recognizing opportunity 1 warm-up: record the definition in your notes for the following vocabulary...

Recognizing OpportunityRecognizing Opportunity

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Warm-up:Record the definition in your notes for the following vocabulary words:

• B2B (business to business) ventures that sell product and services to other businesses

• business broker*• business opportunity – a consumer need or want

that can potentially be met by a new business• calculated risk – risk in which potential costs and

benefits are carefully considered before starting a business * Can be found in the textbook

Section 3.1 Understanding Entrepreneurial Trends


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Examine current entrepreneurial trends

Identify ways to recognize opportunity

Discuss how to think creatively about opportunity

Distinguish the difference between an idea and an opportunity


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The ability to recognize new opportunities and to think creatively is essential for success in today’s market.


3.1

A business opportunity is defined as a consumer need or want that can potentially be met by a new business.


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Current Entrepreneurial Trends

Section 3.1 Understanding Entrepreneurial Trends 4

Internet businesses

home-based businesses

“green” businesses

social entrepreneurs

technology

outsourcing

strategic alliances

corporate ventures


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Internet Businesses

The Internet has transformed the way business is conducted.

An online business can reach customers around the world.

online business a company that conducts business by means of the Internet



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Home-based BusinessesHome-based businesses are growing rapidly and now represent 53% of all small businesses.

Homesourcing refers to the transfer of service industry employment from offices to home-based employees.


Jet Blue homesources its customer support to employees who work from home in Salt Lake City, Utah


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Green Business

What is a green business?

Green business design their business practices so that they promote sustainability.

sustainability When a venture seeks to achieve economic, environmental and social goals without compromising the ability of future generations to meet their own needs.


Click this logo to view video clip


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Social Entrepreneurssocial entrepreneurs an entrepreneur who recognizes a social problem and uses entrepreneurial methods to create, organize and manage a venture to address it.



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Technology


Entrepreneurs that know how to use technology to improve their business processes create a stronger competitive advantage and have a greater chance of success.


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Outsourcing

Outsourcing is hiring people and/or other companies to handle tasks that a business can not do or chooses not to do itself.

outsourcing contracting with other companies for services


Outsourcing


Benefits of Outsourcing

more efficientmore efficient

saves timesaves time

saves moneysaves money

lowers regulatory compliance

burden

lowers regulatory compliance

burden

speeds up projectsspeeds up projects

attracts investors(redirects capital

into money making activities thus)

attracts investors(redirects capital

into money making activities thus)


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Strategic Alliances

strategic alliance a partnership formed with another company for the purpose of supplying a product or service


A strategic alliance is a partnership among companies.


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Corporate Ventures

Corporate ventures exist to nurture and develop start-up businesses for their parent company.

corporate venture a new venture started inside a larger company



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Creativity and Innovation

Creativity is the activity that results in innovation.

It generally involves:• Connection• Discovery• Invention• Application

innovation finding a new way of doing things


Entrepreneurial thinking is about generating ideas and recognizing opportunities.

Thinking Creatively About Opportunity


Practice brainstorming.

Practice brainstorming.

Find creative solutions to

common problems.

Find creative solutions to

common problems.

Connect unrelated items.

Connect unrelated items.

Look at ordinary items in new ways.

Look at ordinary items in new ways.


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Removing Roadblocks to Creativity


Believe in yourself

Entertain all ideas

Relax

Have a playful, positive attitude

Use free-spirited, non-logical thinking

(it doesn’t have to make sense right away!)

Learn from experience

(even failing has value if you learned something)


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Idea Versus Opportunity

You generate ideas by

thinking creatively.

Opportunities are ideas with commercial potential.



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Idea Versus Opportunity

Most good opportunities result from an entrepreneur’s alertness to unmet consumer needs and/or unfilled market niches.

niche a small specialized market



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Creative Sources of Ideas

To identify creative ideas:


Observe the world around you.

Be an avid reader.

Consider your interests, hobbies, and work experiences.

Consult outside sources of information.

Sources of Information

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Sources of

Information

trade magazines

specialty magazines

trade shows

exhibitions

newspapers

the Internet

government agencies



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Review Questions

1. Describe one (of the 8) entrepreneurial trends we looked at, that could potentially lead to a new business ideas?

2. What is the difference between an idea and an opportunity?

3. What are some strategies for thinking creatively?

4. Name a source that could help you to generate new ideas.


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Practice Activity1. Find a team of no 4-5 to work with.

2. Choose one of the 20 Trends to report on.

3. Watch video Top 20 Trends of 2011

Take notes on the trend you picked.

4. Discuss with your group the following:• Identify specific existing products that could be connected with the

selected trend.

• Who is the customer for this trend in terms of demographics, geographics & psychographics? Why?

• Does your group feel this is a trend that will continue to gain market share? Why or why not? What economic factors might influence the trend?

5. Report out to the class.

recognizing opportunity 1 warm-up: record the definition in your notes for the following vocabulary...

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