CH 2 Recognizing Opportunities Generating Ideas

Question 1

What are the three approaches to identify an opportunity?

Answer 1

1. Observing trends
2. Solving a problem
3. Finding gaps in the marketplace

These approaches help entrepreneurs recognize potential business opportunities.

Question 2

What types of trends should entrepreneurs observe?

Answer 2

Economic forces, social forces, technological advances, political and regulatory changes

Awareness of these trends is crucial for identifying opportunities.

Question 3

How do economic trends influence entrepreneurship?

Answer 3

They help determine areas that are ripe for new start-ups and areas to avoid.

A weak economy, for example, may favor start-ups that help consumers save money.

Question 4

Give an example of a company that was started due to economic trends.

Answer 4

GasBuddy.com

This company helps consumers save money on gas.

Question 5

What are some examples of social trends that provide business opportunities?

Answer 5

• Aging of the population
• Increasing diversity of the population
• Millennials entering the workforce
• Growth in the use of mobile devices
• Increasing focus on health and wellness

These trends alter how people and businesses behave.

Question 6

What impact do technological trends have on entrepreneurship?

Answer 6

They frequently create business opportunities.

Entire industries, such as the computer industry and biotechnology, have emerged due to technological advances.

Question 7

List some industries created as a result of technological advances.

Answer 7

• Computer industry
• Internet
• Biotechnology
• Digital photography

These industries illustrate the impact of technology on market opportunities.

Question 8

What are political and regulatory trends?

Answer 8

Changes in the political arena, including new laws and regulations.

Entrepreneurs should stay informed about these trends to identify opportunities.

Question 9

How can solving a problem lead to identifying business opportunities?

Answer 9

pinpointed By noticing a problem and finding a way to solve it.

Many successful companies began when founders identified personal problems that needed solutions.

Question 10

What is serendipity in the context of entrepreneurship?

Answer 10

Good luck in finding valuable things unintentionally.

It can lead to discovering business opportunities.

Question 11

What does finding a gap in the marketplace mean?

Answer 11

Identifying a need for a product or service by a specific group that is not met by mainstream retailers or manufacturers.

This approach can reveal niche market opportunities.