Opportunity Recognition

TOPIC 2: OPPORTUNITY RECOGNITION

This topic discusses the concept of opportunity recognition as an integral aspect of the entrepreneurial process.

What is an opportunity?

According to Barringer and Ireland (2010) “An opportunity is a favourable set of circumstances that creates a need for a new product, service or business.”

Barringer and Ireland claim that a business opportunity must have four elements:

1. Attractive.

2. Timely.

3. Durable or sustainable.

4. Adds value to customers and anchored in products services or a business.

EXAMPLES OF POTENTIAL BUSINESS OPPORTUNITIES

Tourism Opportunities

1. Eco Tours into the forests and rural areas.

2. Day cruises up the rivers and waterways in the local area.

3. City bus tours.

4. Cultural tours.

5. Car rental service

Manufacturing Opportunities

1. Distribution of locally produced clothes or shoes to city retail outlets.

2. Export and distribute local commodities and resources to off‐shore buyers.

3. Transportation services for agricultural sector.

4. Building contract services.

Retail Opportunities

1. Fast‐food restaurant.

2. Boutique selling in‐demand products from off‐shore.

3. Electronics store.

High Tech Opportunities

1. Computer sales and repair services.

2. Computer school.

3. E‐learning consulting and implementation services.

4. E-Commerce.

5. Programming and gaming services.

6. Internet café.

TOPIC 4: RECOGNIZING AN OPPORTUNITY

It is said that each one of has been given two sets of eyes, ‘eyes that look and eyes that see.’ Unfortunately most people have eyes that look only. The people that have eyes that see, they see beyond looking. These are the ones that when they look at a cow, they see shoes and glue etc. whereas others only look at a cow and it is meat.

The characteristics that make some people better at recognizing opportunities than others include:

Prior Experience

Prospective entrepreneurs with prior experience in a particular industry or sector stand a good chance of identifying an opportunity from the myriad of problems facing their industry. They are more inclined to think of possible solutions on a frequent basis than someone who is not in the industry.

Intellectual Curiosity

Those who want to know why or are willing to explore new ideas as potential opportunities. The key idea here is “What If?”

Innovative and Creative

Those that can think outside of the box and can create solutions that no one has considered will see opportunities everywhere?

Networking

The successful entrepreneur will be able to network with others and explore opportunities that his or her peers and colleagues identify as potential business ventures.

Assess Risk

The potential entrepreneur can quickly identify a problem, identify potential solutions and has the ability to identify the potential risks facing any potential solution.

Motivation

The potential entrepreneur needs to be self‐motivated and a self‐starter to be able to see and pursue potential opportunities.