Generation of Ideas

Important Note :The latest notes is available at class 12 Entrepreneurship

I. Answer the following questions in a sentence each :

1. What is the basic function of the process of environment scanning?
The basic function of Scanning of environment is Detailed Investigation of the environment with respect to

  1. Developmental factors
  2. Economic factors
  3. Social and cultural factors
  4. Political factors

to confirm that the entrepreneur’s innovation is compatible with these factors.
2. What is a ‘field of ideas’?
Field of ideas is a convenient frames of reference which will help and entrepreneur in streamlining the ‘process of generation of ideas’.
3. What do you understand by the term ‘generation of ideas’?
Generation of ideas refer to conscious endeavor to innovate a solution to a problem or need by collecting ideas from different sources.
4. What is ‘brainstorming’?
Brainstorming refers to an unstructured productive discussion where in a group of persons gather together to generate a number of innovative business ideas to meet the needs or solving problems.
5. Name one source of internal opportunities.
An Internal Opportunity (as opposed to external opportunity) is something that comes from inside an entrepreneur – as a result of a hobby or passion or interest. A person fond of smart phones might develop a smart phone application (something like whatsapp) and introduces to the world. A person interested in acting can introduce new innovation in the style of acting. A person fond of gardening might introduce hybrid flowers/fruits/vegetables. Similar innovation can be introduced in areas like photography, painting, magic-illusion etc.
6. Why should an entrepreneur be keen and alert?

  1. An entrepreneur should be keen listener to what others say, inquisitively (having or showing an interest in learning things; curious) to get a good understanding of peoples’
    1. tastes
    2. problems
    3. wants
    4. and preferences.
  2. They should be alert and open so as not to miss an opportunity to grab a new idea.

Thus by being keen and alert entrepreneurs gather information which will help them to innovate better products or services by meeting the customer demands.
7. How are idea fields useful in generation of ideas?
Idea fields are useful in the generation of ideas in the following ways

  1. They increase the awareness of the entrepreneur about various fields
  2. They streamline the process of idea generation
  3. They broaden the scope of thinking
  4. They form convenient frames of reference to simplify the process of idea generation.

8. What is trading? What advantage does it possess over manufacturing?
Purchasing goods and services and then selling them to consumer for a profit is called as trading. It has the advantage of

  1. easiness to launch
  2. less amount of risk

9. Give two examples of service sector ideas.
Service sector ideas can be classified as

  1. Those that are linked with existing industrial enterprises like
    1. Gardening
    2. Painting
    3. Transport
    4. Workshop
    5. Maintenance
    6. Security
    7. Catering
    8. Cleaning
  2. Those that are linked with commercial establishments like
    1. Advertisement
    2. Book-keeping
    3. Computer center
    4. Courier service
    5. Photocopy
    6. Printing
    7. Stationary supply
    8. Telecom center
  3. Those that are help the commercial establishments to cater to their regular day to day requirements like
    1. Bill Collection
    2. Repairs
    3. Maintenance
    4. Pest Control
    5. Water Supply
    6. Water tank cleaning
    7. Travel arrangements

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10. What are the three important issues to be considered for sustainable development?
The three important issues that should be considered for sustainable development by the entrepreneurs are

  1. Consonance with values
  2. Environmental protection
  3. Judicious management of natural resources

II. Answer the following in about 50 words each.

1. Briefly outline the process of sensing entrepreneurial opportunities, describing each stage with an example.
The process of sensing entrepreneurial opportunities has three basic steps

  1. Spotting ideas: In this step certain basic ideas are received. The entrepreneur then uses this creative process of spotting of ideas. At the end, the ideas will be harnessed and acquire much better shape. For instance, when someone wants to bring an innovative education system, he might end up with a an idea to start a school where the lessons are taught to kinds through 3D hologram technology, to imbibe the concepts much better into their minds and also to give a feeling of interactive learning.
  2. Scanning of the environment: The entrepreneur then scans the environment. In this step the ideas are evaluated against the prevailing environment. At the end of the process, the potential and viability of the idea will be determined. In this step, for the above example, the entrepreneur will evaluate the interest of parents, the availability of the supporting technology, the willingness to pay the huge tuition fees by the parents.
  3. Selecting the product or service: At end, an innovative product or a service is identified and the entrepreneur is ready to establish and enterprise. The entrepreneur is now ready to proceed with the starting of this school.

2. What is the difference between basic ideas and post-scanning ideas?

Basic Ideas Post Scanning Ideas
Basic ideas refer to the randomly spotted ideas during the initial phase. Post scanning ideas emerge with a purpose to fulfil.
This process is experiencial in nature. This process is more strategic in nature.
To become potential opportunities, the basic ideas have to go through the process of

  1. Analysis
  2. Evaluation
  3. Close examination
  4. Synthesis
The post scanning ideas are emerged by strategically positioning the

  1. skill
  2. knowledge
  3. creative thinking and
  4. competency

against the prevailing environment in the market.

3. How is market survey useful to an entrepreneur?
Market dynamics play a critical role and have a great influence on all the enterprises. Market survey helps entrepreneurs to

  1. Generate new ideas
  2. Keep their products/services competent and take actions depending on the demand in the market.

Market surveys help the entrepreneur to get valuable information about

  1. demand
  2. supply
  3. changes in consumer behavior

The information gathered by the marketing agencies also comes in handy in this regard.
The marketing survey analysis provides us valuable information on various factors like

  1. Gap between demand and supply ex: Demand for LPG gas is more and supply is less. Ideas for alternative sources of energy like solar.
  2. Scope for manufacturing a product indigenous, if it is being imported. Currently various electronic components are imported. Or for treatment of certain diseases, people visit foreign countries.
  3. Scope for improving various services. Food deliver system or bill collection system requires an improvement.
  4. Scope for the production of products with lower/cheaper cost. Solar panels are very expensive.

All these help in generation of ideas for a new product or service.
4. What are the five ways in which creative ideas can be generated?
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III. Answer the following in about 200 words each.

1. Describe the different methods adopted by entrepreneurs to generate ideas with at least one example for each.
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2. Comment on the following diagram.
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3. Discuss any three fields of ideas with suitable examples.
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4. Write a critical analysis of the concept of sustainable development with special reference to Entrepreneurship.
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Other useful resources for your reference

Books & Other Material

  1. Entrepreneurial Opportunities
  2. Entrepreneurial Planning
  3. Enterprise Marketing
  4. Enterprise Growth Strategies
  5. ‎Business Arithmetic
  6. ‎Resource Mobilization

1 Comment (+add yours?)

  1. showkat ahmad bhat
    Mar 12, 2017 @ 15:16:37

    Add me frind


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