29 Questions
What is the key difference between opportunities and ideas?
Opportunities are favorable circumstances that create a need, while ideas are potential solutions to those needs.
Which of the following is NOT one of the four essential qualities of an opportunity identified in the text?
Durable
Which of the following is NOT one of the three general approaches entrepreneurs use to identify opportunities?
Analyzing the competition
Which of the following is NOT identified in the text as an important trend that can create opportunities for entrepreneurs?
Demographic changes
Which personal characteristic of entrepreneurs is NOT identified in the text as contributing to their ability to recognize business opportunities?
Analytical thinking
Which of the following techniques for generating ideas is NOT mentioned in the text?
Reverse engineering
What do economic trends help determine?
Areas that are ripe for new start-ups
In a weak economy, what type of start-ups are favored?
Start-ups that help consumers save money
Which of the following is an example of a company started to help consumers save money on gas?
GasBuddy.com
What do social trends alter?
How people and businesses behave and set their priorities
Which of the following is NOT mentioned as an example of a social trend?
Growth in the use of landlines
What do technological advances frequently create?
Business opportunities
What is Rokit Boost?
A high-end mobile accessories company that makes smartphone cases and other electronics
Why wouldn't Rokit Boost exist if it weren't for the advent of the smartphone?
Smartphones have created a demand for mobile accessories like those made by Rokit Boost
What opportunities did the Affordable Care Act create for entrepreneurs?
The Affordable Care Act led to the creation of new electronic health record start-ups and medication monitoring apps
What is Evolv Technology?
A company that provides security solutions to address terrorism threats
What is the second approach to identifying business opportunities described in the text?
Solving a problem by noticing it and finding a way to solve it
What has global political instability and the threat of terrorism resulted in?
Firms becoming more security-conscious and creating new business opportunities
What are some ways to identify business opportunities?
All of the above
What is an example given in the text of a product that solves a problem?
A hand-cranked battery and charger device
How is a "gap in the marketplace" defined in the text?
A product or service needed by a small group, not of interest to mainstream companies
According to the passage, which of the following is NOT mentioned as a way to identify business opportunities?
Conducting market research surveys
What is the purpose of providing the example of the Eton BoostTurbin 2000 in the text?
To illustrate a product that solved a problem through innovation
Based on the information in the text, which of the following statements is true?
Different approaches can be used to identify viable business opportunities
What is the best approach to find useful resources for researching new business ideas?
Talking to a reference librarian
What type of resources can a reference librarian provide access to?
Industry-specific magazines, trade journals, and industry reports
What can browsing through several issues of a trade journal or industry report do?
Spark new ideas
What type of search engines and industry reports can large public and university libraries provide access to?
BizMiner, ProQuest, IBISWorld, Mintel, LexisNexis Academic
What can setting up Google mail alerts on a specific topic do?
Provide links to a constant stream of newspaper articles, blog posts, and news releases about the topic
Study Notes
Identifying Opportunities
- An opportunity is a favorable set of circumstances that creates a need for a new product, service, or business.
- There are four essential qualities of an opportunity: it is attractive, durable, timely, and anchored in a product or service.
Three Approaches to Identifying Opportunities
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First Approach: Observing Trends
- Economic trends: help determine areas ripe for new start-ups and areas to avoid.
- Social trends: alter how people and businesses behave and set their priorities.
- Technological advances: create business opportunities.
- Political and regulatory changes: provide the basis for opportunities.
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Second Approach: Solving a Problem
- Identifying opportunities involves noticing a problem and finding a way to solve it.
- Examples: companies started to solve personal problems, such as accessing energy to recharge smartphones.
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Third Approach: Finding Gaps in the Marketplace
- A gap in the marketplace is created when a product or service is needed but doesn't represent a large enough market to be of interest to mainstream retailers or manufacturers.
- Examples: Rokit Boost, a high-end mobile accessories company, and electronic records start-ups.
Trends
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Trend 1: Economic Forces
- A weak economy favors start-ups that help consumers save money.
- Example: GasBuddy.com, a company started to help consumers save money on gas.
-
Trend 2: Social Forces
- Examples: aging of the population, increasing diversity, millennials entering the workforce, growth in mobile devices, and focus on health and wellness.
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Trend 3: Technological Advances
- Examples: entire industries created as a result of technological advances, such as computer industry, internet, biotechnology, and digital photography.
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Trend 4: Political Action and Regulatory Changes
- Examples: passage of the Affordable Care Act, global political instability, and threat of terrorism.
Techniques for Generating Ideas
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Library and Internet Research
- Using search engines and industry reports, such as BizMiner, ProQuest, IBISWorld, Mintel, and LexisNexis Academic.
- Setting up Google mail alerts to provide links to newspaper and magazine articles.
- Targeted searches are also useful.
-
Customer Advisory Boards
- Companies set up customer advisory boards to discuss needs, wants, and problems that may lead to new ideas.
Test your knowledge on recognizing business opportunities and generating ideas in entrepreneurship. Learn about the difference between opportunities and ideas, approaches entrepreneurs use to identify opportunities, and personal characteristics that contribute to recognizing opportunities.
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