Entrepreneurs use problem solving to move from an unsatisfactory current situation toward a more desirable one. This lesson distinguishes problem solving from decision making and explains how solving a problem can turn an opportunity gap into an entrepreneurial solution.
An opportunity gap is the difference between what currently exists and what could exist. It may involve an unmet customer need, an inefficient business process, or a societal or technological challenge. Entrepreneurs notice a gap and imagine a product, service, or process that could help close it.
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What is entrepreneurial problem solving?
It is using creative or innovative approaches to resolve a problem and move from a current state toward a desired state.
What is an opportunity gap?
It is the difference between what exists now and what could exist if a problem were addressed with a useful solution.
How are problem solving and decision making different?
Problem solving focuses on resolving an underlying issue. Decision making selects a course of action and may be one step within problem solving.
Why should entrepreneurs validate personal problems?
A personal frustration can suggest an opportunity, but entrepreneurs need to learn whether other people experience it and whether they value a proposed solution.
What does the Spanx example illustrate?
It shows how noticing a personal need, persisting through product-development challenges, and creating a practical solution can lead to an entrepreneurial venture.
Quiz questions
What is an opportunity gap?Answer: A difference between current conditions and a more desirable possible condition.
How does decision making differ from problem solving?Answer: Problem solving develops ways to address an issue; decision making selects an action.
An entrepreneur wants to build a business around a personal frustration. What is an important next step?Answer: Check whether potential customers share the problem and value the proposed solution.
What does critical thinking help an entrepreneur do when a business problem appears?Answer: Investigate possible underlying causes before choosing a remedy.
What can weak ties provide to an entrepreneur?Answer: Connections to new groups and information beyond an immediate network.
Based on Entrepreneurship by Michael Laverty, Chris Littel (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.