OPPORTUNITY RECOGNITION

By
OFURUM CLIFFORD OBIYO
( FNAA,FCA,FAMN,ACTI, CNA )
Professor of Accounting & Finance.
President, Nigerian Accounting
Association.

JANUARY 2021

The entrepreneur always searches for

change, responds to it and exploits it as an
opportunity...Peter Druker
 Protocol/Dedication

• Distinguished
• Ladies and Gentlemen
• Its my pleasure to welcome you to this Second day
• …this section is dedicated to

• Everyone that would be influenced by this lecture

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 INTRODUCTION
The person who says it cannot be done
should not interrupt the person doing it
……..Chinese Proverb

• …………Entrepreneurship has become a revolution

• -------it permeates gender , culture , demography
and national boundaries

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 Entrepreneur,
Entrepreneurship and
Enterprise

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
OVERVIEW
Entrepreneur Entrepreneurship Enterprise

A Person A Process Object

The Concept of Entrepreneurship

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Definition

• ------ Different perspectives, different definitions

• -------Entrepreneurship is the process of creating or seizing
opportunity and pursuing it regardless of the resources
currently controlled( Timmons 1994)
• What is not in the definition----- Profit
• What is central to the definition---- Process
and Opportunity.

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
•The Entrepreneurial
PROCESS

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 THE ENTREPRENEURIAL PROCESS

Finding & evaluating

Opportunities 2, 3

The environment 4
11
Types of ventures Types of entrepreneurs
1

The entrepreneurial
The organizational The entrepreneur
Process
context

Life cycle stages Investment models

12 The concept The resources
5

6 7
Types of Entry Types of Prioritizing
innovation wedges resources/ sources of
resource finance
strategies
Economic models
9 10
8

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 Finding & evaluating
Opportunities 2, 3

The environment 4
11

The entrepreneurial
Process

12 5

6 7

9 10
8

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
ENTREPRENEURSHIP AS A PROCESS
• Identifying an Opportunity
• =
• Develop the Concept
• =
• Determine the Required Resources
• =
• Acquire the necessary Resources

• Implement and Manage

• =
• Harvest the Venture

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
..OPPOTUNITY RECOGNITION

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
IDENTIFYING OPPORTUNITY
Opportunity identification is central to the
domain of entrepreneurship.
Therefore opportunity recognition is the
progenitor of both personal and societal
wealth.

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 ..about OPPORTUNITIES
Prior Strategic Strategic Capacity
Knowledge Motivation
goal Assessment to Act to Act

Entrepreneurial Sufficient Legitimate Implemented

Opportunities Opportunities
Insight Opportunities Opportunities

Opportunity
Recognition

Learning Opportunity Legitimizing Opportunity

Assessment Opportunity Implementation

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Sources of innovative Ideas
•Sources •Example(s)

Unexpected •Ebola
occurrences • Boko Haram

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Sources of innovative Ideas
•Sources •Example(s)

•Sugar-free
products
Process needs

•Caffeine-free
coffee

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Sources of innovative Ideas
•Sources •Example(s)

Today there are

changes in
Perceptual perception about:
changes •Physical fitness and
• dieting
People are becoming
more conscious of
these as a result of
changes in
perception.

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Sources of innovative Ideas
•Sources •Example(s)

•Mobile (cell
Knowledge-based concepts phone)
technology.

Communication
Social media

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Sources of innovative Ideas
•Sources •Example(s)

•Old and young

Demographic changes
ones product

Changes in
demography in
China is a good
example

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Methods of FINDING
OPPORTUNITIES

• Creating
Opportunities

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Methods of FINDING
OPPORTUNITIES

•Recognising
Opportunities

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Methods of FINDING
OPPORTUNITIES

• Discovering
Opportunities

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Types of OPPORTUNITIES

Perennial
Opportunities

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Types of OPPORTUNITIES

Occasional
Opportunities

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Types of OPPORTUNITIES

Multiple Causes
Opportunities
&
Multiple Effects
Opportunities

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Attributes of
OPPORTUNITIES

Demand: There must be

market for the
product/service
otherwise….

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Attributes of
OPPORTUNITIES

Return on Investment:
Not only there must be
market but also enough
to cover the investment
…

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Attributes of
OPPORTUNITIES

Scalability: The
venture must have the
potential to grow over
time

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Attributes of
OPPORTUNITIES

Customer
Retention

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. What is OPPOTUNITY
RECOGNITION?

…to be successful, an
entrepreneur, one
most be Visionary.. ..being Visionary simply means
recognising opportunities in the
..therefore, no market place
opportunity , no
sucess

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. Where are these
OPPORTUNITIES?

..the business
environment
These could be in
either the internal or
external
environments

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. How dose one finds/creates
these OPPORTUNITIES?
…

..because entrepreneurs must

..the act of creating determine from the on set if
new goods/services is there is market for such
just but one side of the goods/services.
equation.. ….what is there are is no market
for these goods/services?

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. Contrary to believe,

..Opportunities do not
come from introducing
new goods/services….
..But…

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. Contrary to believe,

..offering a better
service to existing
customers

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. Contrary to believe,

..Giving customers more

choices

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. Contrary to believe,

..Providing better
quality
product/service

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. Contrary to believe,

….Making services more

convenient …

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. Contrary to believe,

….An attractive
substitute..

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. Contrary to believe,

….A solution to a
problem..

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. Contrary to believe,

….A
reorganisation of
an existing
market..

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. What drives theses new
opportunities?
…

….Technology..
Using new technology
can cause these
changes/opportunities.

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. Results of
identifying/discovering new
opportunities?

…
….Fulfilment..

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. Results of
identifying/discovering new
opportunities?
…

….increased
employment which will
also expand the
economic opportunities
of individuals..

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. Results of
identifying/discovering new
opportunities?
…

….increased
competition which
would in turn lower
prices and increase ,,,

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 .. Results of
identifying/discovering new
opportunities?
…

..increased economic
growth by encouraging
new methods and
technology

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Opportunities from Environmental Trends

• Resulting New Business

Opportunities
Economic Trends.
Solar energy
Searching for ways to use
traditional sources of energy companies
Providing alternative Wind energy
sources of energy companies
Conserving energy
consumption. Use of energy saver
electric bulbs

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Opportunities from Environmental Trends

• Resulting New Business

Opportunities
Social Trends.
Healthy-fare
Increased interest in
different tastier and healthier restaurants
food Desire for more
Heightened interest in natural foods
wellness as people are
increasingly seeking ways to Fitness centres
become and stay healthy.
Exercise apps
Weight loss
programs
Yoga studios.
The entrepreneur always searches for change, responds to it
and exploits it as an opportunity...Peter Druker
Opportunities from Environmental Trends

• Resulting New Business

Opportunities
Technological
Advances.
 Smart phone
operating system
Smart phone
Smart board. Smart phone apps
and accessories
Open and Distant
learning
Online degree
programs

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Opportunities from Environmental Trends

• Resulting New Business

Opportunities
Population &
Demography.
 Old people homes
More old people Financial service for
More young people old people
. More infrastructure
for the young
Toys and products
for young people.

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
ISSUES RELATING
TO
OPPORTUNITIES
The entrepreneur always searches for change, responds to it
and exploits it as an opportunity...Peter Druker
A. Increase flow of information

•…information is
being increasingly
democratized

•..The internet has

become very
valuable

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
B. Rising dissatisfaction at paid job

•..employers are
finding it difficult to
keep talented
employees

•..this is because
talented staff are
becoming confident
in their abilities

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
c. High regards for self-employment

•..there is
increasing
awareness on the
need to be self
employed
•…it is now seen
as the best way
to achieve
personal goals

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
d. –govt. incentives & subsidies

•…virtually all
governments
have realised the
importance of
entrepreneurship,
hence they will
continue to
encourage it

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
e. The perpetual fear of failure

•…fear is one thing

that would
continue to retard
the growth and
development of
entrepreneurship.

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
-- challenges

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
OUR EDUCATIONAL SYSTEM

•…is by far the

greatest challenge to
entrepreneurial
Development
•..human beings are
naturally
entrepreneurs
•…think of our
parents

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
THE ODD IS AGAINST YOU—HENCE
THE ENTREPRENEURIAL
PROBABILITY
•Empirical evidences abound
to suggest that only about
10% of start-ups survive

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
THE CHALLENGE OF ENTERING THE 4TH SEGMENT

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
 3

Impact High impact/Low feasibility

High feasibility/Low impact

1
2

Feasibility

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker
Funding –a BIG CHALLENGE

--Good feasibility report,

--Customer funded
business

The entrepreneur always searches for change, responds to it

and exploits it as an opportunity...Peter Druker