Abstract:
Essentially, entrepreneurs recognize an opportunity and turn it into a successful
business.1 An opportunity is a favorable set of circumstances that creates
a need for a new product, service, or business. Most entrepreneurial ventures
are started in one of two ways. Some ventures are externally stimulated. In this
instance, an entrepreneur decides to launch a firm, searches for and recognizes
an opportunity, and then starts a business.
Description:
There are three approaches entrepreneurs use to identify an opportunity their
new venture can choose to pursue (see Figure 2.2). Once an entrepreneur understands
the importance of each approach, s/he will be much more likely to
look for opportunities and ideas that fit each profile. We discuss the three approaches
in the next three sections.
