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5.

Political Factors – these factor are mostly


induced by government policies and
administration, which can have a strong
effect in the entrepreneur’s business

Government stability
Bureaucracy
Corruption level
Tax level
Freedom of press
Rule of Law
Government effectiveness
Political rights
 Legal Factor- related with political factors,
legal factors are government laws and
regulation that can restrict or allow business
activities
 Anti- trust Law
 Discrimination Law
 Copyright law, patents intellectual property
rights
 Employment law
 Health and safety law
 Data protection law
Ethical – these are factors that will serve as an
entrepreneur’s guide on how to be ethical in
running the business.
-ethical advertising
-Accepted accounting, management and
marketing standards
-attitude towards counterfeiting and breaking
patents
-attitude toward development and well being
of employees
8. Demograhic – these are the characteristics
of the people in the target market.
-Population growth rate
-Age distribution and life expectancy rates
-social classes
-Family size
-Minorities
1. Focus Group discussion- in this method, a
moderator handles a very open, free-flowing,
and in-depth discussion with a group of people
who can provide insightful ideas about a new
product or service that will a market need.
2. Brainstorming- Similar to FGD, brainstorming is
an activity that allows the participants to share
creative ideas using the following rules ;
a. No destructive criticism is allowed
b. Wilder ideas are accepted
c. More ideas are preferred
d. Improvement of other ideas is allowed
3. Brainwritting or internet brainstorming-
this is exactly the same as brainstorming
except that the channel used is not face to
fac, but in writing or online
4. Problem inventory analysis- This method is
siilar to the FGD except that the participants
are already given an inventory of product or
service problems. The participants will just
identify from the list given the compelling
problems of a potential product or service
instead of generating the ideas from them.
- Is the process of cautiously selecting the best
opportunity. the selection will depend on the
entrepreneur’s internal intent. The main
objective that the business will accomplish in
the entrepreneur’s life, and the external
intent, which will address the compelling
needs of the target market.
- Note should apply due diligence and
independent judgement in selecting
opportunities and eliminate those which are
not within entrepreneur’s risk appetite
RISK APPETITE –refers to the entrepreneur’s
tolerance of business risk.
Time – must be considered by the
entrepreneur’s in screening the opportunities
at hand as it considered one of the most
critical resources of an entrepreneur’
An entrepreneur should say no to an
opportunity if it does not contain any of
these business opportunity element
1. Has superior value to customer
2. Solves a compelling problem, issue a need
or a want
3. Is a potential cash cow
4. Matches with the entrepreneur’s skills,
resources, and risk appetite.
 -aims to assists entrepreneur’s in ensuring that
the opportunity that they will venture into is an
attractive and feasible prospect
1. The concept and the strategy- entrepreneur
should think of the reason for the business
existence he can do so by crafting a vision
statement. Vision statement –defined as what
the business should do in the future.
value creation proposition-the value that the
product and services will offer to the target
customer or the satisfaction of the needs or
wants of the customer
Seizing an opportunity
- Is the last step in opportunity spotting and
assessment. This is the “ pushing through”
with the chosen opportunity. Entrepreneurs
should make the best out of this opportunity,
and they exert effort and full dedication for
the success of the new venture the
entrepreneur’s idea can be any type of
innovations listed here:
- Innovation- is the process of positively
improving an existing product or service. It is
a key driver for economic growth.
 1. Breakthrough Innovation- which may also
include inventions, occur infrequently as
these establish the platform on which future
innovations in an area are developed.
Protected by patent, copyright and
trademark
 2.Technological innovation – these innovation
occur frequently than breakthrough
innovation. Are technological advancements
of an existing product or service. Examples
wireless fidelity, loptop etc.
3. Ordinary Innovation- occur ordinarily as the
name implies they are commonly originating
from the market analysis and technology pull
instead of a technology push. This means
that the market has a strong influence in the
implementation of an innovation.
-in the seeking process one opportunity stood out
from a number of sources . This opportunity was
tested according to its attractiveness and
feasibility.in sezing it involves refining and
developing this opportunity this is called product
or service planning and development process.
5 stages:
1. Idea stage – the entrepreneur determines what
are the feasible product or service that will
perfectly suit the opportunity. Product and
services that are unappealing is eliminated in
this stage.
2. Concept stage- once the acceptable product
or service has already been identified it will
go through the concept stage. In this stage,
the developed idea will undergo a consumer
acceptance test.
3. Product development stage- in this stage the
entrepreneur leverages on the information
generated from the prospective customers
via the concept stage. Actual reactions from
prospective customers are determined.
4. Test Marketing stage – this stage validates
the work done from the first three stages to
measure success in the commercialization of
the product and services.
5. Final stage / or recognizing the potential
market – is really one of the most difficult
task to do. It involves tedious research and
analysis to ensure success