Professional Documents
Culture Documents
CAPE Entrep Opportunity Identification Chapter2-140210090159-Phpapp01
CAPE Entrep Opportunity Identification Chapter2-140210090159-Phpapp01
IDENTIFICATION, ANALYSIS
AND CHOICE OF BUSINESS
OPPORTINITY
Objectives:
1.identify, evaluate and select a viable business idea and
opportunity
2.undertake a preliminary study before preparing a business plan
PEN2073 ENTREPRENEURSHIP
1
Introduction
i. Product
Something which has physical appearance, demanded to satisfy
one’s needs and wants either directly or indirectly. E.g;
computer, hand phone, radio and television.
ii. Services
Something which has no physical but still able to satisfy needs
and wants of customers. E.g barber, doctor, tailor education
and bank. The term “wants” refers to a personal desire for
something that more than the basic needs.
PEN2073 ENTREPRENEURSHIP
2. ENVIRONMENTAL SCANNING AND EVALUATION
OF SELF AND THE COMMUNITY.
i. Environmental Scanning
a. Structure of the population, income and tastes
b. study on import and export data
c. study on local resources and technological breakthrough
d. industrial linkages
e. development projects by the public and private sectors
f. searching for business opportunities in the local and foreign
newspaper and magazines as well as on the internet
g. The study of social problem
h. New government policies and regulation.
PEN2073 ENTREPRENEURSHIP
a) Structure of the population, income and tastes
PEN2073 ENTREPRENEURSHIP
b) Study on import and export data
PEN2073 ENTREPRENEURSHIP
d) Industrial Linkages
PEN2073 ENTREPRENEURSHIP
Example: The process of Industrial linkage with the
national car project.
Component Distributors
industry Workshops
PERUSAHAAN
Transportation Part suppliers
KERETA Car rental
Cleaning service
NASIONAL Car wash
Suppliers
(PROTON) Transport
service
The existence of the national car project (PROTON) has helped to create,
Directly or indirectly, opportunities for the growth of the car industry and
Other businesses, which include the component industry the supplies car
Parts to Proton and spare parts to the suppliers.
PEN2073 ENTREPRENEURSHIP
e) Development project by the public and private sectors
PEN2073 ENTREPRENEURSHIP
g) The study of local social problems
PEN2073 ENTREPRENEURSHIP
ii) Self Evaluation
a) Experience
Many entrepreneurs are involved in business that are
suited to their own experience,e specially in relation to
their former career.
c) Financial situation
Financial ability is an important factor in determining
whether particular business opportunity can be further
developed or not.
PEN2073 ENTREPRENEURSHIP
d) Interest
The business field to be selected must be based on the
entrepreneur’s interest. Interest can give more
confidence and a sense of responsibility to the business to
be developed.
d) Networking
An entrepreneur will face difficulties developing a business
opportunity if his/her networking with others is limited.
PEN2073 ENTREPRENEURSHIP
iii) Value/Norms of the Community
PEN2073 ENTREPRENEURSHIP
3. SCREENING OF BUSINESS OPPORTUNITIES
PEN2073 ENTREPRENEURSHIP
4. Risks
PEN2073 ENTREPRENEURSHIP
Types of business, category or risks and expected returns
PEN2073 ENTREPRENEURSHIP
In general, there are two (2) types of risks that need to
be addressed before and while operation a business.
These are;
1. Business risks
2. Financial risks
1. Business Risks
Can be classified into three category:
I. Transferable risk- risk that can be insured against fire,
theft and employees accidents.
II. Controllable but non-transferrable risks- not 100% to
be controlled but there are things to be done. Example,
market situation, unemployment rate and quality of goods.
III. Uncontrollable risks-things in the economy, exchange
rates and natural disaster.
PEN2073 ENTREPRENEURSHIP
2. Financial Risks
PEN2073 ENTREPRENEURSHIP
Conclusion
PEN2073 ENTREPRENEURSHIP