Chapter 2 Business Opportunity identification Contents 2.1 Definition of Business, Today's Environment 2.2 Opportunity Search 2.2.1 Introduction 2.2.2 Types of Business Opportunity 2.2.3. Essential Requirements of Business Opportunity 2.2.4. Finding New Opportunities for Start-Ups Divergent Thinking Mode : Meaning, Objectives, Tools and Techniques 2.3.1 The Three Modes of Thinking 23.2 Meaning of Divergent Thinking Mode 9.3.3. Divergent Thinking Tools and Techniques 2.4 Environmental Scanning for Business Opportunity Identification 2.4.1. Introduction 2.4.2 Objectives of Environmental Scanning 2.4.3 Benefits (Advantages) of Environmental Scanning 2.4.4 Environmental Scanning Techniques 2.5 Opportunity Selection 2.6 Convergent Thinking Mode: Meaning, Objectives,Tools and Techniques 2.7 Market Survey 2.7.1 Introduction and Meaning 2.7.2. Stages of the Market Survey Process 2.7.3. Techniques of Market Survey * Points to Remember * Questions for Discussion Learning Objectives... i poner the concept of business opportunities Inderstand the role of convergent and divergent thinking in idea generation and pportunity selection ss ae the concept of environment scanning and its techniques ly the role of market survey in selecting business opportunities Industry and Commerce and Their Inter-relationship in o> 2. 21Entrepreneurship and Small Business Management Business Opportunity 2.1 Definition of Business, Industry and Commerce and ’ relationship in Today’s Environment ; * A business is defined as an organization or enterprising entity engaged commercial, industrial, or professional activities, Businesses can be for-prc entities or they can be non-profit organizations that operate to fulfill a charitat mission or further a social cause. } * The term "business" also refers to the organized efforts and activities of individual to produce and sell goods and services for profit. Businesses range in scale fre a sole proprietorship to an international corporation. © Several lines of theory are engaged with understanding business administration including organizational behaviour, organization theory, and strategic management. © Business activities may broadly be classified into two categories namely (1) Industry and (2) Commerce. © Industry involves production of goods and services whereas commerce is concerned with the distribution of goods and services. Business ‘Commerce industry Fig. : 2.1 1. Industry: * Industry is concerned with the making or manufacturing of goods. It is that constituent of production which is involved in changing the form of goods at any stage from raw material to the finished product, e.g. weaving woolen yarn into cloth. Thus, industry imparts ‘form utility’ to goods. * The goods produced may either be used by other enterprises as raw materials for further production, they are known as “producers goods”. The production of plant, machinery, equipment etc. are, examples of producers’ goods. When goods are finally used by consumers they are known as consumers’ goods, The examples of such goods are cloth, bread, groceries, drugs, etc. * An enterprise may produce materials which will further be processed by yet another concern for converting them into finished goods. These goods are known as intermediate goods. The examples of this category are—plastics, rubber, aluminium. © There is a close interrelationship between the different branches of busines: described above. One cannot function without the support of others. ; 22et iat ae nen i Ore eS Commerce: ‘ommerce helps industry before and after production through the purchase of materials and the sale of finished products. Productions of goods and services is meaningless unless they are distributed among the consumers. rade, involving buying and selling of goods, maintains a smooth flow of commerce and thereby supports industry. At the same time, industry provides the joods and services for distribution and thereby gives rise to commerce. AS industry develops, trade and commerce and also business grow. Industry, commerce and business are closely related to each other. For example, industry provides goods and services which are distributed through commerce. No commercial activity is possible in the absence of industry and production. At the same time, industry and production cannot survive unless the goods and services are distributed among consumer through commerce. Therefore, industry and commerce are interdependent. Industry provides the base for commerce and commerce serves the backbone of industry. Trade involves buying and selling of goods. It is the nucleus of commerce. Trade vides the solid foundation upon which the superstructure of commerce has ry support to industry and maintains a smooth flow . pro been raised. It provides necessa! of commerce. 2.2 Opportunity Search 4 Introduction rposeful, marketing action that @ An opportunity can be defined as a challenge to pul is characterised by a generally favourable set of environment circumstances and acceptable probability of success. * One of the most important characteristics of an entre} identify profitable opportunities in the environment. fficult to describe because the ter preneur is the ability to * Business opportunities are di ‘m means different things to different people. * A business opportunity invo' equipment and so on that will enable the purch: Definition of Business Opportunity * "Business opportunity may be defined as a busin would like to pursue considering risk and the rew which may be manufacturing oF servicing or trading" * Business opportunities refers to as encouraging circumstance or environment commercial, service of financial activities that may occupy labour, and other resources, the more of which is to Ives the trade or lease of any product, service, aser-licensee to begin a business. ess proposal an entrepreneur ard involved in the proposal Created in production, someone's time, attention, make profit. 23i * The most important thing to remember about business opportunities is thar are derived from or based on human needs. Most of these needs which exist to be satisfied through the production and consumption of at and services, * Business opportunities are in many areas dependent on the time, environ economy, fashion, tastes, and culture, etc. ji * Every new business, new product or service, new pppertunlty, and new market: approach has started with an idea, Generating new ideas an bea very daunting task, Putting them into practice can be much harder. Once an idea strikes, a person has to fil in all the details of what they want to achieve and how they are going 1, achieve it. ; ‘* Emerging the business opportunities means generating a ne\ used for establishing a new venture. 2.2.2 Types of Business Opportunity ‘* According to Peter Drucker, the opportunities are of three types: \L. Additive Opportunities: ‘* Better and intense utilisation of existing resol makers. This also means changes in production and marketing strategies. 2. Complementary Opportunities: * Bring new ideas in existing products or business to bring in value addition of changes desired in the market. Here character of business is likely to transform the risk in business. 3. Breakthrough Opportunities: * New product, new areas, new technologies bring in fundamental ideas. w feasible idea which jg wurces is called for from the decision * Breakthrough changes structure, strategies and business character. The element of risk is the highest and is combined with highest gains in case of success. 2.2.3 Essential Requirements of Business Opportunity 1. Market-Oriented: * A good business opportunity must be marketable. It should be something that will be accepted by another in exchange for money. It must be something that one can buy or sell, 2. Feasible: * It should be something that is possible of being achieved, There must be possibility of being identified and exploited beyond ones capabilities, 24- gprepteneuship and Small Business Management usiness Opportunity Identification 3, Profit-Oriented: . ef Pane SEA be something that is feasible. Profit is very important 1 business survival so a business opportunity must be something which will offer individual that profit. 4, Specific: ‘A business opportunity must have definition, scope, and name. It must be identifiable, precise, definite, exact and not vague. 5, Motivational: A business opportunity must be something that is capable of helping someone to reach his goals or achieve his objectives. That is why profit is important in every business opportunity as it should give financial rewards. 6. Legal: A business opportunity should be legal, i.e. against the law of government. It must fall within acceptable behaviour, if not, the laws will catch-up with anyone, if he thinks that are differing to the law or it must be something that is not regulations of government. 7. Ethical: A true business opportunity should nd don'ts of a particular business. Therefore, a business be ethical as every business has its own ethics. That is, the do's a opportunity must be something that will not make an individual go against the ethics of the business. 8, Product: A business opportunity must be a product. It is either tangible or intangible, i.e., it must have something to offer to enable a third-party feel happy and satisfied. This means that a of satisfying a want. either goods or services but i part with his money for it and still portunity must be somewhat that is capable ies for Start-Ups we need to be continually innovating and looking business op| 2.2.4 Finding New Opportu: * To be successful entrepreneurs, for opportunities to grow our start-ups. * But how do you find new opportunities to take your start-up to new markets and growth levels? Here are four ways to identify more business opportunities. 25Me) Entrepreneurship and Small Business Management Business Opportunit 1. Listen to your Potential Clients and Past Leads: * When you're targeting potential customers, listen to their needs, wants, challey and frustrations with your industry. Have they used similar products and sery before? What did they like and dislike? Why did they come to you? What are they Objections to your products or services? . ! * This will help you to find opportunities to develop more tailored products ang services, hone your target market and identify and overcome common objections, 2. Listen to your Customers: ¢ * When you're talking to your customers listen to what they saying about you industry, products and services. What are their frequently asked questions? Experiences? Frustrations? Feedback and complaints? t ) ‘ * This valuable customer information will help you identify key business opportunities to expand and develop your current products and services. 3. Look at your Competitors: * Do a little competitive analysis to see what other start-ups are doing, and more importantly, not doing? Where are they falling down? What are they doing right? What makes customers go to them over you? * Analysing your competitors will help you identify key business opportunities to expand your market reach and develop your products and services. 4, Look at Industry Trends and Insights: * Subscribe to industry publications, join relevant associations, set Google alerts for key industry terms and news and follow other industry experts on social media. * Absorb yourself in your industry and continually educate yourself on the latest techniques and trends, * Opportunity refers to the extent to which possibilities for new ventures exist and the extent to which entrepreneurs have the leeway to influence their odds for success through their own actions, * Simply put, opportunity is a perceived means of generating incomes that previously have not been exploited and are not currently being exploited by others. * Opportunity identification can, in turn, be defined as the cognitive process of processes through which individuals conclude that they have identified an opportunity It is important to note that opportunity identification is only the initial step in a continuing process, and is distinct both from detailed evaluation of the feasibility and potential economic value of identified opportunities and from active steps to develop them through new ventures, * It is essentially a situation in which new goods, raw materials, markets and organizational strategies can be introduced through the formation oe new means, ends or means-ends relationships. 26 ;and Small Business Mi Busi + The focus these days is on innovative opportunities which are the ones that truly break new grounds rather than merely expand or repeat existing business models. ening a new Hausa or Igbo cafeteria in a neighborhood dominated by a ulace from these extractions that currently do not have one is an example, Not everyone can identify opportunities, Some individuals are more likely to identify and exploit opportunities than are others, Opportunity is a major process of self-evaluation of one’s ability to start, operate and run a business venture with the popular analysis often referred to as SWOT (Strength, Weaknesses, Opportunity and Threat). It helps to check the chances of succeeding in a particular choice of venture open to an individual through his experiences. These experiences include family, religious or professional linkages, membership of any network group. Searching for a business opportunity that is right for them is the major challenge an entrepreneurs may face. New start-ups always focus on introducing a new product or service based on an unmet need, select an existing product or service from one market and offer it in another where they are not available; and sometimes, the firm relies on a tried and tested formula that has worked elsewhere ina franchise set-up 2.3 Divergent Thinking Mode : Meaning, Objectives, Tools and Techniques 2.3.4 The Three Modes of Thinking ® It is essential to human nature to be able to think critically and creatively. Our ability and tendency to think critically and carefully takes precedence over content knowledge, not only in the classroom but in the wider world around us. There are thought to be three different modes of thinking: lateral, divergent, and convergent thought. Modes of Thinking Fig. : 2.2 27Entrepren and Small Business Management 1. Convergent Thinking (using logic): i i * This type of thinking is also i critical, vertical analytical, oF Oe generally refers to the ability to give the veorrect” answer 10 mf ner that do not require significant creativity This includes Tira “_ standardized tests. * Convergent thinking is the type of thin! single, well-established answer to a convergent thinking to solve problem, probabilities to make judgments. 2. Divergent Thinking (using imagination): | ink . ae of thinking is also called creative OF horizontal thinking. It is a thought process or method used to generate ors ee ono divergent thinking, NE Es Perec solutions are explored in a short ‘mount of time, and unexpected connections are more easily drawn. f After the process of divergent thinking has been completed, ideas and information are organized and structured using convergent thinking. 3, Lateral Thinking {using both logic and imaginatio «This type of thinking is commonly referred to as “thinking outside the box." © It involves solving problems through an indirect and creative approach, using reasoning that is not immediately obvious and involving ideas that may not be obtainable by using only traditional step-by-step logic. ‘* To understand lateral thinking, it is necessary to compare convergent and divergent thinking and build a working relationship between the two types. 3.2 Meaning of Divergent Thinking Mode * Divergent thinking is a thought process or method used to generate creative ideas by exploring many possible solutions. It typically occurs in a spontaneous, free- flowing, “non-linear’ manner, such that many ideas are generated in an emergent cognitive fashion. « It’s an unusual and non-stereotypical way of thinking. For example, to generate several possible solutions to a problem. It is creative thinking in its absolute form. * An entrepreneur generates maximum possible ideas and opportunities for his venture with the combinations of his available resources, * Divergent ie, different thinking is like, when one is driving a car, and one's foot is ‘on the accelerator, all the way to the floor. There are no hindrances, and the roads are in perfect condition. The ideas simply flow. 28 uses on coming Up with the ing that foc kg hen an individual is Using problem. wi they consciously use standards op- pospenertin and Small Business Management Business Opportunity Identification . pivergent thinking is very important in searching the business opportunity. An entrepreneur goes through brainstorming and many other methods and generates maximum possible ideas. ‘on selected ideas, he generates PPR. After comparative analysis of PPR, an entrepreneur applies convergent thinking to select the viable opportunity. step 1 : Divergent Thinking Example: List all the uses you can think of for a shoe, list all the resources available to you. step 2: Convergent Thinking . Example: The shoe idea is the most novel one select it. Select the resources that are most challenging to maintain. In each statement mentioned above, the entrepreneur narrows down thinking During the convergent stage, he applies critical thinking, that is, uses some criteria to evaluate, select, and analyse the output from the divergent phase. An Entrepreneur in the Divergent Thinking Mode needs to follow these guidelines for best results: Defer judgement Struggle for quantity Seek wild and unusual Build on other ideas Potential Solution Potential Solution Potential Solution Stimulus Potential Solution Potential Solution Potential Solution Fig. : 2.3 29Entrepreneurship and Small Business Management Business Opportuni * The goal of using divergent thinking is to generate as many potential ‘fj answers as possible. In order to do this, the potential ‘wrong’ answers must included. 7 * One of the benefits of using divergent thinking is that in the second phase, dur convergent thinking, the best responses will be selected and ideas not won) considering will be left behind, modified, or saved for later. 3_Divergent Thinking Tools and Techniques * The prominent Divergent Thinking Tools and Techniques are as follows: 1. Metaphor: | A metaphor is an analogy between two objects or ideas, conveyed by the use of a word instead of another. It is used to facilitate the understanding of a new of complicated concept. However, on the flip side, the usage of metaphor entails the risk of one ignoring areas that do not fit in with the metaphor, or end up oversimplifying things. 2. Six Thinking Hats: It is a thinking tool for group discussion and individual thinking. Here, a ‘Hat’ symbolises a state of thinking. The Six Thinking Hats present a simple technique for applying different types of thinking in order to explore all aspects of a given problem. Using all six hats helps to generate possibilities and alternatives that one would probably never consider without the use of this deliberate technique. These are white, red, black, yellow, green and blue hat. * The six distinct states are identified and assigned a colour: (2) Questions (White) : Considering purely what information is available, what are the facts? (b) Emotions (Red) : Instinctive gut reaction or statements of emotional feeling (but not any justification). (©) Bad point’s Judgement (Black) : Logic applied to identifying flaws or barriers, seeking mismatch, (d) Good points Judgement (Yellow) : Logic applied to identifying benefits, seeking harmony. (€) Creativity (Green) : Statements of Provocation and investigation, seeing where a thought goes. (f)_ Thinking (Blue) : Thinking about thinking. 2.10and Small Business Ma Business Opportunity Identification instormin ‘ 3 Br storming is a classic idea-generating tool, albeit often misused, It follows a ’ Bre rodol0Qy wherein one starts off by working from one statement or challenge, He then, thinks, following the divergent thinking guidelines. Here, every idea is ei out loud and, then, written down, usually on a flip chart pad, iat the ideas come fast, as they often do, it can be difficult for the recorder to . yee UP pace. Ideally, it can be used individually or in groups. Lateral Thinking: jt refers to solving problems through an indirect and creative approach. Lateral . thinking (also popularly known as ‘out-of-the-box’ thinking), is about reasoning that is not immediately obvious and about ideas that may not be obtainable by using only the traditional step-by-step logic. ‘Afew of the methods include: Random Entry Idea Generating Tool: Choose an object at random, or a noun from a dictionary, and associate that with the area you are thinking about, for example, imagine you are thinking about how to improve a web site. Choosing an object at random from an office, you might see a fax machine. A fax machine transmits images over the phone to paper. Fax machines are becoming rare. People send faxes directly to phone numbers. Perhaps this could be a new way to embed the web site's content in e-mails and other sites. Provocation Idea Generating Tool: Choose to use any of the provocation techniques-wishful thinking, exaggeration, reversal, escape, or arising. Create a list of provocations and, then, use the most outlandish ones to move your thinking forward to new ideas, Challenge Idea Generating Tool: A tool which is designed to ask the question ‘Why?’ in a non-threatening way, namely - ‘Why something exists?’, ‘Why it is done the way it is?’ The result is a very clear understanding of ‘Why?’ which naturally leads to fresh new ideas. The goal is to be able to challenge anything, not just items which constitute problems. For example, you could challenge the handles on coffee cups. The reason for the handle seems to be that the cup is often too hot to hold directly. Perhaps coffee Cups could be made with insulated finger grips, or there could be separate coffee Cup holders similar to beer holders, Thus, Divergent thinking involves intuitive thinking which seeks a range of solutions 10 a single problem. That apart, it acknowledges that there may be many correct answers to a single problem, and that, each solution may be equally acceptable. It @ssumes that there may be no single appropriate response. For example, ‘What will we call our new product?’ requires divergent thinking because an appropriate answer depends on a range of individual ideas rather than Ona single ‘correct’ response. @ ) @ 211 —Entrepreneurship and Small Business Management Business Opportuni 2.4 Environmental Scanning for Business Opportunity Id 2.4.1 Introduction * Environmental scanning is the process of identifying and evaluating external fa that may affect an organisation; public, private or non-profit organisation; on eith. @ micro or a macro level * The micro level includes the immediate and global competitive environment ang the macro level includes external trends dealing with the economy, politics, soci changes or technology. | Definition of Environmental Scanning * “Environmental scanning is the process of constantly getting information on the external marketing environment to recognise and understand potential styles that may lead to entrepreneurial business opportunities". * Entrepreneurs involve in environmental scanning to find out Opportunities that others may ignore. * Many refer to the environmental scanning process as "trend spotting.” For some) entrepreneurs, the aim is to explore "the next big thing” or at least recognise market trends that might lead to the development of a new business venture. © One of the things that is important to know while scanning the environment is” knowing and determining what a true trend is. * A trend is the particular or general direction that a society is headed, which changes things from what they are today to something different in the future. A trend creates a difference in the way people live and work. * Trends are lasting phenomena that are drastically having the effect on the way consumers behave in the market place and/or the way business is done. Trends create major structural changes in society: socio cultural, economic, or technological. * A trend is different from a craze, which comes and leaves quickly. A cult does not change society, but a trend does * Environmental scanning is an important skill for entrepreneurs to have. To become a good scanner a person has to follow the subsequent steps: 1. Adjust your Reading, Listening, and Viewing Habits: * This means concentrating on things of essence and significance that help in becoming an entrepreneur. It is important to read about various matters that help in exploring societal trends that support market behaviour. One requires making @ commitment to scan for information that will give clues about possible marketing opportunities. 212ee jortunity Identification and with the Right People: ig means keeping oneself involved with knowledgeable and informed people and remain open to learn yu these people. One expert recommends that you "take peuroscientist sociologist, psychologist, or artist to lunch." These people can give 2 ht into human behaviour, how markets build up, and how consumers think and feel about their experiences in the marketplace, networking also means being involved within one's community to keep in touch with tends that are having an effect on the people who might become an individual's potential customers. Be self-observant: This means spending time in exploring things that helps in knowing about oneself and understanding about the important things that matter to one. A person might not be the typical consumer, but this is a good exercise in revealing what possible trends are motivating his behaviour. Then that person can then decide whether what affects him might affect others too. Challenge your Assumptions: Ina lot of cases, there are traditions in society and in certain industries that have outlasted their value. For example, there is an American tradition for school-age students to have a two-month summer vacation. And generally people do not understand about why this tradition continues. It is a legacy from the agrarian society when children in farming families took time off from school to assist in yielding the crops. Today, many educational institutions are challenging this tradition, and this has led to entrepreneurial opportunities such as private schools giving yearlong programmes or inventive summer learning programmes, Spend Tune Watching and Talking with Customer: This is one of the most significant steps in the environmental scanning process. Good environmental scanners concentrate their time on networking with customers to decide their present and future needs. Successful tycoons, actually, locate not only where customers are today (in terms of requirements) but where they are heading in the future. One of the best insights a person can gather from spending time with customers is Understanding their behaviour as it relates to consumption. Namely, what types of buying behaviour do they involve themselves in, what do they buy, how, when, Where and why. 213Entrepreneurship and Small Business Management Business Opportunity’ * The “ritualistic behaviour" is the behaviour consumers involve themselves in reliable and regular manner and how this might help a person in reve opportunities to allow customers to do so in inexpensive, faster, better, or satisfying ways. Environmental scanning is a process of gathering, analysing, and dispensi information for tactical or strategic purposes. The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or . considering entering. The following are three ways of scanning the business environment. They are: 1. Ad-hoc Scanning: Short-term, infrequent examinations usually initiated by a crisis. 2. Regular Scanning: Studies done on a regular schedule (e.g. once a year). . Continuous Scanning (Also Called Continuous Learning): Continuous structured data collection and processing on a broad range of w environmental factors. 2.4.2 Objectives of Environmental Scanning 1. To detect trends and events that is important to an organisation. 2. To define potential opportunities, threats or challenges for the organisation implied by those trends and events. To promote a future orientation in the thinking of management and staff. 4, To alert the management and staff to trends that are converging, diverging or interacting. 2.4.3 Ben 1. It provides a better general awareness to entrepreneurs to be responsive to a dynamic business environment. 2. It helps in understanding project viability and new openings. 3, It improves strategic planning as the firm has acquired relevant information pertaining to their industry. It enables an entrepreneur to understand in order to select the form of organisation that will work with the current environment and product selected. 4, It enables the organisation to be more effective in dealing with their internal and external customers. 5. It improves industry and market analysis. 6. Itimproves resource allocation. (Advantages) of Environmental Scanning 2.14environmental Scanning Techniques wide range of methods and techniques available for ere are formal and systematic techniques as well as intuit ategists may choose those methods and techniques from among these ere Is 3 annig MH aide. Str Bich sult thelr needs In terms of the quantity, quality, availability, timeliness, reievance and cost of environmental information. jor environmental scanning techniques are as follows: ' 4) swoT Analysis: . swoT analysis is the most important technique as it helps the firm to analyse its own strength and a very useful management technique. It is considered as one of remove and remedy for its own weakness. + Appraising 4 company's resource strengths and weaknesses and its external opportunities and threats, commonly known as SWOT analysis, provides a good overview of whether its overall situation is fundamentally healthy or unhealthy. 1, Strength (S): * Strength is something a company is good at doing or a characteristic that gives it enhanced competitiveness. 2. Weakness (W): + Aweakness is a limitation or de performance. For example, ficiency in resources, skills and capabilities that seriously impedes effective facilities, financial i resources, management capabilities, marketing skills etc. 3. Opportunity (0): * An opportunity is a major fav’ * Identification of a previously overlooked market segment, changes in competitive .s, technological changes and so on are examples. urable situation in the firm's environment, of regulatory circumstances 4. Threat (T): rable situation in the firm's environment. It is key positions. For example, the major technological change, "A threat is a major unfavo impediment to the firm's current oF desired future entrance of a new competitor, slow market growth, and appearance of a substitute product. 2.15repreneurshi Analysing Strengths and Weaknesses © Opportunities focus on market demands that 2 business can possibly earn profit. Every opportunity must, therefore, be lly analysed to ki far is it dependable bearing in mind the strength: ‘other words, it is important to ascertain whether @ P' enough of utilising a promising opportunity: i coreal ea i f .d weak points A detailed study of a company's strong 27 ¢ failure. For this purpose, the ipearotit and Weak ecey of a firm can b-heads, namely: careful 5 and weaknesses of Py. ‘articular company is success OF arranged under two distinct sul (a) Non-Marketing Strengths or Weaknesses: * Non-marketing strengths or weaknesses tO be eva’ areas like production resources, financial resources, organisational resources: (b) Marketing Strengths or Weaknesses: Marketing strengths or weaknesses wil gucts and consumer services: marketing expert distribution system, etc. Environment Analysis t yet another id Threats (SwoT) evaluation. uated will be related to majg and management ang | have to do with matters concerning se, advertisement and public pro relations, Internal and External « Some entrepreneurs sugges portunities ani way of carrying out Strengths, This method involves Weaknesses, OP} two separate sets of analyses: of strengths and weaknesses internal to a firm, that is to say @ firm's (2) Evaluation internal environment factors; and (b) Assessment of external environment forces tha * One of the notable benefits derived from gatherin information, capability and watch the developments and trends i * In fact, in relation to a particular business idea, jortunity can be better understood by examining the tt may cause opportunities or threats. g and assessing environmental both internal and external, is to understand a company’s ow in market environment. the success probability of an critical factors. tha opp al environmen influence internal environment, i.e., micro-environment, and extern; ie, macro-environment. 2.16: oral Environment or Micro-Environment Analysis and Weaknesses) » Iris also known as micto-environment analysis, refers to the act of distinguishing and examining 8 company’s strengths and weaknesses, This is why many call it as an analysis of strengths and weaknesses. A number of factors internal to a specific business will demonstrably indicate whether, at first sight, the company is well- equipped to get the best out of a potential opportunity. « The capabilities to be examined will broadly relate to such fundamental issues as: 0 production resources, (i Technical know-how, (i. Manufacturing capacity, Ww Availability of infrastructure, (v) Good location, (i) Good corporate image, (vil) Financial resources, (viii) Technology competitiveness, (x) Marketing expertise, and managerial as also organisational efficiency. External Environment or Macro-Environment Analysis (Opportunities and Threats) ‘* External environment or macro-environment analysis denotes evaluation of complex outside factors that often aid or impair the performance of a business. Few external developments tend to present business opportunities, while some unfavourable events or trends in the external environment could pose as threats and thereby hamper a business. This is why, external environment evaluation is also termed as Opportunities and threats analysis. The externalities that influence, more or less, most business enterprises can be broadly classified into following sections: a (ii) Technological, (ii) Natural, (W) Demographic, (V) Socio-cultural, and (Wi) Political and Legislative. Economic, 2.47Opportunity fs * Inany event, be it an opportunity or a threat, planning well ahead and taking Steps will in the long-run contribute to the success of a busines ‘identification of a potential opportunity or meeting the challenge of a major Could be considered as a well-done achievement. * In essence, collection of details on numerous external influences and their @ company can best serve, r * These activities are a part of the marketing process. The marketing p 0 encompasses in-depth evaluation of opportunities and threats, deter marketing strategies, drawing up marketing plans, and organising, executing, monitoring marketing efforts. (8) ETOP: * Environmental diagnosis is concerned with assessm terms of these being opportunity or threat and their impact. It is related identifying opportunities and threats based on environmental monitoring. * Environmental Threat and Opportunities Profile (ETOP) is an important techni which is widely needed in environmental diagnosis. (© QUEST: '* QUEST (Quick Environmental Scanning Technique), as proposed by B Nanus. * QUEST is a four-step process which uses scenario-writing for scanning environment and identifying strategic options. (D) PEST Analysis: * PEST analysis stands for "Political, Economic, Social, and Technological anal and describes a framework of macro-environmental factors used in # environmental scanning component of strategic management. ient of environmental factors ‘ * It is a part of the external analysis when conducting a strategic analysis or doing market research, one gives an overview of the different macro-environmenta factors that the company has to take into consideration. © It is a useful strategic tool for understanding market growth or decline, busit position, potential and direction for operations. One of the methods could be th PEST analysis. Two more factors, the environmental and legal factor, are defi within the PESTEL analysis 218a L jyde the variables, namely how and to what degree a government would in the economy, Also, it includes the type of government and stability, : cifically, the political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. omic Factors: include economic growth, interest rates, exchange rates and the inflation rate. ' these factors have major impacts on how businesses operate and make decisions. « For example, interest rates affect a firm's cost of capital and therefore, to what wo extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy. Social Factors: + Include the cultural aspects and include health consciousness, population growth sate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company’s products and how that company operates. For example, an aging population may imply a smaller and less-willing workforce. This, in effect, leads to an increase in labour costs, Technological Factors: Include ecological and environmental aspects such as R&D activity, automation, technology incentives and the rate of technological change. They can determine the barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can have a bearing on costs, quality, and thereby may lead to innovation. . Environmental Factors: Include weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, the growing awareness to climate change is affecting how companies operate and the products they offer. Legal Factors: Include discrimination law, consumer law, anti-trust law, employment law, and health and safety law. These factors can affect not only how a company operates but also its costs and the demand for its products. The PEST factors, combined with external micro-environmental factors and internal Grivers, can be classified as opportunities and threats in a SWOT analysis. 219 aEsituation to do something offered by circumstances. In the same vein, ‘Opportunity means a good or favourable change available to run a gp business in a given environment at a given point of time. * The term ‘opportunity’ also covers a product or project. Hence, the identifi identical and, therefore, all these jp 8 opportunity or a product or project is i terms are used as synonyms. * The Government of India's “Look East Policy’ through North East is an example ‘opportunity’ to do business in items like tea, handicrafts, herbals, turmeric, etc, * Opportunity identification and selection are like comer stones of busi enterprise. Better the former, better is the latter. In a sense, identification 4 selection of a suitable business opportunity serves as the trite saying ‘well begun, half done’ But, it is like better said than done. Why? Because if we ask g intending entrepreneur what project or product he/she will select and start as ay enterprise, the obvious answer he/she would give is one that having a good ma and is profitable. But the question is how without knowing the product could o know its market? '« Whose market will one find out without actually having the product? Who profitability will one find out without actually selling the product? There are other problems, besides. While trying to identify the suitable product or project, tl intending entrepreneur passes through certain processes. ‘© The processes at times create a situation, or say, dilemma resembling ‘Hen or Egg controversy. That is, at one point, the intending entrepreneur may find one produdt ‘of project as an opportunity and may enchant and like it, but at the other momel may dislike and turn down it and may think for and find other product or projecta an opportunity for him/her. } © This process of dilemma goes on for some intending entrepreneurs rendering them into the problem of what product or project to start. Then, how to overcome til problem of product identification and selection? ¢ One way to overcome this dilemmatic situation is to know how the existing entrepreneurs identified the opportunity and set up their enterprises. * An investigation into the historical experiences of Indian small enterprises in regard reveals some interesting factors. 2.20gonna tan ta ie to mention the important ones, the entrepreneurs selected their products or rojects based on: their own or partners’ past experience in that business line; The Government's promotional schemes and facilities offered to run some specific 0 pusiness enterprises; the high profitability of products; a) The availability of inputs like raw materials, labour, etc, at cheaper rates; ig) Te expansion oF diversification plans of their own or any other ongoing business f known to them; i ip The products reserved for small-scale units or certain locations, | « Now, having gained some idea on how the existing entrepreneurs selected i products/projects, the intending entrepreneur can find a way out of the tangle of j which opportunity/product/project to select to finally pursue as one’s business B enterprise. f « One of the ways employed by most of the intending entrepreneurs to select a suitable product/project is to firstly generate ideas about a few products/ projects. } Accordingly, what follows next isa discussion idea generation about products, i Idea Generation k Sources of Ideas In a sense, opportunity identification and selection are akin to what is termed in marketing terminology, ‘new product development.’ Thus, product or opportunity identification and selection process starts with the generation of ideas, or say, ideas about some opportunities or products are generated in the first instance. The ideas about opportunities or products that the entrepreneur can consider for selecting the most promising one to be pursued by him/her as an enterprise, can be generated or discovered from various sources- both internal and external. These may include: Knowledge of potential customer needs, (i) Watching emerging trends in demands for certain products, Mii) Scope for producing substitute product, | (wy Going through certain professional magazines catering to specific interests like electronics, computers, etc., Success stories of known entrepreneurs or friends or relatives, — 0ntrepreneurshi (vi). Making visits to trade fairs and exhibitions displaying new products and (vii) Meeting with the Government agencies, (ili). Ideas given by the knowledgeable persons, oon” (i) Knowledge about the Government policy, concessions and incentives, list of itg reserved for exclusive manufacture in small-scale se (x) Anew product introduced by the competitor, and (xi) One's market insights throu: h observation. aul ; In nutshell, a siete Sasa can get ideas for establishing his/ enterprise from various sources. These may include consumers, existing prody and services, distribution channels, the government officials, and research development. * Abrief mention about eac! 1, Consumers: i «No business enterprise can be thought of without consumers. Consumers demang for products and services to satisfy their wants. ‘Also, consumers’ wants in terms of tastes and liking keep on changing. Hence, an entrepreneur needs tg that he/she can offer the product o¢ ctor, fh of these follows in turn: preferences, know what the consumers actually want so service accordingly. © Consumers’ wants can services they have been using and would want t 2. Existing Products and Services: ¢ One way to have an entrepreneurial and services already available in the be known through their feedback about the products a ‘0 use in future. | idea may be to monitor the existing producs market and make a competitive analysis them to identify their shortcomings and then, based on it, decide what and how better product and service can be offered to the consumers. Many erterprises ate established mainly to offer better products and services over the existing ones. 3. Distribution Channels: ‘* Distribution channels called, market intermediaries, also serves as a very elle source for new ideas for entrepreneurs. The reason is that they ultimately deal the ultimate consumers and, hence, better know the consumers’ wants. ‘As such, the channel members such as wholesalers and retailers can provide id for new product development and modification in the existing product. example, an entrepreneur came to know from a salesman in a departmental st@ that the reason his hosiery was not selling was its dark shade while most of young customers want hosiery with light shade. 4 ‘© The entrepreneur paid heed to this feedback and accordingly changed the his hosiery to light shade. 2.22ig ey ae Government: ‘at times, the Government can also be a source of new product ideas in various ways. For example, government from time to time issues regulations on product production and consumption. Many a times, these regulations become excellent sources for new ideas for enterprise formation, for example, government's regulations on ban on polythene bags have given new idea to manufacture jute bags for marketing convenience of the sellers and buyers. A prospective entrepreneur can also get enterprise idea from the publications of patents available for license or sale, Besides, there are some governmental agencies that assist entrepreneurs in obtaining specific product information. Such information can also become basis for enterprise formation. . Research and Development: The last but by no means the least source of new ideas is research and development (R&D) activity. R&D can be carried out in-house or outside the organization. R&D activity suggests what and how a new or modified product can be-produced to meet the customers’ requirements. Available evidences indicate that many new product development, or say, new enterprise establishments have been the outcome of R&D activity. For example, one research scientist in a Fortune 500 company developed a new plastic resin that became the basis of a new product, a plastic molded modular cup pallet. Most of the product diversifications have stemmed from the organization’s R&D activity. . Methods of Generating Ideas: As seen above, there could be variety of sources available to generate ideas for enterprise formation. But, even after generating ideas to convert these into enterprise is still a problem for the prospective entrepreneur. The reason is not difficult to seek. This involves a process including first generating the ideas and then scrutinizing of the ideas generated to come up with an idea to serve as the basis for a new €nterprise formation. The entrepreneur can use several methods to generate new ideas, However, the Most commonly used methods of generating ideas are: focus groups, brainstorming, and problem inventory analysis. 2.23Entrepreneurship and Small Business Management Business Opportunl Factors to consider when assessing the viability of an opportu Market Potential | Is there an authentic requirement and is it already identified? How can the market be defined? ial market? Is there more than one potenti How huge is the potential market? How many potential customers are there? Where are they situated? Can a person reach its potential market? Routes to Market Is there any prospective for an independent business? How will competitors respond? ! Protection It is important to protect your idea. There are three legal types of | protection; patents; registered design and copyright. Business Viability | Can you make a profit? Is your forecast cash flow sustainable? e if things go wrong? Adapted from Birley and Muzyka Crawl-out Costs | What are you prepared to los Stages of Opportunity Selection Sensing an opportunity eee 8 acti Idea Rejection py act Idea Rejection fee Idea Rejection | , Idea generation . Auditing the resources |. Business environment analysis . Opportunity acceptance Cee woo fe . Selection of a project ‘An Idea is an abstract concept in the entrepreneur’ and, then, it will be put in the form of an opportunity. Lots of brainstorming happens from the stage of idea generation to idea selection. 4 j 's mind, An Idea will be tested . Let's try to understand the three important stages : (a) Idea generation (b) Idea identification — transforming idea to opportunity (c) Selection of the opportunity. 2.24e Techniqu' Ss ning of Convergent Thinking + an entrepreneur generates ideas from various sources. At PPR level, he d ideas and in environmental scanning, he ds the viability of selecte he current business scenario. The next critical decisior ke is selecting the right opportunity. At this level, ynderstan understands tl entrepreneur has to ma Convergent Thinking is applicable. \d Importance of Convergent Thinking ther information focused on solving a problem, especially those have a single correct solution. sequential thinking, where an entrepreneur nan onjectives an 3. It brings toge' problems that inking is a systematic, ¢ the ones which he thinks will not work. nonymous with rationality and involves the sort of find the correct answer to 2 problem. for every problem. ms/ choice 2 Convergent thi filters opportunity to reject Convergent thinking Is sy thinking that most of us do every day: that is, it involves logic. It assumes that there is a ‘correct’ answer Convergent thinking enables to find solutions to proble: and accomplishing it. 5, Convergent thinking provides the structural tl viability of the option, an entrepreneur has got. On the other hand, divergent thinking is wide and free. When you diverge, you y options. Divergent thinking is followed by convergent thinking, in judge, and strengthen those options and, then, decide what to .d. For example, Vegita is a company providing Potato an entrepreneur hinking, for understanding the logical generate man} which you assess, keep and how to proceet Powder. Divergent thinking: All sorts of businesses I can do with potato. Allsorts of processes I can do with potato to improve its longevity. Deep freeze/roast/store it in the form of powder. Convergent thinking: After analysing the market, i supplying potato in powder form in conformance with the health norms. * Zero in: “Vegita” potato powder was launched. Convergent Thinking Tools and Techniques * There are many convergent thinking tools in the univ brief descriptions of some of the tools one can use for convergent thinking. 2.25 it is clear that there jis no one erse. Listed below are very* Anentrepreneur in the convergent thinking mode needs to follow these for best results: * Be affirmative ve * Be deliberate * Check the objectives * Improve ideas * Consider novelty Fig. : 2.4 The Important Convergent Thinking Tools and Techniqu 1. Hits: * Adquick way to identify the options that stand out. Method: © Use sticky dots or a pen to mark (‘hit’) the most interesting, innovative, intriguing, compelling, etc. 2. Clustering: * Away to grouping like items together, and to remove duplication. Method: * After marking hits, group similar or related items together, maximum three pet group. 3. Restating Clusters: © Captures the essence of a cluster. Method: * For each cluster, try to capture the cluster as one statement. Caution: * Do not simplify such that you lose the interesting and novel aspects of individual ideas. jes are as follows: 2.26preneurship and Smal Busines Manage Point: A four-step approach to evaluating an option, idea, solution, etc. ‘Point’ is an acronym for Pluses, Opportunities, Issues, and New thinking, Method: Make a list of the pluses, then, of opportunities (potentials), then, the issues cerns, expressed as problem statements), and finally new thinking on how to overcome the stated issues. Card Sot Away to rank or prioritise when you have Method (assuming six options): With each option ona a card or sl ig 80. | Tem Gpiccenan teBusiness Opportuni Entrepreneu , P | Business Management ent Thinking and Divergent Thinking — Difference between Converg Convergent Thinking think wolves aiming correct solution to a problem. are exact, literal Convergent thinke low the 1 orderly. They generally fol ep-by-step method. dent thinking looks for the ‘answer, focusing on ects and ignoring g. if you his Divergent thinkers are cognitive and associate generate new ideas. Divergent thinking is generating alternatives;and Small Business Management ___usiness Opportunity Identification eee Business Opportunity Identification of Market Survey , f a ae elie systematic collection, recording, analysis and of data about existing or potential markets for a product/service’. "s, a market survey serves as a valuable at inimi: < and thereby increase the probability apa ee ae Fe sid undertake market assessment with a survey before ee hie 1s for product or service. asin? alysing business ideas, an entrepreneur must put it through qetermine if they are truly valid opportunities, All of one’s ey alae monstrable need, ready market, and a potential ability to provide * ee on investment. For the same, he must pose and answer the following fou! ir questions i ais the idea feasible in the marketplace?” there demand?” itbe done?”, and ‘ ‘ae Ca“ and Small Business Management __ Business Opportunity Identification y helps the entrepreneurs in understanding the market information entrepreneur : -ess is to define the problem. In defini to account the purpose of the study, .d, and how it will Wy market survey proc researcher should take in background information, what information is neede: Bed in decision-making. Problem definition involves discussion with the decision-makers, interviews wi industry experts, analysis of secondary data, and perhaps, some qualit vreearch, such as focus groups. Once the problem has been precisely clefinedi} ch can be designed and conducted properly. We Step 2: Development of an Approach to the Problem ’ «The development of an approach to the problem includes formulating an obje or theoretical framework, analytical models, research questions, hypothesis, a identifying characteristics or factors that can influence the research design. studies and simulations, analysis of secondary data, qualitative resea pragmatic considerations. Step 3: Research Design Formulation * A research design is a framework or blueprint for conducting a project: It details the procedures necessary for obtaining the requi “and its purpose is to design a study that will test the hypothe ssible answers to the research questions, and ision-making. aexrepreneurship and Smal Business Management _ Business Opportunity Identification p 4 Analysing the Sources of Information, The information can be gathered in terms of main data or secondary data. Main sources give data which are gathered for some particular reason. They are gathered from consumers, salesmen or dealers through survey, observation. experimentation, etc. « The secondary sources give data which are composed not for any particular research objective of the company. These are easily available from other materials like journals, government or private organisations, consumer complaints, company records, etc. « Therefore, relying on the need, cost, time and usefulness, the company determines upon the source of information. Step 5: Preparation of Data-collection Forms * A modelled questionnaire has to be made which catalogues all applicable questions in a serial depending on the nature of information wanted, the types of respondents, data collection technique used by the firm, etc. The questions should be formed in such a way that it helps in cross-checking and comparison. Questionnaires can be an open-ended or closed-ended questionnaire. Open-end questionnaire enables the respondent to reply in their own words. It often reveals more answers because respondents are not confined to their answers. It is helpful where descriptions are needed. A closed-end questionnaire gives choices to the respondent, and he can make choice among the probable answers. Here, the respondent does not require thinking much as choices are provided. It is easier for that person to answer the questions. It gives answers that are easy to understand and chart. It shows how many people think in a particular way. Mechanical Instruments like Eve-Camera Psycho-galvanometer, Audio-meter, etc. can be used for conducting research where questions are not asked, but the respondent is only observed. 6: Data Processing and Analysis Data preparation, includes the editing, coding, transcription, and verification of data. * Each questionnaire or ‘observation form is inspected, or edited and if necessary, corrected, A number or letter codes are assigned to represent each response to each question in the questionnaire. The data from the questionnaires are transcribed or key-punched on to a magnetic tape or disk or input directly into the computer. * Verification ensures that the data from the original questionnaires have been accurately transcribed, while data analysis, guided by the plan of data analysis, gives meaning to the data that have been collected. 2.31E Business Opportuni SSESDFeneurship and Small Business Management Business Opportunity 1 Different techniques are used for ana data when there jg a n the sample, or if Measurement of each element or unit in the sample ft Measurements of each elem nt, each RCH variable is analy On the other hand, multivariate techniques are used for analysing data Wh TEN the, re two or more measurements ‘ach nt and the variables are an, simultaneously, Step 7: Report Preparation and Presentation © The ehitire project should be documented in a writ report which Addressee Specific research que: stions complete in all respects, namely, identifica, description of approach, research design, data collected, data analysis Proce st le adopted and presents the results along with the major findings. The said findings should be presented in a comprehensible format s be readily Used in the decision-making process In addition, an oral Presentation should be made to figures, and graphs to enhance clarity and impact. 0 that they ¢, management Using table. For these Feasons, interviews with experts are more Survey for industrial firms and for products of a useful in conducting Matha technical nature, where it i tively lentify and approach the experts. 0 helpful in situations where little informa ae_-evershp and Smal Busines Manogerent ____bustness Opportunity Meneiceton pisadvantages: rhe disadvantages of Desk Research are : * _ Advantages: rhe published information cannot be used as it needs changes, amis technique of research is based on secondary data, which has its own restrictions. Field investigation is more consistent as it is accumulating directly. observation Method: mis technique involves collecting data by observing and documenting. This research can be held by trained observers, Here the observer does not ask any question to the person, but observes the acts without letting the person know that he is being observed. Usually observation is completed at the time of purchase to decide the brand's first choice, likes and dislikes of the person in the product and also the value of the salesmen in the store. > Wiis 99/15)Entrepreneurship and Small Business Management Business Opportunity Identiti —Teatlon, Eye-Camera: This records the time and order spent by a person in looking at the differen Components of an advertisement Psycho-galvanometer: This is used to gauge the le\ advertisement. The level of motivation produced in an advertisement is calculateg ‘by recording the changes in the perspiration rate, if the perspiration rate of the is raised by excitement. vel of the response of the person watching gq the radio and television sets of a chosen panel of families. It is used ‘and television timings and stations favoured by families,neapreeurbip ond mall Business Management Business Opportunity Identification Disadvantages: the disadvantages of this method are tis costly and takes a long time. (b) Itis difficult to select market with similar features, {@ Itis also possible for the competitors to copy the product easily and launch the product before the firm really launches the product. {@ The external environmental factors like taxes or other limitations are changed and these changes may impact the sale of this product. 4, Depth Interviewing: '* In this technique, a person or a group of people are invited to a certain place. A relaxed environment is given and general questions are asked. Then the interviewer begins the conversation with the respondents by asking a question related to the research study, and then enables him to speak out openly. The interviewer motivates him to speak whatever he wants and ultimately arrives at the related topic. Here, an effort is made to get below the surface level of the defender’s mind so that his basic inclinations like fears, unconscious feelings, needs, arguments, etc. are revealed. The conversations are documented and then analysis is made. * Depth interviewing is defined as "the administration of questions to respondents in @ completely relaxed environment wherein they are free to express themselves without any fear of disapproval, dispute or admonition.” Advantages: f ‘The advantages of this method are : It has the ability to reveal basic inclinations of respondents which tolerate the fesearch problem. volume and diversity of information obtained are significantly more. ‘The variety of uncertainty is relatively less.Entrepreneurship and Small Busines Business Opp Disadvantages: * The disadvantages of this method are : (a) The time taken is comparatively more, which disheartens respondents i agreeing to take part in the interview. i (b) It mainly depends upon the skill of the interviewer to ask questions, discussion and take hold of the important points, (Q. The respondents may not disclose th ir inner self, (d) Itis a costly method, 5. Projective Techniques:and Small Business Management Business Opportunity Identification & Survey Technique: * Asurvey consists of collecting data by interviewing a restricted number of people chosen from a bigger group. The researcher gets the data from the respondents by interviewing them. This is the mast common technique of getting the information. As it is gathered straight from the original source, it is the main data, This method is more effective than the experimental or observation technique. In this technique, after choosing the right type of sample, a suitable questionnaire is made to ask questions, which is called an interview. Respondents can be interviewed (a) in person, (b) by telephone, or (c) by mail. Personal Interview: The interviewer gets in touch with the respondent personally and asks questions ; face-to-face and records it. It is the actual information and correct as it is a direct method of gathering data. This technique avoids misinterpretation and cross- ‘checking can be done without difficulty. Telephonic Interview: The interviewer does not meet the person directly, but, converses with him over the telephone. Where the respondents are dispersed in faraway places and where limited information is wanted, the researcher can converse over telephone. It has an advantage of less cost, easy, quick, precise information through simple method. Mail Interviewing: '* In this technique, the questionnaires are mailed to respondents at their mailing addresses with the demand to fill them up and return back. This technique is mostly inexpensive and extensively used. It saves time, money and labour and “removes the risk of partiality by the interviewer. * But this technique is suitable only for educated people, who have the enthusiasm to give written answers, apart from causing delay. The questionnaire is inflexible, as ary questions cannot be asked.Entrepreneurship and Small Business Management Points to Remember * A business is defined as an Organization or enterprising entity commercial, industrial, or professional activities. * Industry and commerce are interdependent. Industry provides the commerce and commerce serves the backbone of industry. * Opportunity refers to the extent to which possibilities for new ventures ¢ the extent to which entrepreneurs have the flexibility to influence is an unusual and non-stereotypical way of s, free-flowing, “non-linear* manc and Small Business Management Business Opportunity Identification is concerned with the making or manufacturing of goods. (a) Business (b) Trade (c) Commerce —(d)_ Industry 2 type of thinking is also called as critical, vertical or linear thinking, © {@) Divergent Thinking (b) Convergent Thinking {@) Lateral Thinking (d) Positive Thinking er is an Unusual and non-stereotypical way of thinking (@) Divergent Thinking (b) Convergent Thinking {© Lateral Thinking (d) Positive Thinking : involves buying and selling of goods. (@) Business (b) Trade (c) Commerce — (d) None of these Ans. : (1)-(d), (2)-(b), (3)-(a), (4)-(b). ch the Pairs F Group-A Group-B ‘ ‘Opportunity identification (a) Industry ; Form Utility to (b) Corner stones of business enterprise (© Observation Method (d) Short-term (€) Divergent Thinking ToolEntrepreneurship and Small Business Management Business Opportuni (D) Fill in the Blanks, te helps the entrepreneurs in understanding the market inf unknown to them. _______ is the process of identifying and evaluating external factors 4 affect an organisation. research is done by marketing expert with the help of publi other written sources of information analysis is a very useful Environment Scanning Technique .: (1)-Market Survey, (2)-Environmental Scannin (3)-Desk, (4)-swo