Sources of Entrepreneurial Ideas At the end-of this lesson, the learner should be able to describe the process involved in the creation of a new entrepreneurial venture and identify the possible sources of entrepreneurial ideas. After knowing the importance of entrepreneurship to the Filipino people, the local community, and the Philippine economy, let us now identify the possible sources of entrepreneurial ideas, The creation of an entrepreneurial idea leads to the identification of entrepreneurial opportunities, which in turn results in the opening of an entrepreneurial venture. The entrepreneurial process of creating a new venture is shown in the diagram below Identification of entrepreneurial opportunities Opening of entrepreneurial venture Creation of entrepreneurial idea Figure 1.7.4. The Entrepreneurial Process of Creating a New Venture As a future entrepreneur, always remember that a business must be firmly established ‘on existing business opportunities, and that there can be no business opportunities in the absence of an entrepreneurial idea. Chapter 1 | Understanding EntrepreneurshipIn contrast, the owner of an ordinary small business usually opens a business even if there are no business opportunities existing in the community: As a result, the business can hardly ‘move from where it started even after several years of operation. Thus, it all boils down to the basic need to identify the sources of entrepreneurial ideas, some of which are as follows: 1. Changes in the environment Technological discovery and advancement a 3. Government's thrust, programs, and policies 4. People’s interests 5. Past experiences IANGES IN THE ENVIRONMENT Entreprencurial ideas arise from the changes that happen in the external environment with surial implications. Not everyone welcomes changes in the external environment. fer, a person with an entrepreneurial drive views these changes positively. He/She ines what business opportunities they may provide. ‘The term external environment in this lesson refers to the physical environment, societal .ent, and industry environment where the business operates. The physical environment includes a. climate, b. natural resources, and <. wildlife. The societal environment includes the various forces like a. economic forces, b. sociocultural forces, < political forces, and technological environment. ‘The industry environment of the business includes Lesson7 | Sources of Entrepreneurial ideasPhysical Environment Climate Technological ‘environment Natural resources Wildlife Figure 1.7.2. The External Environment of a Business Venture As an entrepreneur, you must keenly observe and be vigilant to the reactions of the people to the changes in the external environment, These changes may or may not have an entrepreneurial implication. You must determine, therefore, what changes have entrepreneurial indications. For example, one factor in the physical environment that may dramatically change is the climate. The temperature is very high during summer but very low during the rainy season. A person with entrepreneurial drive can be very creative and innovative in identifying the entrepreneurial opportunities based on the given environmental change. He/She can open a business venture that responds to the needs of the people during summer and during the rainy period. Chapter’ | Understanding Entrepreneurship_ TECHNOLOGICAL DISCOVERY AND ADVANCEMENT Discovery and advancement in the use of technology are another good source of entrepreneurial ideas and opportunities. Most people welcome technological discoveries and advancements but cannot identify or determine entrepreneurial opportunities stemming srom them. On the other hand, a person with entrepreneurial interest looks at the possibility ‘of business opportunities in any new discovery or advancement in technology. For example, a person with sufficient knowledge in the repair and installation of a ‘mechanical engine discovers that the additional engine parts he installed during the repair has considerably reduced fuel consumption. That person could simply rest on his laurel for " aving contributed to fuel conservation. Nevertheless, if he had any entrepreneurial drive, he sould see his discovery as a business opportunity to manufacture the new engine parts that ‘could reduce fuel consumption. GOVERNMENT’S THRUST, PROGRAMS, AND POLICIES __ The priorities, projects, programs, and policies of the government are also good sources ‘entrepreneurial ideas. The term government in this lesson refers to the local government ‘cipal, city, or provincial) or the national government and its branches. ‘The programs and agenda of the Philippine government intuitively address the needs of Filipino people. There are also instances when the national government responds to the of international agencies or the world market. Whenever there are changes in the policies programs of the government, new entrepreneurial ideas are likely born. For example, the use of firecrackers to celebrate New Year's Eve is strictly prohibited. without entrepreneurial drive will view the ordinance as a plain restriction. An eur, however, will take it as a business opportunity to come up with a new product will serve as a substitute for firecrackers. OPLE’S INTERESTS The interests, hobbies, and preferences of people are a rich source of entrepreneurial ideas. example, the increasing number of Internet cafés at present could be attributed to the attachment of young people to computers. The rise of amusement parks, nightspots, ‘nature farms could be a response to the need of people for fun and relaxation. ‘However, an entrepreneur must be keen in identifying the cycle of interests and trends tes/her target market since these tend to continuously change. He/She must be ready eadress the change properly and immediately to avoid possible negative effects on the ons of the business venture. lesson? | Sources of Entrepreneurial Ideas j laFor instance, for almost three decades from the early 1970s, a lot of people were going to bowling centers. The interest in this particular game, however, consistently declined. At present, only very few people are still playing bowling, This change led to the closure of some bowling centers nationwide. ‘As a future entrepreneur, your business venture should be adaptive to the interests and hobbies of the people to protect and sustain your business. Keep evaluating the interests of your target customers. Past Experiences Past experiences and exposures are also a good source of entrepreneurial ideas. The expertise and skills developed by a person who has worked in a particular field may lead to the opening of a related business enterprise. For example, an auditor who has learned the appropriate auditing and management advisory skills and techniques in a prominent auditing firm can start his/her entrepreneurial venture by opening his/her own auditing office. In a similar manner, a good engine mechanic who has worked ina leading car manufacturer may find it appropriate to open his/her vehicle repair shop. Thus his/her relevant job experiences in the past can lead to that entrepreneurial venture. PERO ag 1. Following the entrepreneurial process, a business venture is opened or created based on existing business opportunities, which arise from business ideas. 2. The following are good sources of entrepreneurial ideas: a. changes in the environment b. technological discovery and advancement government's thrust, programs, and policies pe people's interests © past experiences Chapter + | Understanding Entrepreneurship i