Recognize a
Potential Market
Module 2
Entrepreneurial Ideas
Figure 1. The Entrepreneurial Process of Creating New Venture
Essentials in Entrepreneur’s
Opportunity Seeking
Entrepreneurial mind frame
Entrepreneurial heart flame
Entrepreneurial gut game
Sources of Opportunities
•Changes in the environment
•Technological discovery and advancement
•Government’s thrust, programs, and policies
•People’s interest
•Past experiences
Sources of Opportunities
1. Entrepreneurial ideas arise when
happen in the external environment.
changes
External environment refers to the physical
environment, societal environment, and industry
environment where the business operates.
•Climate
•Natural resources
•Wildlife
Physical Environment
•Political forces
•Economic forces
•Sociocultural forces
•Technological environment
The Societal environment
•Competitors
•Customers
•Creditors
•Employees
•Government
•Suppliers
Industry environment
2. Technological
advancement
discovery
and
3. Government’s thrust, programs,
and policies
4. People’s interest
5. Past experiences
Forces of Competition Model
Competition – it is the act or process of
trying to get or win something.
Forces of Competition Model
•Buyers
•Potential new entrants
•Rivalry among existing firms
•Substitute products
•Supplier
WHAT IS OPPORTUNITY RECOGNITION?
According to Barringer and Ireland (2010) “An opportunity is a favourable set
of circumstances that creates a need for a new product, service or business.
” A business opportunity they claim must have four essential qualities:
• Attractive.
• Timely.
• Durable or sustainable.
• Adds value to customers and anchored in products services or a b
usiness.
Play the “what if” game with them.
Ask them:
1. Do you think this business opportunity has merit?
2. Am I addressing a real problem, issue or need?
3. Would someone pay money for this product or service?
4. How would you change it to make the potential opportunity even b
etter?
5. Are there other organizations that have already developed this busi
ness idea?
6. What issues do I need to consider when developing my business op
portunity?
7. What could cause this business opportunity to fail?
EXAMPLES OF POTENTIAL BUSINESS OPPORTUNITIES
Tourism Opportunities
• Eco‐Tours into the jungle and rural areas.
• Day cruises up the rivers and waterways in the lo
cal area.
• City bus tours.
• Cultural tours.
• Car rental service.
EXAMPLES OF POTENTIAL BUSINESS OPPORTUNITIES
Manufacturing Opportunities
• Distribution of locally produced clothes or shoes
to city retail outlets.
• Export and distribute local commodities and reso
urces to off‐shore buyers.
• Transportation services for agricultural sector.
• Building contract services.
EXAMPLES OF POTENTIAL BUSINESS
OPPORTUNITIES
Retail Opportunities
• Fast‐food restaurant.
• Boutique selling in‐demand products from off‐shore.
• Electronics store.
EXAMPLES OF POTENTIAL BUSINESS
OPPORTUNITIES
High Tech Opportunities
• Computer sales and repair services.
• Computer school.
• E‐learning consulting and implementation servic
es.
• Programming and gaming services.
• Internet café.