INTERNATIONAL ENTREPRENEURIAL OPPORTUNITIES (continued…):SOURCES OF NEW IDEAS

Entrepreneurship MGT602

Lesson 15

INTERNATIONAL ENTREPRENEURIAL OPPORTUNITIES (continued...)

LEARNING OBJECTIVES

To explain the aspects of the entrepreneurial process.

To explain the differences between entrepreneurial and managerial domains.

To explain the organizational environment conducive for entrepreneurship.

To identify the general characteristics of an Entrepreneur.

To explain the process of establishing entrepreneurship in an organization.

SOURCES OF NEW IDEAS

A sound idea for a new product or service, properly evaluated, is essential to successfully launch a new

venture. Some of the more frequently used ideas for new entrepreneur include consumers, existing

companies, distribution channels, the federal government and research and development.

Consumers

Potential entrepreneurs should pay close attention to the final focal point of the idea for a new product or

service the potential consumer. This can be an informal or formal survey of consumers expressing their

opinions. Care should be taken to ensure that the idea represents a large enough market.

Existing Companies

Entrepreneurs should establish a formal method for monitoring and evaluating the products and services in

the market. Frequently this analysis uncovers ways to improve on these offering that may result in a new

product that has more market appeal.

Distribution Channels

Members of distribution channels are also excellent sources for new ideas because they are familiar with the

needs of the market. Not only do channel members frequently have suggestions for new product, but they

can also help in marketing the entrepreneur's newly developed products.

Federal Government

The federal government can be source of new product ideas in two ways. First the files of the Patent Office

contain numerous new product possibilities. Although the patents may not be feasible new product

introduction, they can suggest other marketable product ideas. Several government agencies and

publications are helpful in monitoring patent applications. Second new product ideas can come in response

to government regulations. For example the Occupational Safety and Health Act (OSHA), aimed at

eliminating unsafe working condition in industry, mandated that first aid kits be made available in business

establishments employing more than three people. The kit had to contain specific item that varied

according to the company and the industry. In response to OSHA, both established and newly formed

ventures marketed a wide variety of first aid kits.

Research and Development

The largest source for new ideas is the entrepreneur's own research and development. This can be a formal

endeavor connected with one's current employment. A more formal research and development department

is often better equipped and enables the entrepreneurs to conceptualize and develop successful new

product ideas.

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