with an entrepreneurial mindset” (Katina Blue. Benot. one proposed way is use of cognitive frameworks.ENT300. It is therefore a significant step for setting up a new business venture. these identification maybe from past or current market patterns and trends. Engaging in an active search for opportunities. government’s policies and other factors.Asselment 1(a) Literature Review .

When an entrepreneurial opportunity is recognised it’s vital to work out figures logically and study the potential value and needs.An entrepreneur will ask the following: Where is money been spent? Who is spending the money? Which products are money been spent on? And so on. Benoit. MP3 players and all the other things that these kids buy are a huge market and thereby have opportunity possibilities” says Mother Thumper. Some commons ways that opportunities are observed are stated below. The need to explore and research for an opportunity may be important. ideas don’t necessarily have to meet the standards of being an opportunity. “When kids have money. (3 ways to identify an entrepreneurial activity. social and demographic are viewed closely by individuals and firms to provide them with forecasts and market analysis. they are several categories under which entrepreneurs can seek opportunity for products and services. 2012).W.Asselment 1(a) Literature Review .From Ideas to Opportunities Businesses collapse mainly for the reason that people don’t recognize entrepreneurial opportunities but rather launching a business on basis of an idea.F 2008). Spotting an opportunity Spotting new products and service or business may not be necessarily a genuine opportunity.15552664. People spend on products and services that add more value to their lives. i.e. Let’s take some of the factors individually. It is crucial to know the difference between an idea and an opportunity. economic. Ideas.ENT300. Economic factors. most importantly converse with people and verify ideas and incorporate all the feedback you can get (Ralf. 2012). political. Observing Trends Research and observation in the changes and trends in technological. they buy stuff. the needs of relieving stress and burden for people by everyday life are 3 Ronak Shah. Social factors. 1. creativity and openness come from knowledge with hard work and focus these creates a successful opportunities. down-loadable music services. (3 ways to identify an entrepreneurial activity.Understanding social factors trends can be a problem. Products and services such as designer clothing.

” (3 ways to identify an entrepreneurial activity. new products to advance it are usually not far behind. work and family patterns. 4 Ronak Shah. age of population and so on. Technology – With technology advancements endless opportunities are seen. when a challenge is encountered and you have thought of a better way to tackling (through research) it than you have recognised an opportunity. 2012). 3. Solving a Problem When an entrepreneur finds a solution to a problem that means he/she recognised an opportunity. People normally come across challenges in their everyday live.15552664. 2012). Healthcare and fitness. mainly because people desire possible about anything or everything. or should I say. always looking for opportunities to solve a problem. but the ability to observe a potential gap and working on it can be identified as an opportunity and can be potentially very rewarding.ENT300.factors that help provided opportunities e. Finding Gaps in the Marketplace To identify a gap in the market can be a complicated and lengthy task. Mother Thumper states that “A constant trait with entrepreneurs is that they are always looking for problems.g. 2.(3 ways to identify an entrepreneurial activity. stability and security. The truth is not everything can be done. simply providing basic needs in a more convenient way to people creates an opportunity. Once new technology is created. Politics – Business opportunities can be establish where action and regulations are provided and when there are laws.Asselment 1(a) Literature Review .

Demographic Changes The source of opportunities comes from the shifts in population trends i. Benot. Unexpected Occurrences In existing businesses today we find that unexpected failures and success and commonly encountered. peoples income.15552664. some opportunities go unnoticed from non-core products that can help them achieve even higher sales.Where do opportunities occur? Opportunities occur everywhere. Opportunities emerge for companies who can first respond to prominent discoveries and act. and just waiting to be uncovered. size. While other companies make high turnovers and strike success.F 2008). and this all impacts on what you want to create and build.W. ‘What will be bought by whom?’ Population contains of different age.Asselment 1(a) Literature Review . Entrepreneurs sometimes don’t recognise that failing experiences are an opportunity to go and explore further and come up with better results. Industry and market changes Opening to wide range of business opportunities can be a good indicator for emerging opportunities especially for fast growing industries who have access to modern telecommunication and technologies.e. employment status. Incongruities “Incongruities are discrepancies between what is and what is ought to be or what everyone assumes it to be” (Ralf. Process needs Redesigning a process or eliminating weak links in existing processes can help piercingly focus on what is required and can help recognising an opportunity effectively.ENT300. Let’s look at ways to identify an opportunity. 5 Ronak Shah.

on an individual level. economical. Conclusion After looking at different ways opportunity recognition is applied we can enlighten the fact that opportunities play a critical role the entrepreneurial processes. Different values have different abilities to “connect the dots” they have perceived. Opportunities need to exploited.15552664. changes in technological.ENT300. Sources of information plays a central role in opportunity recognition and the patterns and trends involving change in conditions for instance. “Nevertheless. to see how an opportunity can be recognised entrepreneurs need to try increase the awareness and change perceptions to perceive how the population and their perception and attitude to the market of products and services are.Asselment 1(a) Literature Review . cognitive structures defining the identification of opportunities are developed through the previous life experience of the person in question.T and Ojala 2011. although ties may exist the value and understanding for further business is vital. New Knowledge The knowledge and its appearance in new products can determine large opportunities. Hence opportunity recognition is the cognitive process through which individuals conclude that they have identified an opportunity” (Kontinen. Opportunities come into existence at a certain point because of a certain confluence.Change in perception Similar to demographic. political or demographic circumstances.492) 6 Ronak Shah. occasionally having too much knowledge and sources can make an operation more difficult and doubtful.

Where do you think are sources of a potential and promising opportunity? 3.Asselment 1(a) Literature Review .15552664. So was the opportunity a win situation? 4.Appendix The Five Questions I believed are appropriate to the Topic and can help in the interview are as follows: 1. Did you consider whether you should tell anyone else about you opportunity? 5.ENT300. Do you think the skills you have will enable you to seek more opportunities? 7 Ronak Shah. Did you think your venture was a good opportunity to get into? 2.

Asselment 1(a) Literature Review . “International Opportunity Recognition among small and mediumsized family firms” Journal of small Business Management 49(3):490-514.2008.M. http://motherthumper.2012.1111/j.com/hub/3-Ways-to-Identify-an-EntrepreneurialOpportunity Dragan. 3 ways to indentify an entrepreneurial opportunity 92.T & Ojala.ru/cmt2/lib/c/186/File/fa4_1.com/doi/10.msu.F & Christopher .insead.pdf Websites Katina.ied. http://www.edu/andersonp/VOBM_MAYJUN2005/Anderson%20VOBM%20rea dings/Session%202%20How%20venture%20opportunites%20are%20screened/Baron. http://onlinelibrary. “Opportunity recognition: A Cognitive Perspective” Academy of Management Conference.hubpages. 2nd Asia-Pacific edition.ENT300.2012.ehow. http://faculty.15552664.x/pdf Baron Robert. Entrepreneurship: Theory. Academy of Management Perspectives 20(1): 104-119. “Opportunity recognition as Pattern Recognition: How Entrepreneurs “Connect the Dots” to identify New Business Opportunities”.pdf Kontinen. Switzerland: Springer Journals Baron Robert.What is opportunity Recognition? http://www. Australia: Cengage Learning Ralf.00326.wiley.Kurakto.W. 2012.L. Nurturing Science-based Ventures: An International Case Perspective. Benoit.com/1257/opportunity-recognition-ideageneration-part-1/ 8 Ronak Shah.B.% 202004. & D. http://old.F.1540-627X.2010.econ.com/facts_7501598_opportunity-recognition.2006.2011.html Thumper.2004.2011. Opportunity Recognition & Idea Generation – Part 1. H.entrepreneurshipinabox. Melbourne.References Books Frederick. process and practice.H. Lausanne.

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