BUSINESS

OPPORTUNITY
Chapter 4
 WHAT IS
OPPORTUNITY
• Opportunity is defined as a situation that enables
an entrepreneur to offer marketable products or
services to interested buyers or end users

• It is the job of the entrepreneur to locate new

ideas and to put them into action.

• Opportunities is an integral component of the

entrepreneurial process.
 EMERGENCE OF OPPORTUNITY
 Product or service is still not in existence
o Product or service is already in the market but failed to
satisfy the customers – so need to be improved
o When people decide they have certain needs and want to be
satisfied, or when people discovered a problem of some kind
that can be helped by a product or service.
o The presence of unfulfilled needs and want and/or problems
alerts the entrepreneur to the potential opportunity.
o ** Entrepreneur later creates a business that is able to
fulfill the needs or wants and/or solve the problem
When Is An Idea An
Opportunity?
o Create or add value to customer
o Solve a significant problem, removing a pain
point or meeting demand
o Have robust market, profit margin and money
marketing
o Good fit with founder & management team at
the right time & place
Attractive Opportunity
 OPPORTUNITY
IDENTIFICATION

Opportunity identification
is a process that involved
the search for and
discovery of business
opportunities
APPROACH TO OPPORTUNITY
IDENTIFICATION

1. Observe changes in the environment

2.Recognize a need that customers have

that is not being satisfied

3.Recognize problems and find ways to solve

it
OBSERVING CHANGES IN
THE ENVIRONMENT

Changes in the environment

give rise to needs and wants
and/or problems, and an
opportunity emerges
OBSERVING CHANGES IN THE
ENVIRONMENT

Important environment forces to

observe include:
 Economic forces
 Social forces
 Technological advances
 Political and regulatory statues
Examples of How Changes in the Environment Provides Openings for
New Product and Service Opportunities
Structure of Population and
Income
Social
Technological Advances
Government Policies and
Regulations
Number of teenagers higher
than number of elderly and
children
People have higher purchasing
power
Increase incident of
housebreaking
Increase interest in fitness
Increase mobility of
population
Increasing predominance of
dual- income families leaves
less time to
Advances in biotechnology
Development of the internet
Increase pressure to improve
economic performance
Increased driving standards
Cyber cafes, Cineplex’s,
recording studio
Passenger cars, household
furniture, DVD
Grills, alarm, sensor, security
systems
Fitness centre, dancing class,
in-house exercise equipment,
health food store
Hand phone, laptop computers
Restaurants, food delivery
services
Biotech-related
pharmaceutical products, food
products, veterinary products
E-commerce, improved
communication
Online marketing, cost control
services performance
Smoke emission control,
helmet, seatbelt
 OPPORTUNITIES IN CYBER
ENTREPRENEURSHIP
• Unlimited on-line opportunities

Examples:
Web designing
Web hosting
On-line business
Cyber business- eg. maintenance services and
accessories
Using social media for business - e.g Twitter or
Facebook, Instagram
On-line market places
Training and consultancy
 RECOGNIZE NEEDS
AND WANTS

Opportunity occurs whenever there is a need and

want to fulfill. The term “needs” refer to basic
needs that the consumer must have in order to live
while the term “wants” refers to a personal desire for
something that is more than a basic need.
Maslow Hierachy of Need
RECOGNIZE PROBLEM
AND FIND SOLUTION
Problems can be recognized by
observing the challenges that
people encounter in their daily
lives. Solution to the problem
represented a business
opportunity
OPPORTUNITY IDENTIFICATION PROCESS

Search for Recognize

Changes in needs and Discovery of
the wants, and Opportunity
environment solutions
ABILITY TO SEARCH AND DISCOVER
BUSINESS OPPORTUNITIES

 Experience and exposure

 Knowledge and skills
 “Special alertness”
 Social network
 Creativity
 Vigilant
MECHANISM TO IDENTIFY OPPORTUNITIES

 Customers
 Retailers and distributors
 Business associates
 Bankers
 Consultants
 Employees
 Others
 EVALUATION AND
SELECTION PROCESS

The evaluation and selection

process involves judging the
viability of the opportunity
and assessing its potential.
CRITERIA FOR EVALUATION AND
SELECTION

 Can make money and has potential for growth

 Less competition
 Good fit between entrepreneur and opportunity
 Has competitive advantage
 Workable and efficient
 Not against the norms and values of the community
 Conform with laws and regulations
END OF MODULE 4

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