ENTREPRENEURSHIP OPPORTUNITIES TOPIC 3.pptx

ENTREPRENEURIAL EDUCATION

1. Entrepreneurship opportunities

2. Business idea and opportunity Business idea- response of a person(s) or organization to solving an identified problem or meeting perceived needs in the environment Business opportunity- a viable investment idea or proposition that provides the possibility of a monetary return for the person taking the risk 4/22/2021 2

3. An idea is not an opportunity The opportunity depends on many considerations such as: Is there vacuum What are the underlying reasons for the opportunity How long is the problem likely to last Is there a real need for the product or service Have the customers been identified, are they reachable, (is there market) What are the economics of the of the opportunity? Are the gross margins and profits sufficient and durable How long will it take to reach a positive cash flow and break even How much capital will be required Do the risk/reward work in your favour 4/22/2021 3

4. WAYS OF GENERATING BUSINESS IDEAS Building your skills, hobbies or interests Copying and improving existing businesses Combining two existing business ideas Spotting a market niche Listening to what people say Personal skills/experience Mass media: newspapers, radio, TV, magazines surveys(interviews, observations, questionnaires) Attending business exhibitions/shows 4/22/2021 4

5. EVALUATING/SCREENING BUSINESS IDEA After generating business ideas, there is need to decide which ones to pursue for a business. Two broad considerations affect the choice of business to start: 1)Personal considerations -your objectives of going into business -your skills -your financial status -your commitments -your personal SWOT 4/22/2021 5

6. Continued…… 2) Business considerations -Availability of market -Availability of raw materials -Availability of technology -Availability of required skills -Government policy 4/22/2021 6

7. QUALITIES OF A GOOD BUSINESS OPPORTUNITY A good business opportunity should possess the following qualities: Legality -capable of operating within the law Growth -have potential to grow Uniqueness - stand out in the industry/market Marketability - should appeal to the intended market Competitiveness -be ahead of peers Financial feasibility -within economic means of the entrepreneur Social acceptability -within acceptable norms of the society Operational feasibility -easy to implement 4/22/2021 7

8. BUSINESS LIFE CYCLE Business life cycle is the progression of a business in phases over time Each enterprise begins its operations as a business by launching new goods and services A new product progresses through a sequence of stages: -introduction/launch -growth stage -maturity stage -decline stage 4/22/2021 8

9. LEGAL ASPECTS OF A BUSINESS Laws and government regulations have a significant impact on enterprise formation and regulation Some of the common laws/regulations that may impact enterprises : Business formation laws Employment/ labour laws Licensing laws Tax laws Environmental laws Trade and patent laws Consumer protection laws 4/22/2021 9

10. ASSESSING PRODUCT DEMAND Demand refers to willingness and ability to buy a product at a given price and within a given period of time Product –an item offered for sale Factors to consider when assessing product demand Customer potential Market size Physical infrastructure Competition Market acceptance Demographic trends 4/22/2021 10

11. TYPES OF BUSINESS EMPLOYMENTS These are the business activities that prospective entrepreneurs can gainfully engage in. They can be from the following sectors: Extractive sector -farming, mining, quarrying, fishing etc Manufacturing sector -baking, fabrication, carpentry etc Processing -milling, oil refining, juice processing etc Construction sector -construction of buildings, roads, bridges, rails etc Provision of commercial services- wholesaling, retailing, banking, communication, advertising, transport etc Provision of direct/personal services -hairdressing salons, law firms, medical clinics etc 4/22/2021 11

12. EVALUATING BUSINESS ENVIRONMENTS These are factors that surround and influence a business Factors to consider when evaluating a business environment : 1)internal environment -factors within the organization Objectives of the business Management policies and style Personal skills, knowledge and values Financial and physical resources Research and development Organizational culture 4/22/2021 12

13. Continued…. 2 ) External environment- factors that affect business from without Infrastructure development Market conditions Price structure Social cultural factors Competition Government policies/incentives Technological factors 4/22/2021 13

14. MATCHING SKILLS AND RESOURCES TO CHANGING TECHNOLOGY Technology is the way or means one can use to produce goods and services. It includes the production process and the equipment Appropriate technology- blended to suit a particular situation Technologies based on time when developed - Indigenous technology -modern technology -emerging technology Technologies based on characteristics -Low technology -High technology -Intermediate technology 4/22/2021 14

15. CHARACTERISTICS OF APPROPRIATE TECHNOLOGY Simplicity -easy to use Effective -produces desired results Cost effective -cost should be justified by benefits achieved Readily available- easy to get Affordable –reasonable cost/within budget of entrepreneur Flexible -ability to change with changing times Durable –long lasting Efficient -achieving maximum productivity with minimum expense 4/22/2021 15

16. IMPACT OF TECHNOLOGY 1)Positive effects on business Increased productivity Reduced production costs Expanded markets Quality goods and services 2 ) Negative effects Unemployment due to less labour required Increased environmental pollution Some technologies are harmful e.g. radiation from x-rays High cost of buying and maintenance 4/22/2021 16

17. Matching skills and resources Selecting the most suitable technology Decide based on your product Identify the technologies available Consider your resources Consider the skills available to you Consider the characteristics of the technologies Select the most suitable technology considering appropriateness, skills and resources 4/22/2021 17

18. Reasons for matching skills to changing technology Innovation Modification diversification 4/22/2021 18

19. INTRODUCING NEW TECHNOLOGY Factors to consider in introducing new technology How technology will affect the position of the enterprise Effects of technology on the profits over short and long term Extent to which the entrepreneur and staff are currently involved in developing new technologies. Extent to which your technology affects the future size of the business Anticipated growth rate of the enterprise in terms of personnel and markets.   4/22/2021 19

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