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ENTREPRENEURIAL OPPORTUNITYThe Oxford English Dictionary defines opportunity as A time, juncture, or condition of things favorable to an end or purpose, or admitting of something being doneor effected. If we

believe that that ends are never specified prior to the pursuit of anentrepreneurial opportunity,

but may emerge endogenously over time, we can draw our definition of entrepreneurialopportunity from the second part of the above sentence. An entrepreneurialopportunity,therefore, consists of a set of ideas, beliefs and actions that enable thecreation of future goodsand services in the absence of current markets for them (Venkataraman,

1997). For example, theentrepreneurial opportunity that led to the creation of Netscape involved (a)the idea of a userfriendlyWeb browser (Mosaic); (b) the belief that the internet could becommercialized; and, (c)the set of decision-actions that brought together Marc Andreesen (the creator of Mosaic) and JimClark (the ex-founder of Silicon Graphics) to set up base in the small townof Mountain View.In sum, an entrepreneurial opportunity consists of:1. New idea/s or invention/s that may or may not lead to the achievement of one or moreeconomic ends that become possible through those ideas or inventions;2. Beliefs about things favorable to the achievement of those ends; and,3. Actions that implement those ends through specific (imagined) neweconomic artifacts (theartifacts may be goods such as products and services, and/or entities such asfirms andmarkets, and/or institutions such as standards and norm

1. Opportunity RecognitionIf both sources of supply and demand exist rather obviously, the opportunityfor bringing themtogether has to be "recognized" and then the match-up between supply anddemand has to be implemented either through as existing firm or a new firm.Examples include arbitrage andfranchises.

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2. Opportunity DiscoveryIf only one side exists -- i.e., demand exists, but supply does not, and viceversa -- then, the nonexistentside has to be "discovered" before the match-up can be implemented.Examples include:Cures for diseases (Demand exists; supply has to be discovered); andapplications for newtechnologies such as the PC (Supply exists, demand has to be discovered).93. Opportunity CreationIf neither supply nor demand exist in an obvious manner, one or both have to

be "created", andseveral economic inventions in marketing, financing etc. have to be made,for the opportunity to

come into existence. Examples include Wedgewood Pottery, Edison'sGeneral Electric, U-Haul,AES Corporation, Netscape, Beanie Babies, and the MIR space resort.Table 1 presents a summary comparison of the three views along severaldifferentdimensions. In the next three sub-sections, we look at the nature of entrepreneurial opportunitiesand effectuation costs from each of these perspectives and develop questionsfor future research

OPPORTUNITY RECOGNITION DEFINITIONPerceiving a possibility for new profit potential through (a) the founding andformation of a new venture or (b) the significant improvement of an existingventure.

OPPORTUNITY FACTORS1. Technology2. Consumer Economics3. Social Values

4. Political Action and Regulatory Standards5. Demographics6. Natural Disasters7. Resource Discoveries

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Sources of new ideas for Entrepreneurs

Entrepreneurs frequently use the following sources of ideas:

1. Consumers the potential consumer should be the final focal point of ideas for the entrepreneurs. The attention to inputs from potential consumerscan take the form of informally monitoring potential ideas or needs or formally arranging for consumers to have an opportunity to express their

concerns. Care needs to be taken to ensure that the new idea or the needsrepresents a large enough market to support a new venture.

2. Existing Companies with the help of an established formal methods potential entrepreneurs and intrapreneurs can evaluate competitive products& services on the market which may result in new and more marketappealing products and services.

3. Distribution channels members of the distribution channels are familiar with the needs of the market and hence can prove to be excellent sources of

new ideas. Not only do the channel members help in finding out unmet or partially met demands leading to new products and services, they also helpin marketing the offerings so developed.

4. Government it can be a source of new product ideas in two ways firstly,the patent office files contain numerous product possibilities that can assistentrepreneurs in obtaining specific product information, and secondly,response to government regulations can come in the form of new productideas.

5. Research & development Entrepreneurs own R&D is the largestsource of new idea. A formal and well-equipped research and developmentdepartment enables the entrepreneur to conceive and develop successful new

product ideas.

http://abhishekkatiyar.wordpress.com/2005/07/21/sources-of-new-ideas-for-entrepreneurs-2/http://www.innovationmarketers.com/blog/http://abhishekkatiyar.wordpress.com/2005/07/21/sources-of-new-ideas-for-entrepreneurs-2/http://www.innovationmarketers.com/blog/

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