Learn: Needs, Wants and Business Opportunities

Welcome!Building on what you've already learned about enterprise and SMEs, today we'll explore Needs, Wants and Business Opportunities. This topic will help you understand how businesses identify gaps in the market and create products or services to meet consumer demands.

What are Needs and Wants?Needs are essential items required for survival, such as food, water, and shelter. Wants are non-essential items that improve quality of life, like smartphones or holidays. Businesses must distinguish between these to create products and services that appeal to consumers.

Why are Needs and Wants Important for Businesses?Understanding needs and wants helps businesses identify consumer demands. By meeting needs, businesses can ensure steady demand, while addressing wants allows them to create products with higher profit margins and appeal to specific market segments.

What are Business Opportunities?Business opportunities arise when businesses identify gaps in the market or unmet consumer needs and wants. Entrepreneurs can turn these opportunities into successful ventures by offering innovative products or services.

How Do Businesses Identify Opportunities?Businesses identify opportunities through market research. This involves gathering data about consumer behaviour, preferences, and trends to spot gaps in the market where new products or services could succeed.

How Entrepreneurs Use Needs and WantsEntrepreneurs use knowledge of needs and wants to develop products or services that appeal to consumers. For example, creating affordable housing addresses needs, while launching a new tech gadget caters to wants.

Review Time!Great work! You've learned about needs, wants, and business opportunities. Now let’s test your understanding with a few questions.