What demographic changes are creating new market needs?

Objectives Examine demographic changes in the context of macroeconomic change Explore the impact of demographic changes on your success as an entrepreneur

Exploring macroeconomic change Macroeconomics deals with the performance of a large economy and its vast number of influencing factors –How are the needs and wants of your target audience influenced by the world around them? Examine changing demographics and psychographics, as well changes in technology, society, politics, and regulations

Macroeconomic Change Demographic Psychographic Technical Societal Political Regulatory Entrepreneurial Motivation Entrepreneurial Behavior Industry Condition Industry Status Opportunity Identification Value Curve Competition The Opportunity Analysis Canvas TM Entrepreneurial Mindset

Defining demographics “characteristics of the population” Provides insights into where opportunities exist within the market and how to develop appropriate business and marketing strategies to target customers

Demographic changes in the U.S. An aging population, increasing ethnic diversity, and a society challenged by obesity Each trend offers new opportunities for products and services to serve these customers Sample solutions are assisted living centers for the elderly, foreign language radio, and weight control apps

Common questions for entrepreneurs Purchasing power. What is the disposable income within the community? Residences. Are homes rented or owned? Means of transportation. Do prospective customers in the area own vehicles, ride buses or bicycles, and so on? Age ranges. Does the community consist primarily of young people still approaching their prime earning years, young professionals, empty nesters or retirees? Family status. Are there lots of families in the area or mostly singles? Leisure activities. What type of hobbies and recreational activities do people in the community participate in?

Sample resources American FactFinder: Provides access to a wealth of population, housing, economic and geographic data from the U.S. Census Bureau.American FactFinder State and County Quick Facts: Provides frequently requested Census Bureau information at the national, state, county and city levels.State and County Quick Facts Current Population Statistics: Shares information gathered in a monthly survey of about 50,000 households conducted by the Bureau of the Census for the Bureau of Labor Statistics.Current Population Statistics Labor Demographics: Makes data that has been collected by BLS available for specific demographic categories including sex, age, race and ethnic origin.Labor Demographics Social Security Fact Sheets for Demographic Groups: Offers fact sheets for all demographic groups including women and young people.Social Security Fact Sheets for Demographic Groups U.S. Census Bureau Quick Facts: Gives access to facts about people, business and geographyU.S. Census Bureau Quick Facts

Summary Understanding demographics provides insights into: –where opportunities exist within the market; and –how to develop appropriate business and marketing strategies to target customers. Examining demographic changes are valuable to anticipating evolving needs and new wants that entrepreneurs can serve