EntrepreneurshipLesson 1 of 1 in the course Identifying Entrepreneurial Opportunity

Researching and Screening Entrepreneurial Opportunities

5 flashcards · 5 quiz questions · 5 match pairs · 5 fill-in sentences · English

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Summary

Entrepreneurs need more than an appealing idea: they need evidence that it can become a workable venture. This lesson introduces opportunity screening and the core criteria used to judge whether an idea merits further development.

Opportunity screening is the process of evaluating innovative product ideas, strategies, and marketing trends to estimate their potential for success. Entrepreneurs consider whether they have the financial resources, team skills, and competitive position needed to pursue an idea. Screening is not simply a pass-or-fail judgment: it can reveal changes that make an idea more viable and improve planning.

All flashcards

What is opportunity screening?
Evaluating an idea’s potential and the conditions needed to pursue it, including demand, market context, resources, and competition.
What is nonconsumption?
When people do not use a product or service because it is unavailable, inaccessible, or unsuitable for them.
What does significant market structure and size mean?
The market has enough scale or growth potential, and competitive conditions leave room for the venture to attract customers.
Why examine margins and resources?
To assess whether likely returns can justify costs, capital needs, technical requirements, distribution demands, time, and risk.
How can screening improve a business idea?
Research may suggest adding benefits to increase customer value or removing features to reduce cost and complexity.

Quiz questions

  1. What does due diligence mean for an entrepreneur?Answer: Taking reasonable steps to verify that decisions rely on accurate, well-researched information.
  2. What makes research primary research?Answer: It gathers new data directly for a specific business or customer question.
  3. What are demographics?Answer: Statistical characteristics of a population, such as age and income.
  4. What distinguishes a shared economy from a gig economy?Answer: It connects people seeking access with owners of underused assets.
  5. Why should entrepreneurs continue researching after a business opens?Answer: Customer preferences, sales patterns, competitors, and market conditions can change.

Based on Entrepreneurship by Michael Laverty, Chris Littel (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.

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