Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
{
Small Business Enterprises
Lesson 2
Formation of Business Enterprises
Any business venture starts with an idea and/or presence of
an opportunity .
Opportunity Recognition is the process of identifying potential
new products/service which may lead to promising business
Identifying business opportunities require entrepreneurial
alertness i.e. readiness to act on existing but unnoticed
business opportunities.
Opportunities when well aligned with individuals knowledge,
skills and aspirations makes them easier to be spotted.
The opportunity may involve providing a new product on the
market or joining the market which is not adequately served.
Starting a Business Enterprise
Good planning and the right strategy can help to successful
exploit the business opportunities.
May need to consider how you intend to start the business
venture i.e. starting from scratch, buying existing business,
or franchising.
Starting a Business Enterprise
These are business ventures that started from scratch.
Motivations includes:
Recently invented or newly developed product that can be sold.
To tap into unique resources available to you i.e. location, new
technology, powerful network of connections etc.
Seeking for challenges and prove that you can succeed.
Hope to avoid undesirable features of existing companies etc
Three types of business ideas that develop into start-ups:
Start-up Business
1. Type A Ideas (New Market)
Startup ideas that are centered around providing customers
with an existing product not available in the market. e.g.
Tapping military intelligence to take the existing product to
civilian markets.
2. Type B Ideas (New Technology/Product)
Startup ideas involving new technology, centered around
providing customers with a new product.
Risky as there is usually no model for success to follow
though with tremendous potential i.e. headphones for both
music and answering phone call.
Start-up Business
Example:
Targeting the "New Age"
beverage market by
selling soft drinks with
nutritional value
New Market
Type A Ideas
Example:
Using high-tech
computers to develop a
simulated helicopter ride
Type B Ideas
New Technology
Example:
Developing a personal
misting device to keep
workers cool
Type C Ideas
New Benefit
Types of Ideas that Develop
into Startups
3. Type C Ideas (New Benefits)
Start-up ideas centered around providing customers with an
improved products.
Common sources of business ideas includes the following:
1. Personal Experiences i.e. knowledge and technical skills gained
Start-up Business
