Learn: Why People Start a Business - Spotting Opportunities

Welcome!Welcome back! You've already learned what businesses are and how they meet people's needs and wants. Today, we'll explore why people start businesses and how they spot opportunities to succeed.

Why Do People Start a Business?People start businesses to achieve personal or financial goals. Some aim for profit (making money), while others want independence (being their own boss). Businesses can also be started to solve problems or meet gaps in the market.

Spotting OpportunitiesA business opportunity is when someone identifies a gap in the market where customers' needs aren't being met. Entrepreneurs look for problems to solve, trends to follow, or ways to offer better products or services than competitors.

Examples of OpportunitiesOpportunities could come from changes in technology (e.g., creating apps), customer demand (e.g., healthier food), or problems people face daily (e.g., faster delivery services). Spotting these gaps can lead to a successful business idea.

Qualities of EntrepreneursSuccessful entrepreneurs are often creative (good at ideas), organised (able to plan), and risk-takers (willing to face uncertainty). These traits help them spot and act on opportunities effectively.

How to Spot Gaps in the MarketSteps to find gaps include: researching customers (what they need or want), studying competitors (what they don't offer), and watching trends (what’s becoming popular).

Review Time!Great work so far! You've learned why people start businesses, how they spot opportunities, and the traits successful entrepreneurs often have. Let’s test your knowledge now.