Entrepreneurship

Caution

must be applied in computing the complete set of resources needed and include only those items that are considered as the real needs in venture creation

Allowance

must be considered as well because there will be times that resources will be inaquate or unsuitable

seeking process

one opportunity stood out from a number of sources,

Risk appetite

refers to the entrepreneur's tolerance of business risks.

entrepreneur

should have a control and monitoring system to serve as a check and balance of the formulated plans.

value creation proposition

the value that the product or service will offer to the target customers or the satisfaction of the needs or wants of target customers.

Opportunity Metrics.

these are considered as the opportunity's critical success factors.

conduct a consumer panel

where the actual product samples or actual services samples will be given or rendered to the panel of potential customers.

external intent

which will address the compelling needs of the target market.

STEEPLED scan

will aid the entrepreneur in deciding what product or service to set up and whether this new venture will succeed or not

business plan

will be the core guide and direction of the entrepreneur in calculating the resources needed, assesing how to obtain these resources efficiently, and running the business sustainably.

Actual sales results

will be the foundation of the consumers acceptance level and will be the basis in commercializing the product or service.

components of the OAT

will be used to channel the entrepreneur's direction in data gathering.

Anti-trust law Discrimination law Copyright, patents/ intellectual property rights Consumer protection Employment law Health and safety law Data protection law

Legal factors

• STEEPLED • Industry • New discovery or knowledge • Futuristic opportunities

Macroenvironmental Sources

* Focus Group Discussions (FGD) * Brainstorming * Brainwriting or Internet brainstorming * Problem inventory analysis

Methods of generating ideas

* Consumer preferences, interests, and perception * Competitors * Unexpected opportunities from customers * Talents, hobbies, skills, and expertise * Irritants in the marketplace such as deterents, problems, complaints, and delays * Location

Micromarket

Health consciousness Education level Attitudes toward imported goods and services Attitudes toward the person's lifestyle Attitude toward product quality and customer service Attitude toward saving and investing Emphasis on safety Buying habits Religion and beliefs

Sociocultural Factors

entrepreneurial process

is a step-by-step procedure in establishing any kind of business that an entrepreneur has to undergo

opportunity

is an entrepreneur's business idea that can be potentially become a commercial product or service in the future.

market evaluation

is conducted by the entrepreneur to assess whether the new product or service ideas will be accepted by the market using values and benefits to consumers as metrics.

Innovation

is inevitable as the world constantly changes.

Recognizing the potential market

is really one of the most difficult tasks to do. It involves tedious research and analysis to ensure success. This process is very critical, especially for budding entrepreneurs whose capitalization comes from hard-earned money

vision statement

is simply defined as what the business should do in the future.

opportunity seeking

is the first step and is the most difficult process of all due to the number of options that the entrepreneur will have to choose from.

3s ( Seeking, Screening, and Seizing) of opportunity spotting and assessment

is the framework that most of the promising entrepreneurs use to finally come up with the ultimate product or service suited for a specific opportunity

Opportunity Seizing

is the last step in opportunity spotting assessment. This is the "pushing through" with the chosen opporunity.

Opportunity screening

is the process of cautiously selecting the best opportunity.

Innovation

is the process of positively improving an existing product or service.

Scanning the marketing Environment

is the starting point of any new venture that involves understanding and knowing the intricacies of the macro environment, microenvironment, and internal environment.

Breakthrough Innovation Technological Innovation Ordinary Innovation

3 Types of innovation according to the degree of distinctiveness

idea stage, concept stage, product development stage, test marketing stage Commercialization stage

5 key stages of product or service planning and development process.

operations, marketing and sales, human resources, finance, and strategy implementation.

All aspects of the business plan should be critically observed from ____

multiple brand comparisons, risk analysis, level of repeat purchases, or intensity of preference analysis (Histicg, 2010).

Consumer preference will largely be based on methods such as

Developing a business plan

Entrepreneurs should formulate a business plan when they have already spotted and assess the opportunities for a market.

Location

Often, entrepreneurs just have to look at their ecosystem and they will be able to spot a business opportunity right away.

Unexpected opportunities from customers.

Oftentimes, the most brilliant ventures come from the most unexpected opportunities. It may happen in unlikely situations, unlikely places, and with unlikely people.

product or service planning and development process.

The refining process called

Technological factors

These are composed of innovation of an existing technology or an invention of a new one mostly on applied science and engineering research areas

New discovery or knowledge

These are new trends that can be the core business model of a new venture.

STEEPLED

This represents the general environment where the entrepreneur can identify business opportunities from and where the future business is about to operate.

Test Marketing stage

This stage validates the work done from the first three stages to measure success in the commercialization of the product or service.

Has superior value to customers Solves a compelling problem, issue, need, or a want Is a potential cash cow Matches with the entrepreneur's skills, resources, and risk appetite

business opportunity elements

answers in OAT

guiding principles of the entrepreneur in writing the business plan.

seizing process

involves refining and developing this opportunity

time

must be considered by the entrepreneur in screening the opportunities at hand, as it is considered one of the most critical resources of an entrepreneur

internal intent

the main objective that the business will accomplish in the entrepreneur's life

business opportunity elements

the most important elements that are always present in a compelling opportunity.

Conversational interviews

are conducted to understand consumer preference on physical characteristics and attributes of a product or the physical evidence and characteristics of a service.

Opportunities

are limitless for an entrepreneur who is keen on what happens in his or her environment

Consumers

are reliable sources of opportunity information because market needs originate from them.

Population growth rate Age distribution and life expectancy rates Gender distribution Social classes Family size and structure Minorities

Demographic factors

Growth rates Inflation rates Interest rates Exchange rates Unemployment trends Labor costs Stages of business cycle Trade and patterns Level of consumers' disposable income Monetary policies Fiscal policies Price policies Stock market trends

Economic factors

Irritants in the marketplace such as deterents, problems, complaints, and delays

Generally, entrepreneurs see opportunities in situations where there is a recurring problem or sometimes when there is no more hope in solving the problem.

Idea stage

In this stage, the entrepreneur determines what are the feasible products or services that will perfectly suit the opportunity.

Innovation

It is a key driver for economic growth.

screening process

This opportunity was tested according to its attractiveness and feasibility in the ___

four aspects of entrepreneurial process

1. Opportunity spotting and assessment 2. Developing a business plan 3. Determining the capital needed 4. Running the business

Determining the capital needed

A big idea can never be translated into reality if the entrepreneur's resources are limited. Therefore, it is mandatory in the entrepreneurial process to calculate the resources needed to establish the business and compare this against the entrepreneur's current resources.

Commercialization stage

Also called the launch stage. While the product has now begun to be distributed and sold, these may be done on limited basis. People involved in this stage ensure that the goals of the product/service development5 process are achieved and are in line with the business plan.

(a) no destructive criticism or judgement is allowed, (b) wilder ideas are accepted, (c) more ideas are preferred, and (d) improvement of others' ideas is allowed

Brainstorming rules

Talents, hobbies, skills, and expertise

Business opportunities do not just come from outside forces, but also from within the entrepreneur. The entrepreneur's talents, hobbies, skills, or expertise can be a source of business opportunity.

Weather Climate change Laws regulating environment pollution Air and water pollution Recycling Waste and management Attitude toward "green" or ecological products Endangered species Attitude toward and support for renewable energy

Environmental factors

Competitors

Recognizing and understanding potential competitors will aid the entrepreneur to develop a product or service that is unique and will surely stand out from the competition.

Legal factors

Related with political factors, legal factors are government laws and regulations that can restrict or allow business activities.

sociocultural, technological, economic, environmental, political, legal, ethical, and demographic factors.

STEEPLED stands for..

Brainstorming

Similar to an FGD, brainstorming is an activity that allows the participants to share creative ideas by following rules

Basic infrastructure level Rate of technological change Spending on research and development Technology incentives Legislation regarding technology Communication infrastructure Access to newest technology Internet infrastructure and penetration

Technological factors

Concept stage

The developed idea will undergo a consumer acceptance test. This test includes getting the initial reactions of the primary target market and the distribution channel.

Product Development stage

The entrepreneurs leverages on the information generated from the prospective customers via the concept stage. Actual reactions from prospective customers are determined.

Futuristic opportunities

These are projected new opportunities that can possibly affect the new business while it is running.

Demographic factors

These are the characteristics of the people in the target market

Consumer preferences, interests, and perception.

These are the current needs and wants of a potential customers that should be discovered right away by a budding entrepreneur. This way, he or she will be able to take a chance of the opportunity.

Ethical factors

These are the factors that will serve as an entrepreneur's guide on how to be ethical in running business.

Political factors

These factors are mostly induced by government policies and administrations, which can have a strong effect in the entrepreneur's business.

Economic factors

These factors play a vital role in the scanning of marketing environment because economic factors directly affect any business venture.

Sociocultural Factors

These factors represent a general view of a locality's traditions, customs, beliefs, norms, and perception.

Environmental factors

These factors should be given much importance in conducting a business especially when the world has already suffered severely from human-induced calamities.

Opportunity Metrics.

These factors will approximately determine the attractiveness of the new venture depending on the total scores that it will generate and the risk appetite of the entrepreneur.

Technological Innovation

These innovations occur more frequently that breakthrough innovation. These innovations are technological advancements of an existing product or service. These innovation need to be protected, too.

Ordinary Innovation

These innovations occur ordinarily as the name implies. They are commonly originating from 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.

Breakthrough Innovation

These innovations, which may also include inventions, occur infrequently as these establish the platform on which future innovations in an area are developed. Must be protected by a patent, a trade secret, or a copyright.

Brainwriting or Internet brainstorming

This is exactly the same as brainstorming except that channel used is not face-to-face, but in writing or online. The results of brainwriting or Internet brainwriting usually take longer, as the answers depend on the availability of the participants in answering the questionnaires online

Opportunity Seizing

This is the "pushing through" with the chosen opporunity. Entrepreneurs should make the best out of this opportunity, and they should exert effort and full dedication for the success of the new venture.

Running the business

This is the part where the entrepreneur should use the resources allocated for the new venture. The business plan prepared in step 2 should already have been implented.

Industry

This is the source of current trend on what is happening in the industry where the future business will belong to

Problem inventory analysis

This method is similar 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 problem(s) of a potential product or service instead of generating the ideas from them.

Scanning the marketing Environment

With this process of scanning the general environment, an entrepreneur can recognize various opportunities and at the same time understand thoroughly the arena where the future business will operate.

business plan

a comprehensive paper that details the marketing, operational, human resource, financial, strategic direction, and tactics of the business.

Focus Group Discussions (FGD)

a very open, freeflowing, and in-depth discussion with a group of people eho can provide insightful ideas about a new product or service that will fill a market need.

Opportunity Attractiveness Test (OAT)(Youngleson, 2009)

aims to assist entrepreneurs in ensuring that the opportunity that they will venture into is an attractive and feasible prospect.