Baba Ahmed University Kano Nigeria

Faculty of Social and Management Science

Department of Entrepreneurship
Course: Venture Creation
Course Code: GSP 3212

Chapter 1: Framework of Venture Creation /Idea Generation

Dr. Saidu Nasiru Sulaiman

Associate Professor: Entrepreneurship and Innovation
 Course Contents
 Opportunity identification: sources of business opportunities in Nigeria, environmental scanning.
Demand and supply gap/unmet needs/market gaps/market research.
 Unutilised resources, social and climate conditions and technology adoption gap. New business
development: business planning, market research, etc.
 Entrepreneurial finance: venture capital, equity finance. Micro finance, personal savings, small business
investment organizations and business plan competition.
 Entrepreneurial marketing and e-commerce. Principles of marketing, customer acquisition and
retention. B2B, C2C and B2C models of ecommerce.
 First mover advantage, e-commerce business models and successful e-commerce companies. Small
business management/family business. Leadership & management: basic book keeping, nature of
family business and Family Business Growth Model.
 Negotiations and business communication: strategy and tactics of negotiation/bargaining. Traditional
and modern business communication methods.
 Opportunity Discovery Demonstrations: business idea generation and presentations. Business idea
contest, brainstorming sessions, idea pitching, etc.
 Technological Solutions: the concepts of market/customer solution, customer solution and emerging
technologies. Business Applications of new technologies: Artificial Intelligence (AI), Virtual/Mixed
Reality (VR), Internet of Things (IoTs), Blockchain, Cloud Computing, Renewable Energy, etc. Digital
business and e-commerce strategies)
 Learning Outcomes
At the end of this course, students, through case study and practical
approaches, should be able to:
1. describe the key steps in venture creation;
2. spot opportunities in problems and in high potential sectors regardless
of geographical location;
3. state how original products, ideas, and concepts are developed;
4. develop business concept for further incubation or pitching for funding;
5. identify key sources of entrepreneurial finance;
6. implement the requirements for establishing and managing micro and
small enterprises;
7. conduct entrepreneurial marketing and e-commerce;
8. apply a wide variety of emerging technological solutions to
entrepreneurship, and
9. appreciate why ventures fail due to lack of planning and poor
implementation.
 What Is New Venture?
• The term venture refers to business organization or a project that involve
risks, uncertainty and profit potential.
• New venture is a start-up business organization that is about to take off or
just starting.
• Gartner, (1985) defined a new venture as the end result of the process of
creating and organizing a new firm that develops, produces, and markets
products or services to satisfy unmet market needs for the purposes of profit
and growth.
• A new venture can also be defined as a business organization that has not yet
reached a growth stage or maturity stage in its development. As such, the
length of time a new venture takes to reach growth stage or be matured will
vary depending on its industry, market, resources, strategy, etc. But,
averagely and reasonable can be assume that a venture can grow to be
matured within first three to five years after its creation.
• A new venture can take several legal forms such as sole trader, partnership,
private limited companies, franchising, joint venture, cooperative venture,
licensing etc.
 Importance of Venture Creation
• Venture creation play crucial role in driving economic growth,
innovation and job creation.
• Through venture creation new products and services can be
introduce through disruptive or incremental innovation that
create new entrepreneurial opportunities.
• Venture creation foster entrepreneurship encouraging
individuals to pursue their passion, ideas and dreams.
• Venture creations contribute to the overall development of
society by addressing unmet needs, improving living standard
and driving social change.
•
Framework For New Venture Creation Process
Feasibility Analysis Concept
Idea
and Opportunity Development
Generation
Identification

Innovation Motivation
and
Sustainability
New Business Plan
Venture
Creation
Scaling and
Growth
Motivation

Execution and Ability Resources

Operations Identification Mobilisation

6
Framework For New Venture Creation (continued)
 New venture creation involves step-by-step method. The above framework has illustrated that creation of successful entrepreneurial venture is a
process that involves ten driving factors:
1) Idea generation: this involves getting hint about the business you want to start. In situation where you want to launch the venture through prototype
development, which is means creating a brand new product. The idea is about the product itself.
2) Feasibility analysis and opportunity identification: is the process of evaluating the idea to see wether is worth pursuing. In situation where you want to
launch the venture through prototype development, feasibility involves protype test with potential customers to gather feedback on design, functionality
and pricing.
3) Concept development: this invoves writting detail of the idea through information gathered from feasibility analysis
4) Business plan: this involve writting a planning document to guide the entrepreneur to convert the idea into physical business
5) Resources mobilisation: this involves mobilising essential resources such as capital, technology, workers to establish the business
6) ability identification: this involves analysing and identifying entrepreneur‟s strenth and weakenesses to start the business. It also involves identifying
workers to be employed to support the ability of the entrepreneur
7) Execution and operations: this involves launching of the business into the market. This is where the business concept moves from planning to
development through daily operations. Where enterpreneur wants to launch the venture through prototype development entrepreneur may consider
pilot launching before full-pledge launching by introduving limited range of products to gauge the market response and refine his/her approach for full-
pledge launching
8) Scaling and growth : this involves expansion and its strategy to increase market share, revenue, impact, sales, hiring new staff entering new market
etc. Scaling and growth stage involves continuous improvement through customer feedback, market trends data to continuously improve the products,
processes, business model and overall business strategies
9) Innovation and sustainability: this involves new innovations and continouos progress, via evaluating performace and market trends.
10) Entrepreneurial motivation: ths involves constant entrepreneurial energies that propel the entrepreneur to sustain activities from idea generation
through all the stages down to innovation and sustainability
In essence, interactive combination of these factors produce successful entrepreneurial venture. And motivation is what propel you at all level to create
your venture. And each step has been discussed in details below and in subsequent slides 7
New Venture Creation Process
• You should take note that it is not necessary
that these driving factors come in series or
sequential order from idea generation to
motivation to ability to resources then
execution
• This is because sometime one could get
motivation to take entrepreneurship as a
career first before seeking for the idea; or
sometime one could get resources first and
then start looking for the idea and sometime
one could start searching for entrepreneurial
idea and resources because he/she has the
ability to start one venture or the other.
• In short any one of the four key driving factors
(idea generation, resources, ability motivation)
could come first with progression to others,
just it depends on the circumstances in which
entrepreneur found him/her-self at a
particular moment.
8
Idea Generation
What is a business idea?
• “A business idea is a concept or notion usually centered on
a product or service that can be produce, distribute or
consume for financial gain.”
How do entrepreneurs come up with new ideas?
• Everyone has ideas. People get as many ideas as possible.
For instance when brushing teeth, when driving to work,
when reading articles, when listening to radio program or
watching TV, new government policy, your former work
experience or present job, friend or family advice, your
problems or other people‟s problems that has no solution in
the market etc.
• You may get as many ideas as possible. Thus, settle on one
business idea that you believe may work.
• Settle on one business idea that moves you, the one you feel
most passionate about and stay with it. Stay with one till
you can‟t go any further. Until you have given it your all.
• This is because an idea is the seed of any successful venture,
a product or service. Without your proper care and effort, it
will not bloom. 9
Common Sectors Entrepreneurs Could Obtain Their Business Ideas
• Distributorship/marketing: A distributorship/marketing involves selling the
product of another entrepreneur.
• Manufacturing: This involves making goods and services e.g. Food and beverage
production, restaurant and catering, textile production, fashion and beuty produc
• Agriculture: This involves crop production, animal rearing, buying and selling of
these products etc.
• Services: This involves provision of intangible goods e.g. banking and insurance,
transportation, health care (wellness, medical devices, sport and gymnastic,
telemedicine), consultancy, education (online learning platform, tutorial services,
skills development programs, physical schools like primary secondary, vocational,
university), commerce and trade, hospitality and tourism (hotel and
accommodation, event planning and hosting, tour operation) etc.
• Technology: This involves offering science and technical based products e.g.
information technology, communication technology, bio-technology, renewable
energy, artificial intelligence, syber security, software development, e-
commerceetc.
• Waste management and circular sector: waste magement, eco-freindly,
• Problems: This involves problems that exist in the society (e.g. hunger, disease,
lack of infrastructure, poverty, unemployment, homeless etc.)

10
Feasibility Analysis
• Having stick to one idea validate it via feasibility
analysis. Your idea is absolutely worthless if you keep it
to yourself and do not test it with actual customers.
• Therefore, ideas require feasibility analysis via solid
research of the target market without which, ideas
cannot go much further.
• Feasibility analysis is the process of evaluating a
business idea to see whether it is worth pursuing.
• Through feasibility analysis entrepreneurs assess market
potentials of the idea vis-à-vis customer demands to
determine if the opportunity is worth pursuing
• Where you created new product feasibility involves pilot
testing meaning test the product with small number of
potential customers, which will help you to refine your
product before overall launching
11
Feasibility Analysis: Method to Validate Idea
•To find the optimum business potentials of the idea, entrepreneur can seek
inputs from all including colleagues, consumers, channel partners, technical
people, friends, family members etc.
• An entrepreneur can also evaluate the efficiency of a business idea by
continuously asking certain questions to himself and others such as:
• Whether the opportunity is worth investing in?
• Is it sufficiently attractive?
• Are the proposed solutions feasible?
• Is there any competitive advantage?
• What are the risk associated with it?
• Above all, an entrepreneur must analyze his passion and personal skills,
whether these coincides with the entrepreneurial goals or not.
• Entrepreneurs can developed the idea into good business opportunity
through Feasibility Analysis
12
Feasibility Analysis: Method to Convert idea into Business Opportunity
Entrepreneurs can developed the idea into good business
opportunity through feasibility analysis.
An idea can become business opportunity only if it meets the
following criteria
• Is the business idea attractive to customers.
• Do customers can afford products and services that result from the
business.
• Then now what is business opportunity?
• A business opportunity in the simplest terms, “is a tested and
packaged business investment prospect that allows entrepreneur
to begin a business.”
• Some business opportunities in Nigeria are farming, livestock
rearing/selling, fashion design, business center, exportation of
agricultural products, importation of cloth from other countries,
making/selling furniture, making/selling fruits, restaurant, pure
water production, rice farming, dry cleaning, transportation,
primary school/secondary and university etc.
13
Concept Development
When entrepreneurs developed the idea into good
business opportunity through feasibility analysis. All
the information got from feasibility analysis will allow
entrepreneur to develop “Concept Note”
• Concept note development involves to answer the
question, why the venture or its product matter?
• Concept note involves defining the value proposition
and the market potentials and developing business
model of the venture.
• Through concept note entrepreneurs will articulate
how their venture will create value that is different
from that of competitors to generate revenue.
• In their concept note, entrepreneurs should also
articulate resources, capabilities and partnership
require to execute the venture.

14
Some Areas Where You Can Identify Venture Creation Opportunities

15
Some Areas Where You Can Identify Venture Creation Opportunities

16
To become entrepreneur: Find your Passion
• Entrepreneurs believe in themselves to bring
about change. Ventures are created because
people believe in having an idea that has
impact, helping others, building something
that was missing, conducting business in a
manner they believe in.
• To find your passion, ask yourself:
• What about the status quo are you not satisfied
with?
• What bothers you?
• What is important to you?
• What lights you up more than anything else?
• What values guide you?
• What do you love doing?
• What do you master doing? 17
To become entrepreneur: Find your Passion

18
Create a Venture by Finding Your Passion: Lesson from Rana Dajani
• Our first lesson: find your passion. Everything else derives
from that. For example, Rana Dajani Ph.D., a Harvard
Radcliffe fellow, Eisenhower fellow, twice Fulbright alumna,
and Associate Professor and former Director of the center of
studies at Hashemite University, Jordan, created the „We Love
Reading‟ (WLR) programme in 2006 because she realised that
children do not read for fun.
• Rana believes that reading for fun is fundamental for a child to
discover their inner potential and the world around them. She
worked out the core reason why children do not read for fun
and developed a solution, “We Love Reading”.
• WLR uses a grassroots community based model to foster the
love of reading among children. The programme, which has
enabled the creation of a virtual community through a mobile
application, has spread to 41 countries and become a social
movement.
• In Jordan alone, the project has trained 3,000 women and
opened 2,000 libraries, benefitting more than 50,000
children. WLR is has been rigorously studied in collaboration
with Yale, Chicago and Brown University and has won multiple
awards.

19
Create a Venture by Identifying a Problem: Lesson from Nasiru Mu’azu Abubakar
• Some people simply do not see the possibility of earning money
from waste products, such as nylon, can, plastic, tin or metal as
scarps. These scraps could easily turn to cash through recycling
and waste management. throwing away waste products is
considered not environment healthy.
• One Malam Nasiru Mu‟azu Abubakar, identify that as an
opportunity to make money out of it. He identified scraps of
metals, which comprise of aluminum, copper and steel are
indiscriminately thrown away as waste products without any
thought of reprocessing them. He identified this opportumity
and create a venture by name Nasmelt Foundry Ltd in Jos to
collect these scrapts and processed them into different products
(metal spare parts and agricultural equipment).
• Abubakar explained that “he got his inspiration to create a
venture from some Syrians that once opened a factory around
Mai Adiko here in Jos. Their company was known as Bankfolds
and he worked with them for a few years. After they left, it
occurred to him to pick up the business even if it was on a small
scale and today we produce mostly grinding plates.”.
• Even though there are many challenges he explained that “metal
recycling is very rewarding, and they have made good money
from this work.”
• Source 20
Create a Venture via Education/Working Experience: Lesson from Folorunsho
Alakija, the Richest Woman in Nigeria
• Nigeria's richest woman draws the bulk of her fortune from oil.
Folorunsho Alakija started her career in the mid 1970s as a secretary
at the now-defunct International Merchant Bank of Nigeria. In the
1980s, she went to England and study fashion design. After studying
fashion design she founded a tailoring company called Supreme
Stitches known as Rose of Sharon House of Fashion, which rose to
prominence and fame within a few years, and became a household
name.
• Her biggest break through came from oil. In 1993 Nigerian President
Ibrahim Babangida awarded her oil block (OML 127) as she
established oil company by name Famfa Oil. She has no capability to
explore oil, then she entered into joint venture with Chevron in which
Famfa Oil owned a 60% stake in the block and Chevron owns the
remaining 40%.
• Life is truly what we choose to make of it. From a very humble career
as a bank secretary cum typist, then to fashion designing which she
later had to venture into oil, Mrs. Folorunsho Alakija has proven
herself a genius! Her foray into the oil business, which saw her
becoming the Executive Vice-Chairman of Famfa Oil & Gas Limited.
• She has become one of Nigeria‟s richest women. Wondering how that
happened? Her creativity earned her golden fingers that turned
everything into immediate success in her hands!
• Mrs Folorunsho Alakija is now Africa's Richest Woman with fortune
of $600 Million = N94 Billion 21