Source of Ideas For Entrepreneurial Ventures

Source of ideas for
entrepreneurial
ventures
• A number of practicing entrepreneurs
and business coaches have identified a
host of sources, from which we can find
business ideas. This can be categorized
in to four major sources:
• a. from the product
• b. from the process
• c. from the person
• d. the relationships
• A. from the product
• Entrepreneurs can source their business
ideas from existing product or services. Many
entrepreneurs have introduce new products
and services by differentiating them from
those from the market. You can differentiate
a product by changing its shape, size, color,
and contents.
• B. from the process
• Business ideas can likewise arise from the
process of production and distribution.
Ex.
A firm selling pritchon, combined the
process of frying and roasting pork belly.
Packaging goods in to sachets and small
quantities expanded the market for shampoos
and even processed chees.
• C. from the person
• When business ideas are source from the person, the
individual examines his/her interests, hobbies, skills,
dreams, and even his/her travel. Aside from providing ideas
for entrepreneurial venture, personal interests can sustain a
business venture at its initial stage of operation. Many small
firms producing handicrafts evolved from hobbies of
owners.
Ex.
Similarly, individuals who took interest in silk screen and
iron-on shirt printing have transformed their hobbies into
business enterprises.
• In addition, skill learned from prior employment can be a source
of business ideas as shown in several studies
Ex.
a.) a number of preschools and other training institutions
were established by successful teachers.
b.)cooks apply their popular recipes by establishing a
carinderia or small restaurants.
c.) entrepreneurs who introduced milk tea and other
drinks in the Philippines drew this business ideas from their
travels in Taiwan.
Many potential entrepreneurs attend exhibitions here and
abroad to get business ideas.
• D. from relations
• Many Filipino-Chinese individuals sourced their
entrepreneurial ideas from families and relative. Children or
Filipino-Chinese businessmen are usually exposed to their
family business at an early age. Such exposure often leads
to entrepreneurial inclinations on their adult years.
Ex.
friends and classmates can also be sources of
business ideas and partners. Some may start their business
partnership as teammates in school project and eventually
decide to put up their business after graduation. One’s
neighborhood can also provide ideas on what to produce.
Methods for generating or testing
new ideas
• There are several methods of generating
business ideas. We will classify them in logical
thinking and creative thinking.
Generating business ideas through
logical thinking
• Logical thinking refers to the systematic and rational way of
providing an answer to a question. It is systematic since it
follows steps in responding to an inquiry. In it rational because
it adheres to the rules of logic in connecting the relationships
of variable and making conclusions. Aside from its usefulness
in decision-making, logical thinking can also be utilize in the
development of business idea. Some of the methods that used
systematic analysis in generating new ideas are statistical
analysis, market analysis SWOT analysis, and Delphi technique.
• Statistical analysis
• refers to a systematic analysis of data generated
from a survey of individuals. Aside from giving
basic information on the population of being
studied, statistical analysis can also be used for
hypothesis testing on the difference of the values of
certain variables. Statistical analysis can describe
the trend in the demand in a particular product, as
well as show which key socioeconomic variables
can significantly influence the change in the
demand for a product.
• Market analysis
• Related to statistical analysis is market analysis, which is undertaken to
know the various factors that affect the demand for a particular product
or service. It can also determine for certain socioeconomic and
demographic groups will react to the introduction of a new commodity
or a a change in a existing products or services. This can be done
through surveys, interviews with key informants, and focus group
discussions. Since survey methods are very expensive and time
consuming, interviews of key informants that are knowledgeable of the
market are undertaken. Through focus group discussions, the facilitator
can elicit the same general trends that would likely appear in a detailed
questionnaire. The results from this various methods of market analysis
can be used by potential entrepreneurs in introducing new product or
differentiating an existing commodity that are aligned with preferences
of targeted consumers.
• SWOT ANALYSIS (strengths, weaknesses,
opportunities, threats)
• Usually undertaken to described the state of
competition within an industry. However, an
understanding of the strengths and
weaknesses of firms, and the opportunities,
and threats that they face can also provide
business ideas that an entrepreneur can
pursue.
• Delphi technique
• The systematic way of generating ideas from a select group
of individual using various rounds of consultations or
sessions. In the first round, the group is asked to list a
number of responses to given question. After threating the
data on the first round, the leading responses are given back
to the respondents in the next round. The respondents are
then asked to list a shorten number of answers on the same
question based on the leading responses in the previous
round.in succeeding round, the leading responses are
further list and given to the respondents until the final two
or three answers are determined.

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