Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Opportunity

Question:

During the clampdown after the government abrogated Article 370 in August 2019, a 31-year-old man from Srinagar decided to start Kashmir’s first tiffin service.Hailing from the Valley, Rayees Ahmad, along with his wife Nida Rehman, started their dream venture Tiffin Aaw — meaning “meal has come” — with the motive of serving hot plates of healthy, home-cooked meals.The concept of starting this kind of service for the first time in the valley struck in Ahmed’s mind in November 2019, three months after the abrogation of Article 370. “During the bone-chilling foggy night when all restaurants were closed in the city, I got a call from one of my friends saying he had not eaten anything since morning due to the lockdown and requested if I can arrange something for him,” Ahmad told SocialStory.“I entered the kitchen, packed the food in a Tiffin box, and left to drop the order at his office on my two-wheeler,” he recalled, adding “After collecting the Tiffin box a few days later, an idea struck my mind; this is something I need to do.” Thereafter, Ahmed translated his useful idea to reap the benefit of starting his venture commercial level. He made persistent effort to work out analytically the details of his venture, developed marketing strategies, etc.Ahmad recalled that on the first day, he delivered about 25 boxes – packed inside a cardboard box and wrapped in a blanket to keep them warm. Today, they deliver upto 150 boxes a day. Ahmad — also known as “Kashmir's Swiggy Boy” — prefers to call himself the “Tiffin man of Kashmir”, and claims his food is 100 percent homemade without any preservatives, taste enhancers, and colours.
After collecting the Tiffin box a few days later, an idea struck my mind; this is something I need to do":- Identify the process that provided the stimulus for opportunity discovery and new venture creation to Ahmed:

Identify the process that provided the stimulus for opportunity discovery and new venture creation to Ahmed.

Options:

Product identification

Creativity

Innovation

Illumination

Correct Answer:

Creativity

Explanation:

The correct answer is Option 2: Creativity

Creativity : Creativity is important to entrepreneurs because it is the first stage in the process of innovation, providing the stimulus for opportunity discovery and new venture creation. As new entrants, entrepreneurs often justify themselves upon the same dimensions as creativity: novelty, usefulness, and appropriateness. Arguably, one of the first tasks demanded of an entrepreneur is to manifest creative ability through the conceiving of new product-market opportunities and unique value propositions. From these initial acts of creativity, entrepreneurs must build effective organizations that can repeatedly bring ideas to commercially valuable forms in order to survive and grow.

Product identification: After opportunity spotting and scanning of the environment, an entrepreneurial idea should lead to a definite product. While the initial spotting of ideas (i.e., basic idea) is of a random nature, the development of ideas after scanning the environment (i.e., post scanning) idea is a more purposeful activity. Thus, the former is an experiential process while the latter is a strategic process. All basic ideas have to undergo a vigorous process of examination, evaluation, analysis and synthesis to identify viable opportunities. An idea should lead the entrepreneur to a definite product/service which he can sell. So the first step is to obtain a concept of the product or service suggested by one idea. We should also see whether this product is already available in the market or not. If it is, then we should identify the reason for introducing the same product or service in the market. For example, innovating a new pendrive especially for teachers which will have a built in antivirus and which can be worn like a watch so it minimises the problem of losing the pendrive.

Innovation: It is the process of entrepreneurship which involves the translation of a useful idea into an application which has commercial value. It takes persistent effort to work out analytically the details of the enterprise or service, to develop marketing strategies, to organize finances and strategize operations.  Innovation is one of the the various sources which lead to the emergence of basic ideas.

Illumination: In this period of illumination the idea re-surfaces in realistic way and entrepreneur comes out with viable plan to give practical shape by collecting raw-material, arranging funds, policy–making for the implementation of idea. Illumination is 4th step in the process of creativity.