Exam 1 Flashcards
(72 cards)
What is an opportunity?
An opportunity is a favorable set of circumstances that creates a need for a new product, service, or business.
What are the four essential qualities of an opportunity?
- Attractive
- Timely
- Durable
- Anchored in a product, service, or business that creates or adds value for its buyer or end user.
What are three ways to identify an opportunity?
- Observing trends
- Solving a problem
- Finding gaps in the marketplace.
What are the most important trends that create opportunities for entrepreneurs?
- Economic forces
- Social forces
- Technological advances
- Political and regulatory change.
How do economic trends affect start-ups?
Economic trends help determine areas that are ripe for new start-ups and areas that start-ups should avoid.
Give an example of a start-up that arose from economic forces.
GasBuddy.com, which helps consumers save money on gas.
What social trends provide opportunities for new businesses?
- Aging of the population
- Increasing diversity of the workplace
- Increased participation in social networks
- Growth in the uses of mobile devices
- Increasing focus on health and wellness.
What industries have been created as a result of technological advances?
- Computer industry
- Internet
- Biotechnology
- Digital photography.
What political actions create opportunities for entrepreneurs?
Laws to protect the environment have created opportunities for firms that help others comply with environmental regulations.
Fill in the blank: An increased focus on health and wellness is an important ________ that is creating opportunities in many areas for entrepreneurial firms.
[social force]
What is the second approach to identifying opportunities?
Solving a problem.
What is a gap in the marketplace?
A gap in the marketplace is created when a product or service is needed by a specific group of people but doesn’t represent a large enough market for mainstream retailers.
Provide an example of a company that filled a gap in the marketplace.
Daisy Rock Guitars, which makes guitars specifically for women and girls.
What personal characteristic helps entrepreneurs recognize opportunities?
- Prior experience
- Cognitive factors
- Social networks
- Creativity.
How does prior experience help in recognizing business opportunities?
It helps individuals spot underserved market niches and build networks of contacts.
What is entrepreneurial alertness?
The ability to notice things without engaging in deliberate search.
What is the difference between strong-tie and weak-tie relationships?
- Strong-tie: frequent interaction, close relationships
- Weak-tie: infrequent interaction, casual acquaintances.
Which type of relationship is more likely to lead to new business ideas?
Weak-tie relationships.
What is creativity in the context of opportunity recognition?
The process of generating a novel or useful idea.
What is brainstorming?
A technique used to generate a large number of ideas and solutions to problems quickly.
What are the rules for a brainstorming session?
- No criticism
- Freewheeling is encouraged
- The session should move quickly
- Leap-frogging is encouraged.
What is a focus group?
A gathering of five to ten people selected based on common characteristics, led by a trained moderator to gain insights.
What is the benefit of library research for generating business ideas?
Libraries provide access to industry-specific magazines, trade journals, and reports that can spark new ideas.
What are some resources available through libraries?
- BizMiner
- ProQuest
- IBISWorld
- Mintel
- LexisNexis Academic.