ENTREPRENEURIAL

PROCESS

INSPIRING CREATIVE AND INNOVATIVE MINDS

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The Entrepreneurial Process

Step 4

Managing and growing the

entrepreneurial firm

Step 3
Step 2
Step 1

Moving from an idea to

an entrepreneurial firm
Developing
successful business
ideas
Deciding to
become an
entrepreneur

Sources of Opportunities

Entrepreneurial
Opportunity

A situation in which a person can

exploit a favourable set of
circumstances or new business
idea that has the potential to
generate a profit, through the
creation of new products or
services or business

Entrepreneurial OPPORTUNITIES

Exist when there is room to offer a

product or service in a particular market
which fulfill customers demand
Two situations:
Product or service available but unable to
meet customer demands and preferences.
Customers need product or service that
can help to solve their problems.

Sources of Opportunities
Social
SocialChange
Change

Economic
Economic
Change
Change

opportunities

New Market
Market &&
New
DistributionChannel
Channel
Distribution

Ready
Readyavailability
availability
of
ofestablished,
established,NonNonproprietary
proprietary
technology
technology

 Step 1 : Identifying the needs and wants

Step 2 : Scanning the environment and
evaluating of self and community
Step 3 : Screening of business opportunities
Step 4 : Selecting a business opportunity and
preparing a business plan

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Opportunity Recognition Process

Environmental
Environmental
Trends
Trends
Economic
Economic
Social
Social
Technological
Technological
Political
Political
Legal
Legal
Personal
Personal
Characteristics
Characteristics of
of
an
an entrepreneur
entrepreneur
Experience
Experience
Cognitive
Cognitive
Social
Social Network
Network
Creativity
Creativity

Business,
Business,Product
Product
or
Service
or Service
Opportunity
OpportunityGap
Gap

New
New
Business,
Business,
Product &
Product &
service
service
Ideas
Ideas

SocioCultural

Economy

Macro/External
Competitors
Government
Agencies

NGOs

Internal
Structure
Culture
Resources

Customers

Suppliers

Political &
Legislation

Financial
Institutions

Micro/
Industrial
@ 2007 Zaidibahari FPPSMUTM
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Technology

External Environment

Interest
Rate?
Currency
value?

Industrial
players?

global
global

General
Macroeconomic
Condition?

Economic

Labour
Market?
national
national

International/
Export mkt?

local
local

Competitiveness?

External Environment
Socio-Cultural

Demographic
Demographic
Change
Change

Social
Social
Trend
Trend

Technological

Pure
Pure
Invention
Invention

Process
Process
Innovation
Innovation

External Environment
Political/legislation

Trade
Trade
barriers
barriers&&
tariff
tariff

regulation
regulation

National Issues

Global Issues
Political risk

Trade
Trade
agreement
agreement

taxation
taxation

Micro Environment
individuals

Monitor
Support
ing
Local
Support
Consumers
Consumers industrial
Polici
s:
Materials
Services
Polici
s:
es
Regio
Technic
es
Non-Governm
Technic
Non-Governm
nal
al,
Organisations
al,
Organisation
National/i
financia
financia
Competitors
Competitors
l,l,etc
etcntl
Suppliers
Suppliers

Financial
Financial
Institutions
Institutions

Government
Government
Agencies
Agencies

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Sources of Opportunities

The
The
Unexpected
Unexpected

The
The
Incongruous
Incongruous
ProcessNeed
Need
Process
Industry&&
Industry
mktStructures
Structures
mkt

opportunities

Demographics
Demographics
Changein
in
Change
Perception
Perception

New
New
knowledge
knowledge

Evaluating Opportunities
Competitive
Situation

Risk & Return

Real &
Perceived
values

Creation
& length

Personal skills
& goals

@ 2007 Zaidibahari FPPSMUTM

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 List as many needs and wants of UTM

students:

Food
Shelter
Entertainment
Study
Transportation
Personal life
Professional development