1. 4.Introduction
Opportunities can exist on paper or in the form of ideas.
Opportunities usually related to the entrepreneur’s work
experience,hobbies, or social environment.
Opportunities can be found in many ways and in many
places.
Many people see opportunities but only entrepreneur acts
upon them.

2. 4.1 Definition Of Business
Idea And Opportunity
.
business idea is a business concept that results in profits if it is
turned into a tangible product or service.
opportunity also defined as the potential to create something
new that involves change in knowledge, technology, economy,
politics, social, and demographic conditions.

3. 4.2 Sources of business ideas and
opportunities
can be obtained through primary and secondary
sources.
a) primary sources
refer to first-hand data or information
gathered directly through : -
~ observations.
~ experiments.
~ interviews.
~ surveys.

4. Observation
~ data is gathered by observing and recording the
respondent’s actions in activity.
Experiments
- experiments or product sampling is another option.

5. Interviews
- field research covers interviews with customers, suppliers,
competitors, and industry experts.
- interviews conducted in two ways : ~ personal interview
~ telephone interview
Surveys
- refers to the development of a short questionnaire with
respect to the targeted product.
- the questions should be very specific.

6. b) Secondary source
involved gathering data that have already been compiled and are
available.
it is initially conducted for one purpose using existing data
which is :-
~ reliable
~ available references
~ mass media and electronic media
although secondary source relatively inexpensive, they often
become outdated and outmoded, given that they are used for a
purpose other than for which was intended.

7. Reliable existing data
- cab be used by entrepreneur is existing data which is reliable.
- example : information obtained from annual report of companies.
Reference
- an entrepreneur can use reference such as publish information
from then library, internet and so on.
Mass media and electronic media
- advertisement and information in the newspaper, magazines and
internet.
Information on raw materials can be a business opportunity for an
entrepreneur.

8. 4.3 PROCESSING OF REGONIZING,
ANALYSING AND CHOOSING A BUSINESS
OPPORTUNITY
Identifying, analysing, and choosing business opportunities are
essential to determine if the venture can make profits and
sustains its competitiveness.
The opportunity is identify through input from consumers,
business associates, channel members, or technical people
Each opportunity must be carefully screened and evaluated.
Evaluation is the most critical element in the entrepreneurship
process.

9. Process in recognizing, analysing and
choosing business opportunity
e) Matching societal values,
a) Recognizing customer
c) Performing self-assessment community’s response or
needs and wants
people’s acceptance
d) Screening or
b) Analysing or scanning f) Preparing or constructing
choosing business
the environment a business plan
opportunities
demographics,
Industrial linkage Experience Competition
population structure,
income, and taste
Knowledge Legality
Development projects
by the public and
Study on local resouces Fixed capital
private sectors Skills
requirement, working,
capital and growth
Financial ability opportunities
Technological
New government
breakthrough
policies and regulations
Interest Business risk,
financial risk such as
credit, cash liquidy,
Import and export data Mass media and Networking loan and currency
electronic media exchange

10. Recognizing Customer Needs And
Wants
An entreprenuer has to be sensitive in identifying the
needs and wants of customers.
A need is something basic in life.
Wants are something that is more than a basic need.

11. Scanning The Business
Environment
The business environment should be analysed in terms
of :-
~demographics
~local resources
~new government policies and regulations
~data on import and export
~industrial linkage
~development projects by public and private sectors
~technological breakthrough
~sources from mass media and electronic media

12. Demographics
Are the characteristics of people in a population.
If entrepreneur studies the demographic of his customer,
he/she will be in a better position to predict the product or
servis that they will buy.
Needs and wants are based on the structure, income, and taste
of population.

13. Local Resources
Still an abundance of local resources that are
untapped and have the potential to become
investment opportunities.
Fountains and natural attractions at certain location
can be turned into business ideas

14. New Government Policies And
Regulations
An entrepreneur can identify business opportunities
by referring to the existing law and government
regulations.

15. Data on import and export
The continuous increase in the value and quantity of
imported and exported products or services reflect a
potential market at the local and international level.
The same goes for policies on import substitution
industries and export promotion
These issues can be seen as profitable opportunities.

16. Industrial linkage
An entrepreneur can identify the industry that
requires input from other industries.
This will develop linkage among industries of the same
sector or different sectors.

17. Development projects by public
and private sectors
There are various developmental programmes by the
government and firms that have directly or indirectly
opened up business opportunities for entreperneurs.

18. Technological breakthrough
New technological breakthrough can create new
markets and opportunities for business

19. Mass Media And Electronic Media
Can be sources for generating business ideas.
Example : a job advertisement posted by a company foor the
vacancy of sales executive can be consideras a business idea to
the entrepreneur.

20. Performing Self-evaluation
Self-evaluation must be made before making a commitment.
Should be based on the ~ individual’s experience
~ knowledge
~ skills
~ financial ability
~ interest
~ networking ability

21. Experience
An entreperneur runs a business that’s suit his
experience in the profession.
The intelligence to find an opportunity from past
experience can be a way to gain success in business.
Knowledge
Entreperneur has to be equipped with the knowledge
on a operating a business.

22. Skills
Entreperneur must have the necessary skills in
carrying out his job.
Skills usually born from experience and knowledge.
Advantages that is difficult to obtain.

23. Financial ability
Business must be parallel with the financial ability of
the entrepreneur.
Capital is the most basic aspect to think about before
opening up a business.
Start a small business with entrepreneur existing
capital.
Growing business will help the entrepreneur in
securing financing for expansion.

24. Interest
Is an important aspect
Must be taken seriously
It can give self-confidence
Entreperneur will be able to concentrate on his
profession

25. Networking ability
Entreperneur needs to know how to reduce
unnecessary procedures and bureucracy in the
business.
Should be mindful.

26. assessing society’s values, community’s
response, or society’s acceptance
Chemistry between a business ideas and the society is
an important aspect that must taken before starting
a business.
Business opportunity must be consistance.

27. choosing a business opportunity
Criteria that must be choose by entrepreneur in
business opportunity is :-
Legality
Competitors
Capital requirement
Risk
Legality
The sugestion of business ideas must be prove by the
law.

28. Competitors
Those who are in the same business
Have a potential to serve the entrepreneur ‘s
customers.
Entrepreneur can identify competitors by asking
customers from his existing business.
Competitors are identify ~ the entrepreneur should
identify the strength and weeknesses of his
competitors in term of organizational terms.

29. Capital requirement
Capital – the amount invested in the company.
Three types of capital :
a) Fixed or permanent capital
Fixed capital is the amount of the capital that been
used to buy the asset of in the company.

30. b) Working capital
Referred to as operating capital
Also known as assets of business that can be used to
supports business operations.
Often used to pay bills and salaries, to buy
inventories and others.
c) Plantation or growth capital
Not related to current business situation.
Used to help small business change its primary
direction.

31. Risk
Define as a period of uncertainly experienced by a
business as a result of unforeseen events which lead
to either poor earnings and resultant failure.
Entrepreneur should be aware of the risks.

32. Risks face by entrepreneur based on the following
aspect :
The level of difficulties in entering the business
field
The size or amount of capital to be invested
The amount of profit that can be gained from
the revenue
The ability and competency of existing
workforce or human resources in managing the
business
Management of energy resources
The product’s potential to penetrate the market

33. Two types of risk :
i. Business risk
ii. Financial risk
i. Business risk
The factors which have the tendency and potential of
adversely affecting a business operation and ultimately its
profitability.
Two types of business risk :
i. controllable ~ can be manage by entrepreneur
ii. Uncontrollable ~ almost impossible to prevent

34. ii. Financial risk
Risk associated with any form of financing
Four categories :
i. Credit risk ~ risk when clearing or settlement of
payments are not made when due.
ii. Liquidity risk ~ risk of insufficient liquid resources to
make all payments on the due date.
iii. Loan risk ~ a form of financing whereby entrepreneur
borrows money as a source of capital to conduct his
business.
iv. Currency exchange risk ~ the high flexibility and changes
in currency value impose a high risk.

35. 4.3.6 Constructing the Business Plan
The final step taken by entrepreneur in recognizing,
analysing and choosing a business opportunity.

36. 4.4 APPROACHES TO SEEKING A
BUSINESS IDEA
There are several approaches of seeking business
ideas
Fulfilling needs and interests
Analysing life problems
Diversifying the usage of goods
Observing changes in the community
Using the latest technology
Observing and establishing a network

37. Fulfilling needs and interests
Ideas for setting up business are found from
an individual’s different needs or interest
that are constantly changing.
Analysing life problems
Problems experienced in life can sometimes
provide a good idea for starting a business if
the enterpreneur thinks creatively

38. Diversifying the usage of goods
 Today’s community prefers devices with multi-
purpose usage
 The concept of recycling also a source of starting a
business
Observing changes in the
community
 Those who are alert with the changes in the
community’s lifestyle

39. Using the latest technology
 Changes in technology can change the structure of
the industry and the market
 Give’s an entrepreneur the opportunity to innovate his
products and services
Observing and establishing a
network
 Create a network at the workplace and make it a
source of innovative ideas

40. 4.5 GUIDLINES IN CHOOSING A
BUSINESS IDEA & opportunity
The guidelines in choosing a business idea or
opportunity are:
Data collection and research
Preparation of a complete business plan
Establishnment of linkages or networks
Funding
Hiring of a workforce if necessary
Confidence and good time management

41. Data collection and research
 Entrepreneur collects information as much as possible
pertaining to the business
 Carry’s out research in relation to the services, products,
or relevant industries
 Methods to produce the output, competitors and obstacles
that might hinder the progress of the business
 Reads journals
 Attend any gathering of industrial societies to keep
himself informed with latest information

42. Preparation of a complete business
plan
 Prepare a complete business plan which includes the
business mission
Establishnment of linkages or
networks
 A pontential enterpreneur should develop a lingkage
or network with other enterpreneurs when he starts
his business
 Should register as a member in professional clubs

43. Funding
 Learn how to obtain funding from friends,family
members financial institutions or the government
Hiring of a workforce if necessary
 Is an important asset to succeed in an
enterpreneurial business
 Should hire workers only when there is a necessity

44. Confidence and good time
management
 Enterpreneur has to have confidence
 Manage time wisely so that can balance time between
the business and the family and friends
 Should have the added-value to attract customers,
distributors and retailers.