Chapter 2 ENTREPRENEURIAL IDEAS AND OPPORTUNITIES

Topic Outline

2.1 Determine entrepreneurial ideas and opportunities

2.1.1 Sources of entrepreneurial ideas

a. Primary sources

b. Secondary sources

2.1.2 Entrepreneurial ideas based on

a. ideas and person’s experience, knowledge and skills, capital and interest

b. community’s response

c. the feasibility of the ideas initially: legislation aspect, competitors, capital required and risks

2.1.3 The process of generating and evaluating business ideas

Sources of entrepreneurial ideas

a. Primary Sources

Sources of entrepreneurial ideas

b. Secondary Sources

Process of Recognizing, Analyzing and Choosing a Business Opportunity

Recognizing customer needs

and wants

Analyzing or scanning the environment

Performing self-assessment

Screening or choosing business

opportunities

Matching societal values, community’s response or

people acceptance

Preparing or constructing a business plan

a) Analyzing or Scanning the Environment

Demographics, population

structure, income and taste

Local Resources

New Government Policies and Regulations

Import and Export Data

Industrial Linkages

Development Projects by

the Public and Private Sectors

Technological Breakthrough

Mass Media and Electronic

Media

Entrepreneurial ideas based on

b) Self-assessment

Experience

Knowledge

Skills Financial ability

Interest

Networking

Business Ideas

Customer’s Values,

norms and culture

c) Community’s Response

Entrepreneurial ideas based on

d) Criteria of Business Opportunity

Legality

Competitors

Capital Requirement

Risk

Entrepreneurial ideas based on

d) Criteria of Business Opportunity

Capital Requirement

Fixed or Permanent

Capital

Working Capital

Plantation or Growth

Capital

Credit Risk

Liquidity Risk

Loan Risk

Currency Exchange Risk

Financial Risk

Controllable

Uncontrollable

Business Risk

d) Criteria of Business Opportunity