When some first thinks of possible new ventures,

but has not evaluated much at all, you would call it

a "new Venture ___________________"
(opportunity, Idea, Not clear)

Idea 96.0%
Opportunity 1.0%
Not clear either of these 3.0%
 When someone has given a possible new
venture some additional thought/ or evaluation ,
would you call it a "new Venture ___________“
(opportunity, Idea, Not clear)

Idea 2.0%

Opportunity 95.0%

Not clear either of these 3.0%

The Entrepreneurial Opportunity
Entrepreneur
•Background
•Experience
•Education

Possible
Entrepreneurial
***Business Idea*** Firm
opportunity
Founding

Environment
•Industry
•Economic conditions
•Social Context
•Regulatory Issues
Do you agree that the steps in the model
illustrated above Generally occur as shown?

Yes 86.1%
No 7.9%
Not sure 5.9%
Mean No. of Ideas and
Opportunities Recognized

Items Mean St. Dev

Ideas last month 2.4 2.3
Ideas last year 6.6 4.1

Opportunities last month 1.2 1.5

Opportunities last year 3.3 3.1
Where Entrepreneurs Get Their New Venture Ideas
(N= 256 and multiple answers were allowed

Source % of Respondents
Prior Experience 73.0
Business Associates 32.8
Saw a Similar Business 25.8
Friends or Relatives 19.1
Hobby/ Personal Interest 17.2
Market Research 11.3
It Just Came to Mind 10.9
Magazine/ Newspaper 2.3
Radio/ Television 0.4
Others 4.7
Opportunity Recognition Activities: How
Entrepreneurs Turned Ideas into Opportunities
% of
Activity Respondents
Sought out information/feedback
from business associates 52.0
Contacted potential customers/ clients 5.0
Discussed idea with friends/family
members 46.5
Gathered information on competitors 33.6
None, just knew idea was an
opportunity 33.2
Prepared financial statements 2.5
Others 3.5
Time Between New Venture idea Identification and
Entrepreneurial Opportunity Recognition

Time % of Respondents Cumulative

None 13.7 13.7
Hours 2.3 16.0
Days 14.5 30.5
Weeks 22.7 53.2
Months 35.9 89.1
Years 10.9 100
"Time Between New Venture idea Identification
and Entrepreneurial Opportunity Recognition

Time Percentage of
Entrepreneurs
None 13.70%
Hours 2.30%
Days 14.50%
Weeks 22.70%
Months 35.90%
Years 10.90%
Time Between Opportunity Recognition
And Firm Founding
Time Percentage of
Entrepreneurs
Hours 1.60%
Days 11.30%
Weeks 26.20%
Months 50.80%
Years 10.20%
Amount of Modification to New Venture Idea
Before it Became New Venture Opportunity

Percentage of
Change Entrepreneur
s
No Change 19.10%
Slight Change 42.60%
Moderate Change 28.50%
Major Change 9.00%
Complete Change 0.80%
Sources of new Ideas
 Consumers
 Exiting Companies
 Distribution Channels
 Government
 Patents Office
 Regulations
 Research and Development
Method of Generating Ideas
 Focus Groups
 Brainstorming
 Problem Inventory Analysis

A method of obtaining new ideas and

solutions by focusing on problems.