Question

Discuss how demographic change creates entrepreneurial opportunities. What are some current demographic changes and what opportunities do they create?

Answer 1

Change in demographic scenario of a region can have a vast opportunity for entrepreneurs. As the world is moving towards 21st century and a lot of changes in each and every domain is evident now. These changes were brought to reality because the demographic scenario have changed over the years from monthly family income to educational qualification of the peoples. The increase in population also opens a door for entrepreneurs to cater the need of this population based on their segment as children, youngsters and elder people. So on the basis of theses demographic factors it is evident that entrepreneurial activities is directly related with the change in theses factors.

Some of the current demographic changes and its opportunities are as follows:

a) Monthly family income- The monthly family income have increased over the past few decades and it is evident from the data published by the government in form of per capita income. The increase in the disposable income of the people will create opportunities to the entrepreneurs for offering their products to them. With increase in income demand for necessity goods and luxury goods also increases so the entrepreneurial community can cater these demands with their pioneer services and goods.

b) Age- The population growth creates opportunities for entrepreneurs in terms of needs and want catering of this population. The entrepreneurs can divide this population into groups such as children, youngsters, adults and elders and after that they can offer their services to each factor. The demand for each group for a service or good is different and entrepreneurs have to understand it clearly and project their offerings in such a way that each group will feel that it is the most suitable for them.

c) Education- As the education of people increases they tends to me more rationale and objective while buying products or services. The change in the education level of the people will help the entrepreneurs in offering their services more conveniently to them. Information dissemination regarding a service or product is also easy when the target audience is educated and entrepreneurs have to take this benefit while offering their products.

d) Marital status - The demand for unmarried and married group of consumers differs and this have to be understand by entrepreneurs so that the offerings of the product is more effective. Married group of consumers want those product or services which were be beneficial for every member in the family while unmarried or single consumers want the product to be most suitable for their self. This type of demand have to be fulfilled by the entrepreneurs offerings through their customised services and products.