The three steps involved in the process of sensing entrepreneurial opportunities are
1. Scanning of the environment:
To be of economic value, the entrepreneurial oppportunity identified should be compatible with the following environmental factors:
A) Cultural
B) Developmental
C) Economic
D) Financial
E) Government and non-governmental institutional support
F) Legal
G) Political
H) Social
I) and other developmental factors
This requires a thorough scanning of the environment to understand these factors.
2. Generation of ideas:
The scanning of the environment help in collecting different ideas. This leads to an innovative product or service. This entire process is called ‘Generation of ideas’.
3. Identification of product or service:
After generating the idea for an innovative product or service, the entrepreneur should evaluate the product or service. If the product or service exists in the current market, there should identify strong reason to introduce the product into the market. If the product or service is entirely new, they should take necessary steps to introduce it into the market.