UNIT 3- BUSINESS

OPPORTUNITY ANALYSIS AND

CONTEMPORARY ISSUES

3.1. Business Opportunity Analysis

3.1.1 Concept and importance
3.1.2 Business opportunity identification (source)
3.1.3 Classification of source of business ideas
3.1.4 Organized method of generating ideas
3.1.5 Evolution of ideas

3.1.1 Concept and importance

Business Opportunity may be defined as an attractive

project idea which an entrepreneur accepts for investment

on the basis of certain assumptions about the feasibility of
the project.

Business Opportunity May Have

1.
2.

An attractive return investment.

Good market scope

Importance of Business Opportunities

Success of venture depends on Selection of right type of

products
Overcome herd mentality while selecting business
(Herd mentality : How people are influenced by their peers
to adopt certain behaviors, follow trends, and/or purchase
items)
SWOT analysis
Educational & professional exposure
Available resources and location

Business opportunity Identification (sources)

Environment
Current business scene the target group
Resources
Linkages
Export-oriented / import substitution products
Mark shift or growth
Special products
Service sector

Classification of sources of Business Ideas

Consumers
Existing companies
Distribution channels
Government
Research & Development

Organized methods of generating ideas

1) Focus group
A moderator leads to a group of 8 to 14 through open
depth discussion
The group is stimulated by the comments from other
group members in creatively conceptualizing &
development of a new product idea to fulfill a market
need.

Cond
2) Brainstorming:
Brainstorming combines a relaxed, informal approach to

problem solving with lateral thinking.

It encourages people to come up with thoughts and ideas
that can, at first, seem a bit crazy. Some of these ideas
can be crafted into original, creative solutions to a
problem, while others can spark even more ideas. This
helps to get people unstuck by "jolting" them out of their
normal ways of thinking.

Cond
Therefore, during brainstorming sessions, people should

avoid criticizing or rewarding ideas

Judgment and analysis at this stage stunts idea
generation and limit creativity.

Cond
3) Problem solving method :
This is a method of for obtaining new ideas and solutions

by focusing on problems.
Here customers are then asked to identify products in
decreasing order of problems in this category.
Systematic evaluation of the results of the inventory
analysis reflects a new product idea.

Evolution of Ideas

Steps in Evolution of ideas

Idea
Germination

Preparation

Incubation

Illumination

Verification

Idea germination

Preparation

Illumination
This occurs when an ides surfaces through incubation.
It is the result of conscious preparation & subconscious

incubation.
This is the critical stage for entrepreneurs because ideas
are useless & meaningless until & unless they are
converted into realistic creations.
Illuminations stage separates day dreamers from creative
people who add value to society.

Verification
An idea once illuminated in the mind of an individual has

little meaning unless verifies as realistic & useful.

Once idea becomes clear ,a creative person will try to

verify it.
Verification is process of determining whether the idea

has some merit whether it is useful & realistic.

Example

According to Peter Drucker : 7 Innovative

Opportunities
Unexpected success & unexpected failure
Incongruity
Process Need
Industry & market structure
Demography
Changes in perception
New knowledge

Major criteria for selection of Business Opportunity

Return on
Investment

Infrastructure

Finance
Finance

Technical
Technical

Government
Government
Policy

Market
Market

3.3 CONTEMPORARY ISSUES INENTREPRENEURSHIP

3.3.1 Green entrepreneurs concept, challenges

3.3.2 Social and Ethical responsibility

What is a green entrepreneur?

Green: A product, service, or process that either benefits

the environment or reduces the negative environmental

impact of existing products, services, or processes.
Entrepreneur: A person who is willing to launch a new
venture or enterprise and accept full responsibility for the
outcome.
Putting these together, a green entrepreneur is someone

who starts a business to make or offer a product, service,

or process that benefits the environment.

Much of green is about solving old problems in new ways. For

example:
How can we create energy without polluting the environment?
How can we produce or sell goods using as few resources as
possible?
How can we keep our houses warm in winter and cool in
summer without burning fossil fuels?
How can we build vehicles that use as little gas as possible?
Green entrepreneurs are people who have (or seek out) the
knowledge, initiative, and resources to solve these problems
or find innovative ways to bring existing solutions to market.

Why Green entrepreneur?

Why Green entrepreneur?

Safe for environment
Easy disposal
Healthy
Increase greenness
Public pressure
Govt. pressure
Global warming
Decrease in forest

Green business help us in following

Example

Benefits
Healthy products
Increased life expectancy
Enhance environmental awareness
Protecting environment
Protecting various animal species
Improve agriculture
Save energy
Less pollution
Recycling of products

Challenges before green entrepreneur

Difficult to develop eco-friendly products
High cost of product
Promotion problem
Awareness problems
Costly affair for organization

Best examples
Whirlpool introduced CFC free Refrigerators.
Introduction of LED bulb.
CNG used in vehicles.
Jute bags used by various companies.
Energy efficient products introduced by various

organization like 5 star rating electrical equipment's.

ECOLOGICAL ENTREPRENEURSHIP
The following are the some of the areas where the prospective entrepreneurs can think
of learn and select carry options.

Green Organizations: Businesses, Non-profits and Community

Sustainability
Introduction to Non-profit Management
Green Technology: Assessment and Integration
Practical Ethics
Economics of Environmental and Social Issues
Critical Thinking for Business Re-design
Financial Accounting and Environmental Reporting
Strategies of Entrepreneurial Development
Green and Social Marketing
Economics of Sustainability
Ecosystem Services
Environmental Justice

3.3.2 Social & Ethical Responsibility

The main idea

Businesses must do more than provide jobs and make a

profit.
They also are expected to run their business responsibly.
Entrepreneurs play a significant role in solving several

problems prevalent in the society such as employment &

contributing to the growth of economy.
A business has to contribute to a persons happiness

,their freedom, their material, moral & spiritual growth.

Key terms
Philanthropy
Social responsibility
Environmental Protection Agency (EPA)