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Questions and Answers
Which of these processes comes before the development of a business plan?
Which of these processes comes before the development of a business plan?
In the context of the entrepreneurial process, what is the primary purpose of "scanning the marketing environment"?
In the context of the entrepreneurial process, what is the primary purpose of "scanning the marketing environment"?
What does "seizing" an opportunity involve in the 3S framework?
What does "seizing" an opportunity involve in the 3S framework?
How do "personal goals and attributes" influence the opportunity assessment process?
How do "personal goals and attributes" influence the opportunity assessment process?
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What is the main function of the business plan in the entrepreneurial process?
What is the main function of the business plan in the entrepreneurial process?
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What is opportunity seeking primarily concerned with?
What is opportunity seeking primarily concerned with?
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Which factor is NOT included in the STEEPLED analysis?
Which factor is NOT included in the STEEPLED analysis?
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What can be considered as an unexpected opportunity in the context of entrepreneurship?
What can be considered as an unexpected opportunity in the context of entrepreneurship?
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Which of the following methods is NOT listed for generating ideas?
Which of the following methods is NOT listed for generating ideas?
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What is the main purpose of screening the opportunity in entrepreneurship?
What is the main purpose of screening the opportunity in entrepreneurship?
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Flashcards
Market Problem
Market Problem
An issue or need within a specific market that requires a solution.
Entrepreneurial Process
Entrepreneurial Process
A series of steps entrepreneurs follow to identify opportunities, plan, and operate a business.
Business Plan
Business Plan
A detailed document outlining marketing, operations, finances, and strategy for a business.
Capital Needed
Capital Needed
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Scanning Marketing Environment
Scanning Marketing Environment
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Opportunity
Opportunity
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Opportunity Seeking
Opportunity Seeking
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STEEPLE
STEEPLE
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Screening the Opportunity
Screening the Opportunity
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Methods of Generating Ideas
Methods of Generating Ideas
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Study Notes
Lesson 3: Recognizing a Potential Market
- Recognizing a potential market involves identifying a market problem or unmet need.
- Solutions should consist of products and services meeting this need.
- Methods for meeting the need will include seeking opportunities, screening, and seizing them.
The Entrepreneurial Process
- Opportunity Spotting and Assessment: Entrepreneurs observe market trends and align them with their personal goals.
- Developing a Business Plan: This detailed document outlines aspects like marketing, operations, HR, finances, and strategy. The plan guides resource allocation and sustainable business operations.
- Determining Capital Needed: Capital is the investment needed to acquire business assets. A viable business plan requires sufficient capital to transform the idea into reality.
- Running the Business: A robust monitoring and control system is crucial for managing the business aligned with the formulated plans and processes.
Entrepreneurial Mindset
- Opportunity Seeking: The initial step involves identifying a profitable venture idea.
- Opportunity seeking can be difficult due to the numerous possibilities from multiple sources.
- Scanning the Market Environment: Understanding the market's intricate nature is essential for any new venture. This involves analyzing macro, micro, and internal factors. The entrepreneur needs to thoroughly understand these aspects.
- Seeking, Screening, and Seizing: This 3-step framework—seeking promising opportunities, selecting the best, and executing business ideas—guides venturing.
Opportunity
- Opportunity refers to a business idea that has the potential to become a profitable commercial product or service in the future.
Screening the Opportunity
- Screening involves carefully selecting the best opportunity among many options.
- Key considerations include entrepreneur's goals, target market needs, risk appetite, and the feasibility of executing the plan.
Risk Appetite
- Risk appetite describes an entrepreneur's tolerance for business-related risks associated with the identified opportunity.
Time Management
- Time should be strategically allocated, focusing only on worthwhile opportunities, so entrepreneurs must stay sharp-eyed for beneficial opportunities.
- Entrepreneurs should reject opportunities without essential elements or that don't align with their capabilities.
Business Opportunity Elements
- Superior customer value
- Solving problems, addressing needs, or fulfilling wants
- Potential revenue generation (cash cow opportunity)
- Alignment with entrepreneur's skills, resources, and risk tolerance.
Seizing the Opportunity
- Opportunity seizing is the completion of opportunity spotting and assessment to execute the chosen business plan.
Innovation
- Innovation is the process of improving existing products or services and it drives economic growth.
Types of Innovation
- Breakthrough Innovation: This infrequent, significant innovation establishes a new platform for future developments, often protected by intellectual property.
- Technological Innovation: Advancements in existing products or services, requiring protection.
- Ordinary Innovation: Conceptually new inventions arising from market needs and existing technology rather than pushing technology boundaries.
Bottom Line of Innovation
- Ultimately, the goal of innovation is to enhance user lives.
Methods of Generating Ideas
- Focus group discussions
- Brainstorming
- Brainwriting or internet brainstorming
- Problem inventory analysis
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Description
This quiz covers key concepts from Lesson 3 on recognizing potential markets in entrepreneurship. Learn how to identify unmet needs and develop strategies for opportunity spotting, business planning, and resource management. Gain insights into what it takes to transform a business idea into a sustainable operation.
