Identifying Business

Opportunities
 Shane (2003)
• noted that entrepreneurial opportunities can
take the form of new products or service,
new ways of organizing, new raw materials,
new markets, and new production processes.
 Given the opportunities, entreperneural fims
either start because of external stimulation
or by the internal stimulation. Regardless of
the sourceof stimulation to start a new
business, it is said that opportunities are
“tough to spot”.
 Barringer (2006)
• As cited in Barringer, an opportunity has four essential qualities,
namely: “attractive, durable, timely, and anchored in a product service
or business that creates ar adds value for its buyers or end-user.” For
entrepreneurs, they need to capitalize on the so called “window of
opportunity.”

• According also to Barringer, the figure below on the opportunity

recognition proces, shows that the environmental trends are composed of
the economic, social, technological, and political and regulatory
factors.
 How do entrepreneurs identify opportunities?
• one approach is by observing trends like fashion, eating habits,
people communication, and recreation.

• another approach to identify opportunities is by solving a

problem and looking for solution to solve it.
 Potential Sources of Opportunity

The Unexpected
• opportunities can be found when situations and events are
unanticipated. the event might be unexpected success/good news or
unexpected failure/bad news that can be opportunity for entrepreneurs
to pursue.
 The Incongruous
• incongruous situations happen when there are
inconsistencies inthe way they appear.
 The Process Need

• entrepreneurial opportunities could also surface

throughout the process of discovery such as the process
of research and development done by the researchers
and technicians of a product or service.
 Industry and Market Structure
• changes in technology, social value and customers' tastes
can change the structure of an industry and market
 Demographics
• changes in demographics will influence industries and
market, upon their target market and market
segmentation
 Change
• perception is one's view of reality. changes in perception
get to the heart people's psychographic profiles of what
their value are, what they believe in, and what they care
about.
 New Knowledge
• new knowledge can be source of opportunities for
entrepreneurs.