Question

To be successful an entrepreneur needs to work on various areas. One such area is generation of ideas which is very crucial for the ultimate success of the firm. In order to streamline the generation of ideas entrepreneurs will have to use various convenient frames of reference. Comment on any two such frames.

Answer 1

The process of generation of ideas can be streamlined by developing an awareness of different 'idea fields'. This will help the entrepreneur in enlarging the scope of thinking, at the same time structure the ideas according to convenient frames of reference. Idea Fields can be described as: 'Convenient frames of reference for streamlining the process of generation of ideas.'

1. Natural resources - Ideas can be generated based on natural resources. A product or service may be desired from forest resources, agriculture, horticulture, mineral, animal husbandry, wind, sun and human resource. A further exercise with a field may generate many useful product ideas.
2. Existing products or services - A great business idea combines skills with imagination and market demand. A business opportunity or idea often comes from everyday problems that someone solves. Successful businesses find a need and fill it by providing a service or product. Entrepreneurs who look at ways to make an existing product or service better can be as successful as those who create or invent products. There is a constant and consistent effort on the part of all entrepreneurs to improve the products and services already existing in the markets.
3. Market driven or demand driven ideas - We have already seen that one of the important methods for generating ideas is to carry out market research. Such a study yields valuable data about trends of supply, demand and consumer preferences. Market research is any organized effort to gather information about target markets or customers. It is a very important component of business strategy. The term is commonly interchanged with marketing research; however, expert practitioners may wish to draw a distinction, in that marketing research is concerned specifically about marketing processes, while market research is concerned specifically with markets.