2.2. Ideas versus Opportunities
Definition
Business opportunities are positive trends in the external environment that present entrepreneurs with a chance to advance entrepreneurial ventures through innovation.
At this point it is appropriate to discuss the difference between business ideas and business opportunities.
For Rwigena and Venter (2004) an idea is not synonymous with opportunity. An idea is simply the conception of a possibility, that is, something that could become possible. The range of business ideas is nearly infinite. Even when ideas are refined, they may not go beyond the idea stage.
Business opportunities are positive trends in the external environment that present entrepreneurs with a chance to advance entrepreneurial ventures through innovation (Coulter 2001:53). An opportunity is an occasion to add value by performing differently from and better than competitors.
Business openings hail from external (macro and industry) environment. Changes in economic growth, demographics (population groupings based on gender, race, religion, economics etc.), technology and regulations create or magnify the demand for goods and services. They need to target evolving needs. Astute entrepreneurs scan the environment for opportunities. It takes intuition, effort and training to identify them before the window closes.
Nieman et al (2009) quote Nieman & Bennet (2002) that an opportunity is a gap left in the market by those who currently serve it.
An opportunity is a chance to improve an existing situation or create new possibilities. It represents the potential to serve customers better than they are being served at present. An opportunity is a potentially profitable business refined from an idea or a range of ideas. They contend that opportunities represent an ability to create a new or improve on an old product, service, technology, service quality or relationship with consumers.
Being a step beyond the idea, the opportunity should produce an innovative product or service capable of benefiting different stakeholders (Zimmerer & Scarborough 1996:80). To create value, it should be market driven and offer a product for which consumers are willing to pay enough to make it profitable.
2.2. Ideas versus Opportunities