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1. Opportunities Dr. Ann 2- 1

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4. Opportunity Defined An opportunity is a favorable set of circumstances that creates the need for a new product, service, or business idea. Most entrepreneurial firms are started in one of two ways: Some firms are internally stimulated. An entrepreneur decides to start a firm, searches for and recognizes an opportunity, then starts a business. Other firms are externally stimulated. An entrepreneur recognizes a problem or an opportunity gap and creates a business to fill it. 2- 4 2- 4

5. An opportunity has four essential qualities 2- 5 2- 5

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9. Environmental Trends Suggesting Business or Product Opportunity Gaps 2- 9 2- 9

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12. Examples of Social Forces That Allow For New Business Opportunities Family and work patterns. The aging of the population. The increasing diversity in the workplace. The globalization of industry. The increasing focus on health care and fitness. The proliferation of computers and the Internet. The increase in the number of cell phone users. New forms of entertainment. 2- 12

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15. Second Approach: Solving a Problem 2- 15 Sometimes identifying opportunities simply involves noticing a problem and finding a way to solve it. These problems can be pinpointed through observing trends and through more simple means, such as intuition, serendipity, or chance. Some business ideas are clearly initiated to solve a problem. For example, Symantec Corp. created Norton antivirus software to guard computers against viruses.

16. Businesses Created to Solve a Problem 2- 16

17. Gaps in the Marketplace A third approach to identifying opportunities is to find a gap in the marketplace. A gap in the marketplace is often created when a product or service is needed by a specific group of people but doesn’t represent a large enough market to be of interest to mainstream retailers or manufacturers. This is the reason that small clothing boutiques and specialty shops exist. The small boutiques, which often sell designer clothes or clothing for hard-to-fit people, are willing to carry merchandise that doesn’t sell in large enough quantities for Wal-Mart, GAP, or JC Penney to carry. 2- 17

18. Characteristics that tend to make some people better at recognizing opportunities than others 2- 18 Prior Experience Social Networks Cognitive Factors Creativity

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23. Why weak-tie relationships lead to more new business ideas than strong-tie relationships Strong-Tie Relationships Weak-Tie Relationships 2- 23 These relationships, which typically form between like- minded individuals, tend to reinforce insights and ideas that people already have. The relationships, which form between casual acquaintances, are not as apt to be between like-minded individuals, so one person may say something to another that sparks a completely new idea.

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25. Five Steps to Generating Creative Ideas 2- 25

26. Depicts the connection between an awareness of emerging trends and the personal characteristics of the entrepreneur 2- 26

27. 1. Brainstorming 2. Focus Groups 2- 27 3. Surveys 4. Other Techniques

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32. Example of a suspect survey technique 3 Surveys Self-Selected Opinion Poll Result Most call-in television surveys or magazine write-in polls are highly suspect because the participants represent what’s called a self-selected opinion poll. Most people who take the time to participate in a self-selected opinion poll do so because their have either strong positive or strong negative feels about the a particular product or topic.

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