Questions and Answers
What is an opportunity?
A favorable set of circumstances that creates a need for a new product, service, or business.
Which of the following are important trends that create opportunities? (Select all that apply)
What can economic trends help determine?
Areas that are ripe for new start-ups and areas that start-ups should avoid.
Which social trend has been noted in recognizing new business opportunities?
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How do technological advances create business opportunities?
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What is a notable example of a political change creating business opportunities?
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A third approach to identifying opportunities is to find a gap in the ______.
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What personal characteristic might help entrepreneurs recognize opportunities?
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What is 'entrepreneurial alertness'?
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Weak-tie relationships are more likely to generate new business ideas than strong-tie relationships.
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What are two techniques used to generate business ideas?
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Which of the following is a step in the creative process?
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What is an opportunity?
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Which of the following are important trends that create opportunities for entrepreneurs? (Select all that apply)
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Name one example of a company that helps consumers save money during a weak economy.
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What is a gap in the marketplace?
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What are two characteristics that contribute to an entrepreneur's ability to recognize opportunities?
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Prior industry experience is always beneficial for recognizing business opportunities.
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Which of the following techniques is NOT commonly used to generate ideas?
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What is an example of a product created to fill a gap in the marketplace?
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Opportunity recognition may be an innate skill or __________ process.
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What is an opportunity?
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Which of the following are approaches entrepreneurs use to identify opportunities? (Select all that apply)
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What are the four essential qualities of an opportunity?
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What role do economic trends play in creating business opportunities?
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What is one example of a social trend that alters business behavior?
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Which of the following describes a problem-solving approach to opportunity identification?
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Give an example of a startup formed due to technological advances.
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Prior industry experience is helpful for recognizing business opportunities.
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What is the term for the ability to notice things without deliberate search?
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Why are weak-tie relationships more likely to provide new business ideas?
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What is brainstorming?
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What is one technique entrepreneurs use to generate ideas through group discussion?
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Which search engines are commonly mentioned for Library and Internet Research?
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Study Notes
Differentiating Opportunities and Ideas
- An opportunity is defined as a favorable set of circumstances that creates a need for a new product, service, or business.
Approaches to Identifying Opportunities
- Observing Trends: Key trends include economic forces, social forces, technological advances, and political/regulatory changes, which create business openings.
- Solving Problems: Entrepreneurs often establish businesses by recognizing and solving problems experienced personally or identified through observation.
- Finding Marketplace Gaps: Identifying underserved market niches can reveal business potential, exemplified by niche products not addressed by mainstream providers.
Economic Trends
- Economic changes influence startup viability; a weak economy may boost ventures that assist consumers in saving money.
Social Trends
- Key social changes involve an aging population, diversity, millennials in the workforce, mobile technology growth, and an increasing focus on health and wellness, creating business opportunities aligned with these shifts.
Technological Advances
- Advancements in technology can result in entirely new industries; examples include the computer industry, internet services, and biotechnology.
- New products often emerge in response to technology, such as Rokit Boost, which leverages smartphone popularity.
Political and Regulatory Changes
- Legislation like the Affordable Care Act opens opportunities for tech solutions in healthcare, while global security concerns have prompted businesses like Evolv Technology that focus on security innovations.
Personal Characteristics of Entrepreneurs
- Prior Industry Experience: Helpful in identifying market niches, though fresh perspectives from outsiders can also drive innovation.
- Cognitive Factors: Entrepreneurial alertness allows some to recognize opportunities innately, without conscious searching.
- Social Networks: A broad network exposes entrepreneurs to diverse ideas; new business concepts often emerge from weak-tie relationships.
- Creativity: The idea generation process is creative, often following a structured approach.
Techniques for Generating Ideas
- Brainstorming: Encourages idea generation in groups, focusing on quantity and creativity without criticism.
- Focus Groups: Involve discussions among knowledgeable individuals to refine ideas post-brainstorming.
- Library and Internet Research: Libraries can be valuable for industry insights, with reference librarians guiding access to key resources and databases. Online searches for business ideas can yield a wealth of relevant information.
Additional Idea Generation Techniques
- Customer Advisory Boards: Facilitate regular feedback from customers to gauge needs and ideas.
- Day-In-The-Life Research: Offers insights into customer needs by observing their daily routines.
Differentiating Opportunities and Ideas
- An opportunity is defined as a favorable set of circumstances that creates a need for a new product, service, or business.
Approaches to Identifying Opportunities
- Observing Trends: Key trends include economic forces, social forces, technological advances, and political/regulatory changes, which create business openings.
- Solving Problems: Entrepreneurs often establish businesses by recognizing and solving problems experienced personally or identified through observation.
- Finding Marketplace Gaps: Identifying underserved market niches can reveal business potential, exemplified by niche products not addressed by mainstream providers.
Economic Trends
- Economic changes influence startup viability; a weak economy may boost ventures that assist consumers in saving money.
Social Trends
- Key social changes involve an aging population, diversity, millennials in the workforce, mobile technology growth, and an increasing focus on health and wellness, creating business opportunities aligned with these shifts.
Technological Advances
- Advancements in technology can result in entirely new industries; examples include the computer industry, internet services, and biotechnology.
- New products often emerge in response to technology, such as Rokit Boost, which leverages smartphone popularity.
Political and Regulatory Changes
- Legislation like the Affordable Care Act opens opportunities for tech solutions in healthcare, while global security concerns have prompted businesses like Evolv Technology that focus on security innovations.
Personal Characteristics of Entrepreneurs
- Prior Industry Experience: Helpful in identifying market niches, though fresh perspectives from outsiders can also drive innovation.
- Cognitive Factors: Entrepreneurial alertness allows some to recognize opportunities innately, without conscious searching.
- Social Networks: A broad network exposes entrepreneurs to diverse ideas; new business concepts often emerge from weak-tie relationships.
- Creativity: The idea generation process is creative, often following a structured approach.
Techniques for Generating Ideas
- Brainstorming: Encourages idea generation in groups, focusing on quantity and creativity without criticism.
- Focus Groups: Involve discussions among knowledgeable individuals to refine ideas post-brainstorming.
- Library and Internet Research: Libraries can be valuable for industry insights, with reference librarians guiding access to key resources and databases. Online searches for business ideas can yield a wealth of relevant information.
Additional Idea Generation Techniques
- Customer Advisory Boards: Facilitate regular feedback from customers to gauge needs and ideas.
- Day-In-The-Life Research: Offers insights into customer needs by observing their daily routines.
Differentiating Opportunities and Ideas
- An opportunity is defined as a favorable set of circumstances that creates a need for a new product, service, or business.
Approaches to Identifying Opportunities
- Observing Trends: Key trends include economic forces, social forces, technological advances, and political/regulatory changes, which create business openings.
- Solving Problems: Entrepreneurs often establish businesses by recognizing and solving problems experienced personally or identified through observation.
- Finding Marketplace Gaps: Identifying underserved market niches can reveal business potential, exemplified by niche products not addressed by mainstream providers.
Economic Trends
- Economic changes influence startup viability; a weak economy may boost ventures that assist consumers in saving money.
Social Trends
- Key social changes involve an aging population, diversity, millennials in the workforce, mobile technology growth, and an increasing focus on health and wellness, creating business opportunities aligned with these shifts.
Technological Advances
- Advancements in technology can result in entirely new industries; examples include the computer industry, internet services, and biotechnology.
- New products often emerge in response to technology, such as Rokit Boost, which leverages smartphone popularity.
Political and Regulatory Changes
- Legislation like the Affordable Care Act opens opportunities for tech solutions in healthcare, while global security concerns have prompted businesses like Evolv Technology that focus on security innovations.
Personal Characteristics of Entrepreneurs
- Prior Industry Experience: Helpful in identifying market niches, though fresh perspectives from outsiders can also drive innovation.
- Cognitive Factors: Entrepreneurial alertness allows some to recognize opportunities innately, without conscious searching.
- Social Networks: A broad network exposes entrepreneurs to diverse ideas; new business concepts often emerge from weak-tie relationships.
- Creativity: The idea generation process is creative, often following a structured approach.
Techniques for Generating Ideas
- Brainstorming: Encourages idea generation in groups, focusing on quantity and creativity without criticism.
- Focus Groups: Involve discussions among knowledgeable individuals to refine ideas post-brainstorming.
- Library and Internet Research: Libraries can be valuable for industry insights, with reference librarians guiding access to key resources and databases. Online searches for business ideas can yield a wealth of relevant information.
Additional Idea Generation Techniques
- Customer Advisory Boards: Facilitate regular feedback from customers to gauge needs and ideas.
- Day-In-The-Life Research: Offers insights into customer needs by observing their daily routines.
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Description
This quiz covers Chapter 2 of 'Entrepreneurship: Successfully Launching New Ventures', focusing on recognizing opportunities and generating ideas. Test your understanding of the differences between opportunities and ideas and the various methods for idea generation.
