1What are the objectives of Chapter 5?
Discuss entrepreneurial activities in search of business opportunities, describe ideation, innovation, and creativity, and discuss factors in evaluating the business potential of an idea.
2What are the factors to consider in searching for business opportunities?
Capital, skills, supplier of inputs, manpower, and technology.
3Why should entrepreneurs look at successful businesses?
They can use them as role models and sources of inspiration.
4How can responding to a problem area create a business opportunity?
A solution to a problem can be transformed into a business venture.
5What is a home-based business option?
A business that starts at home and may grow into a bigger business.
6What is linkage of resources?
Producing your own input instead of buying them.
7What is the best way to evaluate a business opportunity?
Conducting market research.
8What are the steps in market research?
Making a preliminary investigation, gathering the data, analyzing the data, and implementation and evaluating decision.
9What happens during the introduction stage of the product life cycle?
Low consumer awareness and acceptance result in high cost of development and marketing activities.
10What happens during the growth stage of the product life cycle?
Product distribution is expanded as sales rise rapidly.
11What happens during the maturity stage of the product life cycle?
The rate of increase declines.
12What happens during the decline stage of the product life cycle?
There is a sharp fall in sales volume while profit becomes almost flat or horizontal.
13Why is knowledge about the product life cycle important?
It provides entrepreneurs business opportunities to continuously stay in business.
14What are the categories of business?
Service business, trading or processed business, manufacturing business, and licensed business opportunities.
15What is a service business?
A business that provides services such as consultancy, barber shops, designing works, and professional services.
16What is a trading or processed business?
A business that sells products such as grocery items, bakery products, or construction materials.
17What is a manufacturing business?
A business that creates products such as hand-painted T-shirts, ceramic vases, and candles.
18What is distributorship?
A business agreement where a company sells or distributes a particular product.
19What are wholesalers?
They sell the products of manufacturers to retailers.
20What is subcontracting?
An arrangement with a major producer to complete product components at a pre-agreed price.
21What are vending machine routes?
Machines placed in various locations for easy reach of consumers.
22What is ideation?
The beginning of a business endeavor.
23What makes an idea worth pursuing as a business?
An idea that has a market now and in the future.
24What are the categories of ideation?
Need/want drives, time-saving drives, money savings, unique or strong competitive advantages, and link to personal interest or passion.
25What are common ways of developing ideas?
Recognizing the need, improving an existing product, recognizing trends, being aware of everything, questions and assumptions, and naming it first then developing it.
26What does recognizing the need mean in developing ideas?
Identifying a need or problem that can become a business opportunity.
27Why is improving an existing product important?
It helps create better versions of products for customers.
28Why should entrepreneurs recognize trends?
To discover possible business opportunities based on changes in the market.
29Why should entrepreneurs be aware of everything?
To gain ideas and information from different situations and industries.
30Why are questions and assumptions useful in developing ideas?
They help entrepreneurs explore possibilities and create solutions.
31What does “naming it first, then develop it” mean?
Creating a concept or name first and developing the idea afterward.