A business opportunity refers to the process of selling or leasing product, service, equipment, etc., to help buyers or renters start a new business. It usually includes support or guidance to help someone begin a business, such as choosing a location or supplying the main product. The party offering the business opportunity will usually promise to help the buyer find the right place to operate, or directly provide the buyer with the desired product. This is different from an outright sale of an independent business, where there is no need to maintain a long-term relationship between the seller and the buyer. A business opportunity provides a way to start a business without the need to maintain ongoing connections like buying an independent business.
Eckhardt and Shane (2003) argue that the identifying business opportunities is a key influencing factor on the road to future entrepreneurship.[1] In simpler terms, spotting a good opportunity is often the first and most important step toward starting a successful business.[2] This is seen as the lynchpin around which the promise of entrepreneurial venture is to be built.[3] According to Shane, individuals must have prior knowledge and the necessary cognitive ability to recognize the of that knowledge in order to identify the new opportunity. For example, someone who has worked in the coffee industry might notice a growing trend in specialty cafes and decide to open their own. People with relevant prior knowledge in a particular domain are more likely to identify new business opportunities within that domain.[4]
^Eckhardt, J.T. and Shane, S.A., 2003. Opportunities and entrepreneurship. Journal of management, 29(3), pp.333-349.
