Chapter 3 ENT3003

SELECT ALL THAT APPLY. You can train yourself to recognize entrepreneurial opportunities by identifying changes in_____

-technology -demographics -markets identifying changes in technology, markets, and demographics, entrepreneurs find opportunities.

SELECT ALL THAT APPLY. Favorable opportunities are those that are____

-valuable -costly to imitate -rare Value, rarity, and costly to imitate make the opportunity favorable.

Why did famous explorer George Leigh Mallory climb Mount Everest?

Because it was there. Mallory saw an idea-climb the mountain.

Innovation generates more customer appeal than improvement ideas.

False .Many products over the years have been improved upon and appeal to the customers.

During the "discovery" phase of IDEATE, you are merely enhancing the ideas you identified.

False. You understand discovery is actively looking for ideas.

Openness is a more important entrepreneurial quality for new businesses than it is for existing ones.

False.No matter the type of entrepreneurial venture, openness is important.

Most inventions come from a single idea.

False.important to consider all the ideas more matter how impractical or trivial they seem

What is an example of a development strategy?

Group Brainstorming

IDEATE:

Identify, Discover, Enhance, Anticipate, Target, and Evaluate

______strategies involve taking time to think carefully about a problem by breaking it up into parts.

O Analytical. Thinking about different ways to stack items led to ways to park cars.

Part of recognizing an opportunity is the ability to evaluate ideas and identify those with the highest likelihood of success.

One framework for doing this is to rate an idea on four different dimensions: The idea may be an innovation, an invention, an improvement, or irrelevant. Of these, innovations and inventions are high in novelty, while improvements and irrelevant ideas are low in novelty

In order to start her company ___Sara Blakely spent time researching the shapewear industry.

Spanx .Spanx is the body shaping company started by Sara Blakely.

Creating opportunities is the effectuating pathway.

True .Chris Cranston created FlowDog by using what she knew in her current job and creating a new company by using that knowledge.

Habit-breaking strategies involve taking the role of an admired individual and thinking about how he or she might perceive the situation.

True .Habit-breaking involves changing the ways our mind is fixed on a usual pattern.

Entrepreneurs use prior knowledge to link seemingly unrelated events and trends.

True. Entrepreneurs in a recent study reported using prior knowledge to make connections between seemingly unrelated events and trends.

What Is Opportunity?

We define opportunity as a way of generating value through unique, novel, or desirable products, services, and even processes that have not been previously exploited in a particular context.

What is the concept that allows us to recognize opportunities even when we are not looking?

alertness .Alertness is the ability to identify opportunities in the environment.

Development strategies

are employed to enhance and modify existing ideas in order to create better alternatives and new possibilities.

Habit- breaking strategies

are techniques that help to break our minds out of mental fixedness in order to bring about creative insights.

Jason Craparo decided to replace with an online platform because people were not using them anymore.

business cards The founder of Contap saw a solution for the old business card which no one carried anymore.

The four pathways can be classified as either a discovery approach or a creation approach

classified discovery The discovery approach assumes that opportunities exist and we rely on entrepreneurs to discover them. Creating, on the other hand, assumes that the entrepreneur creates the opportunity rather than simply uncovering it.

The most common form of value is

economic value: the capacity to generate profit.

Alertness

entrepreneurs who have alertness, which is the ability to identify opportunities in their environment.21 This means that entrepreneurs not necessarily rationally and systematically search their environment or their particular information sets for opportunities. Rather, they become alert to existing opportunities through their daily activities-in some instances, they are even taken by surprise by what they observe.

During the "target" process of IDEATE, you are

figuring out where to sell your product. You know the target phase is figuring out where to try out the product.

For an opportunity to be viable, the idea must

have the capacity to generate value. An idea needs an economic value to make it a good opportunity.

An opportunity has social value if

helps to address a social need or creates social good. Environmental value exists if the opportunity protects or preserves the environment.

Typically, the first step in the process for an entrepreneur is

idea generation .Generating lots of ideas is the first step.

What does IDEATE stand for?

identify, discovery, enhance, anticipate, target, and evaluate Identify, discovery, enhance, anticipate, target, and evaluate are part of the model for opportunity recognition.

Relationship-seeking strategies

involve consciously making links between concepts or ideas that are not normally associated with each other.

Analytical strategies

involve taking time to think carefully about a problem by breaking it up into parts, or looking at it in a more general way, to generate ideas about how certain products or services can be improved or made more innovative.

Search strategies

involve using a stimulus to retrieve memories in order to make links or connections based on personal experience that are relevant to the current problem.

prior knowledge

is information gained from a combination of life and work experience.

the effectuate pathway

is more about creating opportunities rather than simply uncovering them. To identify opportunities, this approach advocates using what you know, whom you know, and who you are.

new idea that constitutes an opportunity, whether it is a product, service, or technology, must be

new or unique or at least a variation on an existing theme that you are confident people will accept and adopt. The idea must involve something that people need, desire, and find useful or valuable. Or there must be a significant problem to solve. Finding solutions to problems and meeting customer needs are the essence of opportunity recognition.

the design pathway

one of the most complex, yet it can be the most value-creating approach. It can uncover high-value opportunities because the entrepreneur is focusing on unmet needs of customers-specifically, latent needs (needs we have but don't know we have). Design is at the top of the staircase in Figure 3.3 and is considered the most complicated pathway because of the practice and imagination it takes to uncover true unmet needs.

An apparent way of generating value through unique, novel, or desirable products, services, and processes that have not been previously exploited in a particular context is

opportunity . Entrepreneurs see an opportunity in many contexts which can be something new or something to improve upon.

Interpersonal strategies

require group interaction; ideas are generated as a group and the group builds on each other's ideas. Brainstorming is a very common interpersonal tool for generating ideas that emphasize the creativity of the group over the individual.

Two other forms of value

social value and environmental value-are less understood but equally important.

Imagination-based strategies

strategies involve suspending disbelief and dropping constraints in order to create unrealistic states or fantasies.

pattern recognition:

the process of identifying links or connections between apparently unrelated things or events. Pattern recognition takes place when people "connect the dots" in order to identify and then build on opportunities.28

The search pathway

used when entrepreneurs are not quite sure what type of venture they want to start, so they engage in an active search to discover new opportunities.

seven main strategies that we believe are effective in the generation of entrepreneurial ideas:

• analytical strategies • search strategies • imagination-based strategies • habit-breaking strategies • relationship-seeking strategies • development strategies • interpersonal strategies