Ideas rule the world but opportunities reign in ‘heaven.’
“An entrepreneurial idea is a potential business opportunity.” —thinkUP
Business opportunity is the central issue in economic prosperity.
From an entrepreneurial idea to a business opportunity, value is being conceptualised, created and commercialised. Ideas are the seeds of innovation while opportunities are the seeds of business.
What an idea is to entrepreneurship is what an opportunity is to business. An idea is a potential value while an opportunity is a potential business. The commercialisation of value is the central issue in business entrepreneurship. Business opportunity is the central issue in economic prosperity.
Business or ‘opportunity’ entrepreneurship is the journey of an entrepreneurial idea from conceptualisation to commercialisation.
An entrepreneurial idea is a potential value while a business opportunity is a potential commerce. What we refer to as commercial value is simply an opportunity in an idea. An entrepreneurial idea leads to value creation while a business opportunity leads to commercialisation of value.
Anybody can generate an idea but it takes great business acumen to turn an entrepreneurial idea into a profitable venture. Business acumen refers to the ability to transform an entrepreneurial idea into business opportunity. Business entrepreneurs are skilled at identifying and commercialising opportunities. Innovators are gifted at generating entrepreneurial ideas and turning them into products.
Idea – a thought or concept for a product or service
An idea is the starting point of the entrepreneurial journey, but it’s not enough to guarantee success on its own. Opportunity, on the other hand, refers to a chance to turn an idea into a viable business. An opportunity is a gap in the market that an entrepreneur can fill with their unique solution. An idea is a concept or though that originates from the mind. It can be a product, service, process, or any other solution to a problem. Ideas are often sparked by observations, experiences, or a deep understanding of a specific field or industry. They serve as the foundation for potential innovation.
Opportunity – a need, want, problem or challenge that might be satisfied by an entrepreneurial venture. An opportunity arises from an entrepreneurial idea with the potential for commercial or social value. It is the convergence of an idea with a favourable external environment, such as market demand, technological advancements, or regulatory changes.
When the external environment is favourable to an entrepreneurial idea, that is heaven on earth (a strong business opportunity). Entrepreneurial ideas tend to solve social problems and in turn, create social value. Value chain is created and expanded as entrepreneurial ideas find expression through conceptualisation and commercialisation of value.
Business opportunity is the central issue in economic prosperity.
Business opportunities in Africa
Africa is increasingly on the radar of global companies, especially those in other developing countries such as China, India and Brazil, but doing business in Africa requires multiple strategies. Africa occupies 20 percent of the earth’s land surface and is incredibly diverse, with 54 countries at different stages of development, more than 2,000 tribes and languages and various cultures, demographics and economies. Understanding the differences between countries, regions and cultures is essential to take advantage of the potential and develop appropriate regional and even micro strategies.
Many perceive Africa as fuelled only by natural resources and agriculture, but although these are the continent’s largest Gross Domestic Product (GDP) contributor (around 38 percent), the consumer-facing industry (wholesale, retail, finance, insurance, real estate) is catching up. It currently accounts for 27 percent of GDP and represents the biggest growth potential; it is expected to grow by over $400 billion by 2020, driven by the growing middle class, which is expected to constitute 53 percent of total households in 2020. The African population is young (40 percent of its 1.03 billion population is under 14 years old) and poor (60 percent live on $1 per day) but it is also digitised, with 70 percent of the population using mobile phones, mostly for calls and payments – Africa accounts for 80 percent of the world`s total mobile payment transactions.
For all its difficulties and complexities, Africa offers many opportunities. It is Heineken’s highest growth segment with a profit margin twice that in Europe and the Americas. Ethiopian Airlines, renowned for accessible prices and high quality, is growing at 20 percent annually, which is unimaginable for any Western airline. African consumers are demanding and risk-averse; they look for the best value at the lowest price. The Indians and the Chinese seem to have a better understanding of African markets and are more willing to go into them. So it is unsurprising that many Indian and Chinese products, which are lower quality but much cheaper than European products, can be found in Africa.
Getting to know African consumers on the ground is essential. Much can be learned from speaking to end users, hairdressers, taxi drivers and other customer-facing individuals to find out about needs, segmentation, purchasing habits and pricing. Small selling outlets (kiosks), which often sell products in tiny portions, are pervasive and provide invaluable information regarding consumers and distribution channels. To succeed in Africa, you also need local decision-making.
Business opportunities in the BRICs
Other emerging economies that have been the focus of attention for the last decade are the BRICs (Brazil, Russia, India and China). They are often referred to as a unified block but are diverse in terms of their economies, policies and cultures. However, they are all large countries and are expected to contribute more than half the global GDP in 2030. Companies that are not considering these high-potential markets are missing opportunities for sustainable long-term growth.
Entrepreneurial ideas and business opportunities are the building blocks of developed economies. Moving creativity from ‘indoors’ into industry or turning a creative idea into lucrative opportunity is pivotal to business entrepreneurship.
From conceptualisation to commercialisation, value creation defines the prosperity index of an individual, organisation or a nation.
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