Sources of Entrepreneurial Ideas
A business must be firmly established on existing business opportunities. There can be no business opportunities in the absence of an entrepreneurial idea.
The sources of entrepreneurial ideas are as follows:
1. Changes in the Environment - Entrepreneurial ideas arise from the changes that happens in the external environment (physical, societal and industry environment) with entrepreneurial implications. An entrepreneur must keenly observe and be vigilant to the reactions of the people to the changes in the external environment.
For example, one factor in the physical environment that may dramatically change is the climate. The temperature is very high during summer but very low during the rainy season. The person with entrepreneurial drive can be very creative and innovative in identifying the entrepreneurial opportunities based on the given environmental change. He/She can open a business venture that responds to the needs of the people during summer and during the rainy period.
2. Technological Discovery and Advancement - Discovery and advancement in the use of technology are another good source of entrepreneurial ideas and opportunities. A person with entrepreneurial interest looks at the possibility of business opportunities in any new discovery or advancement in technology.
For example, a person with sufficient knowledge in the repair and installation of a mechanical engine discovers that the additional engine parts he installed during the repair has considerably reduced fuel consumption. If he had any entrepreneurial drive, he would see his discovery as a business opportunity to manufacture the new engine parts that could reduce fuel consumption.
3. Government's Thrust, Programs, and Policies - The programs and agenda of the Philippine government intuitively address the needs of the Filipino people. Whenever there are changes in the policies and programs of the government, new entrepreneurial ideas are likely born.
For example, the use of firecrackers to celebrate New Year's Eve is strictly prohibited. An entrepreneur will take it as an opportunity to come up with a new product that will serve as a substitute for firecrackers.
4. People's Interests - The interests, hobbies, and preferences of people are a rich source of entrepreneurial ideas.
For example, the increasing number of Internet cafes at present could be attributed to the strong attachment of young people to computers. The rise of amusement parks, nightspots, and nature farms could be a response to the need of people for fun and relaxation.
However, an entrepreneur must be keen in identifying the cycle of interests and trends of his/her target market since these tend to continuously change. As a future entrepreneur, your business venture should be adaptive to the interests and hobbies of the people to protect and sustain your business. Keep evaluating the interests of your target customers.
5. Past Experiences - Past experiences and exposure are also a good source of entrepreneurial ideas. The expertise and skills developed by a person who has worked in a particular field may lead to the opening of a related business enterprise.
For example, an auditor who has learned the appropriate auditing and management advisory skills and techniques in a prominent auditing firm can start his/her entrepreneurial venture by opening his/her own auditing office. Thus, his/her relevant job experiences in the past can lead to that entrepreneurial venture.
The sources of entrepreneurial ideas are as follows:
1. Changes in the Environment - Entrepreneurial ideas arise from the changes that happens in the external environment (physical, societal and industry environment) with entrepreneurial implications. An entrepreneur must keenly observe and be vigilant to the reactions of the people to the changes in the external environment.
For example, one factor in the physical environment that may dramatically change is the climate. The temperature is very high during summer but very low during the rainy season. The person with entrepreneurial drive can be very creative and innovative in identifying the entrepreneurial opportunities based on the given environmental change. He/She can open a business venture that responds to the needs of the people during summer and during the rainy period.
2. Technological Discovery and Advancement - Discovery and advancement in the use of technology are another good source of entrepreneurial ideas and opportunities. A person with entrepreneurial interest looks at the possibility of business opportunities in any new discovery or advancement in technology.
For example, a person with sufficient knowledge in the repair and installation of a mechanical engine discovers that the additional engine parts he installed during the repair has considerably reduced fuel consumption. If he had any entrepreneurial drive, he would see his discovery as a business opportunity to manufacture the new engine parts that could reduce fuel consumption.
3. Government's Thrust, Programs, and Policies - The programs and agenda of the Philippine government intuitively address the needs of the Filipino people. Whenever there are changes in the policies and programs of the government, new entrepreneurial ideas are likely born.
For example, the use of firecrackers to celebrate New Year's Eve is strictly prohibited. An entrepreneur will take it as an opportunity to come up with a new product that will serve as a substitute for firecrackers.
4. People's Interests - The interests, hobbies, and preferences of people are a rich source of entrepreneurial ideas.
For example, the increasing number of Internet cafes at present could be attributed to the strong attachment of young people to computers. The rise of amusement parks, nightspots, and nature farms could be a response to the need of people for fun and relaxation.
However, an entrepreneur must be keen in identifying the cycle of interests and trends of his/her target market since these tend to continuously change. As a future entrepreneur, your business venture should be adaptive to the interests and hobbies of the people to protect and sustain your business. Keep evaluating the interests of your target customers.
5. Past Experiences - Past experiences and exposure are also a good source of entrepreneurial ideas. The expertise and skills developed by a person who has worked in a particular field may lead to the opening of a related business enterprise.
For example, an auditor who has learned the appropriate auditing and management advisory skills and techniques in a prominent auditing firm can start his/her entrepreneurial venture by opening his/her own auditing office. Thus, his/her relevant job experiences in the past can lead to that entrepreneurial venture.