1. Business Opportunity Identification

2. Who is an Entrepreneur ?
An entrepreneur is characterized as “someone who demonstrates initiative and creative thinking, is able to organize social and economic mechanisms to turn resources and situations to practical account, and accepts risk and failure” - Hisrich (1990)

3. An entrepreneur is someone who…
Perceives opportunity
Organizes resources
Come up with new ideas for products, markets or techniques( Innovators)

4. The Nature of Entrepreneurial Start-ups
An entrepreneurial venture brings something to the marketplace.
Three primary characteristics
Innovative
Value-creating
Growth-oriented

5. Entrepreneurs use identifiable milestones to measure their progress:
New Business Formation
Entrepreneurs use identifiable milestones to measure their progress:
Steps in the Entrepreneurial Process
Discovery
Concept Development
Resourcing
Actualization
Harvesting
We are here
Identify Business Opportunity

6. WHAT IS OPPORTUNITY?
“Opportunity is defined as a situation that enables an entrepreneur to offer marketable products or services to interested buyers or end users”
An opportunity may be the chance to meet a market need (or interest or want) through a creative combination of resources to deliver superior value

8. TYPES OF SITUATIONAL FACTORS
Product or service is still not in existence
Product or service is already in the market but failed to satisfy the customers – so need to be improved

9. EMERGENCE OF OPPORTUNITY
when people decide they have certain needs and want to be satisfied, or when people discovered a problem of some kind that can be helped by a product or service.
The presence of unfulfilled needs and want and/or problems alerts the entrepreneur to the potential opportunity.
The entrepreneur later creates a business that is able to fulfill the needs or want and/or solve the problem.

10. OPPORTUNITY IDENTIFICATION Opportunity identification is a process that involved the search for and discovery of business opportunities

11. APPROACH TO OPPORTUNITY IDENTIFICATION
Observe changes in the environment
Recognize a need that customers have that is not being satisfied
Recognize problems and find ways to solve it

12. OBSERVING CHANGES IN THE ENVIRONMENT
Changes in the environment give rise to needs and wants and/or problems, and an opportunity emerges
Important environment forces to observe include:
Economic forces
Social forces
Technological advances
Political and regulatory statues

13. Organizational environment?
External and the internal environment
Environment is also a source of:
constraints,
contingencies,
problems, and
opportunities
that effect the terms on which an organization transacts business.
Three environmental latent variables
Munificence/Bountifulness
Competitive intensity and
Environmental efficiency
The Indian economy continues to grow at a good pace and holds a strong position on the global map. The country’s GDP has been growing at an average of 8.5% in the last five years. Its Economy is amongst the largest in the world on the basis of Purchasing Power Parity. It is today one of the most attractive destinations for business investment opportunities with the base of Manpower resources and diversified natural resources and strong macroeconomic fundamentals. In FY , the country attracted FDI of around US$46.8b in various sectors.

14. PESTLE ANALYSIS
Political, economic, social, technological, legal, and environmental (PESTLE) structure of the Indian Business Environment.
Each of the PESTLE factors is explored in terms of four parameters: current strengths, current challenges, future prospects, and future risks.

15. Political analysis

16. Economic analysis

17. Social analysis

18. Technological analysis

19. Legal analysis

20. Environmental analysis

21. RECOGNIZE NEEDS AND WANTS
Opportunity occurs whenever there is a need and want to fulfill. The term “needs” refer to basic needs that the consumer must have in order to live while the term “wants” refers to a personal desire for something that is more than a basic need.

22. Examples of How Changes in the Environment Provides Openings for
New Product and Service Opportunities
Structure of Population and Income
Number of teenagers higher than number of elderly and children
Cyber cafes, Cineplex's, recording studios
People have higher purchasing power
Passenger cars, household furniture, DVD
Social
Increase incident of housebreaking
Grills, alarm, sensor, security systems
Increase interest in fitness
Fitness center, dancing class, in-house exercise equipment, health food store
Increase mobility of population
Hand phone, laptop computers
Increasing predominance of dual-income families leaves less time to cook at home
Restaurants, food delivery services
Technological Advances
Advances in biotechnology
Biotech-related pharmaceutical products, food products, veterinary products
Development of the internet
E-commerce, improved communication
Increase pressure to improve economic performance
Online marketing, cost control services
Government Policies and Regulations
Increased driving standards
Smoke emission control, helmet, seatbelt

23. RECOGNIZE PROBLEM AND FIND SOLUTION
Problems can be recognized by observing the challenges that people encounter in their daily lives. Solution to the problem represented a business opportunity

24. OPPORTUNITY IDENTIFICATION PROCESS
Search for Changes in
the environment
Recognize needs and wants, and solutions
Discovery of Opportunity

25. ABILITY TO SEARCH AND DISCOVER BUSINESS OPPORTUNITIES
Experience and exposure
Knowledge and skills
“Special alertness”
Social network
Creativity
Vigilant

26. MECHANISM TO IDENTIFY OPPORTUNITIES
Customers
Retailers and distributors
Business associates
Bankers
Consultants
Employees
Others

27. Factors that influence the way Opportunities are identified and developed by entrepreneurs 1. entrepreneurial alertness; 2. information asymmetry and prior knowledge; 3. discovery versus purposeful search; 4. social networks; 5. personality traits, including risk-taking, optimism and self efficacy, and creativity.

28. TYPES OF OPPORTUNITY
Market needs or value sought may be identified (known) or
unidentified (unknown). Value creation capability may be defined or undefined. Defined
value creation capability includes general specifications of intellectual, human, financial and/or physical resources (e.g., general specifications for a product/service). In this matrix value
sought may represent problems and value creation capability may represent solutions.
The upper left cell — where value sought is unidentified and value creation capability
undefined (problems and solutions both unknown)— may represent the kind of creativity we
associate with artists, ‘‘dreamers,’’ some designers, and inventors interested in moving
proprietary knowledge in a new direction or pushing technology past its current limits.
The upper right cell—where value sought is identified but capability undefined (problems
are known but solutions are not) — describes situations in which structured problem solving,
including information search, occur. The goal of opportunity development in this situation is
usually design of a specific product/service to address an expressed market need.
The lower left cell — where value sought is unidentified but capability is defined
(problems are unknown but solutions are available) — includes what we usually identify
as ‘‘technology transfer’’ challenges, i.e., capabilities in search of an application; and idle
capacity. Opportunity development here emphasizes search for applications more than
product/service development.
In the lower right cell — where value sought is identified and capability defined (both
problems and solutions are known) — opportunity development involves matching known
resources and needs to form businesses that can create and deliver value.

30. Factors Contributing to Successful Growth of a Start-up Enterprise
Proof and clarity of innovative concept
Leadership
Significant investment in infrastructure –the basic systems, technologies and resources
Business planning and marketing
Triple bottom line planning ( economic, social and environmental benefits)
Long term success
Risk management
Value creation as a outcome

31. Factors which Lead to Start-up Business Failure
1. Inadequate planning of the business 2. Insufficient initial capital for start-up period and development stages due to inadequate planning 3. Mistaken estimate of market demand for product or service 4. Lack of management ability 5. Failure to select and use appropriate outside professional advisors

32. 6. Inability to market product or services effectively
7. Over dependence on a single individual or on a predicted specific event
8. Failure to understand capital requirements of a growing business
9. Poor timing of expenditures due to poor planning
10. Expedient rather than reasoned decision-making