Chapter 2

ENTREPRENEURIAL IDEAS AND

OPPORTUNITIES

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Identify sources of entrepreneurial ideas

A) primary sources direct or firsthand evidence about an event, object,

person or work of art are contemporary to the events and people described

and show minimal or no mediation between the document/artefact and its creator

materials can be written and non-written, the latter including sound, picture, and artefact

Examples of primary sources include: Personal correspondence and diaries Works of art and literature Speeches and oral histories Audio and video recordings Coins and tools Laws and legislative hearings

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1) secondary sources in contrast, lacks the immediacy of a

primary record.as materials produced sometime after an event happened, they contain information that has been interpreted, commented, analyzed or processed in such a way that it no longer conveys the freshness of the original

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DETERMINE ENTREPRENEURIAL IDEAS BASED ON: A) THE SUITABILITY IDEAS AND

PERSON’S EXPERIENCE, KNOWLEDGE AND SKILLS, CAPITAL.Person’s experienceKnowledgeSkillsCapital

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PESON'S EXPERIENCE An entrepreneur who is doing business

in accordance with the experience of his career, particularly related to the experience.

For example, a primary school teacher who has extensive experience of early childhood education to resign, and engaging in a career that is almost the same as before, namely to open a child care center. Similarly, a chef who has expertise in cooking, can open a restaurant.

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KNOWLEDGE Entrepreneurs need to equip themselves

with knowledge, especially in what should be done to the underlying business.

For example, an expert on food, when you open a restaurant, they not only need to know about food procedures, but and also business, providing the account, set the table employee and customer handling

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SKILLS Apart from the experience and

knowledge, it must do in work skills or their chosen fields. These skills are often born from experience and knowledge. This advantage is a difficult owned.

For example, a skilled craftsman to carve in a short period and high quality. Skill is a very important asset because not everyone has this advantage

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CAPITAL The ability of entrepreneurs to

determine the amount of capital a business where it can do.In other words businesses need to be opened in accordance with existing financial capability.

If a person has a dream to open a big business and capital needs of millions of dollars, might wish it had advance if the absence of sufficient capital.

Thus capital is the basic things to consider before pursuing the idea of opening a business

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B) COMUNITY'S RESPONS Compatibility with the idea of local

communities should be given serious attention before the start of business operations.

Business opportunities have to be adjusted so as not to conflict with the local community.

For example, discos and places of gambling, which opened in the Malay village is opposed to the Muslim Malay community. The idea was not carried out in accordance Even though in terms of the law.

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C) THE FEASIBILITY OF THE IDEAS

INITIALLY:1.legislation aspect2.Competitors3.capital required4.risk

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1.LEGISLATION ASPECT The proposed ideas should be valid in

law. Sometimes a business that can generate high profits, but it is not valid in law.

For example, the sale of pirated CDs. Although this business can be making money quickly and a lot but it is wrong in law

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2.COMPETITORS If you choose a business idea that has

not been monopolized by others, this will cause the business can be controlled and developed by entrepreneurs.

If you choose to open competitive business, you need to make further studies, to look for business advantage that you can you can compete in the free market

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3.CAPITAL REQUIRED

There are three types of initial investment required in the business of fixed capital, working capital and capital growth.

a) Fixed Capital but is used to buy fixed assets. These assets are used for the production of goods and services. For example, buildings, land, equipment that is not convertible into money cash to normal business operations.

b) Working Capital Working capital is a temporary fund the transaction. It is capital that will be used for short-term expenses normal operation. Working capital are commonly used for purchasing inventory, paying the bills and is also used in an emergency.

c) Capital growth Capital growth is different from working capital. It is not

associated with the user development of bussiness. This capital

required when a transaction is expanded or

change its direction

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4.RISK The next effort is to identify risk to be faced with

taking into account the percentage of successes and failures of the detailed studies conducted

Risks faced by an entrepreneur is usually based on several key factors including: Difficult or easy

to enter a business venture Big or small capital will be invested Many the profit to be derived Can do it with existing energy sources Does this product have the potential to

penetrate

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Apply the process of generating and evaluating business ideas Ideation Strategy 1: Involve Everyone in the

Quest for Ideas Ideation Strategy 2: Involve Customers in Your

Process Ideation Strategy 3: Involve Customers in New

Ways Ideation Strategy 4: Focus on the Unarticulated

Needs of Customers Ideation Strategy 5: Seek Ideas from New

Customer Groups Ideation Strategy 6: Involve Suppliers in Product

Ideation Ideation Strategy 7: Benchmark Ideation Methods