Entrepreneurship Chapter 2: Identifying Opportunities
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Questions and Answers

What term describes the ability to notice opportunities without engaging in deliberate search?

  • Social intuition
  • Business foresight
  • Entrepreneurial alertness (correct)
  • Opportunity insight

    • Which type of relationship is more likely to generate new business ideas for entrepreneurs?

  • Family ties
  • Strong-tie relationships
  • Professional associations
  • Weak-tie relationships (correct)

    • What percentage of entrepreneurs reportedly got their ideas through social contacts?

  • 60% to 70%
  • 40% to 50% (correct)
  • 30% to 40%
  • 50% to 60%

    • How is entrepreneurial alertness commonly perceived in relation to opportunity recognition?

    <p>As a natural instinct</p> Signup and view all the answers

    Which of the following individuals successfully entered an industry without prior experience?

    <p>Debbie Fields</p> Signup and view all the answers

    What is a key characteristic of strong-tie relationships?

    <p>Frequent interaction</p> Signup and view all the answers

    Which statement about social networks is true?

    <p>Substantial networks expose individuals to more ideas and opportunities.</p> Signup and view all the answers

    What kind of perspective might someone from outside an industry provide?

    <p>Innovative approaches</p> Signup and view all the answers

    What is the primary advantage of library research when generating business ideas?

    <p>Access to expensive industry reports without individual costs</p> Signup and view all the answers

    What resources can a library reference librarian assist you with?

    <p>Industry-specific magazines and trade journals</p> Signup and view all the answers

    Which of the following is a suggested method for generating new business ideas through internet research?

    <p>Setting up Google mail alerts for specific topics</p> Signup and view all the answers

    What technique involves direct observation of customer behavior to generate business ideas?

    <p>Day-In-The-Life Research</p> Signup and view all the answers

    Why are large public and university libraries considered underutilized for business research?

    <p>Most people prefer digital resources exclusively</p> Signup and view all the answers

    What type of reports can libraries provide access to that are generally expensive?

    <p>Industry reports</p> Signup and view all the answers

    What is the primary purpose of customer advisory boards in generating new business ideas?

    <p>To discuss customer needs and potential solutions</p> Signup and view all the answers

    Which search engine is NOT mentioned as a useful resource for business research?

    <p>Google Scholar</p> Signup and view all the answers

    What distinguishes an opportunity from an idea?

    <p>An opportunity creates a need for a product or service, but an idea does not.</p> Signup and view all the answers

    Which of the following is NOT one of the essential qualities of an opportunity?

    <p>High initial investment requirement</p> Signup and view all the answers

    Which approach involves examining changes in societal behavior to find business opportunities?

    <p>Observing trends</p> Signup and view all the answers

    Which type of trend specifically examines changes in governmental policies affecting business?

    <p>Political and regulatory trends</p> Signup and view all the answers

    What effect do economic trends generally have on startups?

    <p>They help determine areas that are favorable or unfavorable for startups.</p> Signup and view all the answers

    Which social trend might lead to new business opportunities?

    <p>A shift towards sustainable living</p> Signup and view all the answers

    Which of the following methods do entrepreneurs NOT typically use to generate ideas?

    <p>Studying competitors exclusively</p> Signup and view all the answers

    What characteristic is essential for recognizing business opportunities?

    <p>Willingness to take risks</p> Signup and view all the answers

    What impact does the aging population have on business opportunities?

    <p>It encourages the development of services for elderly care.</p> Signup and view all the answers

    Which technological advancement directly led to the emergence of Rokit Boost?

    <p>The introduction of mobile devices.</p> Signup and view all the answers

    How did the Affordable Care Act create new business opportunities?

    <p>By fostering electronic record start-ups and health apps.</p> Signup and view all the answers

    What does the trend of increasing diversity in the population primarily affect?

    <p>The types of products offered in the market.</p> Signup and view all the answers

    Which of the following is NOT an example of a technological advance that created new industries?

    <p>Robotics.</p> Signup and view all the answers

    Which company exemplifies a response to security concerns arising from political changes?

    <p>Evolv Technology.</p> Signup and view all the answers

    What primary approach is suggested for identifying business opportunities?

    <p>Solving a problem through observation and insight.</p> Signup and view all the answers

    The rise in mobile device usage has primarily led to which business trend?

    <p>Increased demand for mobile accessories.</p> Signup and view all the answers

    What is the primary characteristic of weak-tie relationships?

    <p>They involve casual acquaintances who can spark new ideas.</p> Signup and view all the answers

    Which of the following best describes the process of creativity?

    <p>It involves generating novel or useful ideas.</p> Signup and view all the answers

    In brainstorming sessions, which of the following rules is typically emphasized?

    <p>Freewheeling and rapid idea generation are encouraged.</p> Signup and view all the answers

    What technique involves a group discussing a topic to provide insights?

    <p>Focus groups.</p> Signup and view all the answers

    What is one of the main benefits of weak-tie relationships over strong-tie relationships in generating business ideas?

    <p>Weak-ties expose individuals to diverse viewpoints that can spark new ideas.</p> Signup and view all the answers

    Which of the following is NOT a characteristic of brainstorming sessions?

    <p>Criticism is allowed.</p> Signup and view all the answers

    What is a common theme in the opportunity recognition process for entrepreneurs?

    <p>It connects personal characteristics with awareness of trends.</p> Signup and view all the answers

    Which of the following methods is used to generate new ideas through group brainstorming?

    <p>Rapid ideation sessions.</p> Signup and view all the answers

    What do many successful entrepreneurs identify as a source of business opportunities?

    <p>Experiencing a personal problem</p> Signup and view all the answers

    What is a specific feature of the Eton BoostTurbin 2000 device?

    <p>It weighs less than four ounces</p> Signup and view all the answers

    What defines a gap in the marketplace?

    <p>A product needed by a specific group lacking sufficient market interest</p> Signup and view all the answers

    What inspired Tish Cirovolo to start Daisy Rock Guitars?

    <p>The absence of guitars made specifically for females</p> Signup and view all the answers

    How does prior industry experience benefit an entrepreneur?

    <p>It helps in recognizing underserved market niches</p> Signup and view all the answers

    Which characteristic is least likely to help an entrepreneur in recognizing opportunities?

    <p>Lack of social skills</p> Signup and view all the answers

    What is a key outcome of identifying a product gap in the marketplace?

    <p>Creation of a potentially viable business opportunity</p> Signup and view all the answers

    What kind of characteristics generally enhances an entrepreneur's ability to spot opportunities?

    <p>Social networks and creativity</p> Signup and view all the answers

    Study Notes

    Entrepreneurship: Successfully Launching New Ventures - Chapter 2

    • Learning Objectives:
      • Explain the difference between opportunities and ideas.
      • Describe three general approaches entrepreneurs use to identify opportunities.
      • Discuss personal characteristics of entrepreneurs that affect their ability to recognize business opportunities.
      • Identify and describe techniques entrepreneurs use to generate ideas.

    What is an Opportunity?

    • Opportunity Defined: A favorable set of circumstances that creates a need for a new product, service, or business.
    • Four Essential Qualities of an Opportunity:
      • Attractive
      • Timely
      • Durable
      • Anchored in a product, service, or business that creates or adds value for the buyer/end user.

    Ways to Identify Opportunities

    • Observing Trends:
      • Economic forces: State of the economy, disposable income, consumer spending.
      • Social forces: Social/cultural trends, demographics, current popular trends.
      • Technological advances: New technologies, emerging technologies, new uses of current technologies.
      • Political and regulatory changes: Changes in political arena, new laws and regulations.
    • Solving a Problem:
      • Identifying problems and finding solutions.
      • Considering intuition, serendipity, or chance.
    • Finding Gaps in the Marketplace:
      • Identifying a need for a product/service by a specific group of people.
      • This group may not be a large enough market for mainstream retailers/manufacturers.

    Personal Characteristics of the Entrepreneur

    • Prior Industry Experience:
      • Helps recognize business opportunities
      • Spotting underserved market niches
      • Building networks of contacts for insights.
    • Cognitive Factors:
      • Inherent ability to recognize opportunities.
      • “Sixth sense" for spotting opportunities.
      • Entrepreneurial alertness: Ability to notice opportunities without deliberate search.
    • Social Networks:
      • Extent and depth of an entrepreneur’s network affects their recognition of opportunities.
      • Strong ties (frequent interaction) vs. weak ties (infrequent interaction).
      • More new business ideas originate from weak tie relationships.
    • Creativity:
      • Process of generating novel/useful ideas.
      • Opportunity recognition as a creative process.
      • Five stages of creative process: Preparation, Incubation, Insight, Evaluation, Elaboration.

    Techniques for Generating Ideas

    • Brainstorming:

      • Generating several ideas about a specific topic.
      • Group sessions targeting specific topics.
      • No criticism, freewheeling, quick sessions, & leap-frogging (building on other ideas) encouraged.

    • Focus Groups:

      • Group of people familiar with a specific topic to provide insights.
      • Follow-up to brainstorming sessions for refinement.

    • Library and Internet Research:

      • Utilizing libraries for industry reports, trade journals, and magazines.
      • Online resources (Bizminer, ProQuest, IBISWorld, Mintel, LexisNexis Academic)
        • Searching for 'new business ideas,' or using targeted searches with specific topics.

    • Customer Advisory Boards:

      • Companies form advisory boards for customer feedback on needs, wants, and problems.

    • Day-In-The-Life Research:

      • Anthropological research where employees spend a day with customers to gain insights.

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    Entrepreneurship: Successfully Launching New Ventures PDF

    Description

    Dive into Chapter 2 of 'Entrepreneurship: Successfully Launching New Ventures' to explore the vital distinction between opportunities and ideas. You'll uncover approaches used by entrepreneurs to identify opportunities and the personal traits that influence their success. Learn how trends in economics and society can signal potential business opportunities.

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