P3

• opportunity


  A situation or occasion that makes it possible to do something you want.
• key elements of business opportunities

  • desire
  • opportunities
  • decision and commitment
• desire


  the want to start a business (key element of business opportunities)
• opportunity


  there are conditions for success (key element of business opportunities)
• decision and commitment


  action must be taken to achieve the objective (key element of business opportunities)
• opportunity is..

  an exploitable set of circumstances requiring a commitment of resources and involving risk
• does opportunity guarantee success?

  no
• opportunity recognition process

  • precondition
  • conception
  • visioning
  • assessment
  • realization
• precondition


  initial stage where the individual assesses their knowledge of the market (e.g. education personal experience, travel, prior jobs)
• conception


  the idea generation phase, where the entrepreneur uses logic and creativity to formulate an idea
• visioning


  when ideas become clearer, and connections lead to tangible opportunities
• assessment


  The feasibility check—Can the idea be turned into a reality?

  Can it be produced? Does it meet a market need?
• realization


  The physical manifestation of the idea through the creation of a prototype
• key factors in opportunity recognition

  • market awareness
  • entrepreneurial readiness
  • connections (networks)
• market awareness


  • Deep understanding of the market, customers, competitors, and suppliers.
• entrepreneurial readiness


  • The entrepreneur’s capacity to commit resources (financial, human, physical) and manage uncertainty and risk.
• connections (networks)


  • A network of contacts (family, friends, business associates) can create opportunities and provide resources for pursuing ideas.
  • _____ can heighten awareness of market gaps and provide valuable insights into industry needs.
• how is market awareness acquired?

  • education
  • experience
  • environmental scanning
• what personal attributes are involved in entrepreneurial readiness?

  • alertness
  • willingness to take risks
  • decision-making capacity
• opportunity assessment


  It involves evaluating the feasibility of an idea—whether it can be successfully implemented.
• elements to assess for opportunities

  • products and services
  • market opportunity
  • costing and pricing
  • profitability
  • resource requirements
  • risks
  • entrepreneurial commitment
• opportunity pathway includes...

  • rational approach
  • intuitive approach
• rational pathway


  a systematic pathway often used when substantial investments are needed. minimal risks
• which opportunity path is common amongst schumpeterian entrepreneurs?

  rational approach
• rational approach process

  • idea
  • recognition
  • assessment
  • action
• intuitive approach


  more flexible and instinct-driven, suited for entrepreneurs who rely on gut-feeling and experience
• which opportunity pathway is common to microentrepreneurs?

  intuitive approach
• intuitive approach process

  • opportunity recognition
  • immediate action
• product planning and development process

  • precommercialization phase
  • commercialization phase (product life cycle)
• precommercialization phase

  • idea stage
  • concept stage
  • product development
  • test marketing
• commercialization phase (product life cycle)

  • introduction
  • growth
  • maturity
  • decline