ENTREP lesson 3

• Entrepreneurs are innovative opportunity seekers
• Essential to an entrepreneur’s opportunity seeking are the entrepreneurial mind frame, heart flame, and gut game
• Three things that an entrepreneur must have:

  1. Entrepreneurial mind frame:

  • Allows the entrepreneur to see things in a very positive and optimistic light in the midst of a crisis or different situations
• Three things that an entrepreneur must have:

  2. Entrepreneurial heart flame:

  • Drawn to find fulfillment in the act and process of discovery
  • Passion: Great desire to attain a vision or fulfill a mission
  • Emotional intelligence: Often manifested in the entrepreneur’s efforts to nurture relationships with customers, employees, and suppliers
• Three things that an entrepreneur must have:

  3. Entrepreneurial gut game:

  • Refers to the ability of the entrepreneur to sense without using the five senses
• Sources of Opportunity:

  1. Macro environment:

  • Socio-cultural: Includes the demographic and cultural dimensions that govern the relevant entrepreneurial endeavor
  • Political environment: Governance system of the country or the local area of business
  • Economic environment: Totality of economic factors or anything that may affect the business in generating profits
  • Ecological environment: Opportunities abound for greener, cleaner, and healthier products, with objectives to save the planet and prolong life
  • Technological environment: Investment in new technologies to keep up with competition
• Sources of Opportunity:

  2. Industry:

  • Participants in the industry:

  a. Competitors:

  • Direct Competitor: Competition among the suppliers of virtually the same products
  • Indirect Competitor: Competition among the suppliers of different types of products that satisfy the same needs

  b. Suppliers

  c. Consumers

  d. Products:

  • Substitute products: (Ex: Ariel and Tide, Coke and Pepsi)
  • Supplementary products: Products that are always paired (Ex: Bow and Arrow, Spaghetti Pasta and Sauce)
• Sources of Opportunity:

  3. Micro market:

  • Refers to a specific target market segment of a particular enterprise
  • Consumer preferences, piques, and perceptions
• Sources of Opportunity:

  4. Market sources of opportunities:

  • Demand: The quantity of a good that consumers are willing and able to purchase
  • Supply: The total amount of a specific good or service available to consumers
  • Gap Analysis: Determine the gap between demand and supply
  • D = S (equilibrium)
  • D > S (Shortage)
  • D < S (Surplus)