Warm-up: Record the definition in your notes for the following vocabulary words: B2B (business to business) ventures that sell product and services to other businesses business broker* business opportunity – a consumer need or want that can potentially be met by a new business calculated risk – risk in which potential costs and benefits are carefully considered before starting a business * Can be found in the textbook Section 3.1 Understanding Entrepreneurial Trends

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

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

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. Jet Blue homesources its customer support to employees who work from home in Salt Lake City, Utah Spike from people who lost jobs due to cutbacks. Also, the concept of homesourcing (refers to the transfer of service industry employment to homebased employees) Section 3.1 Understanding Entrepreneurial Trends

Click this logo to view video clip 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. John Doeer, a famous venture capitalist said that green products could be the largest economic opportunity of the 21st century Issues related to sustainability include food quality, energy resources, pollution and human rights. Click this logo to view video clip Section 3.1 Understanding Entrepreneurial Trends

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. Social entrepreneurs can be both non-profit and for-profit businesses but they measure their success by the positive impact they have on society. Historical examples can include: Maria Montessori (Italy) - Developed the Montessori approach to early childhood education. John Muir (U.S.) - Naturalist and conservationist, he established the National Park System and helped found The Sierra Club. Florence Nightingale (UK) - Founder of modern nursing, she established the first school for nurses and fought to improve hospital conditions. Section 3.1 Understanding Entrepreneurial Trends

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

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

Outsourcing Benefits of Outsourcing more efficient lowers regulatory compliance burden Benefits of Outsourcing saves time speeds up projects saves money attracts investors (redirects capital into money making activities thus) Section 3.1 Understanding Entrepreneurial Trends 11

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

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 A well-known example of this approach to corporate venturing is Intel Capital. Intel has invested in hundreds of start-ups over the years for two symbiotic reasons – as a means of supporting the growth of its core microprocessor business, and to provide it with access to the latest emerging technologies in its sector. In addition, it has made good financial returns on its investments over the years. Intel Capital's vision is to be the preeminent global investing organization in the world. Our mission is to make and manage financially attractive investments in support of Intel's strategic objectives. Section 3.1 Understanding Entrepreneurial Trends

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 Connection is when you bring things together that are not usually connected. A connection often leads to a discovery which leads to an invention. Application is going beyond the original intended us to produce a wealth of innovative new ideas Entrepreneurial thinking is about generating ideas and recognizing opportunities. Section 3.1 Understanding Entrepreneurial Trends

Thinking Creatively About Opportunity Practice brainstorming. Connect unrelated items. Find creative solutions to common problems. Look at ordinary items in new ways. Section 3.1 Understanding Entrepreneurial Trends 15

Removing Roadblocks to Creativity Believe in yourself Entertain all ideas Relax Have a playful, positive attitude Use free-spirited, non-logical thinking (it doesn’t have to make sense right away!) Learn from experience (even failing has value if you learned something) Section 3.1 Understanding Entrepreneurial Trends

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

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

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

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

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

Practice Activity Find a team of no 4-5 to work with. Choose one of the 20 Trends to report on. Watch video Top 20 Trends of 2011 Take notes on the trend you picked. 4. Discuss with your group the following: Identify specific existing products that could be connected with the selected trend. Who is the customer for this trend in terms of demographics, geographics & psychographics? Why? Does your group feel this is a trend that will continue to gain market share? Why or why not? What economic factors might influence the trend? 5. Report out to the class.