Business Idea Generation in Today’s Economy

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Business Idea Generation in Todays Economy

• Dr. Urvesh Chaudhery
• Professor
• Aravali College of Engineering and Management
• Faridabad

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The topic has been divided into 3 major parts

1. Impact of Pandemic CORONA on Indian Economy
2. Business Opportunity Identification
3. Business Opportunities and need of the hour in
   todays Indian Environment

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Impact of Pandemic CORONA on Indian Economy
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What is Pandemic Corona

• The coronavirus outbreak has been labelled
  a pandemic by the World Health Organization
  (WHO).
• Coronaviruses are a large family of viruses that
  are known to cause illness ranging from the
  common cold to more severe diseases such as
  Middle East Respiratory Syndrome (MERS) and
  Severe Acute Respiratory Syndrome (SARS).

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What is the remedy for CORONA

• To prevent the spread of COVID-19
• Clean your hands often. Use soap and water, or an
  alcohol-based hand rub.
• Maintain a safe distance from anyone who is
  coughing or sneezing.
• Dont touch your eyes, nose or mouth.
• Cover your nose and mouth with your bent elbow or
  a tissue when you cough or sneeze.
• Stay home if you feel unwell.
• If you have a fever, a cough, and difficulty
  breathing, seek medical attention. Call in
  advance.
• Follow the directions of your local health
  authority.

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IMPACT ON INDIAN ECONOMY

• In India up to 53 of businesses have specified a
  certain amount of impact of shutdowns caused due
  to COVID-19 on operations (FICCI survey).
• Various business such as hotels and airlines are
  cutting salaries and laying off employees.
• Live events industry has seen an estimated loss
  of ?3,000 crore.
• A number of young startups have been impacted as
  funding has fallen.
• A DataLabs report shows a 45 decrease in the
  total growth.
• In Delhi, night light radiance fell 37.2
  compared to 1-31 March 2019. This was the biggest
  fall for any metro in India. Bangalore fell 32
  while Mumbai dropped by 29.

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IMPACT ON AGRICULTURE

• Due to logistical problems following the lockdown
  tea estates were unable to harvest the first
  flush. So, Tea exports could drop up to 8 as a
  result.
• Same happened with the crops of vegetables and
  fruits.
• From 20 April, under the new lockdown guidelines
  to reopen the economy and relax the lockdown,
  agricultural businesses such as dairy, tea,
  coffee and rubber plantations, as well as
  associated shops and industries, will reopen.

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Stock markets

• On 23 March 2020, stock markets in India post
  worst losses in history. SENSEX fell 4000 points
  (13.15) and NSE NIFTY fell 1150 points
  (12.98). However, on 25 March, one day after a
  complete 21 day lock-down was announced by the
  Prime Minister, SENSEX posted its biggest gains
  in 11 years, adding a value of 
  ?4.7 lakh crore (US66 billion) crore for
  investors.

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Estimate of economic losses

• The Indian economy is expected to lose
  over ?32,000 crore (US4.5 billion) every day
  during. the first 40 days of the lockdown.
• The losses have incurred in manufacturing sector,
  hospitality sector, travel and tourism,
  e-commerce industry etc.

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Business Opportunity Identification
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The chain of entrepreneurship Creativity
innovation are the first stages of successful
entrepreneurial initiatives
Creativity
Innovation
Entrepreneurship
Thinking New Things
Doing New Things
Creating value in the marketplace
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Business is all about selling a product or
service

• Every time something happens,
• positive or negative, I ask myself,
• WHERE is the OPPORTUNITY here?
• How do you spot an opportunity?
• Keep your eyes open all of the time

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Business Idea and Opportunity

• A business idea starts with an opportunity.
• A business opportunity exists when there is
  demand for goods and services to meet the needs
  and wants of community.
• Changes in the environment create opportunities
  cultural, social, legal, economy, political,
  technology (C-SLEPT).

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Illustrations Environment changes

• Good economic condition
• ? demand luxury cars, homes
• Increase number of working couples
• ? demand maids, babysitter
• Introduction of ICT
• ? demand computers, repairs, knowledge, spare
  parts

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Process of Identifying, Evaluating and Selecting
Business Opportunity
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Step 1 Identification of NEEDS WANTS of
consumers

• Need is something basic in life such as food,
  drink, clothing and shelter.
• Want is extension of need craving for better
  than the basic need.
• Need for food Rice
• Want for food Chicken Rice (Chicken Rice Shop)
• Need for shelter Renting a flat with 10
  housemates
• Want for shelter Renting a individual flat
• The better the economy of people, the more
  business opportunities available for the
  entrepreneurs.

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• Human NEEDS and WANTS are unlimited.
• Next, translate the NEEDS and WANTS into PRODUCTS
  or SERVICES.
• PRODUCTS are physical forms e.g. car,
  handphone, books.
• SERVICES non-physical form, intangible product
  e.g. cab service, telco network, training.

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Step 2 Environmental Scanning, Self Analysis
Community Values

• 3 factors to be considered
• Environmental Scanning
• - help identify business opportunities.
• - 2 approaches
• i) Macro scanning
• e.g. population, ethnics, average income,
• ii) Micro scanning
• e.g. family size, Malay delicacies,
  individual income.

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Step 2 Environmental Scanning, Self Analysis
Community Values

• 2) Self Evaluation
• - to see what is available in oneself
• i) Experience
• - match business with experience e.g. engineer
  work with Public Work Dept (JKR) will become a
  Civil Engineer.
• ii) Knowledge Skill
• - do business on what he really knows what to
  do e.g. Contractor must not only knows how to
  manage his business but also how to construct the
  buildings.

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Step 2 Environmental Scanning, Self Analysis
Community Values

• 2) Self Evaluation (cont.)
• - to see what is available in oneself
• iii)Financial situation
• - business that is planned to be implemented
  must match with financial ability. E.g. Land
  owner can do housing business.
• iv) Interest
• - select business based on his interest e.g.
  a person with gardening hobby can open nursery.
• v) Networking
• - good networking generate business
  opportunity e.g. trading

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Step 2 Environmental Scanning, Self Analysis
Community Values

• 3) Values/Norms of the Community
• - business opportunities need to be coordinated
  with the religious and societys values or
  norms.
• - Values and Norms what is perceived as useful
  and beneficial to the community.
• - E.g. Incinerator in Kuala Langat,
  Nuclear-powered electricity generator, poultry
  farm nearby residential areas.

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Step 3 Screening of Business Opportunities

• Legality
• - ensuring the business opportunity is a legal
  one.
• - E.g. selling pirate DVD, imitate product e.g.
  Crocs.
• Degree of competition
• - choose business that is not monopolized.
• - E.g. supplying Sugar
• Capital requirements
• - to identify sufficient funds to finance the
  business.
• - E.g. own money, debt financing, FDI.
• Risks involved
• - expecting the potential uncertainties
  considering the percentage of success failure.
• - E.g. sell 2nd hand cars

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Seeing Opportunities

• Simply understand that there is little
  difference between obstacle opportunity
• able to turn both to their advantage
• The opportunities for potential entrepreneurs are
  unlimited.

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Step 4 Selecting a business opportunity and
preparing a business plan

• After fulfill step 1 to 3,
• it is time for the entrepreneur to select a
  business opportunity.
• Then to prepare the business plan.

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Business Innovation
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What is INNOVATION??
the process by which entrepreneurs convert
opportunities into marketable ideas.
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Business Idea

• A new product or service
• Enhancement of an existing product
• A new market for an existing product
• A new application for an existing product
• A source of grants or awards
• Better arrangements with suppliers
• Better promotion advertising
• Greater efficiency of ordering
• New contact sources

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Forms on Innovation

• Product Innovation the changes in the things
  (product or services) that an organization
  offers. E.g. new design of car, new generation of
  aircraft A380.
• Process Innovation the changes in the ways in
  which product/services are created and delivered.
  E.g. JIT Manufacturing.
• Position Innovation the changes in context in
  which products/services are introduced. E.g.
  Johnson Johnson product not only for babies,
  but also for adult.
• Paradigm Innovation the changes in underlying
  mental models which frame what the organization
  does. E.g. shift to low-cost- airlines, online
  insurance.

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Are they the same???
3.1 Business Opportunity 3.2 Business idea 3.3
What is Innovation? Strategies to Encourage
Creativity Innovation
Ideas that improve Efficiency/effectiveness of a
system
Creativity The generation of ideas that result in
the improved efficiency or effectiveness of a
system.
Definition
Turning ideas into Marketable Goods / Services
Innovation Process by which entrepreneurs convert
opportunities into marketable ideas. It is the
means by which they become catalysts for change.
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Types on Innovation

• Invention the creation of a new product,
  service, or process, often one that is novel or
  untried.
• Extension the expansion of a product, service,
  or process already in existence.
• Duplication the replication of an already
  existing product, service, or process.
• Synthesis the combination of existing concepts
  and factors into a new formulation.

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Business Opportunities and need of the hour in
todays Indian Environment
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TARGET INDUSTRIES
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Conclusion
3.1 Current Economic Situation of India
3.2 Business Opportunity Identification
3.3 What is Innovation?
3.4 Scope of Entrepreneurship
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FOR YOUR PRECIOUS ATTENTION