ASSIGNMENT 1A- Entrepreneur Interview Project- Literature Review

Introduction
Based on the background study and criteria given for research, selecting an entrepreneur was initially a challenge but after we recognised our potential entrepreneur and matched it to the relation for the coursework we began our detailed analysis and gathering more information. Twenty years ago in one of Perths prominent suburbs, South Perth Domenic and Lucy Scutti saw an opportunity to start a small deli store selling Fruits and Greengroceries naming it after their Last name Scutti. Today the deli has expanded into a mini market with all kinds of gourmet delicacies from Australia and abroad. This includes prepared meals and dishes for either onsite dining or takeaway. They also boast a newly open coffee shop in 2008. The mini-market has been known for its special European products comprising of the finest oils, vinegars, pastas and much more. Its main focus is now to diversify from selling predominantly fruit & vegetables into expand its products into unique lines sourced from all parts of the globe. Domenic and Lucy Scutti are passing on to their sons Nick and Michael who are already helping in the business runnings, Domenic wants his kids to follow the attributes of providing exceptional customer service. Nick and Michael desire is to be We want to be seen, and known, as a Mecca for the most comprehensive selection of local Australian produce and fine continental European foods in Perth.(Our story,2012)

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Opportunity recognition
My definition: Opportunity recognition is when an entrepreneur recognises a potential for a new business opening to invest into or establish into the market, these identification maybe from past or current market patterns and trends.

Importance
All business enterprise start out had an idea, not all ideas are good opportunities and thus does not necessarily lead into a good venture. Hence, the successful entrepreneur-to-be should be on the lookout for good opportunities rather than good ideas (Ralf.W, Benot.F 2008). It is therefore a significant step for setting up a new business venture, since the results come from direct process of opportunity recognition process.

Starting from the idea

The basic idea of opportunity recognition is that profitable business ideas surround us on a daily basis but they are only recognized by people with an entrepreneurial mindset (Katina Blue, 2012). They are several ways that Entrepreneurs identify diverse opportunities ways; one proposed way is use of cognitive frameworks, comparing patterns in technology, demographics, markets, governments policies and other factors. (Robert 2006, 104). Engaging in an active search for opportunities, Alertness to opportunities and prior knowledge of a market, industry or customer are ways in which these events and trends are recognised and relate to an idea for the new products and services.

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From Ideas to Opportunities

Businesses collapse mainly for the reason that people dont recognize entrepreneurial opportunities but rather launching a business on basis of an idea. It is crucial to know the difference between an idea and an opportunity; ideas dont necessarily have to meet the standards of being an opportunity. (3 ways to identify an entrepreneurial activity, 2012). Ideas, creativity and openness come from knowledge with hard work and focus these creates a successful opportunities. When an entrepreneurial opportunity is recognised its vital to work out figures logically and study the potential value and needs, most importantly converse with people and verify ideas and incorporate all the feedback you can get (Ralf.W, Benoit.F 2008).

Spotting an opportunity
Spotting new products and service or business may not be necessarily a genuine opportunity. The need to explore and research for an opportunity may be important. Some commons ways that opportunities are observed are stated below; 1. Observing Trends Research and observation in the changes and trends in technological, economic, political, social and demographic are viewed closely by individuals and firms to provide them with forecasts and market analysis. Lets take some of the factors individually; Economic factors- An entrepreneur will ask the following: Where is money been spent? Who is spending the money? Which products are money been spent on? And so on. People spend on products and services that add more value to their lives. When kids have money, they buy stuff. Products and services such as designer clothing, down-loadable music services, MP3 players and all the other things that these kids buy are a huge market and thereby have opportunity possibilities says Mother Thumper. (3 ways to identify an entrepreneurial activity, 2012). Social factors- Understanding social factors trends can be a problem, they are several categories under which entrepreneurs can seek opportunity for products and services, i.e. the needs of relieving stress and burden for people by everyday life are

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factors that help provided opportunities e.g. Healthcare and fitness, work and family patterns, age of population and so on. Technology With technology advancements endless opportunities are seen, simply providing basic needs in a more convenient way to people creates an opportunity. Once new technology is created, new products to advance it are usually not far behind.(3 ways to identify an entrepreneurial activity, 2012). Politics Business opportunities can be establish where action and regulations are provided and when there are laws, stability and security.

2. Solving a Problem When an entrepreneur finds a solution to a problem that means he/she recognised an opportunity. People normally come across challenges in their everyday live, when a challenge is encountered and you have thought of a better way to tackling (through research) it than you have recognised an opportunity. Mother Thumper states that A constant trait with entrepreneurs is that they are always looking for problems, or should I say, always looking for opportunities to solve a problem. (3 ways to identify an entrepreneurial activity, 2012). 3. Finding Gaps in the Marketplace To identify a gap in the market can be a complicated and lengthy task, mainly because people desire possible about anything or everything. The truth is not everything can be done, but the ability to observe a potential gap and working on it can be identified as an opportunity and can be potentially very rewarding.

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Where do opportunities occur?

Opportunities occur everywhere, and just waiting to be uncovered. Lets look at ways to identify an opportunity; Unexpected Occurrences In existing businesses today we find that unexpected failures and success and commonly encountered. Entrepreneurs sometimes dont recognise that failing experiences are an opportunity to go and explore further and come up with better results. While other companies make high turnovers and strike success, some opportunities go unnoticed from non-core products that can help them achieve even higher sales. Incongruities Incongruities are discrepancies between what is and what is ought to be or what everyone assumes it to be (Ralf.W, Benot.F 2008). Opportunities emerge for companies who can first respond to prominent discoveries and act.

Process needs Redesigning a process or eliminating weak links in existing processes can help piercingly focus on what is required and can help recognising an opportunity effectively.

Industry and market changes Opening to wide range of business opportunities can be a good indicator for emerging opportunities especially for fast growing industries who have access to modern telecommunication and technologies.

Demographic Changes The source of opportunities comes from the shifts in population trends i.e. What will be bought by whom? Population contains of different age, size, peoples income, employment status, and this all impacts on what you want to create and build.

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Change in perception Similar to demographic, to see how an opportunity can be recognised entrepreneurs need to try increase the awareness and change perceptions to perceive how the population and their perception and attitude to the market of products and services are. New Knowledge The knowledge and its appearance in new products can determine large opportunities; occasionally having too much knowledge and sources can make an operation more difficult and doubtful.

Conclusion
After looking at different ways opportunity recognition is applied we can enlighten the fact that opportunities play a critical role the entrepreneurial processes. Opportunities need to exploited, although ties may exist the value and understanding for further business is vital. Sources of information plays a central role in opportunity recognition and the patterns and trends involving change in conditions for instance, changes in technological, economical, political or demographic circumstances. Opportunities come into existence at a certain point because of a certain confluence. Nevertheless, on an individual level, cognitive structures defining the identification of opportunities are developed through the previous life experience of the person in question. Different values have different abilities to connect the dots they have perceived. Hence opportunity recognition is the cognitive process through which individuals conclude that they have identified an opportunity (Kontinen.T and Ojala 2011,492)

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Appendix The Five Questions I believed are appropriate to the Topic and can help in the interview are as follows: 1. Did you think your venture was a good opportunity to get into? 2. Where do you think are sources of a potential and promising opportunity? 3. So was the opportunity a win situation? 4. Did you consider whether you should tell anyone else about you opportunity? 5. Do you think the skills you have will enable you to seek more opportunities?

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References Books Frederick, H.H. & D.F.Kurakto.2010. Entrepreneurship: Theory, process and practice, 2nd Asia-Pacific edition. Melbourne, Australia: Cengage Learning Ralf.W, Benoit.F & Christopher .L.2008. Nurturing Science-based Ventures: An International Case Perspective. Lausanne, Switzerland: Springer

Journals Baron Robert.2006. Opportunity recognition as Pattern Recognition: How Entrepreneurs Connect the Dots to identify New Business Opportunities. Academy of Management Perspectives 20(1): 104-119. http://old.ied.econ.msu.ru/cmt2/lib/c/186/File/fa4_1.pdf Kontinen.T & Ojala.2011. International Opportunity Recognition among small and mediumsized family firms Journal of small Business Management 49(3):490-514. http://onlinelibrary.wiley.com/doi/10.1111/j.1540-627X.2011.00326.x/pdf Baron Robert.2004. Opportunity recognition: A Cognitive Perspective Academy of Management Conference. http://faculty.insead.edu/andersonp/VOBM_MAYJUN2005/Anderson%20VOBM%20rea dings/Session%202%20How%20venture%20opportunites%20are%20screened/Baron,% 202004.pdf Websites Katina.B. 2012.What is opportunity Recognition? http://www.ehow.com/facts_7501598_opportunity-recognition.html Thumper.M.2012. 3 ways to indentify an entrepreneurial opportunity 92. http://motherthumper.hubpages.com/hub/3-Ways-to-Identify-an-EntrepreneurialOpportunity Dragan.2012. Opportunity Recognition & Idea Generation Part 1. http://www.entrepreneurshipinabox.com/1257/opportunity-recognition-ideageneration-part-1/

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