Sources of Business Ideas &

opportunity

Business ideas come from everywhere

& anywhere
 Characteristics shared by those who
excell in recognizing opportunities
• Prior experience
• Cognitive factor – may be an innate skill or cognitive
process , Israel Kirzner entrepreneurs possess
entrepreneurial alertness
• Social network
• Creativity - On an anecdotal basis, it is easy to see
the creativity involved in the formation of many
products, services, and businesses
 3 mental approaches to opportunity
identification (Harper, 1991)
• Market gap approach – list problems encountered
in the market and convert them into business
opportunities
• The market area saturation approach – explore if
there is room for another business based on
existing industry density data
• The market segmentation approach – identify
customer segments whose needs are not being met
 Creativity process
• Preparation – incubation – insight – evaluation -
elaboration
Preparation Insight
Incubation
Evaluation Elaboration
50% - 90% • Eureka
Mulling over
Ideas emergy • Business idea Idea put Business
from prior phase –
conceived into model
conscious or
work • * Problem scruitiny design/plan
unconscious
solved
 Awareness of Emerging Trends &
Personal Characteristics

Enviroonmental trends

• Economic factors
• Social factors
• Technological factors Business product
• Political & regulatory factors or service
opportunity gap New
business or
Difference btn service
Personal characteristics of what’s available &
entrepreneur possible

• Prior experience
• Social netwoeks
• Creativity
 End
• Thank you