The foremost task of a dynamic entrepreneur is the generation of an idea that is new and appears to be worthwhile for further use. This involves a lot of creativity on the part of the entrepreneur. The business idea arises form an opportunity in the market. It originates from real demand for any product or service that an entrepreneur should have a keen and open mind to look for opportunities and generate business idea.

Basic ideas emerge from different sources which can be categorized as follow:

(a)    Problem. When an idea is revolved around a problem that exists the solution is most often  a business opportunity, e.g., razor blade was invented with an intention of sharp, nick free and quick shaving.

(b)    Change. Any kind of change like social, legal, technological, political, etc. usher in new business opportunities e.g., computer institutes in the present world.

(c)    Inventions. These involves new things of value and creative processes that add value to the already prevalent brands or products e.g., change over form audio and video cassette player to CD players.

(d)    Competition. Whenever someone tries to beat the competition, he resorts to new and improved ideas, e.g., free cup with a new brand of tea.

Industrial Sector Ideas. Production of Stationery items (notebooks, diaries, pens, penscils, etc.) hosiery items, spare parts to be used in autos (clutch wires, gears, bulbs, etc.).

Commercial Sector Ideas. Trading in goods like cloth, readymade garments, books, medicines, utensils, spare parts, etc.

Service Sector Ideas. Transport service (three-wheeler, taxi, bus, tempo, etc.), workshop (repair of TV,VCD and other electronic goods), security, catering, cyber café, maintenance of computers, air-conditioners, etc. on site.

While selecting a business idea, the following points need adequate consideration:

(i)    Utilization of Skills. The business idea should enable the entrepreneur to utilize his technical and professional skills. If an entrepreneur has knowledge of some special manufacturing techniques, because of previous experience or otherwise, it would be easier for the entrepreneur to manage such techniques effectively.

(ii)    Utilization of Local Materials. It should enable the use of locally available raw materials for product or service. As compared to imported materials/local materials are easy to procure.

(iii)    Strong Demand of Product. It should ensure making products that have a demand, but are not feely available in the market. It is potentially a good idea to start with a product that could be sold.

(iv)    Solution of Current Problems. It should enable the entrepreneur to solve a current problem
existing in the market. Products may be available in the market but they do not meet the demand fully or in a satisfactory manner. Sometimes, an existing product is used in combination with another, which is not available. Attempts to solve such market problems do give rise to business ideas.

(v)    Institutions. Several organizations set up by the government and chambers of commerce and industry provide help to entrepreneurs in discovering and evaluating business ideas. They also provide advice and assistance in technical, financial, marketing and other areas fo various business ideas. Several industrial estates have also come up where plots/sheds and other facilities are available for starting new ventures. Entrepreneurs can meet concerned officials for necessary information about feasible projects.

(vi)    Project Profiles. Organizations set up for the promotion of small and medium enterprises and several private consultancy organizations publish project profiles in different areas. These describe in detail the technical, financial and marketing requirement of new projects. An entrepreneur can study project profiles and decide about the line of business activity he wants to enter into. He can take the help of such organization to select the most feasible project.

(vii)    Study of Global Trends. Everyday new products and technologies are introduced in different parts of the world. One can get information about these through newspapers, business magazines and other publication. Such information is also available on the internet. By keeping in touch with the latest developments, an entrepreneur can launch a new product in the local market. He can even have technology agreements with the foreign companies.

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