EEP Module 9:

BUSINESs OPPORTUNITY AND CONSTRAINTS EVALUATION

2015
by Auwal Muhammad Isah
Introduction
People around the world are constantly
searching for ideas to solve problems and
exploit opportunities.
They constantly create ventures as a
vehicle for opportunity realization
Setting up any venture starts with a
thought of a product idea.
A business idea comes as a result of
careful meditation, brain storming,
research and/or study the environment for
possible solution
Entrepreneurs develop many ideas and
after evaluation and appraisal, they
implement the most promising one
SOURCES OF BUSINESS OPPORTUNITIES
Internet: world wide source of ideas
Entrepreneurs' Social Networks: we are
related or associated with people with
viable ideas
Prior Experience- stock of past
knowledge
Existence of a Similar Business
Hobby/Personal Interest
Market Research
 Electronic and Print Media
Process of opportunity recognition
Initialnew venture idea
Potential opportunity in new ventures:
good chance of creating markets/
customers, availability of support,
technology, funding etc
Decision to start new venture- to exploit
the opportunity presented by new ideas
Scanning for Business opportunities
We scan environment in search for favorable
condition for new ideas
◦ Technology
◦ Government regulations
◦ Economic conditions
◦ Buyer strengths
◦ Demographic-attitudinal, awareness, etc
◦ Labour markets
◦ Competitors
◦ Supplier etc

(4) Value for acceptance and hospitality.

The Stages of Opportunity
Identification
Preparation: available skills & experiences
Incubation: Sub-conscious examination of
opportunities in relation to others
Insight: gaining clear understanding of
opportunities and what’s at stake
Evaluation: Conscious appraisal of
opportunity
Elaboration: detailed planning for
opportunity realization
Opportunities from SWOT
Analysis
Strengths: Advantage position
Weaknesses: Limitations
Opportunities: external chances of goals
attainments
Threats: potential impediments to
attaining goals
Types, of opportunities
Recognized- from intuition & reasoning
Discovered- deliberate search of potential
opportunity in demand or supply
Created/enacted- creation of new markets,
technology or process that do not exist
Resources and Resource Constraints

Men
Money
Finance
Materials
Machines
Information (ICT)
Time
Conclusion
Entrepreneurs consistently learn, think
and search for opportunities
They refuse to let the environment stand
in their way
They are motivated to add value by
discovering new ways and in the process
they are willing to accept reasonable risks
and face challenges head-on