Entrepreneurs typically have no problem coming up with unique ideas that solve complicated problems. The issue these days is that with the proliferation of the Internet and acceptance of collaboration so widespread, it is becoming more difficult to come up with ideas fast enough to keep up with the the changing business environment.
Developing new ideas now requires us not just to think outside the box, but completely outside own industry or mindset. So where do we find opportunities?
One study recently published by Mark J. Perry at AEIdeas provides some interesting insights by highlighting pricing trends over the past two decades. Below is the graphic created from his research.
Industries shown in red have had the most significant increase in consumer prices over the past 20 years, while the industries in blue have shown the least -- and in some cases, even decreasing. One possible explanation: Industries in red have some level of regulatory control, while industries in blue have the least.
According to Perry, who serves as a scholar at AEI and a professor of economics and finance at the University of Michigan's Flint campus, this chart demonstrates the negatives of government controlled industries, or socialism as he goes so far to label it.
It is easy to examine this information and rush to judge government regulation as a scourge, but I do not want to debate the pros and cons of government regulations. Instead, let us examine the opportunity.
While red industries have more regulation, they are still open market and clearly ripe for creative, innovative and effective solutions. This is where the opportunity exists for adventurous entrepreneurs looking to build great companies that can compete and have a significant impact.
Should everyone quit their job and change careers to focus on these opportunities -- of course not. Maneuvering a career or industry change is difficult and even more so when the industry is partly controlled by regulations.
Challenge, however, is rarely a deterrent for great entrepreneurs. And besides, if it were easy, everyone would do it.