module 4
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MODULE 4 :BUSINESS OPPORTUNITY
FUNDAMENTALS OF ENTREPRENEURSHIP (ETR300/ENT300)
Entrepreneurship Dept, FBM (2009) ETR/ENT300 MODULE 4 : Business Opportunity 1
WHAT IS OPPORTUNITY
Opportunity is defined as a situation that enables an entrepreneur to
offer marketable products or services to interested buyers or end
users
Entrepreneurship Dept, FBM (2009) 2ETR/ENT300 MODULE 4 : Business Opportunity
TYPES OF SITUATIONAL FACTORS
• Product or service is still not in existence
• Product or service is already in the market but failed to satisfy the customers – so need to be improved
Entrepreneurship Dept, FBM (2009) 3ETR/ENT300 MODULE 4 : Business Opportunity
EMERGENCE OF OPPORTUNITY
• when people decide they have certain needs and want to be satisfied, or when people discovered a problem of some kind that can be helped by a product or service.
• The presence of unfulfilled needs and want and/or problems alerts the entrepreneur to the potential opportunity.
• The entrepreneur later creates a business that is able to fulfill the needs or want and/or solve the problem
Entrepreneurship Dept, FBM (2009) 4ETR/ENT300 MODULE 4 : Business Opportunity
OPPORTUNITY IDENTIFICATION
Opportunity identification is a process that involved the
search for and discovery of business opportunities
Entrepreneurship Dept, FBM (2009) 5ETR/ENT300 MODULE 4 : Business Opportunity
APPROACH TO OPPORTUNITY IDENTIFICATION
1. Observe changes in the environment
2.Recognize a need that customers have that is not being satisfied
3.Recognize problems and find ways to solve it
Entrepreneurship Dept, FBM (2009) 6ETR/ENT300 MODULE 4 : Business Opportunity
OBSERVING CHANGES IN THE ENVIRONMENT
Changes in the environment give rise to needs and wants and/or problems, and
an opportunity emerges
Entrepreneurship Dept, FBM (2009) 7ETR/ENT300 MODULE 4 : Business Opportunity
OBSERVING CHANGES IN THE ENVIRONMENT
• Economic forces• Social forces• Technological advances• Political and regulatory statues
Important environment forces to observe include:
Entrepreneurship Dept, FBM (2009) 8ETR/ENT300 MODULE 4 : Business Opportunity
Examples of How Changes in the Environment Provides Openings for New Product and Service Opportunities
Structure of Population and Income Number of teenagers higher than number Cyber cafes, cineplexes, recording
studiosof elderly and childrenPeople have higher purchasing power Passenger cars, household furniture, DVD
SocialIncrease incident of housebreaking Grills, alarm, sensor, security systems
Increase interest in fitness Fitness center, dancing class, in-house exerciseequipment, health food store
Increase mobility of population Handphone, laptop computersIncreasing predominance of dual- Restaurants, food delivery servicesincome families leaves less time tocook at home
Technological AdvancesAdvances in biotechnology Biotech-related pharmaceutical
products, foodproducts, veterinary products
Development of the internet E-commerce, improved communicationIncrease pressure to improve economic Online marketing, cost control servicesperformance
Government Policies and RegulationsIncreased driving standards Smoke emission control, helmet, seatbelt
Entrepreneurship Dept, FBM (2009) 9ETR/ENT300 MODULE 4 : Business Opportunity
RECOGNIZE NEEDS AND WANTS
Opportunity occurs whenever there is a need and want to fulfill.
The term “needs” refer to basic needs that the consumer must
have in order to live while the term “wants” refers to a personal desire for something that is more than a
basic need.
Entrepreneurship Dept, FBM (2009) 10ETR/ENT300 MODULE 4 : Business Opportunity
RECOGNIZE PROBLEM AND FIND SOLUTION
Problems can be recognized by observing the challenges that people
encounter in their daily lives. Solution to the problem represented
a business opportunity
Entrepreneurship Dept, FBM (2009) 11ETR/ENT300 MODULE 4 : Business Opportunity
OPPORTUNITY IDENTIFICATION PROCESS
Search for Changes in
the environment
Recognize needs and wants, and solutions
Discovery of
Opportunity
Entrepreneurship Dept, FBM (2009) 12ETR/ENT300 MODULE 4 : Business Opportunity
ABILITY TO SEARCH AND DISCOVER BUSINESS OPPORTUNITIES
• Experience and exposure• Knowledge and skills• “Special alertness”• Social network• Creativity• Vigilant
Entrepreneurship Dept, FBM (2009) 13ETR/ENT300 MODULE 4 : Business Opportunity
MECHANISM TO IDENTIFY OPPORTUNITIES
• Customers• Retailers and distributors• Business associates• Bankers• Consultants• Employees• Others
Entrepreneurship Dept, FBM (2009) 14ETR/ENT300 MODULE 4 : Business Opportunity
EVALUATION AND SELECTION PROCESS
The evaluation and selection process involves judging the
viability of the opportunity and assessing its potential.
Entrepreneurship Dept, FBM (2009) 15ETR/ENT300 MODULE 4 : Business Opportunity
CRITERIA FOR EVALUATION AND SELECTION
• Can make money and has potential for growth• Less competition• Good fit between entrepreneur and opportunity• Has competitive advantage• Workable and efficient • Not against the norms and values of the
community• Conform with laws and regulations
Entrepreneurship Dept, FBM (2009) 16ETR/ENT300 MODULE 4 : Business Opportunity
END OF MODULE 4