C HAPTER 2:
ENTREPRENEURIAL IDEAS AND
OPPORTUNITIES
L EARNING O BJECTIVES
At the end of this topic, student should be able to:
Identify sources of entrepreneurial ideas
(primary & secondary sources)
Determine entrepreneurial ideas based on
a) The suitability of ideas against person’s
experience, knowledge, skills, capitals and
interest
b) The feasibilities of the ideas initially against
legislation aspect, competitors, capital and risk
Apply the process of generating and evaluating
business ideas
I NTRODUCTION
WHEN does business opportunity can exist?
A product does not meet
customer’s expectation
Customer needs a product
which is not available in
market
H OW D OES
IT
H APPEN ?
CHANGES IN ENVIRONMENT
• ECONOMY
• SOCIAL
• POLITICAL
• LEGAL ASPECT
• TECHNOLOGY
S OURCES
OF I DEAS
HOW AND WHERE can we get the
information?
By gathering it from
PRIMARY & SECONDARY SOURCES
P RIMARY S OURCES
Refers to original data that is gathered and
evaluated.
Information collected firsthand from such
sources as:
OBSERVATIONS, SURVEYS, EXPERIMENTS,
LITERARY TEXTS, INTERVIEWS, ARTISTIC
WORKS, HISTORICAL DOCUMENT, DIARIES,
MANUSCRIPTS, LETTERS
S ECONDARY S OURCES
Data already gathered for one use
Information that has been gathered by
researchers and recorded in books, articles, and
other publications
Type of secondary data:
THESIS, DISSERTATION, JOURNAL, COMPANY
REPORTS, NEWSPAPER, MAGAZINES TEXBOOKS,
HISTORIES, CRITISMS, COMMENTERIES,
ENCYCLOPEDIAS
THE PROCESS
4 major steps in identifying, evaluating and
selecting a business opportunity
STEP 1: Identify customers needs and wants
STEP 2: Scan the environment and evaluate
against self and community factors
STEP 3: Screen the business opportunity
STEP 4: Select a business and prepare
business plan
STEP 1: IDENTIFY
CUSTOMERS NEEDS AND
WANTS
Needs:
– a requirement,...