UGM June 2019 Q55
- Option : D
- Explanation : Essentially, entrepreneurs recognize an opportunity and turn it into a successful business. An opportunity is a favorable set
of circumstances that creates a need for a new product, service, or business. Most entrepreneurial firms are started in one of two
ways. Some firms are externally stimulated. An entrepreneur decides to launch a firm, searches for and recognizes an opportunity,
and then starts a business, as Jeff Bezos did when he created Amazon.com. In 1994, Bezos quit his lucrative job at a New York City
investment firm and headed for Seattle with a plan to find an attractive opportunity and launch an e-commerce company. Other firms
are internally stimulated. An entrepreneur recognizes a problem or an opportunity gap and creates a business to fill it. This was the
case with BuyAndHold.com.
Regardless of which of these two ways an entrepreneur starts a new business, opportunities are tough to spot. It is difficult to identify a product, service, or business opportunity that isn’t merely a different version of something already available. Opportunity recognition is part art, part science. An entrepreneur must rely on instinct, which makes it an art, and on purposeful action and analytical techniques, which makes it a science. An opportunity has four essential qualities: it is (1) attractive, (2) durable, (3) timely, and (4) anchored in a product, service, or business that creates or adds value for its buyer or end-user.
For an entrepreneur to capitalize on an opportunity, its window of opportunity must be open. The term ‘window of opportunity’ is a metaphor describing the time period in which a firm can realistically enter a new market? Once the market for a new product is established, its window of opportunity opens. As the market grows, firms enter and try to establish a profitable position. At some point, the market matures, and the window of opportunity closes.
