Question

How may entrepreneurs identify new business opportunities?

Please explain and provide some real world examples of successful entrepreneurs.

(200 to 400 words)

Answer 1

Entrepreneurs may identify new business opportunities from two clear sources

• One is from looking at other enterprises and companies, and figuring out what problems are then trying to solve through their offerings, these sources could be large organizations in the same market of operations or from other markets which are either advanced in one way or other. At the same time there are diverse market solutions which are have not been explored in the existing market, so bringing them to the home market with some modification or direct replication of another player from a foreign market is the way how entrepreneurs start the businesses.
  • Ola cabs in India and Didi in China replicated the Uber model from the US market. They had better understanding of the local market and were faster in execution as compared to Uber in those markets and the Entrepreneurs took the problem of expensive cabs and ride sharing , provided a solution which was from inspiration of a competitor in a foreign market and then launched it in the local market and beat the original player when it entered those markets.
• The other is solving the latent problems those exist but there is no solution, and users are not even fully aware that there is a problem which can be solved. Only after a solution is designed and tested, people slowly but surely start adopting the new mode.
  • Fitness trackers, these were believed to be only for athletes for traking progress. Fitbit, jawbone and similar trakers made it relevant for common people, by making them aware that regular tracking could help them improve their fitness levels and health. People needed a bit of convincing and now it is a several billion dollar industry.