Chapter 1 Flashcards
(16 cards)
Business Opportunity.
Business Opportunity is an economic idea which can be implemented to create a business enterprise and earn profits, two things should be kept in mind before selecting an opportunity.
1. Ensure Good market
2. Attractive rate of return on investment
Elements of Business Opportunity.
- Assured Market scope
- Attractive rate of return
- Practicability of the idea
- Competency and Ability of the entrepreneur to encash it
5 Potential future growth
Enterprise Building Process
- Spotting an opportunity by looking at needs and problems of society.
- Evaluating the idea received from different sources to creative solution
- Identify product or service thru innovation.
- Setting up a project and nurturing it to success
Factors involved in sensing opportunities
- Ability to receive and preserve the basic idea.
- Ability to harness different sources of information
- Vision and creativity
Importance of Environment
- Identification of opportunities to get first mover advantage.
- Formulation of strategies and policies
- Tapping useful resources
- Better performance
- Sensitisation of entrepreneurs to cope up with rapid changes
- Image building
Uses of Problem Identification
1.To understand the needs and problems of the market
2. To bring out new products in the market
3. To become creative
4. To increase employment generation
5. To increase national income of the country
Idea Generation
Idea generation is a process of creating developing and communicating ideas which are abstract, concrete or visual.
Idea Fields
Convenient frames of reference for streamlining the process of generation of ideas.
Sources of Idea Fields
- Natural resources
- Existing product or services
- Market or demand driven ideas
- Trading related ideas
- Service sector related ideas
- Creative effort
Idea and Opportunity Assessment
- Product identification
- Application and use
- Level of operation
- Cost
- Competition
- Technical complexity
- Annual turnover on profit margin
Market Assesment
- Demand
- Supply and Nature of Competition
- Cost and price of product
- Project Innovation and Change
Trend Spotting
It means identification of new trends
1. Read trends
2. Watch trends
3. Talk trends
4. Think trends
Creativity
It is the first stage in the process of Innovation which leads to discovery of opportunity and new venture creation.
Creativity Process
- Idea germination
- Preperation
- Incubation
- Illumination
- Verification
Innovation
It is a process of entrepreneurship which involves translation of a useful Idea into an application which has a commercial value.
Innovation process.
- Analytical planning
- Resource organisation
- Implementation
- Commercial application
