CHAPTER 1

Entrepreneurial
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Opportunities
Learning objectives
 Business Opportunity
 Factors involved in sensing opportunities
 Business Opportunity

 It can be described as an attractive economic idea

which could be implemented to create business
earn profits and ensure further growth.
 Elements of Business Opportunity

 Assured Market Scope

 An attractive and acceptable rate of return on
investment
 Practicability of the ideas
 Competency of the entrepreneur to encash it
 Potential of Future growth
 Definition
 To Sense an entrepreneurial opportunity :
An entrepreneur needs to observe, analyse and
synthesize by spotting an opportunity.
Main Factors involved in sensing opportunities

Ability to perceive and preserve basic

ideas

Ability to harness different sources of

information

Vision and Creativity

Ability to perceive and preserve basic ideas

The process of sensing They are various sources that

opportunity is often helps in generating basic
triggered by spotting an ideas.
idea
Ability to perceive and preserve basic ideas

Problems 
Change
Inventions
Competitions
Innovations
 Problem
 When a problem exists, an idea leads to a
solution to resolve that problem, it emerges as a
business opportunity.
 Examples
 Entrepreneur- Dheeraj Gupta
 Founder – Jumbo King
 Change
 A change in social, legal, technological aspects
etc. leads to new opportunities to start a
business.
Examples
 Inventions
 New products or services leads to new business
opportunities
Examples
 Innovation
 Creating new things of value as well as new and
creative processes that add value to the existing
products or services. For example, computers to
tablets.
 Competition
 Competition often results in emergence of new
and better ideas that result in new business
opportunities.
Examples
Examples
 In this module, you have learnt:
 Sensing entrepreneurial opportunities can be defined
as a process of transforming an idea into an
opportunity and further, into an enterprise.

 To sense an entrepreneurial opportunity, an

entrepreneur needs to observe, analyze and synthesize
and then, spot an opening.

 The process of sensing an opportunity is often

triggered by spotting an idea.
In this module, you have learnt:

 An idea is turned in to a solution to resolve the

problem, leading to a business opportunity.

 Social, legal and technological changes lead to new

opportunities to begin a business.

 Ability to harness different sources of information

come from inventions, innovations and competition.
 Ability to harness different sources of
information

 The analysis helps in the identification of the right

opportunity to start a new business.
 Vision and creativity
 Creativity in innovating a solution and vision. The
entrepreneur should be able to creatively identify an
idea to generate a valuable solution to a problem.
a) Overcome adversity
b) Exercise control over the business
c) Make a significant difference.
 In this module, you have learnt:

 Right opportunity to start a new business is identified

from the information collected from many sources.

 The entrepreneur must creatively identify an idea and

also possess the vision of converting the identified
solution into business opportunity.
Learning Objectives
 Scanning of Business Environment
 Need for Scanning the Environment
 Importance of Environment
 Benefits of Environmental Scanning
Business Environment
Entrepreneurship can not evolve on its own All conditions and
and depends upon the following factors for forces external to a
its growth. business unit under
which it operates is
called business
environment

Social

Economical
Business
Environment
Legal

Political
What is environment scanning?
 Careful monitoring of an organization's internal
and external environment for detecting early
signs of opportunities and threats that may
influence its current and future plan
Need for Scanning the Environment

If you don’t
adapt you This is the fundamental
don’t endure
idea behind
implementing
environmental Scanning
Need for Scanning the Environment

Right Right
Information Adaptations

Future Viability of an Organisation

Importance of Environment

For an
Entrepreneur
sensitivity and
awareness of
changing
environmental
factors is
critical and
Huge
significantly
 Example
Usage of Mobile Phones

Usage of Landline
 Benefits of Environmental Scanning

Identification of Opportunities to get first move opportunity

Formulation of strategies and policies

Tapping Useful Resources

Better Performance

Sensation of an Entrepreneur to cope up with rapid changes

Image Building
Identification of Opportunities to get first
move opportunity

 An enterprise can spot opportunities and search

strategies to capitalize on the opportunities first
by continuously monitoring the changes in the
external environment.
 Example
 Business- Flipkart
 Entrepreneur – Sachin Bansal
Formulation of strategies and policies

 It helps to identify various threats and

opportunities in the market and thus, formulate
the strategies to handle these threats and exploit
opportunities in the market.
 Examples
Petrol car Manufactures E- Car Engines
Tapping Useful Resources

 Companies can tap into various resources like

raw materials, human resources etc. From the
market at the right time and at reasonable price
if it has a sound knowledge of the external
environment
Example
Better Performance

 It can be increased with timely action in dealing

with threats and availing opportunities for the
purpose of improvement in the performance of
the firm.
Example
Sensation of an Entrepreneur to cope up with
rapid changes

The entrepreneur has to monitor the trends in the

environment carefully, it will sensitise him or her to
the changing competition, technology ,government
policies and customers varying needs.
Example
Image Building
 A company has to be sensitive to the external
environment will bring out new products and
services to meet the needs of the customers.
 This will result in Good Image and reputation.
Examples
 In this module, you have learnt:
 All the conditions and forces external to a
business unit, under which it operates is called the
business environment.

 Careful monitoring of an organization's internal

and external environment for detecting early signs
of opportunities and threats that may influence its
current and future plan
In this module, you have learnt:
 It helps organizations to collect useful
information on changing conditions and include
those findings in a process, where required
changes are done

 An entrepreneur should have a fair amount of

knowledge about the environment surrounding
his or her business. Else, the business is ought to
fail.
Learning Objectives
 Analysis of Business Environment
 Sources of Collecting Information for
Environment Scanning
 SWOT Matrix
 Environment Analysis
 It is the process of monitoring the economic and non-
economic environment, to determine the opportunities and
threats to an organization is called Environment Analysis.
Environment Analysis

Identificatio
Scanning of
Spotting an n of Starting
Environmen
Opportunity Product Project
t
/Service
Sources of Information for environmental scanning can be
collected from several sources.

Verbal information from customers, wholesalers,

retailers, distributors, consultants.

Records of companies
. .

Government Publications.

Publications by financial institutions.

Formal studies conducted by Strategic Planners.

Evaluation of Data collected from Business
Scanning

 The data obtained from environment scanning is

further processed and analysed using
quantitative and qualitative techniques .
SWOT Matrix
 l Scan

Internal External
Analysis Analysis

Strengths Weakness Opportunities Threats

SWOT Analysis Meaning
 SWOT (strengths, weaknesses, opportunities, and
threats) analysis is a framework used to evaluate
a company's competitive position and to develop
strategic planning.

 SWOT analysis assesses internal and external

factors, as well as current and future potential
 Strength describe what an
organization excels at and what
separates it from the competition:
a strong brand, loyal customer
base, a strong balance sheet,
unique technology, and so on.

 Weaknesses stop an organization

from performing at its optimum
level. They are areas where the
business needs to improve to
remain competitive: a weak brand,
higher-than-average turnover, high
levels of debt, an inadequate
supply chain, or lack of capital.
 Opportunities refer to
favorable external factors
that could give an
organization a competitive
advantage.

 Threats refer to factors that

have the potential to harm an
organization.
Example
SWOT OF AMAZON
 Strength: Strong brand name
 Weakness: Losing Margins
 Opportunities: Expand
 Threats: Government
Regulations
 In this module, you have learnt:
 The data obtained from environment scanning is further
processed and analyzed using quantitative and qualitative
techniques .

 SWOT (strengths, weaknesses, opportunities, and threats)

analysis is a framework used to evaluate a company's
competitive position and to develop strategic planning.
Learning Objectives
 Types of Business Environment
 Factors of Micro –Environment
 Factors of Macro -Environment
 Business
Environment

Micro Macro
Environment Environment
Micro Environment
 The micro environment affect the organisation
directly. It refers to the environment that most
closely linked to a company.
 The business can influence this environment
 Micro Environment
Suppliers

Customers

Intermediaries

Competitors

General Public
 Micro Environment
Suppliers Customers
 Micro Environment
Intermediaries Competitors
Micro Environment
GENERAL PUBLIC
Macro Environment
 A macro environment is the condition that exists
in the economy as a whole, rather than in a
particular sector or region.
 Macro Environment
Political

Economic

Social

Technology

Environmental

Legal
 PESTEL Analysis
 Political-What are the political factors that are likely
to affect the business?

 Economic- What are the economic factors that will

affect the business?

 Social- What Social aspects likely to affect the

business
PESTEL Analysis
 Technological- What technological changes that
may affect the business?

 Environmental -What are the environmental

considerations that may affect the business ?

 Legal -What current and impending legislation

that will affect the business ?
Political
 Taxation policies government stability and
foreign trade regulations fall under the political
environment
 Political Stability
 Tax Policy
 Labor Laws
 Tariffs
Economic
 The Economic Environment deals with interest
Rates, inflation, unemployment, income ,energy
and cost are a part of Economic Environment.
 Economic Growth
 Social
 A social environment includes the values, beliefs, customs,
and practices of a group of people. A business is subject to
an external social environment and also its own internal
social environment
 Age
 Society
Technological
 Technological environment is governed by government
spending on research, new discoveries and development,
government and industry focus of technological effort,
speed of technological transfer and rates of obsolescence.
 R&D Activity Click to add text
 Environmental
 Ecological environment examines the ways through
which, an organization produces its goods or
services with minimum environmental damage.
Legal
 Legal environment deals with taxation,
employment, law, monopoly, legislation and
environmental laws.
 Consumer law
 Employment law
 Health and safety law
 Example
 Political
 Economical
 Social
 Technological
 Environmental
 Legal
In this module, you have learnt:
 Business Environment is divided into Micro
Environment and Macro Environment
 Micro Environment –
 Suppliers
 Customers
 Intermediaries
 Competitors
 General Public
In this module, you have learnt:
 Macro Environment –
 Political
 Economical
 Social
 Technological
 Environmental
 Legal
Learning Objectives
 Problem Identification
 Objectives of Problem Identification
 Uses of Problem Identification
 Idea Generation
FOUNDERS
BRIAN CHESKY
Joe Gebbia
 Problems

HOTELS BEING
RENT PRICE BOOKED
Thinking process
 They recognized the two key problems, and
devised a solution to solve both simultaneously.
Solution
 Problem Identification
 A problem is a roadblock in a situation, something
that sets up a conflict and forces you to find a
solution. When an entrepreneur identifies such a
road block, he/she is said to have identified the
problem.
Meaning
 Some people think of entrepreneurial types as creative
inventors; given a blank canvas, they can come up with a
product that people will love. But that's not usually the
case. Instead, the most successful entrepreneurs are
those who first identify a key problem in the market, then
work to solve that problem.
 Objectives of problem identification:

It should clearly state the problem

Identify target group facing the problem

 Uses of problem Identification
Understand the problems and needs of the market

Bring out new products in the market

Be creative

Increase employment generation

Increase national income of the country

 Idea Generation
 Idea generation is a process of creating, developing
and communicating ideas which are abstract,
concrete or visual. It includes the process of
developing the idea through creativity and
innovation, and bringing the concept to reality.
Idea Generation
Business ideas are an outcome of
 careful analysis of market trends.

 careful analysis of consumer needs.

 creation of something or discovery through

accident.
 exploring the ways of getting ideas.
 In this module, you have learnt:
 Problem Identification : The most successful entrepreneurs are those who
first identify a key problem in the market, then work to solve that problem.

 Two types of Objectives

 It should clearly state the problem
 Identify target group facing the problem

 Uses of Problem Identification – They are 5 types

 Idea generation is a process of creating, developing and communicating ideas

which are abstract, concrete or visual. It includes the process of developing the
idea through creativity and innovation, and bringing the concept to reality.
Learning Objectives
 Idea Fields
 Uses of Idea Fields
 Types of Idea Fields
 Idea Fields
 Idea Fields. The process of generation of ideas
can be streamlined by developing an awareness
of different 'idea fields'
 How are idea fields useful in generation of
ideas?

Idea fields are useful in the generation of ideas in the

following ways:

 They increase the awareness of the entrepreneur about

various fields
 They streamline the process of idea generation
 They broaden the scope of thinking
 They form convenient frames of reference to simplify the
process of idea generation.
 Idea Fields

Existing
Market Creative
Natural Products or Trade Service sector
Demand Efforts
Resources Services
 Natural Resources
 The idea for a product or service can be derived from the available natural
resources like
 Agricultural, Breeding and Caring of animals etc. Entirely new products or
service related ideas can be generated from these resources or ideas to
supplement these natural resources can be derived.
Examples
Existing products or services
 It requires careful analysis of the existing products or services and
put the expertise and imagination to improve the current products or
services. The demand for a product or service or the need to tackle
the competition will also help in origination of a new idea.
Example
Keep up with Competition
Keep up with the competition If the products or services are
of constantly changing nature, you have to stay aware of the
changes and adopt such changes.
Examples
Increase sales
 Increase sales : The main reason for bringing about change and
improvement in existing products or services is to increase sales and
ultimately their revenue. So, the change should be such that, it helps
in increasing sales.
COMPETITIVE COMPETITIVE BOOKS
BOOKS AND SCHOOL BOOKS
 Market Demand
 Market Demand : Conducting a research in the market to procure the
information relation to the gap between demand and supply, changing consumer
preferences, trends, technology helps in the generation of new ideas for products
or services. The analysis of the products and services offered by the competitors
will also act as a valuable source for generating a new idea.
 In this module, you have learnt:
 Idea Fields: The process of generation of ideas can be
streamlined by developing an awareness of different 'idea
fields

 The idea fields useful in generation of ideas- They are 4

types.

 Idea Fields :
 Natural Resources
 Existing products or services
 Market Demand
 Try This out
 Listen to Music ( year you love the most)
 Play Board Games
 Help your elders and join in the kitchen
 Show your Creativity
Learning Objectives
 Idea Fields
 Trade Related Ideas
 Service Related Ideas
 Creative Efforts
 Idea Fields

Current
Demand or
Natural products or Trade Service sector Creativity:
Market
Resources services
Trading Related Ideas
 Trading Related Ideas. Local trade, imports and
exports, e-commerce, have all made trading a
very wide area of enterprise.
Service Sector Ideas
 Service sector is the most growing field these days the world over,
thanks to emerging knowledge society and advances in information
Technology. So new opportunities can be identified by understanding
the linkages to different business activities.
 Service
Sectors

Food Other
Sectors Services
Food Sectors
Food Sectors
Food Sectors
Food Sectors
Other services
Other services
 Creative Efforts
 Entrepreneurship is the ability to create and build
something from practically nothing. Fundamentally,
it is creative activity sensing an opportunity where
others see chaos, contradiction, and confusion,
 In this module, you have learnt:
 Idea Fields :
Trade Related Services :

Services Sectors
A. Food Service Sectors
B. Other services

 Creative Efforts
 Learning Objectives
 Transformation of Ideas into Opportunities
 How to identify product
 Steps involved in investigation of Potential of an
Idea
 Transformation of Ideas into Opportunities
 A viable venture can exist only when skill,
knowledge, creativity and competency are
strategically applied on the market orientation,
while backed up by factors, which are critical for
the market success
How to identify product
 An entrepreneurial idea should give rise to a
definite product, once an opportunity is spotted and
the environment is scanned.
Steps involved in
investigation of
Potential of an Idea
Product Identification
 The first step is to obtain one such idea.
 The idea should be able to pave the way to an
ultimate product or service that can be sold.
 We should also make a note and check whether
such products already exist in the market.
Examples
Application and Use
 An idea is useless if it is not useful in the real life.
If a product exist in the market we have to find its
use by modifying it.
Level of Operation
 This is type the most crucial test for service and
product.
 Depending on the usage it is determined which
scale of business.
Cost
 The per unit cost of the product at particular
level of operations and check if this price is
comparable to that other competitive products.
Competition
 The trends of Demand and supply of the market
must be studied and assessed as every product or
service will face competition at some stage.
 Technical Complexity

What type of Technology is required

to produce the product or execute the
services?

Will training and application for the

idea be available locally or will
support be needed from other places
 Technical Complexity

What position will the supply

plant and Machinery
required have to be for such
a technology.
 Annual Turnover and Profit Margin

We must also examine and have a good estimate of the annual

turnover of the idea. Doing this will also indicate the market
share value of the product or service. The entrepreneur has
assessed opportunities and their potential based on the above
factors, he/she must next assess .
 In this module, you have learnt:

 For a basic idea to become an opportunity, it has to

undergo vigorous processes of examination, evaluation,
analysis and synthesis.

 A viable venture can exist only when skill, knowledge,

creativity and competency are strategically applied on
the market orientation, while backed up by factors, which
are critical for the market success.
 In this module, you have learnt:
 Steps involved in the investigation of
potentiality of the idea are:

 Step 1: Product identification

 Step 2: Application and use
 Step 3: Level of operation
 Step 4: Cost
 Step 5: Competition
 Step 6: Technical complexity
 Step 7: Annual turnover and profit margin
 Learning Objectives
 Factors of Market Assessment
Factors of Market
Assessment
Demand
 Many factors will affect the selection of a product
or a service. An entrepreneur must keep in mind
few things while assessing target the market.
Supply and Nature of Competition
 Entrepreneurs must also take into account the
supply position of the market, meaning the complete picture
of quantities of that product present in the market by all the
existing players.
 Future supplies in the field must also be taken into
account.
Cost and Price of the Product
 To influence the delivery mechanism of the product or
service, it is important to estimate the cost of the product
or service and compare it to the products already in the
market.
 Cost variables like transportation delays, wastage and
storage should also be studied to spot cost advantage.
 Project Innovation and Change
 Technological changes must be assessed from time to time
as they may change or influence the cost and price of the
product.
 The entrepreneur must also access the market and study
the changes and the present innovations, which are being
carried out by the present entrepreneurs, so as to stay
competitive and stay in the market.
 In this module, you have learnt:
 An entrepreneur must keep the following things in mind while assessing
the product .

 Market Assessment Factors

 Demand
 Supply and Nature of Competition
 Cost and Price of the Product
 Project Innovation and Change
 Learning Objectives
 Trends Spotting
Trend spotting

It refers to the recognition of the latest market

trends. It helps the entrepreneur to bring changes in
their products or services in accordance with the
trends prevailing in the market. .
So entrepreneurs keep an eye on the changes in the
trend taking place in these places.
Ways to spots Trends

Watc
Read Talk Think
h
 Read Trends
 Entrepreneurs regularly read the leading
publications and websites affecting their business.
 They scan information from a wide variety of sources
from international news on down to niche bloggers
focused on specific aspects of their industry.
Examples
Talk Trends
 Talking to people is an equally important trend-
spotting tactic. They get involved in specific
industry's trade association and attending events
both online and offline.
Examples
Watch Trends
 Watching and observing the customer's in the
market place.
Examples
Think
 As an entrepreneur begins gathering all these
information regularly, they will start to develop a "trend-
spotter mind.
Examples
Try this out
 5-things you can See
 4- things you can Feel
 3- things you can Hear
 2- things you can Smell
 1- thing you can Taste
CHAPTER 1

Entrepreneurial
Opportunities
 Learning Objectives
 Creativity
 Creativity Process
Creativity
Creativity is a mental process involving the generations of
new ideas or concepts or new association between existing
ideas or concepts.
•Is universal
• Is innate as well as acquired
• Produces something new
• Is adventurous and open thinking
• Has a wide scope.
• Cannot be separated from intelligence
 Graham Wallas
 In 1926 the psychologist
Graham Wallas famously
shared his model of
creativity, a way of
understanding how
original ideas form in the
mind and are carried into
the world.
 Idea
Preparatio illuminatio Verificatio
germinatio
n
Incubation n
n n
 Idea germination:
 Idea germination: This is the seeding stage of a new idea.
It is the stage where the entrepreneur recognizes that an
opportunity exists.
 The idea germination takes place according to interest,
curiosity of the entrepreneur according to which
opportunity is explored and exploited to its best
potential.
Mansukhbhai Prajapati
 He conceived this idea
in 2001, but the final
product could take
shape only in 2004.
Preparation:
 An entrepreneur and he starts looking for the
answer to implement the idea. If the idea is to
launch a new product or service then market
research is conducted.
Mansukhbhai
 The idea of clay fridge
was considered equally
strong and
 he decided to go ahead.
Incubation:
 This is the subconscious assimilation of
information. This is the transition period.
 The entrepreneur starts thinking about the idea
and implementation in his sub-conscious mind.
Mansukhbhai
 Mansukhbhai went
through the process of
studying the pros and
cons of manufacturing
the product before he
had launched
illumination
 In this period of illumination the idea re-surfaces
in realistic way entrepreneur comes out with
viable plan to give practical shape by collecting
raw-material, arranging funds, policy-making for
the implementation of idea.
Mansukhbhai
 Mansukhbhai it was
important to have
enough of funds in
hand to buy and in
store enough raw-
material.
Verification
 Verification: Also called the validation or testing stage.
This is where the idea is prove that it has value. This is
the most difficult phase of creativity as obstacles begin to
arise
 This is the developing stage in which knowledge is
developed into application.
Mansukhbhai
XI A- Com (Batch- 1)
XI A – Com (Batch -2 )
XI B – Com (Batch -1 )
XI B –Com (Batch – 2)
Innovation
 Innovation in its modern meaning is "a new idea,
creative thoughts, new imaginations in form of
device or method".
Elements of Innovation

Analytical Organising Implementatio Commercial

Planning Resources n Application
Analytical planning:
 Carefully identifying the product or service
features, design as well as the resources that will
be needed.
 Example
 What Product should I do ?
Resource organization:
 Obtaining the required resources, materials,
technology, human or capital resources.
Example
 Implementation:
 Applying the resources in order to accomplish the
plans and delivering results and better
performance.
 Example

https://fineartamerica.com/featured/abstract-art-original-whimsical-modern-
landscape-painting-bursting-forth-by-madart-megan-duncanson.html
Commercial Application
 The provision of value to customers, rewards
employees and satisfy the stake holders.
Example