Opportunity Scanning or Sensing and Identification (OSI) refers to the process of identifying
opportunities to establish an enterprise. This leads to self-employment, income generation, and
sometimes profit, often described under the umbrella term "entrepreneurship." Entrepreneurs, in
this context, are considered self-employed.
While entrepreneurship and self-employment are not always synonymous, they are treated as
such here to explain OSI. In India, various schemes by Central and State Governments support
first-generation entrepreneurs in starting small-scale businesses.
Understanding entrepreneurship
We know from available literature on development what do entrepreneurs do but relatively little
about how do they do it. Let us begin by stating what do entrepreneurs do. Entrepreneurs engage
themselves in the following three interrelated activities viz.:
a) Identification of business opportunity.
b) Establishment of an enterprise based on the
opportunity.
c) Entrepreneurs also engage in a subsequent activity, i.e., managing the enterprise as a profitable
and growing concern.
What is Opportunity?
Opportunity refers to a product, project, or idea, often used interchangeably. Entrepreneurship
involves practical, action-oriented decisions, with a key focus on Opportunity Scanning and
Identification (OSI). Success largely depends on choosing the right opportunity, which could
involve a product, service, technology, market, or organization.
Entrepreneurial decisions are also developmental, shaping growth and progress. Successful
entrepreneurs share common traits across industries, countries, and cultures, including:
1. Strong desire for independence and self-reliance.
2. Drive, energy, and organizational skills.
3. Willingness to diversify, expand, and innovate.
4. Technical and managerial expertise.
5. Above-average intelligence.
6. Risk-taking ability.
Identification of an Opportunity (main sheet theke abar dekhte hobe)
To identify an opportunity, an aspiring entrepreneur must understand the external environment,
including government policies and market conditions. While government policies for large
industries are regulatory, for small industries, they are developmental and promotional.
Key tools for Opportunity Scanning and Identification (OSI) include:
1. Environmental Scanning: Understanding external factors like market trends and
competition.
2. SWOT Analysis: Assessing personal strengths and weaknesses alongside market
opportunities and threats.
These tools are essential for both managing a business and identifying opportunities to set one
up. Entrepreneurial decisions often draw insights from management practices like business
policy and strategy.
Opportunity Identification: An Interdependent Process
Opportunity evaluation requires analyzing several interrelated factors, including:
Market demand
Investment and working capital
Plant, machinery, and technology
Raw material availability (local or imported)
Cost-price-volume relationships
Project location
Necessary management skills
Each area must be examined thoroughly and in relation to others, often involving a back-and-
forth process for comprehensive evaluation.
Evaluating Business Opportunities
Evaluating business opportunities involves careful analysis to ensure they align with the
entrepreneur's personal qualities, goals, and resources. Key factors include:
1. Market Demand: Assess customer attitudes, market size (in units and financial terms),
market growth, and potential market share.
2. Profit Potential: Determine if the idea has the potential to deliver the desired returns.
3. Personal Commitment: Ensure the entrepreneur is willing to invest the time, effort, and
sacrifices needed for success.
The goal is to eliminate unsuitable opportunities. What works for one entrepreneur may not suit
another, requiring reevaluation or rejection of certain ideas.
Funds also influence opportunity evaluation. Entrepreneurs with adequate capital and a strong
desire to start a business are more likely to pursue opportunities than those satisfied with their
current employment or lacking resources.
