Recognizing Opportunity
Warm-up:
Record the definition in your notes for the following vocabulary words:
• B2B (business to business) ventures that sell
product and services to other businesses
• business broker*
• business opportunity – a consumer need or
want that can potentially be met by a new
business
• calculated risk – risk in which potential costs
and benefits are carefully considered before
starting a business
* Can be found in the textbook
Section 3.1 Understanding Entrepreneurial Trends
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Recognizing Opportunity
3.1
Examine current entrepreneurial trends
Identify ways to recognize opportunity
Discuss how to think creatively about
opportunity
Distinguish the difference between an idea
and an opportunity
Section 3.1 Understanding Entrepreneurial Trends
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Recognizing Opportunity
3.1
The ability to recognize new opportunities and to
think creatively is essential for success in
today’s market.
A business opportunity
is defined as a consumer
need or want that can
potentially be met by a
new business.
Section 3.1 Understanding Entrepreneurial Trends
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Recognizing Opportunity
Current Entrepreneurial Trends
Internet businesses
technology
home-based
businesses
outsourcing
“green” businesses
strategic alliances
social
entrepreneurs
corporate ventures
Section 3.1 Understanding Entrepreneurial Trends
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Recognizing Opportunity
Internet Businesses
The Internet has
transformed the way
business is conducted.
online business
a company that
conducts business by
means of the Internet
An online business can
reach customers around
the world.
Section 3.1 Understanding Entrepreneurial Trends
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Recognizing Opportunity
Home-based Businesses
Home-based businesses are
growing rapidly and now
represent 53% of all small
businesses.
Homesourcing refers to the
transfer of service industry
employment from offices to
home-based employees.
Section 3.1 Understanding Entrepreneurial Trends
Jet Blue homesources
its customer support to
employees who work
from home in Salt
Lake City, Utah
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Recognizing Opportunity
Green Business
What is a green business?
Green business design their
business practices so that
they promote sustainability.
Click this logo to
view video clip
Section 3.1 Understanding Entrepreneurial Trends
sustainability
When a venture seeks
to achieve economic,
environmental and
social goals without
compromising the ability
of future generations to
meet their own needs.
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Recognizing Opportunity
Social Entrepreneurs
social
entrepreneurs
an entrepreneur who
recognizes a social
problem and uses
entrepreneurial
methods to create,
organize and
manage a venture to
address it.
Section 3.1 Understanding Entrepreneurial Trends
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Recognizing Opportunity
Technology
Entrepreneurs that
know how to use
technology to
improve their
business processes
create a stronger
competitive
advantage and have
a greater chance of
success.
Section 3.1 Understanding Entrepreneurial Trends
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Recognizing Opportunity
Outsourcing
outsourcing
contracting with other
companies for services
Outsourcing is hiring
people and/or other
companies to handle tasks
that a business can not do
or chooses not to do itself.
Section 3.1 Understanding Entrepreneurial Trends
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Outsourcing
lowers regulatory
compliance
burden
more efficient
saves time
Benefits of
Outsourcing
saves money
Section 3.1 Understanding Entrepreneurial Trends
speeds up projects
attracts investors
(redirects capital
into money making
activities thus)
11
Recognizing Opportunity
Strategic Alliances
strategic alliance
a partnership formed with
another company for the
purpose of supplying a
product or service
A strategic alliance is a
partnership among
companies.
Section 3.1 Understanding Entrepreneurial Trends
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Recognizing Opportunity
Corporate Ventures
Corporate ventures exist to
nurture and develop start-up
businesses for their parent
company.
Section 3.1 Understanding Entrepreneurial Trends
corporate venture
a new venture started
inside a larger company
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Recognizing Opportunity
Creativity and Innovation
Creativity is the activity that
results in innovation.
innovation
finding a new way of doing
things
It generally involves:
• Connection
• Discovery
• Invention
• Application
Entrepreneurial thinking is about generating ideas and recognizing opportunities.
Section 3.1 Understanding Entrepreneurial Trends
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Thinking Creatively About Opportunity
Practice
brainstorming.
Connect
unrelated items.
Find creative
solutions to
common problems.
Look at ordinary
items in new ways.
Section 3.1 Understanding Entrepreneurial Trends
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Recognizing Opportunity
Removing Roadblocks
to Creativity
Believe in yourself
Entertain all ideas
Relax
Have a playful, positive attitude
Use free-spirited, non-logical thinking
(it doesn’t have to make sense right away!)
Learn from experience
(even failing has value if you learned something)
Section 3.1 Understanding Entrepreneurial Trends
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Recognizing Opportunity
Idea Versus Opportunity
You generate ideas by
thinking creatively.
Opportunities are ideas
with commercial
potential.
Section 3.1 Understanding Entrepreneurial Trends
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Recognizing Opportunity
Idea Versus Opportunity
Most good opportunities
result from an
entrepreneur’s alertness
to unmet consumer
needs and/or unfilled
market niches.
Section 3.1 Understanding Entrepreneurial Trends
niche a small
specialized market
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Recognizing Opportunity
Creative Sources of Ideas
To identify creative ideas:
Observe the world around you.
Be an avid reader.
Consider your interests, hobbies, and work
experiences.
Consult outside sources of information.
Section 3.1 Understanding Entrepreneurial Trends
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Sources of Information
trade
magazines
government
agencies
specialty
magazines
Sources
of
Information
the Internet
trade shows
exhibitions
newspapers
Section 3.1 Understanding Entrepreneurial Trends
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Recognizing Opportunity
Review Questions
1. Describe one (of the 8) entrepreneurial trends
we looked at, that could potentially lead to a new
business ideas?
2. What is the difference between an idea and an
opportunity?
3. What are some strategies for thinking
creatively?
4. Name a source that could help you to generate
new ideas.
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Recognizing Opportunity
Practice Activity
1. Find a team of no 4-5 to work with.
2. Choose one of the 20 Trends to report on.
3. Watch video Top 20 Trends of 2011
Take notes on the trend you picked.
4. Discuss with your group the following:
•
•
•
Identify specific existing products that could be connected
with the selected trend.
Who is the customer for this trend in terms of demographics,
geographics & psychographics? Why?
Does your group feel this is a trend that will continue to gain
market share? Why or why not? What economic factors might
influence the trend?
5. Report out to the class.
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