As we explore macro changes we return to the Quarterly Opportunity Analysis Panel to look at macroeconomic change and to look at demographics, psychological planning, as well as a variety of other factors that occur on a large scale in the economy and society.
So our goals here are to introduce the concept of macroeconomics and to think a little bit about how that relates to opportunity and immersion, and participation.
We also want to think of this as an opportunity to change or to fill in gaps that appear in the market.
Types of changes that increase opportunities for new projects
So what are these changes? Well, there are changes in technology, there are changes in demographics, there are changes in psychological planning, and there are also changes in political and organizational factors and rules.
So these are the kinds of economic and societal factors we'll be examining that tend to be great opportunities for entrepreneurs or the existing gaps between your competitors.
1. Technological change
So when we look at technological change, this is one of the most important catalysts of change. We see that new technologies create huge opportunities for entrepreneurs.
Portable cassette players are translated into portable CD players, translated into portable MP3 players, and translated into mobile phones with these capabilities.
So you'll see that when technology changes, there have been complementary companies, industries, and markets built around each of these technology changes.
See: Entrepreneur: Definition, important and How to Become
A: Great technological change can create completely new markets: We also want to think about how significant technological change is impacting and creating entirely new markets.
What that means to us is that when you have big technology changes and the availability of a computer, the Internet, and mobile connections it's a whole new ground for entrepreneurs to participate in and launch new products and services in.
The greater the change, the greater the opportunity. We also see technologies flow into other applications.
The lasers that were used for medical devices are now being used in clouds and are now used in a desktop printer, so we see the technologies once again offering a variety of opportunities to entrepreneurs.
B: Marketing capabilities are the main influencer of profitability: Marketing is definitely key to that and we want to realize that also we want to think about the commercial viability of the change and not all technology will have that.
But we want to think about how they are interconnected and we want to think about the interaction between technological change and industry dynamics and what we can do to compete against these companies, with a lower cost of engagement precisely.
2. Social and demographic change
The second element we want to think about when we discuss macroeconomic factors is demographics. The demographic changes that occur in a vacuum.
A: Demographic trends and perceptions: Some examples of this in the United States include:
- Population aging, on average, is getting old
- Increasing racial diversity in the United States
- Unhealthy society.
You know we versus the rest of the world are a little heavier, and a little unhealthy in a variety of metrics.
What does that mean for business? Well, each presents an opportunity. Each direction presents new opportunities for entrepreneurs.
When we think about the aging population in the United States, we see the emergence of assisted living centers that are different from what I live alone or independently or go to a nursing home at high cost and perhaps more attention than I need health care providers.
Maybe there is a compromise in which I need some help or different degrees of help, or help with some things but not all things over time have gone into almost everywhere.
It wasn't just the corners of your local grocery store but the entire grocery store in the US and other places too.
It got to the point where all the organic products in the current grocer's corner back-to-back store purchases were no longer being repurchased on their own, pulled forward and placed alongside their non-organic items as well.
So what we see is that there are a variety of opportunities out there and we even see a lot of students on campus developing food-based businesses.
In this context, again, they are looking for a locally made product that is more natural and more organic.
In this context, it is a unique advantage compared to the large grocery stores and large corporations that are there.
So demographic trends and perceptions present tremendous opportunities for entrepreneurs.
3. Change Psychology
Psychological psychology is related to that Psychographic science leans more towards what people feel, how people think, what influences buyer preferences, and what we as entrepreneurs can do to think about the brands and markets that are evolving and interested in acting differently.
So this is a bit at the crossroads of some interest in healthy eating but it might also be at the crossroads of people who would rather support local farmers who would rather buy their food from a local grocer.
In this context again, the changing dynamics present new opportunities for entrepreneurs in this element of psychology.
4. Political and organizational change
The fourth element that we will evaluate and discuss briefly is policy and regulatory changes. What we mean here is, if there are elements of deregulation, that could open up opportunities for the entrepreneur.
There are also different elements where there are emerging changes, emerging preferences, emerging shifts or changing laws that make it easier for competitive entrepreneurs.
Summary
We want to think about the direct relationships that might exist between macroeconomic factors and the opportunities for new ventures. We want to think about where the changes or the gaps are.
- Are there things happening in your community where demographics are changing and that changes the needs and wants of the market?
- Can you do something about it to introduce a new product or service? You want to think about technical changes.
- Are there new emerging technologies or new emerging tools that you can access and let them play a role in creating your new venture?
- We want to think about psychographic changes, what's going on in the space of how people think or feel, and is there a need for that?
- Is there a gap you can fill?
- Are there rules that change?
- Are there laws that change?
- Are there new opportunities for entrepreneurs to be born from there as well?