Topic
Difference between a business idea and an opportunity
Learning objectives: The objective of this activity is to make students know about the basic difference between a business idea and an opportunity.
Learning outcome: Students will learn to identify the factors that hinder the transformation of a business idea into a viable opportunity.
Background Concept: While studying entrepreneurship we observe a conceptual difference between an idea and an opportunity. An idea is something conceived in the mind, a thought or notion. It may or may not qualify as an opportunity. In contrast, an opportunity must meet specific criteria of attractiveness, endurance, timing, and value addition.
Scenario: It’s the morning of April in 2024. Kashif (a jobless skilled tire mender) is seated outside the medical hospital cafeteria. He overhears two gentlemen conversing about Akhbaar-Chowk, a newspaper distribution center in the midst of the city, where hundreds of hawkers used to come on bicycles daily at dawn (the first hour of the day before daybreak) to pick up newspapers in the mid-90s. Listening to this and assuming so much bicycle traffic he idealizes this situation as a business opportunity and gets inspired to open a bicycle tire repair shop outside of Akhbaar-Chowk.
As an entrepreneurship student, I believe that this temptation of Kashif will only last as an idea and will not likely turn into a legitimate/profitable business opportunity.
Requirement:
Do you agree with my stance? Give four arguments either supporting or opposing it.
Note about the argument and the marking scheme:
- You need to write only four points to clarify your argument. 1.25 Marks for each point = 5 Marks
- Craft your answer in the light of the concept of opportunity criteria (attractiveness, endurance, timing, and value addition).
Answer
I agree with your stance that Kashif’s idea of opening a bicycle tire repair shop outside Akhbaar-Chowk might not likely turn into a legitimate/profitable business opportunity. Here are four arguments supporting this viewpoint:
- Timing: While Kashif’s idea is inspired by the past bicycle traffic at Akhbaar-Chowk, the timing aspect is questionable. The situation he heard about occurred in the mid-90s, and it’s now 2024. The relevance of bicycle traffic at that location may have significantly decreased or changed over time, affecting the attractiveness of the opportunity.
- Endurance: Endurance refers to the sustainability and longevity of an opportunity. Kashif’s idea lacks endurance because it relies on a transient observation of past activity rather than a current, ongoing market need or trend. Without ongoing demand for bicycle repair services at Akhbaar-Chowk, the opportunity may not sustain itself.
- Attractiveness: An opportunity’s attractiveness is determined by factors such as market demand, competition, and potential profitability. While Kashif’s idea shows entrepreneurial thinking, the attractiveness of setting up a bicycle tire repair shop outside Akhbaar-Chowk depends on current market dynamics, which he may not have thoroughly assessed.
- Value Addition: Successful business opportunities often involve providing value or solving a problem for customers. While there may be some demand for bicycle repair services, Kashif’s idea doesn’t demonstrate significant value addition beyond general repair services. Without a unique value proposition or differentiation, it may be challenging to attract and retain customers.
In conclusion, while Kashif’s idea shows entrepreneurial spirit, it lacks the alignment with key opportunity criteria such as timing, endurance, attractiveness, and value addition. Thorough market research and evaluation of current market conditions would be necessary to determine if this idea can indeed evolve into a profitable business opportunity.
