Content uploaded by Imoh Uford
Author content
All content in this area was uploaded by Imoh Uford on Feb 02, 2023
Content may be subject to copyright.
Content uploaded by Imoh Uford
Author content
All content in this area was uploaded by Imoh Uford on Feb 02, 2023
Content may be subject to copyright.
Content uploaded by Imoh Uford
Author content
All content in this area was uploaded by Imoh Uford on Nov 07, 2020
Content may be subject to copyright.
CHAPTER 6: SOURCES OF BUSINESS IDEAS
6.0 INTRODUCTION
Business ideas are thoughts that when implemented can lead to income generation.
Entrepreneurs must first come up with ideas from different sources that should lead them to
starting a well planned business. A business idea is the response of a person or group of persons,
or an organization with the target of solving an identified problem or meeting perceived needs in
an environment (market, community, etc.). This chapter has demonstrated practical approaches
toward identifying and merging business ideas from within and outside the business
environment. Here are some of the sources of business ideas.
6.1 AN OVERVIEW OF SOURCES OF BUSINESS IDEAS
Reviewing the testimonies of millions of entrepreneurs around the world, it could be gathered
that there are many potential sources of business ideas. Comparatively, it is believed that ideas
untapped are more than those already developed. Some of the more useful sources are outlined
and discussed accordingly.
It is well-documented in the existing literature that environmental factors such as history, region,
ethnic, social, culture, economic, legal and politics can motivate entrepreneurial behaviour such
as new venture creation (Dollinger, 2003; Hechavarria and Reynolds, 2009). Furthermore,
Minniti and Nardone (2007) argue that it is worthy to note that, there are factors that influence
entrepreneurship across all countries, i.e. universal determinants of entrepreneurial behaviour.
More so, there are aspects of entrepreneurship that are culture specific. A significant amount of
studies in various fields has investigated what variables are universally correlated to the decision
to start a business and most scholars agreed that it is a complex decision to start a business. As a
result of the myriad of determinants of entrepreneurship, some authors have attempted to
categorise these factors using various approaches. For instance, the Schumpeterian school argues
that entrepreneurs tend to be born whereas the Kirznerian Undergraduate students’
Entrepreneurial Intention School argues that it is possible to train entrepreneurs (Dana, 2001).
Sequel to these arguments, Arenius and Minniti (2005) propose four factors, which are
demographic (age, gender, education and work status), economic (household incomes),
perceptual variables (opportunity perception, self-efficacy, fear of failure and knowing other
entrepreneurs) and environment (technology, level of economic development, culture,
institutions and country effects). Arenius and Minniti’s (2005) proposition is similar to
Thompson’s (2009) personal, cognition and environment classification. Wennekers, Uhlaner and
Thurik (2002), broadly classify the determinants of entrepreneurship into macro level
(technology, economic, culture and institutions) and micro level (age, ethnicity, level of
education attained, gender and previous experience in self-employment). It is essential to note
that Wennekers et al. (2002) framework was based on Naffziger, Hornsby and Kuratko (1994)
study, which hypothesized that the decision to behave entrepreneurially is the result of the
interaction of:
1. personal characteristics (innate behavior and talents)
2 personal environments (family status, sex, entrepreneurial family background and education)
3 business environment (societal attitudes, economic climate, availability of accessible funds,
entrepreneurship-supportive network and incubators)
4 ideas that we privy to
5 personal goals
6 expectation-outcome comparison
7 implementation-outcome perception
Basically, this chapter harnesses all of these sources into six different groups with major
similarities as classifications as presented below;.
6.1.1 INNATE CHARACTERISTICS AND ACQUIRED SKILLS
One approach to broaden the understanding of venture creation is to examine innate
characteristics of a potential entrepreneur Looi and Khoo-Lattimore (2015). Existing literature
documented the importance of innate factors (also referred to as in born factors), For example, an
individual with singing talents would definitely progress in the music industry more than another
person who happens to choose music as a career, without some inward or self motivations.
Similarly, one might also develop some music skills over the years based on consistent
passionate practices. Both can become sources of business ideas if put to use appropriately.
i. Talents
A business idea can also come from individual talents. You are best in what you are talented in
and this might form a good base for starting a business if you spot an idea in that area. For
instance, if you are talented to play football, you might spot an idea in supplying football kits to
customers in the market.
ii. Skills acquired
Other personal skills acquired from training and personal and/or job experience, add up to the
development of ideas for a successful business. One’s skills are probably his or her most
important resource. This is not necessarily in the area of generating business ideas but also
harnessing them to become business capital (i.e capitalizing them).
6.1.2 MICRO ENVIRONMENTAL SOURCES
(i) Family Economic Status
The economic status of every family has a way of influencing its members. This is so, because it
predicts a lot factors around their lives. It has the power to motivates and/or challenge them to
think ahead. There are lots of testimonies from many successful entrepreneurs about the
challenges and motivations from their family economic status (Looi and Khoo-lattimore, 2015).
This factor is one of the major micro environmental influencers of individual’s entrepreneurial
ability or source of business.
(ii) Family business background
The emergence of entrepreneurship resulted from the influence of the combination of role
models and family on one’s business perception (Brockhaus and Horwitz, 1986). However, role
model and family are not synonymous because role model is a wider concept that includes other
people besides family. Looi and Khoo-Lattimore (2015), indicates that family background can be
a push or pull factor for entrepreneurship (Dyer and Handler, 1994). The push factor or negative
motivation is a result of poverty, insecurity and neglect childhood. Quiet interestingly, on the
other side, the pull factor or positive motivation comes from family business with parental role
models, significant family responsibilities at a young age or opportunities to engage in
entrepreneurial activities. Consequently, these children learned and developed the skills, values,
confidence and experience for an entrepreneurial career in the future. Existing literature suggests
that higher level of prior family business exposure is positively associated with entrepreneurial
intention (Carr and Sequeira, 2007; Matthews and Moser, 1996; Veciana, Aponte and Urbano
2005; Wang and Wong, 2004).
(iii) Gender
According to many entrepreneurs, it has been found that male generally have stronger
entrepreneurial intentions than females (Minniti and Nardone, 2007; Langowitz and Minniti,
2007; Veciana et al., 2005; Wilson, Kickul and Marlino, 2007; Wang and Wong, 2004; Xavier
Kelley, Kew, Herrington, and Vorderwulbecke, 2013; Zhao, Seibert and Hills, 2005). In some
studies on gender and entrepreneurship, gender was found to be the strongest distinguishing
factor for entrepreneurial intention (Delmar and Davidsson, 2000; Matthews and Moser, 1996),
among other proxies adopted. Although majority of these studies drew data from student
samples, nevertheless the results compliment the consistent findings of Global Entrepreneurship
Monitor that entrepreneurship among women is lower than men (Xavier et al., 2013). Minniti
and Nardone (2007) argue that the difference in the propensity to start a business across gender
can be universally attributed basically to perceptual factors and perceptual factors are easily
predicted by gender.
(iv). Age
From the literally perspective, age refers to time and or progress level. Recent studies found that
rates of individuals with entrepreneurship skills generally are the highest in the 25 to 34 years-
old cohort (Delmar and Davidsson, 2000; Langowitz and Minniti, 2007; Wennekers et al., 2002;
Xavier et al., 2013). On the contrary, some other opinions hold that, a trend towards
entrepreneurship at a younger age than 25 years (Wennekers et al., 2002). This is the reason that
most students’ are fast developing entrepreneurial ambitions right from school since they will
face important career decision in the near future. Even though undergraduates have not yet
reached the point of planning to start a business (i.e., they are at the pre-nascent stage) but
researchers are interested to assess undergraduates’ level of interest in new venture creation
because they are an important source of nascent entrepreneurs in the future. Furthermore, it is
likely that undergraduates may decide to become an entrepreneur prior to actual identification of
an entrepreneurial opportunity (Engle, Dimitriadi, Gavidia, Schlaegel, Delanoe, Alvarado, He,
Buame, and Wolff, 2010).
6.1.3 MACRO ENVIRONMENTAL SOURCES
(i) Societal attitudes
By attitudes, we mean the beliefs, feelings, and action tendencies of an individual or group of
individuals towards objects, ideas, and people (Canare, 2015). Quite often persons and objects or
ideas become associated in the minds of individuals and as a result, attitudes become
multidimensional and complex. However, the essential aspect, of the attitude is found in the fact
that some characteristics like feeling or emotion is experienced and, as we would accordingly
expect, some definite tendency to action is associated. These societal tendencies could be
positive of negative to different persons based on their perceptions, beliefs and other obvious
factor, and where they are negative, it behooves on the affected person to fill the gap.
Consequently, market gaps are identified in the lives of these affected individuals who would
gladly pay for what offering that could breach the gap(s) in their feelings and emotions. This
particular source of business idea is therefore considered as necessitated by societal attitudes of
factors.
(ii). Economic climate
This represents all the indices that have a possibility of affecting the economic situation within
which a potential entrepreneur operates. Some of these indices or indicators are highlighted
below.
(a) Availability of accessible funds
One of the factors that hinder the execution and/or growth of business ideas is access to finance
or credit. On the same vein, its availability can facilitate young entrepreneurs to the top in their
business careers. While enough owners’ equity is an important source of capital, credit is often a
more viable source of funds for expansion and further investment. Different studies and surveys
show that access to credit is one of the biggest problems faced by small and medium businesses.
Because many startup businesses do not have substantial fixed assets, they cannot afford to take
out loans due to lack of collateral. Although most business experts argue that in order to assure
access to credit, businesses should maintain sound finance and invest in assets that can be
collateralized but realistically, it becomes very difficult for startup business to breakthrough
where they cannot have access to affordable capital finance (Canare, 2015). Low interest rates,
low cost and ease of obtaining credit, and availability of credit institutions as well as venture
capital companies are some of the favorable conditions for startups in terms of access to finance.
(b) Access to Resources
According to Canare (2015), fledgling businesses should also take into account availability of
resources. The term “resources” covers a wide range of materials necessary for a business’s
operation. Fuel, raw materials, and technology are all examples of resources. Ideally, these inputs
should be easily obtainable at an affordable price. Business owners should anticipate and prepare
for potential supply disruptions before entering a particular business industry and/or locality.
Businesses operating in cities around river Niger, for example, should take into account the
frequency of high level of rain falls and how that may impact supply chains. Companies doing
business in Iran should consider the potential impact of sanctions or political isolation.
Resource availability can fluctuate depending on environmental, political and economic
circumstances.
(c) Demand for products and services
In most cases market prices for products and services are widely predicted by the forces of
demand and supply. These forces naturally play an important role in business projections by
owners or entrepreneurs. Demand is largely determined by the needs and preferences of
consumers in specific markets. For example, an entrepreneur doing business in a University town
should consider what appeals to students. Students love affordable housing, public
transportation, and alcohol. A business that addresses these needs stands a good chance of
succeeding within this kind of environment. On the other hand, a fancy Chinese restaurant or
luxury hotel may struggle in a student community (Canare, 2015), not because there is no need
for such offering but because it does not accommodate the purchasing power of most target
audience.
Demand is also affected by broader phenomena. These phenomena include evolving consumer
preferences, inflation, changes in household income and changes in interest rates, among other
factors. The sudden onset of inflation, for example, may constrain purchasing power. Changes in
consumer preference and/or the lunching of a new product may reduce demand for particular
products and services while increasing demand for others. Entrepreneurs should always keep an
eye out for changes in demand that could affect the bottom-line.
(d) Economic conditions abroad
It is worthy to note that entrepreneurs must also consider economic conditions abroad, regardless
of whether or not they have business interests abroad (Canare, 2015). Those who export their
products should take into consideration sudden downturns in demand in target destinations. This
may occur during natural disasters, wars, economic crises or the emergence of more appealing
alternative products. Those who import resources and inputs should keep an eye out for
developments that could obstruct their supply chain. In addition to the aforementioned
factors, supply chain natural disasters, fluctuations in shipping costs, or changes in international
trade regulations could trigger such developments.
Even those who cater solely to domestic consumers may be affected by economic factors abroad.
Fluctuations in oil prices, for example, tend to significantly impact a wide range of industries.
The rise and fall of fuel prices impact the cost of transportation which in turn influences various
supply chain-associated expenses.
The factors discussed in this article affect both startups and well-established businesses. Young
businesses, however, are particularly vulnerable to circumstances beyond their control. Many
budding businesses can fail even if their executives are business savvy and market high-quality
products. It is essential that entrepreneurs recognize the importance of both internal and external
business catalysts and develop a strategy accordingly.
(iii). Work experience
Idea can grow out of listening to customer complaints. They can also come from frustration of
existing customers. Ideas can come from not finding what you are looking for as a consumer.
According to Wharton Professor David Hsu as cited in Canare (2015), in today’s venture capital
environment, ideas are valued more highly than innovative technology. Initial Public Offering
market has been difficult recently, but buyouts are prevalent. This is because; venture capital
environment has witnessed a paradigm shift in patronage from mere investing capitals into
business start up to buying the new lunched business ideas in the market. Once a startup gets its
business model right, Venture Capitalists start looking for a way to cash out. This means that
experts in business investments are rather buying ideas instead of spending more resources in
developing them
Through work experience gained from employment, potential entrepreneurs develop and
enhance their knowledge, skills and commercial awareness. In other words, a potential
entrepreneur’s past and present experience act as an incubator that exerts a central and often
pivotal influence on their capability to effectively engage in opportunity recognition and
exploitation (Cooper and Park, 2008). Besides work experience, family background and
education should also increase self-efficacy of potential entrepreneurs. However, academic
knowledge alone is insufficient and it is the commercial experience that is pivotal in driving
home the realities of the market (Cooper and Park, 2008). Moreover, the work experience of men
and women is different (Brush, 1992).
(iv). Education
The study by Looi and Khoo-Lattimore (2015), mentions that unlike age and gender, there is
intellectual disagreement on the impact of education on entrepreneurship (Blanchflower, 2004;
Crant, 1996; Minniti and Nardone, 2007; Wang Undergraduate students’ entrepreneurial
intention (Wang and Wong, 2004; Wennekers et al., 2002). In addition, the effect of education
on entrepreneurship also differs in different country, for example, in Europe the relationship is
negative, while the opposite is true in the USA (Blanchflower, 2004). This anomaly is plausible
because University education is pivotal in the development and nurturing of entrepreneurial
capital (Cooper and Park, 2008). On the other hand, education will open up more employment
opportunities; provide higher return from and security for employment, thus reducing the
intention for entrepreneurship. Some researchers found that specialisation in business studies
positively and strongly influence entrepreneurial intentions (Fukuda, 2014). Langowitz and
Minniti (2007) found that education has no significant relationship to women’s intentionality to
start businesses, which means that even a higher level of education attainment may not stimulate
more women entrepreneurs. In contrast, Wilson et al. (2007) suggest that providing access to
entrepreneurship education is critical to promote women entrepreneurs because education can
raise their levels of self-efficacy and ultimately their entrepreneurial intention. Delmar and
Davidsson (2000) posit that most of the gender differences in intentionality can be confounded
by variables such as education and experience. In order to investigate a pure gender effect,
education level and work experience, amongst other variables, will have to be controlled. One
study notes that although the education attainment of women entrepreneurs is comparable to men
but most often they studied liberal arts rather than business, engineering or technical subjects
(Brush, 1992). In some studies, comparison of entrepreneurial intention between sexes was based
on engineering, science and computing student sample (e.g., Wang and Wong, 2004). Although
there are suggestions for entrepreneurship education (Isenberg, 2010) and its inclusion in
entrepreneurial intentions models (Peterman and Kennedy, 2003), however, there is minimal
research conducted on the specific effects of entrepreneurial education (Shook, Priem and
McGee, 2003). Therefore, instead of investigating the effect of education in general, it is more
fruitful to control the level of education and education specialisation to examine the impact of
entrepreneurship education on entrepreneurial intention. On the basis of prior studies and theory,
the present study will delimit itself to personal factors such as gender, education and role models
(Brockhaus and Horwitz, 1986; Crant, 1996; Delmar and Davidsson, 2000), particularly family
under role models. The extraneous variables controlled are age, education level, education
specialization and work experience.
6.1.4 TASK INDUCED SOURCES:
(i). Hobbies.
Hobbies are area of interest of a person and he or she is fond of doing most of the time. At least
each and every one finds something interesting and comfortable doing every time. Well, that
might be a source of a business idea. A hobby is a favourite leisure-time activity or occupation.
Cooper and Park (2008) mention that many people, in pursuit of their hobbies or interest, have
founded businesses. If, for example, you enjoy playing with computers, cooking, music,
travelling, sports or talking, to mention but a few, the person can develop it into business. To
further highlight on this, anyone interested in travelling, performing and/or hospitality, may be
advised to go into tourism –which is presently one of the biggest global industries (Mwangi,
2019).
(ii). Strengths of an individual.
An individual's strength can also serve as a source of idea which is tuned to an idea for carrying
out business. For instance, if you have a particular strength in helping out clients through
consultations, that could form a base to start a business. Furthermore, individual strengths drive
passion in business. It is generally said that passion is one of the secret of any successful
business person. In fact, the correlation between passion and individual strengths cannot be over-
emphasized.
(iii). Surveys.
Business ideas can be generated from market surveys indicating or showing which sector is
viable or possibly void of products. People can check the market to come out with appropriate
conclusions on which sectors are not flooded or occupied. The focal point for a new business
idea should be the customer. The needs and wants of customer, which provide the rationale for a
product or service, can be ascertained through a survey. Such a survey might be conducted
informally or formally by talking to people: usually via the use of questionnaire or through
interviews and/or through observations (Cooper and Park, 2008; Uford, 2017).
It is pivotal that a potential entrepreneur starts by talking to family members and friends, to find
out what they think is needed or wanted but not available. Beginning with closed associates, give
more passion to the dream. For instance, they may be dissatisfied with a product or service and
would easily suggest what improvements they would want to see.
Besides talking to people, one can also get information through observation. For instance, in
deciding whether to site a shop in a particular location, one could take statistics of the human
traffic within that same location at different time period and make a comparative analysis with
other location(s).
(iv). Skills developed from training and knowledge on-the-job
Business ideas can be acquired through training individuals where they are equipped with
necessary skills and knowledge from different skilled organisations and such other institutions of
training. It can also be generated from on-the-job skills and tactics. Experience in itself comes
from constant touch on a particular aspect. For instance, an individual might have an experience
in accounting through his or her occasional involvement with accounting issues (Cooper and
Park, 2008), but he or she can also develop some skills and new tactics to still achieve the same
job description other than the conventional way known to the system. If these skills and new
tactics are further developed and packaged, they could be marketable to other practioners in the
accountin profession, hence considered as a source of business idea.
(v). Events.
Acoording to Mwaangi (2019), a business idea can also be generated through attending events
not necessarily business exhibitions in which new ideas are exchanged. For instance, an event
that is scheduled in some other place can be very good opportunity to find out what is missing in
that particular place and by providing such products, you satisfy customers’ needs which is one
of the reasons of doing business.
(vi). Media.
An idea can also come from the media (Mwaangi, 2019). Reading magazines, newspapers and
such published materials that contain business related issues can help one generate an idea. An
idea can still come from the other media sources like television stations and radios. Discussions
related to business topics can be very useful in generation of an idea. The mass media is a great
source of information, ideas and often opportunity. One way to become an entrepreneur is to
respond to one of the numerous offers via advertisements in a newspaper, magazines, television,
and nowadays internet. Articles in the printed press or on the internet, documentaries on
television may report changes in fashion or consumer needs. For example, you may read or hear
that people are now increasingly interested in healthy eating or physical fitness. This could serve
as a source of business idea in an emerging market (Mwangi, 2019).
8.5 MARKET RELATED SOURCES
(i) Market gaps (niche)
Spotting a gap in the market can also form an idea. Contextually, a market gap in this case refers
to some important business areas that are yet to be occupied. Sometimes, a particular area in the
market may be empty with nobody really providing some goods or services needed by
customers. Similarly, it may be a missing link in a supply chain which causes dissatisfaction to
channel members (Mwangi, 2019). Considering all of these, whether goods or services can be
transformed to an idea. In conclusion, market gaps or niche simply means recognizing needs. A
business idea can be generated from recognition of what customers need in the market. If for
instance customers are frequently demanding maize flour instead of maize itself, one can come
in to provide the maize flour demanded by customers.
(ii) Shows and exhibition.
An idea can also be extracted from shows and exhibitions. Another way to find ideas for a
business is to attend exhibitions and trade fairs. These are usually advertised on the radio and
television or newspapers. By visiting such events, regularly, you will not only discover new
products and services, but you will also meet sales representatives, manufacturers wholesalers,
distributors and franchisers. These are often excellent sources of business ideas, and information
that can help in starting up new business. By seeing what other people presents in the shows and
exhibitions, an individual can come up with an idea of providing something like what he or she
has seen others do. Some of the new business owners may be looking for business partners with
similar ideas just like you (Mwangi, 2019).
(iii). Merging existing businesses.
Merger is allowed in business. It is a form of global business practice that seeks to address some
weaknesses in business. It could be in the area of saving a dying business name and/or idea,
which fails to meet its daily liabilities or in the form of idea contribution. Business people can
also come up together to merge their business as a new development towards achieving or
getting more customers or for provision of better services to customers (Mwaangi, 2019).
(iv). Listening to what business experts say.
A business idea can also be generated through listening to other people's thoughts. This is more
so important when you socialize with great minds or such people who have tried out businesses
or those who actually are in businesses. This is an opportunity to better motivate a potential
entrepreneur giving that fact that some of these successful business men have previously failed in
their initial business ideas, while other have failed consecutively before their eventual
breakthrough. Listening to entrepreneur serves us with the chance of developing our own
business model with a very thin likelihood of failure (Mwangi, 2019).
(v). Franchises
According to (Mwangi, 2019), a franchise is a situation where a sole trademark distributor or
manufacturer of a product gives exclusive rights to independent retailers for local distribution.
This is done in return for the consistency of the retailers to the set operating procedures and
payment of royalties. As one of the sources of business ideas for entrepreneurs, franchising can
take different forms but the most common and preferred one is where you are offered the image,
operating procedures and the name of an established business. Besides buying a franchise, you
can also build on and sell its concept at a profit.
Furthermore, a franchise could be considered as an arrangement whereby the manufacturer or
sole distributor of a trademark, product or service gives exclusive rights for local distribution to
independent retailers in return for their payment of royalties and conformity to standardized
operating resources. Franchising may take several forms, but the one of interest to entrepreneurs
is the type of offer with name, image and method of doing business as well as operating
procedures (Canare, 2015).
6.6 BRAINSTORMING
Brainstorming can be referred to as the process of generating huge number of solutions for a
specific problem through an idea networking approach. In the course of brainstorming there is
no assessment of idea and people are free to speak out their mind without being criticized. The
next step in this process is that their ideas are being blended to create the number of needed
idea(s) with a view to solving a specific problem (Cooper and Park, 2008). Brainstorming is
arguably one of the most widely used pivotal techniques for creative problem-solving as well as
generating ideas. Under here, the strategic focus is to produce as many ideas as possible. It
usually starts with a question or problem statement. For example, you may ask “what are the
products and services needed in the home today which are not available in the market?” Each
idea leads to one or more additional ideas, resulting in a good number of possible marketable
ideas. It is pertinent to note the following steps and rules when adopting this method as a source
of business idea (Mwangi, 2019).
1. Don’t criticize or judge the ideas of others
2. Freewheeling is encouraged: ideas that seems to be wild or crazy are welcome
3. Quantity is desirable: the greater the number of ideas, the better the chances of success
4. Combine and improve upon the ideas of others.
Finally, all ideas, no matter how seemingly illogical or weird, must be recorded.
Other idea-networking sources include;
Mind mapping
This is a graphical technique for imagining connection between ideas. Each idea is written down
and connected by curves to minor or major problem. To start with mind mapping, the
participants just have to write a key phrase in a middle page and after that write other ideas that
come to their mind to connect to their idea (Mwangi, 2019). For example the major idea may be
providing lounges to students and minor can be making provision for laundry services, football
viewing centre, eatery, etc. Furthermore, this session is handled by a coordinator, who connects
the minds of participants with a view to achieving product or service convergence. Convergence
is the process by which many technologies business ideas are combined into one product or
service. Consider mobile phone: it makes calls, has a web browser, calendar, functions as a small
camera and probably does a range of other software-based tasks (Stokes, 2013).
Focus group
This involves group of people providing information in a structured format (e.g. questionnaire).
The moderator leads a group of people through an open in-depth discussion and response to
structured answers with reasons. Focus groups are group discussions which are arranged to
examine a specific set of topics (Kitzinger, 1994). According to Kitzinger (1994), the group is
focused because ‘it involves some kind of collective activity’ (for example debating a specific set
of social or health issues, reflecting on common perspectives or experiences, or discussing on a
welfare campaign or an emerging topic within an economy).
One major objective of focus group discussion (FGD), is to generate fresh information and
advantage of ideas as concerning the theme or in this case the area of business with interest.
Maziriri, Madinga and Lose (2017:34) as cited in Uford, (2018) elucidate that “focus group
interviews as a research technique are described as a semi-structured group discussion,
moderated by a discussion leader, held in an informal setting, with the purpose of obtaining
information by means of group interaction on a designated topic”.
Furthermore, Liamputtong (2009) noted that the primary aim of a focus group is to describe and
understand meanings and interpretations of a select group of people to gain an understanding of a
specific issue from the perspective of the participants of the group. Similarly, Krueger and Casey
(2009), stressed that focus group is an economical, fast, and efficient method for obtaining data
from multiple participants thus; potentially increasing the overall number of participants in a
given qualitative study (Krueger, 2000). In summary, this can used as one of the dimensions of
gaining and/or improving on business ideas.
SELF ASSESSMENT EXERCISE
1. What is a business idea?
2. Who can develop a business idea?
3. What is the needed capital for developing a business idea?
4. List and explain five areas of market related sources of business idea?
5. List and explain four factors that affect the economic climate of business environment?
6. What is brainstorming?
7. What are the four cardinal points when adopting brainstorming?
8. What is mind mapping?
9. What is focus group discussion?
10. How can survey serve as a source of business idea?
11. Business ideas can be obtained through media. How?
12. List and explain three sources of business idea with respect to micro environmental forces?
13. How can education affect one’s entrepreneurial ability?
14. Differentiate between talents and skills as sources of business idea?
15. Can feelings and emotions breed business ideas? How and why?
REFERENCES
Arenius, P. and Minniti, M. (2005) ‘Perceptual variables and nascent entrepreneurship’, Small
Business Economics, Vol. 24, No. 3, pp.233–247.
Blanchflower, D.G. (2004). Self-Employment: More May Not Be Better. NBER working paper
No. 10286 (online) http://www.nber.org/papers/w10286 (accessed 11 November 2013).
Brockhaus, R. H. and Horwitz, P. S. (1986). The psychology of the entrepreneur, in Sexton, D.L.
and Smilor, R.W. (Eds.): The Art and Science of Entrepreneurship, 25–48, Ballinger Publishing
Company, Cambridge, Massachusetts.
Brush, C. G. (1992). Research on women business owners: pat trends, a new perspective and
future directions. Entrepreneurship: Theory and Practice, 16(4),.5–30.
Carr, J. C. and Sequeira, J.M. (2007). Prior family business exposure as intergenerational
influence and entrepreneurial intent: a theory of planned behavior approach. Journal of Business
Research, 60(0), 1090–1098.
Canare, T. (2015). Economic Factors Startups Need to Know. Founder’s Guide.
http://foundersguide.com/global-economic-factors-for-startups/. (Accessed on 13th January,
2020).
Cooper, S. Y. and Park, J. S. (2008). The impact of ‘incubator’ organizations on opportunity
recognition and technology innovation in new, entrepreneurial high-technology ventures.
International Small Business Journal, 26(1), 27–56.
Crant, J. M. (1996). The proactive personality scale as a predictor of entrepreneurial intentions.
Journal of Small Business Management, 34(3), 42–49.
Dana, L-P. (2001). The education and training of entrepreneurs in Asia’, Education + Training,
43(8–9), 405–416.
Davidsson, P. (2002). What entrepreneurship research can do for business and policy practice.
International Journal of Entrepreneurial Education, 1(1), 5–24.
Delmar, F. and Davidsson, P. (2000) ‘Where do they come from? Prevalance and characteristics
of nascent entrepreneurs’, Entrepreneurship and Regional Development, Vol. 12(1), 1–23.
Dollinger, M.J. (2003). Entrepreneurship: Strategies and Resources, 3rd international ed.,
Prentice Hall, Upper Saddle River, New Jersey, USA.
Dyer, W. G. and Handler, W. (1994). Entrepreneurship and family business: exploring the
Connections. Entrepreneurship: Theory and Practice, 19(1), 71–83.
Engle, R. L., Dimitriadi, N., Gavidia, J. V., Schlaegel, C., Delanoe, S., Alvarado, I., He, X.,
Buame, S. and Wolff, B. (2010) ‘Entrepreneurial intent: a twelve-country evaluation of Ajzen’s
model of planned behaviour’, International Journal of Entrepreneurial Behaviour and Research,
6(1), 35–57.
Fukuda, K. (2014). An empirical study on entrepreneurial intentions among Japanese University
Students. International Journal of Entrepreneurship and Small Business, 21(2), 216–230.
Hechavarria, D. M. and Reynolds, P. D. (2009). Cultural norms and business start-ups: the
impact of national values on opportunity and necessity entrepreneurs’, International
Entrepreneurship Management Journal, 5(4), 417–437.
Isenberg, D. J. (2010). How to start an entrepreneurial revolution. Harvard Business Review,
88(6), 40–50.
Kitzinger, J. (1994). The methodology of focus groups: The importance of interaction between
research participants. Sociology of Health and Illness, 16(1): 103–121.
Krueger, R. A. (2000). Focus groups: A practical guide for applied research, 3rd edition,
Thousand Oaks, CA: Sage.
Krueger, R.A., & Casey, M.A. (2009). Focus groups: A practical guide for applied research, 4th
edition. Thousand Oaks, CA: Sage.
Langowitz, N. and Minniti, M. (2007). The entrepreneurial propensity of women.
Entrepreneurship: Theory and Practice, 31(3), 341–364.
Liamputtong, P. (2009). Qualitative Research Methods, Medical edition, London: Oxford
University Press, 1-384.
Looi, K. H. and Khoo-Lattimore, C. (2015). Undergraduate students’ entrepreneurial intention:
born or made? International Journal of Entrepreneurship and Small Business, 26(1), 1-20.
Matthews, C. H. and Moser, S. B. (1996). A longitudinal investigation of the impact of family
background and gender on interest in small firm ownership. Journal of Small Business
Management, 34(2), 29–43.
Maziriri, E. T., Madinga, W., & Lose, T. (2017). Entrepreneurial Barriers that are confronted by
Entrepreneurs living with Physical Disabilities: A Thematic Analysis. Journal of Economics and
Behavioral Studies, 9(1), 27-45.
Mwangi, W. (2019). Top 7 sources of business ideas & opportunities for entrepreneurs. Best
Digital News Platform. https://www.tuko.co.ke/278420-top-7-sources-business-ideas-
opportunities-entrepreneurs.htmlhttps://www.tuko.co.ke/278420-top-7-sources-business-ideas-
opportunities-entrepreneurs.html. (Accessed on 14th January, 2010).
Minniti, M. and Nardone, C. (2007). Being in someone else's shoes: the role of gender in nascent
Entrepreneurship. Small Business Economics, 28(2–3), 223–238.
Naffziger, D. W., Hornsby, J. S. and Kuratko, D. F. (1994). A proposed research model of
entrepreneurial motivation’, Entrepreneurship: Theory and Practice, 18(3), 29–42.
Peterman, N.E. and Kennedy, J. (2003). Enterprise education: influencing students’ perceptions
of entrepreneurship. Entrepreneurship: Theory and Practice, 28(2), 129–144.
Shook, C. L., Priem, R. L. and McGee, J. E. (2003). Venture creation and the enterprising
individual: a review and synthesis’, Journal of Management, 29(3), 379–399.
Stokes, R. (2013). eMarketing: The essential guide to marketing in a digital world, 5th edition.
Quirk Education Pty (Ltd), 1-305.
Thompson, E. R. (2009). Individual entrepreneurial intent: construct clarification and
development of an internationally reliable metric. Entrepreneurship: Theory and Practice, 33(3),
669–694.
Uford, I. C. (2017). Customer and employe- based brand equity driving United Bank for Africa’s
market performance. Ph.D. Thesis, University of the Witwatersrand, Johannesburg, South
Africa, pp. 1-227.
Uford, I. C. (2018). Electronic banking application and Sterling bank customers’ adoption:
Issues, Challenges, and Benefits. Business and Social Sciences Journal, 3(2), 1-12.
Veciana, J.M., Aponte, M. and Urbano, D. (2005). University students’ attitudes towards
entrepreneurship: a two countries comparison. International Entrepreneurship and Management
Journal, 1(2), 165–182.
Wang, C. K. and Wong, P. K. (2004). Entrepreneurial interest of university students in
Singapore. Technovation, 24(2), 163–172.
Wennekers, S., Uhlaner, L.M. and Thurik, R. (2002). Entrepreneurship and its conditions: a
macro perspective. International Journal of Entrepreneurship Education,1(1), 25-65.
Wilson, F., Kickul, J. and Marlino, D. (2007) ‘Gender, entrepreneurial self-efficacy and
entrepreneurial career intentions: implications for entrepreneurship education. Entrepreneurship:
Theory and Practice, 31(3), 387–406.
Xavier, S.R., Kelley, D., Kew, J., Herrington, M. and Vorderwulbecke, A. (2013). Global
Entrepreneurship Monitor, 2012 Global Report. [online] http://www.gemconsortium.org/
docs/download/2645 (Accessed 11 November 2013).
Zhao, H., Seibert, S.E. and Hills, G. E. (2005). The mediating role of self-efficacy in the
development of entrepreneurial intentions’, Journal of Applied Psychology, 90(6), 1265–1272.
