Q.What is an entrepreneurial opportunity? Explain the factors an entrepreneur should consider while selecting an enterprise.

An entrepreneurial opportunity is a favourable market situation for a profitable venture; selecting an enterprise means choosing which venture to build around it.

Entrepreneurial opportunity. An entrepreneurial opportunity is a favourable set of circumstances that lets an entrepreneur offer a product or service, meet a real need in the market and earn a profit. Opportunities arise from changing tastes, new technology, rising incomes, government policy or gaps left by existing businesses.

Selection of enterprise is the decision of choosing the particular venture to start. The entrepreneur should weigh the following factors:

1. Demand for the product/service — a large, growing and steady demand makes an enterprise attractive.
2. Availability of resources — can the entrepreneur arrange capital, raw materials, skilled labour, power, water and a suitable location?
3. Capital required and expected profit — are the necessary funds available, and does the venture promise a reasonable return for the risk?
4. Own interest, skill and experience — an entrepreneur succeeds best in a line that matches their knowledge and liking.
5. Degree of competition and risk — how strong are the existing rivals, and can the entrepreneur bear the risks?
6. Government policy and support — incentives, subsidies, licences or restrictions can make a line more or less attractive. …

Do not confuse 'identifying' an opportunity (spotting it) with 'selecting' an enterprise (choosing the venture). Also, list several distinct selection …