Please make sure that it is your own work and not copy and paste off of someone work or article. Please read the study guide and pg 74 and 75. Please watch out for spelling and grammar . Please use the APA 7th edition must be two page length.
Book Reference:Neck, H. M., Neck, C. P., & Murray, E. L. (2021). Entrepreneurship: The practice and mindset (2nd ed). SAGE. https://online.vitalsource.com/#/books/9781544354644
Once you have read and reviewed the case scenario, respond to the following questions with thorough explanations and a well-supported rationale.
BUS 8303, Entrepreneurship and Innovative Business Development 1
Upon completion of this unit, students should be able to:
2. Analyze the role of an entrepreneurial mindset in opportunity recognition.
2.1 Explain the connection between entrepreneurial mindset and opportunity recognition.
2.2 Discuss the four pathways to opportunity identification.
5. Differentiate innovative business strategies.
5.1 Identify creative techniques for generating innovative business models.
5.2 Interpret innovative techniques related to opportunity recognition.
Course/Unit
Learning Outcomes
Learning Activity
2.1
Chapter 3
Article: “Has the Concept of Opportunities Been Fruitful in the Field of
Entrepreneurship?”
Unit III Case Study
2.2, 5.1, 5.2
Unit Lesson
Chapter 3
Unit III Case Study
Chapter 3: Creating and Recognizing New Opportunities
In order to access the following resource, click the link below.
Alvarez, S., & Barney, J. B. (2020). Has the concept of opportunities been fruitful in the field of
entrepreneurship? Academy of Management Perspectives, 34(3), 300–310. https://doi-
org.libraryresources.columbiasouthern.edu/10.5465/amp.2018.0014
Unit Lesson
Opportunity Recognition
All fields of study have unique concepts and terminology. In business courses, you might have learned about
the word opportunities through the creation of a strengths, weaknesses, opportunities, and threats (SWOT)
analysis, which is a tool used to identify internal factors, like strengths and weaknesses, and external ones
like opportunities and threats. In the field of study for entrepreneurship, the word opportunity has a different
meaning. Instead of approaching the word opportunity from the perspective of identifying external facts or
observations about the environment that could be relevant to a company, in entrepreneurship, the word
opportunity refers to the potential for a new idea, product, or process that solves an identified problem.
UNIT III STUDY GUIDE
Opportunity Recognition
https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=145645501&site=ehost-live&scope=site
https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=145645501&site=ehost-live&scope=site
BUS 8303, Entrepreneurship and Innovative Business Development 2
UNIT x STUDY GUIDE
Title
In the previous unit, the concept of an entrepreneurial mindset was covered, which encompasses the
openness to considering new ideas, the awareness to explore possibilities, and a sense of curiosity in
recognizing that a better solution could be found in addressing specific problems or situations. In this unit, we
move forward in connecting an entrepreneurial mindset to identify an opportunity and solution to a problem—
and then taking the action to move forward in exploring the problem.
Connection Between an Entrepreneurial Mindset and Opportunity Recognition
The image below makes the connection between an entrepreneurial mindset and opportunity recognition or
the ability or capacity to imagine dramatically new ideas and solutions to a problem. Jeffery Timmons, a
groundbreaking researcher on entrepreneurship, defined opportunity within an entrepreneurial context as
including a valuable and identifiable solution to a significant problem with a sizable potential demand base or
market or a definable emotional value connected to the solution and a willingness to move forward in
developing the solution into a business (Timmons, 1994). The opportunity must also align or fit the
entrepreneur’s interests and abilities and fit within the appropriate timing for both the entrepreneur and the
market (Timmons, 1994).
BUS 8303, Entrepreneurship and Innovative Business Development 3
UNIT x STUDY GUIDE
Title
These four conditions are the criteria for opportunity recognition. If any one of these components is missing,
then we would only say that an idea is present, but the opportunity has not been established. The difference
between an entrepreneurial venture and a small business is opportunity. If a small business owner opens a
business based on an already established idea, this would not qualify as an entrepreneurial opportunity. An
entrepreneur is someone who creates something new through the opportunity recognition process that fulfills
these four criteria. This is not to say that a small business owner cannot add an entrepreneurial aspect to an
established business, as pointed out in Unit I in this course.
Opportunity is defined as “generating value through unique, novel, or desirable products, services, and even
processes that have not been previously exploited” (Neck et al., 2021, p. 57). The authors of the eTextbook
note that an entrepreneurial opportunity includes three characteristics: potential economic value, novelty or
newness, and perceived desirability (Neck et al., 2021). The combination of identifying a problem, a solution
to the problem, a willingness to act on researching and developing the solution, and the foresight to recognize
the importance of timing the venture for optimum success along with bringing in the needed resources work
together to present the right conditions that move an idea into an opportunity creation position.
BUS 8303, Entrepreneurship and Innovative Business Development 4
UNIT x STUDY GUIDE
Title
(Adapted from Pistrui et al., 2008)
Conditions for Opportunity
Before we move on, make sure you understand that there are many ideas that people think about, but not all
ideas translate into meeting the conditions that fit as an opportunity. If only one person is interested in your
idea, the idea would not be worth your time and effort to create a business around it. Understanding the
criteria that support the difference between an idea and an opportunity is an important concept for potential
entrepreneurs.
The pet rock created back in the mid-1970s was simply a smooth rock which Gary Dahl, a college student,
marketed as a companion for college students as though the rock was a live pet (Goldman, 2015). The pet
rock provided an emotional solution for college students who missed their friends and family members back
home and presented an emotional connection to other college students through the care of their Pet Rocks as
well as a humorous break in college student’s lives (Goldman, 2015). This example points out how difficult it
is to know if an idea translates into an opportunity. Most experts would have said that no one would be
interested in a pet rock, and yet, for a time, pet rocks were quite popular with product line extensions such as
small designed paper crates like life-size dog kennels to contain the pet rock and a manual on how to care for
it. From today’s perspective, the story of pet rocks sounds odd, yet the creator became a multi-millionaire.
Dahl attributed the popularity of his creation to timing (Goldman, 2015). It worked in a society that was
disillusioned from both the Vietnam War and Watergate with a need for laughter and healing (Goldman,
2015). The pet rock venture was started with minimal investments to test if the idea truly met the conditions
for an opportunity.
BUS 8303, Entrepreneurship and Innovative Business Development 5
UNIT x STUDY GUIDE
Title
Innovation
Just as individuals can identify a problem and translate that problem into an opportunity, organizations can
also encourage their employees to become intrapreneurs and have an entrepreneurial mindset to identify
opportunities based on innovations that align with the organization’s goals. In today’s highly competitive and
dynamic world, change is constant. With change, new problems arise, presenting the potential for new
opportunities to solve these problems. In conjunction with change, the potential for innovation occurs. For
organizations to remain successful, innovation becomes a necessity.
Exactly what is meant by innovation in speaking of an entrepreneurial opportunity? Innovation includes a
product or service that is novel, useful, and valuable (Neck et al., 2021). An entrepreneurial opportunity can
also include improvements to existing products or processes. Even an invention that does not currently have
a market could become an opportunity when the timing is right or with the right position within the market,
possibly creating a previously unknown market such as the one creators of hoverboards and flyboards
accomplished.
Organizations should use incentives to encourage innovation within their organizations as a method to
encourage innovation (Edralin et al., 2019). In earlier material, we noted that 3M incentivizes innovation by
providing resources to support employee intrapreneurial activity (Goetz, 2011). A part of this incentive is
providing time for creativity, an action that you can build into your life. The eTextbook authors provide a
variety of techniques that you can use to generate ideas and even strategies to advance ideas you already
have on your mind. A few other idea generation techniques include brainstorming, storyboarding, and role-
playing. Using these techniques can transform your ideas into potential entrepreneurial opportunities.
Consider setting aside an hour a day to build your skills by practicing these techniques.
Creativity
Everyone has the capacity for creativity, even if you have heard someone tell you that you are not creative.
Creativity is about how we apply our unique perspectives to situations. Your creativity skills are present in a
vast variety of activities. Challenge yourself to notice when you are being creative. For example, even the
route you drive to your job can display creativity as you select specific routes that focus on the quickest route,
or maybe you select a route that provides for a relaxing drive, or a scenic drive, or a stop for your favorite
coffee. Creativity is not necessarily defined as producing a well-received piece of imaginative art; creativity is
also present in solving our everyday problems. Mind maps are a popular method for applying creativity in
generating ideas. The mind map below is an example of exploring ideas as a process for building creativity.
This same tool also works well in discovering more about a specific problem as you consider possible
solutions. You can use this tool in creatively analyzing a problem that you are facing. You can include
pictures, spelling words backward, or adding emotions into a mind map.
Example of a mind map for creativity
(Dizain777, n.d.)
BUS 8303, Entrepreneurship and Innovative Business Development 6
UNIT x STUDY GUIDE
Title
Interactive Activity
In order to check your understanding of
concepts from this unit, complete the Unit III
Knowledge Check activity.
Unit III Knowledge Check
PDF version of the Unit III Knowledge Check
Note: Be sure to maximize your internet
browser so that you can view each individual
lesson on a full screen, ensuring that all content
is made visible.
Remember, this is a nongraded activity.
Conclusion
There are a wide range of entrepreneurial opportunities for you to uncover from small improvements such as
improved packing designs to products that appeal to emotional needs to much larger and more complicated
products. There are also many tools you can use to develop your creative thinking skills. The entrepreneurial
mindset positions you to continuously consider ideas for improvements to existing products by identifying a
problem that needs a solution. As ideas occur to you, write these ideas down. Then, analyze the idea to
determine if the idea translates into the definition of an entrepreneurial opportunity. Make a conscious effort to
practice using the information in this unit.
References
Dizain777. (n.d.). Hand drawn creativity mind map, business concept (ID 204476714) [Image]. Dreamstime.
https://www.dreamstime.com/hand-drawn-creativity-mind-map-business-concept-blackboard-
image204476714
https://online.columbiasouthern.edu/bbcswebdav/xid-136932284_1
https://online.columbiasouthern.edu/bbcswebdav/xid-138335260_1
https://online.columbiasouthern.edu/bbcswebdav/xid-136932284_1
BUS 8303, Entrepreneurship and Innovative Business Development 7
UNIT x STUDY GUIDE
Title
Edralin, D. M., Tibon, M. V. P., Poblador, P. E. T., & Yu, J. W. (2019). Creativity, innovation, and
sustainability: Insights of Entrepinays in the handicrafts industry.
http://web.a.ebscohost.com.libraryresources.columbiasouthern.edu/ehost/pdfviewer/pdfviewer?vid=8
&sid=ab1854dd-c3ad-4d79-bf87-fd22c0b5841c%40sessionmgr4007
Goetz, K. (2011, February 1). How 3M gave everyone days off and created an innovation dynamo. Fast
Company. https://www.fastcompany.com/1663137/how-3m-gave-everyone-days-off-and-created-an-
innovation-dynamo
Goldman, D. (2015, April 1). Pet rock founder Gary Dahl dead at 78. CNN Money.
https://money.cnn.com/2015/04/01/news/pet-rock-founder-gary-dahl-dead/index.html
Neck, H. M., Neck, C. P., & Murray, E. L. (2021). Entrepreneurship: The practice and mindset. SAGE.
Pistrui, D., Blessing, J., Mekemson, K. (2008). Building an entrepreneurial engineering ecosystem for future
generations: The Kern Entrepreneurship Education Network [Graphic]. American Society of
Engineering Educators.
https://www.researchgate.net/publication/237784695_Building_an_Entrepreneurial_Engineering_Eco
system_for_Future_Generations_The_Kern_Entrepreneurship_Education_Network
Timmons, J. A. (1994). New venture creation (4th ed.). Irwin.
Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit
them. If you have questions, contact your instructor for further guidance and information.
In order to access the following resource, click the link below.
Utilize the following Chapter 3 Flashcards to review terminology from the eTextbook.
https://edge.sagepub.com/neckentrepreneurship2e/student-resources/chapter-3/flashcards
Case Study Jillian Lakritz, founder, Yoee Baby
Jillian Lakritz’s first job, after earning her MBA in 1997 from the University of Colorado–Boulder, was working on the national expansion of a chain of early childhood development centers called Crème de la Crème. These centers provide early education and childcare services for children up to 6 years old and after-school services for students between 5 and 12 years old. From her work at Crème de la Crème, Jillian learned that the most important window for cognitive development in children is the first 3 years of life, as a great deal of brain architecture is shaped during this period. This contributes directly to cognitive, linguistic, social, emotional, and motor development. Additionally, the earliest months of a baby’s life also lay the foundation for all future learning, behavior, and health. Furthermore, Jillian said, “I also learned that playtime contributes significantly to this development and that it is important to make every moment count. These early play moments help build healthy brain architecture in babies, setting them up for a healthy future.”
In 2009, Jillian gave birth to her daughter, Yoe. Of course, Jillian recalled her learnings during her time at Crème de la Crème and she knew that Yoe’s early development needed help! “Yoe had lots of toys, but none that were really age appropriate,” Jillian recalled. “Most toys are not meant for newborns. They are for children who can sit up and grab things.” Jillian found herself looking for new ideas so she and Yoe could play, bond, and develop together.
Jillian started searching for play activities on popular websites and portals like babycenter.com. As she searched, she learned body awareness and sensory development are important in the first 6 months of life. One post on babycenter.com suggested that she take a feather or a piece of silk or velvet and gently caress her baby’s body with it. When Jillian tried it for the first time, Yoe started laughing and smiling in a way Jillian had not seen before. “It was a really transformative moment for me because it was so joyful to see my new little baby smile. As new parents, we live for that smile—it makes your heart melt. Not only that, it was something we could do together,” recalled Jillian. She also knew that while Yoe enjoyed the activity, it was also contributing to her body awareness and sensory development. Vision and hearing are the first sensory pathways that develop in a child. These are followed by early language skills and cognitive development. Sensory development is an important foundation for lifelong learning, behavior, and health. Feather playing became Jillian and Yoe’s favorite pastime, but when Yoe turned 6 months old and started putting the feather in her mouth, Jillian said, “I was afraid that she would choke and this amazing activity that we did together could kill her!”
Jillian didn’t want to put Yoe in danger, but she also didn’t want to stop playing! That’s when the “Aha!” moment occurred. She knew that if she could create a soft, irresistibly touchable baby-safe feather out of fabric, she could keep playing with her child and also share the same joy with as many new parents as possible around her. This is what inspired her to invent the product now called Yoee Baby.
After leaving Crème de la Crème in the early 2000s, Jillian worked as a product innovation, consumer insight, and brand strategy consultant for a consumer packaged goods company. Although she did not have any experience in designing and making toys, her experience in concept development enabled her to flesh out the idea. She first sketched the idea on paper, noting all the value she hoped the toy would capture. She then developed prototypes of the toy and looked long and hard for a toy designer. The initial idea was to create a character—a plush animal that had a feather-like tail. However, based on ongoing customer feedback, she made more than 15 prototypes that each tested different additions, like a handle or a teething ring. But, as Jillian says, “The feather had always been our ‘holy grail.’ How do you replicate nature’s perfection and the gentle caress of the feather on your skin through manmade materials?”
After multiple brainstorming sessions, trying 50 types of fabrics and iterations, and early consumer testing, Jillian finally had a prototype ready to test with her consumers. Jillian also reached out to many other stakeholders to incorporate their feedback. She spoke to other manufacturers and distributors at trade shows, pediatricians, occupational therapists, neuroscientists, preschool teachers, and every other early childhood development expert she could find to help her get to a market-ready product (see image below).
Description
The Yoee Baby toy
Photo courtesy of Yoeebaby.com
Around the fall of 2016, Jillian finally had a working prototype that she felt good about. She had invested close to $100,000 of her own money in product development. She raised a total of $535,000 from friends and family through convertible debt. An accelerator program in Colorado also invested $30,000. Also around this time, Jillian brought her Yoee Baby product to a trade show by the American Specialty Toy Retailers Association in Denver. The trade show further validated her idea. The show had many small, independent stores, and they all loved the product. She left the trade show with 40 orders for Yoee Baby.
With greater confidence in the product, she visited a factory in China that could produce the product while also launching a $25,000 Kickstarter campaign to raise additional funds. It became one of the highest funded baby toys in Kickstarter history as of 2016, surpassing her goal and raising almost $36,000. But Kickstarter was both a blessing and a curse. She was working to fulfill her Kickstarter promises during December 2016 when there was a major fabric failure: Big plugs of fabric were pulling out of the tail of the toy. She immediately started getting emails from Kickstarter backers complaining that Yoee Baby was a safety hazard. Jillian quickly recalled all products, hired a safety consultant to figure out what the issue was, and switched factories in China—twice—all in the first year of operations. Jillian said, “It was a huge challenge that took almost a year to work through. It was one of the most difficult times at Yoee Baby.”
Jillian attributes her success, in general and on Kickstarter, to her network. She reached out to people for introductions and support. Jillian passionately believes that “People are everything!” She reached out to everyone she knew to help back her project. She has assembled a very impressive board of directors, including people from Mattel, Fisher Price, and Sesame Street. Jillian hopes to raise additional capital very soon, and she is quite hopeful about the future success of Yoee Baby. “The feedback we get from new parents is off the charts! Parents love the product and are writing to us every day, sending pictures and videos of how their babies are reacting to the product. It’s amazing! I love it!” Jillian exclaims.
The journey continues for Jillian and Yoee Baby. “If you really want to do this,” notes Jillian, “the P-words are the most important: persistence, passion, perseverance, patience.” Today, Yoee Baby has a 4.5 average rating on Amazon. Jillian has positioned Yoee Baby as a product that enables bonding through play because she feels that bonding is one of the most important parts of a parent and child relationship. New products are on the horizon!
Critical Thinking Questions
1. What strategy or strategies did Jillian employ to identify the Yoee Baby opportunity?
2. What headache problem is Jillian solving with the Yoee Baby toy?
3. What’s more important, the idea or the network, to help you act on the idea?
Sources:
Jillian Lakritz (interview with Babson MBA graduate assistant Gaurav Khemka, September 28, 2018).
Center on the Developing Child at Harvard University. (2007). The science of early childhood development. Retrieved from
Center on the Developing Child at Harvard University. (2013). Early childhood mental health. Retrieved from
Center on the Developing Child at Harvard University. (2016). 8 things to remember about child development.Retrieved from
