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Problem Identification

Problem (in a business context)

A roadblock in a situation, something that sets up a conflict and forces you to find a solution. When an entrepreneur identifies such a roadblock, he/she is said to have identified the problem.

1

Clearly state the problem

Define it precisely so the solution can be targeted.

2

Identify the target group

Who exactly experiences this roadblock? Understand the affected users.

3

Find market acceptability

Will people pay for the fix? Determine commercial viability.

Five Uses of Problem Identification (it helps the entrepreneur to):

1.

Bring out new products in the market

2.

Understand the problems and needs of the market

3.

Be creative

4.

Increase employment generation

5.

Increase national income (of the country)

Real-world example: Instant food products flooding the market daily — the younger generation is highly career-oriented and doesn't have time to cook. New websites emerged from problems the entrepreneur herself faced, e.g., nurseryadmissions.com was created because the founder struggled with the nursery admission process for her own child.

Idea Generation & Idea Fields

Idea Generation

The process of creating, developing, and communicating ideas which are abstract, concrete, or visual. It includes constructing through the idea, innovating the concept, developing the process, and bringing the concept to reality.

Idea Fields

Convenient frames of reference for streamlining the process of generation of ideas. They help the entrepreneur enlarge the scope of thinking while structuring ideas according to convenient frameworks.

Six Idea Fields — Click Each to Explore

Idea Field 1 — Natural Resources

Ideas can be generated based on natural resources — forest resources, agriculture, horticulture, mineral, animal husbandry, wind, sun, and human resources.

Natural Resources — Existing vs Potential Use
Natural Resource	Existing Use	Potential Business Use
Lumber	Timber	Furniture and other wood-based products
Horticulture	Plant cultivation	Food preservation, canning, freezing, and pickling
Citrus and other fruits	Juices	Selling preserved fruits for supermarkets; bottled local juices for sale
Medicinal herbs	Remedies	Medicines and bio-fertilizers
Clay	Soil	Ceramics
Flowers	Selling in market	Wider-scale selling; supply to floral decorators
Water resources (sulphur springs, waterfalls)	Domestic and recreational use	Paid tours for visitors and tourists; opening of a water plant

Relatable Example: Bamboo — India's Green Gold

Bamboo was traditionally used for scaffolding and baskets. Entrepreneurs looked at the same natural resource with new eyes: bamboo toothbrushes (eco-friendly alternative to plastic), bamboo fabric (sustainable textile), bamboo furniture (IKEA now uses it), and bamboo charcoal (water purification). Same resource — completely new business applications. India is the world's second-largest bamboo producer (after China), making this a massive under-tapped opportunity.

Idea Field 2 — Existing Products or Services

A great business idea combines skills with imagination and market demand. Entrepreneurs who look at ways to make an existing product or service better can be as successful as those who invent new products.

1. Keep up with the competition:If you provide products in a constantly changing industry, stay aware of the latest trends to remain competitive. Example: A hair product supply store selling flat irons — more places are selling ceramic irons as experts say they're better for hair. Updating to ceramic irons reflects the latest technology.

2. Increase sales: The main reason to improve an existing product line is to increase sales and revenue. Example: A math tutoring business with good clients — expanding into other subjects like science or commerce increases profits since just as many students need help in other disciplines.

Caution: Improving or changing existing products must be done skillfully — done incorrectly, it can spell disaster. Not every change is automatically beneficial. Example: New Coke (1985) — Coca-Cola changed its 99-year-old formula based on taste tests but ignored the emotional attachment consumers had to the original. The backlash was so intense they had to bring back "Coca-Cola Classic" within 79 days.

Idea Field 3 — Market Driven / Demand Driven

Market Research

Any organized effort to gather information about target markets or customers. It is a key factor to maintain competitiveness and provides important information to identify and analyze market need, market size, and competition.

Market Research vs Marketing Research: Marketing research is concerned specifically about marketing processes, while market research is concerned specifically with markets. The terms are commonly interchanged but expert practitioners draw this distinction.

Key Insights from Market Research:

1.Market research yields valuable data about trends of supply, demand, and consumer preferences.

2.It includes social and opinion research — systematic gathering and interpretation of information using statistical and analytical methods.

3.Idea generation from market research is knowledgeable, creative, and systematic.

4.It develops from knowledge of the consumer, the market, the technology, and the general environment — creating newness in product, production, and marketing.

Idea Field 4 — Trading Related

Trading is buying goods and services and selling them to consumers at a profit. Its scope has enlarged beyond ordinary grocery outlets — now includes local trade, import/export, and e-commerce.

Key advantage of trading:It is easier to launch and less risky compared to other types of businesses. You don't need to manufacture anything — just connect buyers and sellers.

However: With the opening of markets to international companies, large departmental stores, chain shops, and umbrella markets have become omnipresent. Competition has become intense. To survive, new entrants must acquire skills, competencies, and knowledge required to launch, manage, and expand business opportunities. A prospective trader must be aware of the trends in the economy.

Relatable Example: Meesho — Reselling Made Simple

Meesho built a ₹40,000+ crore business by enabling housewives and students to become traders — reselling products via WhatsApp and Facebook without holding any inventory. They just share product catalogues, collect orders, and earn a commission. Trading doesn't require a shop anymore. A Class 12 student with a smartphone and some social media skills can start trading today.

Idea Field 5 — Service Sector

Entrepreneurial opportunities are not restricted to manufacturing. The service sector is the most growing field thanks to emerging knowledge societies and IT advancements. Hover over each card to see the opportunity.

Idea Field 6 — Creative Efforts

Creativity is a key component of entrepreneurial talent. Apart from spotting opportunities, creativity is applied to develop new products and services.

Five Ways Creative Ideas Can Be Generated:

1Develop a new product or service.

2Improve an existing product or service.

3Find a new process or resource for manufacturing a product.

4Find new markets for existing products or services.

5Find a new use of an existing product or service.

Real-world examples: A self-adjusting screwdriver was invented because over-tightening screws damaged fixtures — a problem led to a creative product. Similarly, a pharmaceutical firm developed implantable medicine for regulated, constant dosage into the bloodstream because syringes were cumbersome — a new process solved an old problem.

Remember: Most creative products and services are born as results of problem solving. This connects back to Problem Identification.

Key Takeaways

A problem is a roadblock — identifying it is the first step to a business idea.
Problem identification must state the problem, the target group, and market acceptability.
Idea fields are convenient frameworks for generating structured business ideas.
Six idea fields: Natural Resources, Existing Products, Market-Driven, Trading, Service Sector, Creative Efforts.
The service sector is the fastest growing field for entrepreneurial opportunities today.
Creative ideas most often emerge from solving problems — not from abstract brainstorming.

Problem Identification & Idea Fields

Notes