Opportunity Recognition

Developed by Tanya Austin Definition of Content: An opportunity can be defined as a favorable set of circumstances creating a need or an opening for a new business concept. Entrepreneurs are adept at recognizing patterns or forces in the external environment that combine to form patterns. Opportunities may be perennial, occasional, or exist due to multiple causes and effects. Methods for identifying opportunities include deliberate searches, discovery, and pulls from the market or resource pushes. Purpose/Goal: The purpose of this module is show learners that opportunities are everywhere in our everyday life, we just need to be more alert to recognizing them. Using a problem-based technique, learners begin to identify that problems are simply opportunities in disguise. This module combines engaging activities such as discussion and group work while identifying opportunities for business ventures. Objectives: Learners will be able to identify opportunity types, methods, sources and detractors necessary for identifying opportunity. Rational/Justification: At the root of entrepreneurship lies opportunity-driven behavior. Opportunity-driven behavior is defined as creating a need or opening. The opportunity is needed far before the entrepreneurial behavior, therefore, starting with opportunity recognition is logical to explore. Time for Module: 60 Minutes Audience: Undergraduate students / adult learners Materials Needed: Chalkboard or large post-it notes for brainstorming and sharing, handout of Finding Opportunities matrix. Introduction: (2 minutes): Its been said that problems are our opportunities to change the world. Today, we want to exercise our ability in identifying problems and see if changing our perceptions of how we view such problems can become a springboard for great ideas. CONTENT IN FOCUS Warm Up: Reviewing components of opportunity Types of opportunities: Perennial (on-going TIME: Step 1: 10 min. INSTRUCTOR-LEARNER INTERACTION Step 1: How can we identify opportunities? We need to start by understanding that there are different types of opportunities, sources that provide opportunities and factors that detract from opportunity. Give hand-out of Finding Opportunities

problems that dont change over time, i.e. poverty) Occasional (based on environment, resources, society, i.e. Multiple Cause ( Multiple effect (i.e. Hurricane Katrina) Methods: Deliberate Search vs. Discovery Market-pull vs. Resource or capability push Sources: Rule changes Demographic change Understand markets Social trends New customers to market Increase in usage rate Shortages New knowledge Detractors: No need or window not open Strong loyalties/high switching costs Satisfied customers Easy to enter after you/intense competition Customers hard to reach

and review with learners

Step 2: 10 min.

Step 2: Now that we have discussed the components for identifying opportunity, lets see if we can apply it to a new problem. Were now going to try looking at current situations in a new light to see if we can begin to identify opportunities that we may not have previously thought existed. Lets start by identifying a current problem. For example, Hurricane Katrina: What type of problem/opportunity is this an example of? Multiple effect. What types of businesses increased as a result of this problem? Construction, mobile home sales, sanitation, etc. What are some of the methods that could have been used for this opportunity? No methods for Multiple effect Looking at sources, what areas, products services increased in usage rates? Phone, Shortages? Food, transportation, money, clothing, shelter. List detractors that may have been present to start a new business? Existing construction companies highly competitive What good has come from this event? community strengthens, national exposure to help problem, new homes for those displaced, new start in other communities. Katrina was a tragic situation, but there was opportunity associated with it. Lets take another look at opportunity recognition Students brainstorm and share ideas.

Step 3: 5 min.

Lets see how to put this concept to work. Divide learners into groups (4-6 max)

Step 4: 10 min.

As a group, identify something that has recently happened to you. (You can either assign them a common problem or have each group come up with a unique problem). I.E.; losing a job, running out of gas, failing a test, etc. Step 5: Once you have decided on a problem, identify the type of opportunity, the method, the source and the possible detractors associated with this opportunity. Based on your responses above, come up with 3 business venture ideas that could be viable based on your problem.

Step 5: 20 min.

Step 5: 5 min./group

Step 5: As a group, present to the class your 3 business venture ideas and justify how you came up with them.

Summary: There are opportunities everywhere. We just need to learn how to change our perspectives to allow ourselves to identify with them. Evaluation: Summative: Provide a pre-post survey assessing ability to recognize opportunity. Formative: Ask students upon completion of module What have you learned from this lesson? Additional Resources: References: Weston, Anthony; Creativity for the Critical Thinker. Beich, E.; The ASTD Trainers Sourcebook; Creativity & Innovation. Morris, M, Kuratko, D., and Schindehutte, M., (February 2001). Towards Integration: Understanding Entrepreneurship through Frameworks, Entrepreneurship and Innovation.

Finding Opportunities
Types Perennial Methods Deliberate Search vs. Discovery Market pull vs. Resource or capability pull Sources Rule Changes Demographic Change Underserved markets Social trends New customers to market Increase in usage rates Shortages New knowledge Detractors No need (or) window not open Strong loyalties/high switching costs Satisfied customers Easy to enter after you/intense competition Customers hard to reach

Occasional Multiple cause Multiple effects