Chapter 2

Recognizing
Opportunities and
Generating Ideas
Bruce R. Barringer
R. Duane Ireland
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-1
 Chapter Objectives
1 of 2

1. Explain why it’s important to start a new firm when

its “window of opportunity” is open.
2. Explain the difference between an opportunity and
an idea.
3. Describe the three general approaches entrepreneurs
use to identify opportunities.
4. Identify the four environmental trends that are most
instrumental in creating business opportunities.
5. List the personal characteristics that make some
people better at recognizing business opportunities
than others.
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 Chapter Objectives
2 of 2

6. Identify the five steps in the creative process.

7. Describe the purpose of brainstorming and its use
as an idea generator.
8. Describe how to use library and Internet research to
generate new business ideas.
9. Explain the purpose of maintaining an idea bank.
10. Describe three steps for protecting ideas from being
lost or stolen.

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 What is An Opportunity?
1 of 2

An opportunity is a favorable
Opportunity Defined set of circumstances that
creates a need for a new
product, service, or business.

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Window of opportunity
Internet serch engine
Google
Maturity
Altavista Today, it would be
very difficult for a
grow new start-up search
engine firm to be
successful.
Yahoo emerge

95 98
window of opportunity. Tipe of period which a firm 2-5
can enter new market
 What is an Opportunity?
2 of 2

Four Essential Qualities of an Opportunity

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 Three Ways to Identify an Opportunity

Now let’s look at the three approaches

entrepreneurs can use to identify an opportunity,

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 First Approach: Observing Trends
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• Observing Trends
– Trends create opportunities for entrepreneurs to pursue.
– The most important trends are:
• Economic forces
• Social forces
• Technological advances
• Political action and regulatory change
– It’s important to be aware of changes in these areas.

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 First Approach: Observing Trends
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Environmental Trends Suggesting Business

or Product Opportunity Gaps

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 Trend 1: Economic Forces
Economic trends help determine areas that are ripe for new
start-ups and areas that start-ups should avoid.

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https://rebajatuscuentas.com/pe

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 Trend 2: Social Forces
Social trends alter how people and businesses behave and
set their priorities. These trends provide opportunities for
new businesses to accommodate the changes.

https://www.youtube.com/watch?v=QEsUG_XNkSQ

0.57s 2-12
 Trend 3: Technological Advances
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Examples of Entire Industries

Advances in technology that Have Been Created as the
frequently create business Result of Technological
Advances
opportunities.
• Computer industry
• Internet
• Biotechnology
• Digital photography

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 https://chazki.com/

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 Trend 4: Political Action and Regulatory
Changes
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General Example
Political action and Laws to protect the environment
regulatory changes also have created opportunities for
provide the basis for entrepreneurs to start firms that
opportunities. help other firms comply with
environmental laws and
regulations.

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 Second Approach: Solving a Problem
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• Solving a Problem
– Sometimes identifying opportunities simply involves
noticing a problem and finding a way to solve it.
– These problems can be pinpointed through observing trends
and through more simple means, such as intuition,
serendipity, or change.

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 Second Approach: Solving a
Problem
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• https://www.youtube.com/watch?v=mPtmT
XT5-78

2.44 2-17
 Third Approach: Finding Gaps in the
Marketplace
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• Gaps in the Marketplace
– A third approach to identifying opportunities is to find a
gap in the marketplace.
– A gap in the marketplace is often created when a product or
Product or Service in the GAP filled
service is needed by a specific group of people but doesn’t
market
represent a large enough market to be of interest to
mainstream
Supermarket (WONG, retailers or manufacturers.
Metro,, Convenience store. (OXXO,
Tottus) TAMBO)
Hair style salón (women) Barber salón (men)
Security (few companies, Verisure is a company that
Prosegur, offer Alarms for offers Alarms for a house with
houses) the latest technology.
CokeCopyright
with supgar Coke
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as Prentice Hallcalories 2-18
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 Classroom Assignment

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