An entrepreneur is termed as opportunity seeker.

Business opportunity is an attractive project in terms

of adequate return which motivates the entrepreneur to accept that particular project for making investment decision. Favorable market demand available Adequate rate of returns

Objectives of identification of business opportunities

To evaluate the possibilities of developing and

utilizing physical resources of a particular region from the technical and economic point of view. To study and examine small, medium and large scale industrial activities. To recommend by certifying the usefulness of other possible industries for the region. To assess and estimate the capital, labour, transport, power, fuel, raw material for feasible industries.

 To evaluate the impact of achievement in financial

resources, production, employment and initial requirement of capital.

FACTORS AFFECTING IDENTIFICATION OF BUSINESS OPPORTUNITIES

Volume of internal demand
Availability of Industrial raw material Availability of internal resources

Forms of external assistance

Possibility of exports Analysis of performance of existing units Level of risk in the business

BUSINESS OPPORTUNITIES IN VARIOUS SECTORS

Green Business Bio-technology Event management IT enabled services Food, Fruit, Vegetables processing, Refrigration and transportation Mineral water Insurance sector Telecommunication Herbal sector Tourism

Opportunity Analysis
The emergence, working and growth of entrepreneur

is facilitated in the economies whose favourable condition exist. Schumpeter is of the opinion that an entrepreneur is always on the lookout of potential profitable opportunities and exploit them in the best interest of his enterprise.

 Acc. To Peter F. Drucker, an entrepreneur must be

capable of analyzing the opportunities and exploits them successfully. Adequate attention will be paid to 5Ms. Opportunities are of three kinds:
Additive opportunities Complementary opportunities

Breakthrough opportunities

 Additive opportunities enable the decision maker

to better utilize the existing resources without incorporating the change. Complementary opportunities Introduction of new ideas and as such do lead to certain amount of change in the existing structure. Breakthrough opportunities involves fundamental change in both the structure and character of the business.

 An entrepreneur after making appraisal of the

resources at his command, perceives a business opportunity for producing and marketing a product or service.
Search for prospective business idea
Processing for these ideas and seeking the best idea Collecting the required resources and setting up the

enterprise

Search for prospective business idea

Imagination and foresight
Idea must be viable and should ensure adequate return

on investment Source of business idea

Market observation Consumer survey Keeping track of the development Scrutinizing project profiles

Processing for these ideas and seeking the best idea

Detailed investigation of the potential ideas is carried

on
Technical feasibility Commercial feasibility

Collecting the required resources and setting up the enterprise

Required to develop a sound and efficient system of

collecting, recording and analysis of market information. Availability of right kind of information at right time to right persons thereby ensuring taking of right decisions and achieving right results.
Determination of objective of the enterprise Development of an organisation Securing adequate financial resources Efficient technological equipment Development of a market Maintenance of good relations with public authorities and

people

Problems faced by an entrepreneur

Selection of appropriate technology
Resource mobilisation External economies

Supply of trained manpower

Government regulations

Stages for setting a unit

Decision to be self employed

Identification of opportunities

Selection of the product

I Decision to be self employed

Either to work for others as an employee or for

himself/herself. Depends upon various factors

Possess right kind of skills, qualities, knowledge,

experience and attitude. Solution for employment Contributory factors like less investment, less legal formalities. Internal factors: educational and family background External factors: availability of rawmaterial, assistance from financial institutions.

II Identification of opportunities
A small scale enterprise originate and operate within the

business environment. The interaction between an enterprise and environment helps in the understanding of business which facillitates taking of various strategic and operational decisions Need to conduct SWOT and PEST analysis Required to identify opportunities and exploit them in the best interest of the organisation. Identification of market needs is essential. A business must lay proper emphasis on quality, quantity and cost in order to remain competitive and successful.

III Selection of the product

Selection based on market research
Identification of both short term and long term

prospects is essential. An entrepreneur would select the product based on his knowledge, skill, experience and motivation.

Product Design
The backbone of organisation is its products.
Evolution of operational system -> what to produce

and how to produce Image of an enterprise and its profit earning capacity -> product design Product launching depends upon market demands -> consumer behaviour. Greatly said more the time one spends on product design, better become ones chances of success.

 An entrepreneur before deciding about the product

should find answers for the following important questions:

Who will buy the product?

When they will buy?

How much they will buy? At what price they will buy? From where they will buy? What are their expectations from our product? Who are our competitors and how they are performing? How to advertise and sell?

Consideration in view while designing product

Standardisation Reliability Maintainability Servicing Reproducibility Sustainability Product simplification Quality commensurate with cost Product value Consumer quality

Measuring Economic Viability

Assessing the existing demand in the domestic and

export markets Assessing the potential demand Availability of substitutes in the market and their performance Expected demand from big units for ancillary products