Recognizing Opportunity 1 Examine current entrepreneurial trends Identify ways to recognize opportunity Discuss how to think creatively about opportunity Distinguish the difference between an idea and an opportunity Section 3.1 Understanding Entrepreneurial Trends 3.1

Recognizing Opportunity 2 The ability to recognize new opportunities and to think creatively is essential for success in today’s market. Section 3.1 Understanding Entrepreneurial Trends 3.1 A business opportunity is defined as a consumer need or want that can potentially be met by a new business.

Recognizing Opportunity 3 Current Entrepreneurial Trends Section 3.1 Understanding Entrepreneurial Trends 3 Internet businesses home-based businesses “green” businesses social entrepreneurs technology outsourcing strategic alliances corporate ventures

Recognizing Opportunity 4 Internet Businesses The Internet has transformed the way business is conducted. An online business can reach customers around the world. online business a company that conducts business by means of the Internet Section 3.1 Understanding Entrepreneurial Trends

Recognizing Opportunity 5 Home-based Businesses Home-based businesses are growing rapidly and now represent 53% of all small businesses. Homesourcing refers to the transfer of service industry employment from offices to home-based employees. Section 3.1 Understanding Entrepreneurial Trends Jet Blue homesources its customer support to employees who work from home in Salt Lake City, Utah

Recognizing Opportunity 6 Green Business What is a green business? Green business design their business practices so that they promote sustainability. sustainability When a venture seeks to achieve economic, environmental and social goals without compromising the ability of future generations to meet their own needs. Section 3.1 Understanding Entrepreneurial Trends Click this logo to view video clip

Recognizing Opportunity 7 Social Entrepreneurs social entrepreneurs an entrepreneur who recognizes a social problem and uses entrepreneurial methods to create, organize and manage a venture to address it. Section 3.1 Understanding Entrepreneurial Trends

Recognizing Opportunity 8 Technology Section 3.1 Understanding Entrepreneurial Trends Entrepreneurs that know how to use technology to improve their business processes create a stronger competitive advantage and have a greater chance of success.

Recognizing Opportunity 9 Outsourcing Outsourcing is hiring people and/or other companies to handle tasks that a business can not do or chooses not to do itself. outsourcing contracting with other companies for services Section 3.1 Understanding Entrepreneurial Trends

Outsourcing Section 3.1 Understanding Entrepreneurial Trends 10 Benefits of Outsourcing more efficient saves time saves money lowers regulatory compliance burden speeds up projects attracts investors (redirects capital into money making activities thus)

Recognizing Opportunity 11 Strategic Alliances strategic alliance a partnership formed with another company for the purpose of supplying a product or service Section 3.1 Understanding Entrepreneurial Trends A strategic alliance is a partnership among companies.

Recognizing Opportunity 12 Corporate Ventures Corporate ventures exist to nurture and develop start-up businesses for their parent company. corporate venture a new venture started inside a larger company Section 3.1 Understanding Entrepreneurial Trends

Recognizing Opportunity 13 Creativity and Innovation Creativity is the activity that results in innovation. It generally involves: Connection Discovery Invention Application innovation finding a new way of doing things Section 3.1 Understanding Entrepreneurial Trends Entrepreneurial thinking is about generating ideas and recognizing opportunities.

Thinking Creatively About Opportunity Section 3.1 Understanding Entrepreneurial Trends 14 Practice brainstorming. Find creative solutions to common problems. Connect unrelated items. Look at ordinary items in new ways.

Recognizing Opportunity 15 Top Trends of 2013

Recognizing Opportunity 16 Removing Roadblocks to Creativity Section 3.1 Understanding Entrepreneurial Trends Believe in yourself Entertain all ideas Relax Have a playful, positive attitude Use free-spirited, non-logical thinking Learn from experience

Recognizing Opportunity 17 Idea Versus Opportunity You generate ideas by thinking creatively. Opportunities are ideas with commercial potential. Section 3.1 Understanding Entrepreneurial Trends

Recognizing Opportunity 18 Idea Versus Opportunity Most good opportunities result from an entrepreneur’s alertness to unmet consumer needs and/or unfilled market niches. niche a small specialized market Section 3.1 Understanding Entrepreneurial Trends

Recognizing Opportunity 19 Creative Sources of Ideas To identify creative ideas: Section 3.1 Understanding Entrepreneurial Trends Observe the world around you. Be an avid reader. Consider your interests, hobbies, and work experiences. Consult outside sources of information.

Sources of Information 20 Sources of Information trade magazines specialty magazines trade shows exhibitions newspapers the Internet government agencies Section 3.1 Understanding Entrepreneurial Trends

Recognizing Opportunity 21 Review Questions 1.Describe one (of the 8) entrepreneurial trends we looked at, that could potentially lead to a new business idea? 2.What is the difference between an idea and an opportunity? 3.What are some strategies for thinking creatively? 4.Name a source that could help you to generate new ideas.

Recognizing Opportunity 22 Class Business Proposal 1.Find a team of 4 to work with & brainstorm an idea for our student business. 2.Conduct research and prepare a “pitch” (using the PowerPoint template online) to include: Product Description Target Market Competition Competition Operational Considerations Anticipated Start-up Costs SWOT Analysis Pros/Cons

Recognizing Opportunity 23 Class Business Proposal 3. Consider feasibility factors to include: Realistic costs to start Reasonable time frame to be up & running Feasibility in terms of resources? facilities? procedures? Acceptability- must meet administration approval? Usefulness- meets a need in the school 4. Refer to evaluation online for grading criteria. 5. Present your “pitch” to the class.