WEEK 1 (chapter 2)

Question 1

What is an opportunity in entrepreneurship?

Answer 1

A favorable set of circumstances that creates a need for a new product, service, or business.

Question 2

What is an externally stimulated opportunity?

Answer 2

When an entrepreneur notices an opportunity in the market and starts a firm based on it.

Question 3

What is an internally stimulated opportunity?

Answer 3

When an entrepreneur identifies a personal problem or gap and creates a business to solve it.

Question 4

How do entrepreneurs succeed according to this section?

Answer 4

By recognizing an opportunity and turning it into a business.

Question 5

What is more important than what the entrepreneur wants to sell?

Answer 5

What customers are actually willing to buy.

Question 6

What are the four key qualities of a true opportunity?

Answer 6

It must be attractive, timely, durable, and anchored in value.

Question 7

What does it mean for an opportunity to be attractive?

Answer 7

It offers real potential to make a profit or create impact

Question 8

What does timely mean in the context of an opportunity?

Answer 8

The market or demand exists now or soon — not too early or too late.

Question 9

What is meant by an opportunity being durable?

Answer 9

It has the potential to last long enough to build a business around.

Question 10

What does it mean for an opportunity to be anchored in value?

Answer 10

It must be connected to a product, service, or business that adds value for customers.

Question 11

What is the window of opportunity?

Answer 11

The limited time frame in which a firm can realistically enter a market before the opportunity closes.

Question 12

Why do many ventures fail, even with hard work?

Answer 12

Because they were based on an idea, not a real opportunity

Question 13

What are the three main ways entrepreneurs identify opportunities?

Answer 13

Observing trends, solving problems, and finding gaps in the marketplace.

Question 14

Why do entrepreneurs observe trends?

Answer 14

Trends can signal emerging needs or shifts that inspire new business ideas.

Question 15

What are examples of economic forces that influence opportunities?

Answer 15

Consumer spending, income levels, inflation, and international trade

Question 16

How do economic forces create opportunities?

Answer 16

Changes in personal income and spending habits affect demand for products.

Question 17

What are social forces in this context?

Answer 17

Changes in how people live, think, behave, or set priorities (e.g., wellness trends, urban migration).

Question 18

How can technological advances lead to opportunities?

Answer 18

By creating new products or improving existing ones (e.g., iPhone → app industry).

Question 19

How do political/regulatory changes impact opportunities?

Answer 19

New laws or policies can open up or close off business possibilities (e.g., legal use of drones).

Question 20

Why should trends be analyzed together and not separately?

Answer 20

Because they’re often interconnected and influence each other.

Question 21

How do many entrepreneurs find business opportunities through problems?

Answer 21

By identifying problems they or others face and creating solutions.

Question 22

What role does intuition or chance play in solving problems?

Answer 22

Some entrepreneurs spot opportunities by noticing gaps or needs in their own lives.

Question 23

What are social ventures?

Answer 23

Businesses launched to solve major global issues like poverty or access to clean water.

Question 24

What is a marketplace gap?

Answer 24

When there is customer demand, but the product or service isn’t easily available.

Question 25

What often causes gaps in the marketplace?

Answer 25

Large retailers that can’t meet specific or niche consumer needs.

Question 26

How do entrepreneurs use marketplace gaps?

Answer 26

They notice unmet needs and assume others have the same problem — then create a solution.

Question 27

Give examples of businesses that often fill marketplace gaps.

Answer 27

Boutique clothing stores, specialty food shops, niche webshops.

Question 28

Personal Characteristics That Aid Opportunity Recognition: 1. prior industry experience

Answer 28

It helps identify niche markets and build useful networks

Question 29

Can outsiders also recognize opportunities?

Answer 29

Yes — they may bring fresh, unbiased perspectives.

Question 30

Personal Characteristics That Aid Opportunity Recognition: 1. prior industry experience 2. cognitive factors

Answer 30

some entrepreneurs have a mental skill to notice opportunities without actively searching — like a “sixth sense.: ENTREPRENEURIAL ALERTNESS

Question 31

Is entrepreneurial alertness something you’re born with?

Answer 31

No, it’s a learnable skill.

Question 32

Personal Characteristics That Aid Opportunity Recognition: 1. prior industry experience 2. cognitive factors 3. social networks

Answer 32

More contacts expose entrepreneurs to more ideas and perspectives

Question 33

What’s the difference between strong and weak ties in social networks?

Answer 33

Strong ties (family, close friends) reinforce existing ideas weak ties (casual contacts) often lead to new and surprising ideas.

Question 34

What is creativity in entrepreneurship?

Answer 34

The ability to generate novel and useful ideas.

Question 35

What are the five stages of the creative process?

Answer 35

Preparation, Incubation, Insight, Evaluation, and Elaboration.

Question 36

creativity has 5 stages 1. preparation

Answer 36

Gathering knowledge and experience (often from prior work).

Question 37

creativity has 5 stages 1. preparation 2. Incubation

Answer 37

Subconscious thinking — letting the idea “simmer”.

Question 38

creativity has 5 stages 1. preparation 2. Incubation 3. insight

Answer 38

The “aha!” moment — the idea or solution becomes clear.

Question 39

creativity has 5 stages 1. preparation 2. Incubation 3. insight 4. evaluation

Answer 39

Testing and analyzing whether the idea is feasible.

Question 40

creativity has 5 stages 1. preparation 2. Incubation 3. insight 4. evaluation 5. elaboration

Answer 40

Turning the idea into a real business concept or business plan.

Question 41

Is the creative process always linear?

Answer 41

No, if you're stuck, it’s common (and useful) to return to earlier stages like preparation.

Question 42

Why do entrepreneurs generate many ideas before choosing one?

Answer 42

To increase the chance of finding a strong opportunity.

Question 43

What is brainstorming in entrepreneurship?

Answer 43

A group method for quickly generating a wide range of ideas.

Question 44

What tools are commonly used during brainstorming?

Answer 44

Mind maps and bug reports.

Question 45

What is a mind map?

Answer 45

A visual diagram that shows relationships between ideas.

Question 46

How are focus groups most effective in idea generation?

Answer 46

When combined with brainstorming to explore and refine ideas.

Question 47

What is a bug report?

Answer 47

A list (typically 50–75 items) of everyday annoyances or problems that could inspire business ideas.

Question 47

What is a focus group?

Answer 47

A group of 5–10 people selected for their relevance to a topic, used to explore needs, preferences, and feedback.

Question 48

Why is library and internet research valuable in entrepreneurship?

Answer 48

It helps generate and refine ideas, especially by uncovering overlooked opportunities.

Question 49

How can combining research with personal interests help entrepreneurs?

Answer 49

It reveals potential opportunities that align with what the entrepreneur cares about.

Question 49

What are some tools used in online and library research?

Answer 49

Google searches, news articles, trend reports, and expert librarians.

Question 50

What is a customer advisory board?

Answer 50

A group of customers who regularly share feedback and frustrations with a company.

Question 51

What is day-in-the-life research?

Answer 51

Observing customers in their real environment to uncover unmet needs or pain points.