In the context of business risks, how can an entrepreneur identify competitors to a new potential business?
A)By observing what potential customers do to satisfy their current needs or wants
B)By performing a gap analysis evaluation to identify potential competitors
C)By conducting a brainstorming session with other entrepreneurs
D)By observing the market and identifying companies that have seen the maximum growth in the past quarter

Question

Quizplus · Accepted Answer

By observing what potential customers do to satisfy their current needs or wants, an entrepreneur can identify competitors who are currently serving those needs or wants. This allows the entrepreneur to assess the competition and develop a strategy to differentiate their business from others in the market. Option B is also valid but may require more resources and data analysis to accurately identify potential competitors. Option C is not a reliable method as the opinions of other entrepreneurs may not necessarily reflect the market reality. Option D is not a reliable method as past growth does not necessarily indicate current or future competition.

In the Context of Business Risks, How Can an Entrepreneur