Young Entrepreneur Program Online Learning
Chapter 3: Problem Discovery

Lesson 3: The Problem Discovery Process

Complete & Continue Next Lesson Learn More

🍦 Case Study: The Ice Cream Truck Crisis

Annie lives in a small community in north Edmonton. Every summer afternoon at 5:00 p.m., the La Bombom ice cream truck rolls into her neighbourhood.

Annie is taking the Young Entrepreneur Program. One afternoon, she watches a massive, super frustrated line of kids form the second the truck parks. Annie wants to use the Problem Discovery Process to crack the case and figure out what’s actually going wrong.

âť“ What possible problem do you think Annie is noticing?

If Annie only goes by what she sees, she might say: “The problem is that customers are waiting too long to get their ice cream.”

But guess what? That long line is just a symptom. Annie still doesn’t know the actual root cause behind the traffic jam. Is it because:

  • The service is way too slow?

  • The kids can’t even see the menu from the back of the line?

  • The payment process is glitchy or taking forever?

  • The truck doesn’t have an organized lineup system?

Every single one of these guesses is possible, but right now, none of them are proven.

🔎 What Is Problem Discovery?

“Problem discovery is the process of investigating a situation to find out exactly what is happening, who is affected, and what is causing it using real evidence.”

— The Africentric Arts View

🗺️ The Problem Discovery Framework

Problem discovery is the ultimate tool that helps business leaders move from guessing to knowing. Annie can’t fix this lineup disaster by just guessing. She needs a game plan. She needs a clear process.

The Problem Discovery Framework has 6 connected stages:

Click through the stages below to see how an entrepreneur leader moves from guessing to knowing.

1. IDENTIFY ──► 2. QUESTION ──► 3. INVESTIGATE ──► 4. ANALYZE ──► 5. ASSESS ──► 6. DEFINE

  • Recognize a possible problem that needs attention

  • Separate what you know for a fact from what you are just assuming

  • Plan the research and go out into the wild to gather real facts, data, and evidence.

  • Sort through your data to spot trends, patterns, or surprising details

  • Figure out how bad the problem really is (Does it happen every day? Is it costing money?) Is it a massive emergency or just a minor annoyance.

  • Write a crystal-clear problem statement backed entirely by your evidence.

🛠️ Step-by-Step Breakdown

Step 1: Identify the Possible Problem

Identifying a possible problem means recognizing a gap between what is happening and what people need, expect or are trying to do.

A massive delay, a loud complaint, an unmet need, or repeated customer frustration can signal that a problem exists. The first observation gives you a place to begin. Evidence is still needed to confirm what the problem is.

Annie begins with three pieces of information:

    • A massive, frustrated line forms the second the truck arrives.

  • Children and families waiting to buy ice cream.

    • The seller, Mr. Martin, is too slow and wastes time chatting with the kids.

    • Customers may be waiting too long in line to order and get their ice cream.

Annie has found something worth investigating. What is actually causing the delay?

đź’ˇ

APPLY THIS TO YOUR STARTUP

Look at the business idea or industry you want to enter. What is a repeated frustration, delay, or complaint you have observed? Write down what you see, who is affected, and what you assume is causing it.

Step 2: Question The Possible Problem

Questioning a possible problem means separating what you know from what you assume and deciding what you need to find out.

Before spending time or money, a young entrepreneur leaders must separate observations (explanation you believe may be true but have not confirmed) from assumptions (guesses). They must take a broad topic of interest and narrow it down into a highly specific knowledge gap or question about what remains unknown.

Annie’s begins with :

    • Customers are waiting in line for a long time

  • Mr. Martin is slow because he spends too much time talking

    • "Why do customers wait for a long time to get ice-cream at the La Bombom Ice Cream truck?”

Notice how this question is clear, focused, possible to answer with evidence, connected to the people and situation, open to more than one explanation, free from assumption or pre-made solutions)

đź’ˇ

APPLY THIS TO YOUR STARTUP

Take your initial assumption from Step 1 and turn it into an unbiased Core Investigation Question. Make sure your question doesn't blame anyone or jump straight to a solution. Start it with "Why do..." or "What factors cause..."

Step 3: Investigate (Gather Evidence)

Investigating a problem means planning the research and gathering information that can answer the research question.

The research question determines what information is relevant. It also helps you decide who to learn from, how to collect the information and how much information you need.

To find the truth, Annie must collect information directly from the source

    • She watches the ordering process and times how long customers wait. She notices 8 out of 12 customers take more than two minutes to place their orders.

  • Most people tell her, "I can't see the menu until I reach the window!" Mr. Martin says customers often change their minds after learning that an item is unavailable.

    • She speaks with 50 kids in line over the span of 3 weeks. 25 children explicitly state they cannot see the menu until they reach the window.

  • She talks directly to Mr. Martin, who confirms he spends a lot of time waiting for kids to change their minds at the window.

Using more than one source helps Annie compare what she sees, hears, and measures with her stopwatch. (Note: Entrepreneurs can also gather evidence by searching online trends or looking at local competitor data!)

Planning an Investigation for a problem can reveal many things. Click the list to learn more

  • Who experiences the problem or understands the situation?

    • The full group connected to the research is called the target population. The smaller group included in the investigation is called the sample.

    • Annie's Example: All customers who ever visit the truck are Annie’s target population. The specific 50 customers she observes and interviews during her field visits become her sample.

  • What information will help answer the research question?

    • Primary data is brand-new information you collect directly for your specific investigation. Secondary data is data that already exists somewhere else (like online reports or competitor studies).

    • Annie's Example: Annie uses primary data by conducting her own interviews and timing the lines herself.

    • Qualitative data uses words, stories, and descriptions to explain people’s experiences, opinions, or behaviours (e.g., interviews, case studies). Quantitative data uses numbers, counts, and metrics to show amounts, frequency, time, or scale (e.g., surveys, stopwatches, records).

    • Annie's Example: Annie's qualitative data is the feedback from the kids ("I can't see the menu"). Her quantitative data is her stopwatch metric (8 out of 12 customers taking over 2 minutes).

    • Choosing the exact environment and timeframes where the problem is most active to ensure your data is accurate.

    • Annie's Example: She specifically researches at the busy 5:00 p.m. stop for 3 weeks.

    • Determining a realistic, reasonable number of people or situations you can include in your study given your time and budget.

đź’ˇ

APPLY THIS TO YOUR STARTUP

Plan your mini investigation. Who is your Target Population and who will be in your smaller Sample? Write down one Quantitative method (like a survey scale or timing a process) and one Qualitative method (like an interview question) you can use to get real evidence.

Step 4: Analyze the Evidence (Processing Results)

Analyzing evidence means organizing, comparing and interpreting the information to determine what it reveals.

Collected information becomes useful when you examine how the pieces connect. Analysis can confirm an early idea, challenge it, or reveal something you completely did not expect.

Annie organizes her field notes and spots a major pattern

  1. Children cannot see the menu clearly from the line.

  2. Many begin choosing their flavour only after reaching the service window.

  3. Some displayed items on the truck are completely unavailable.

  4. Customers change their orders after speaking with Mr. Martin.

  5. Mr. Martin prepares the ice cream incredibly quickly once an order is confirmed.

The Verdict: The evidence does not support Annie’s first assumption that Mr. Martin works too slowly. Instead, it points to the ordering process and menu visibility as the primary contributing factors.

(Note: Annie may need to observe the truck on other days of the week to ensure this pattern occurs regularly.)

Analyzing evidence for problem research can reveal many things. Click the list to learn more

  • Experiences, answers, or findings that appear repeatedly across your research.

  • Ways the problem changes between different types of people, places, or times.

  • Relationships between specific human actions, environmental conditions, and final results.

  • Hidden conditions that actively create, maintain, or worsen the problem.

  • Information that is still missing or questions that remain unanswered after your initial research

  • Findings that do not match the usual pattern; your "blind spots" or unique exceptions.

đź’ˇ

APPLY THIS TO YOUR STARTUP

Look at the data you collected. Group similar answers together. Did your evidence prove your initial assumption right, or did it surprise you? Identify at least two Contributing Factors that are making your problem worse.

Step 5: Assess the Problem

Assessing a problem means using evidence to judge its significance.

Problems do not have the same frequency, reach or effect. Clear criteria help entrepreneurial leaders decide where attention and resources may be needed.

Annie assesses what she found:

  • How often does the problem occur? (Daily, weekly, hourly?)

    The pattern appears consistently during the busy 5:00 p.m. daily stops

  • Who is affected, and exactly how many people experience it?

    Children, parents, and Mr. Martin are all directly affected.

  • What specific difficulty, financial loss or disruption does the problem create?

    Customers become frustrated, some leave without buying, and Mr. Martin loses daily sales revenue.

  • Is the problem temporary, recurring, seasonal, growing, or long-standing?

    The problem recurs every year during the warmer months when the truck operates.

(Note: A problem can affect a small number of people and still have a serious impact. A problem can also happen frequently but create only a minor inconvenience. Your evidence must support your judgement!)

  • What negative outcomes will happen in the future if this problem continues ignored?

  • How consistent, reliable, and large is your research data?

    Annie has one solid observation track and a small number of interviews. More visits would strengthen her conclusion.

  • What temporary fixes or workarounds are people already trying to use right now?

    Children try to decide while waiting, but they cannot clearly see the available choices from far away.

  • What parts of the situation are still unresolved or mysterious?

    Customers still reach the window without knowing what is actually in stock for the day.

đź’ˇ

APPLY THIS TO YOUR STARTUP

Rate your problem. Is it a minor inconvenience or a major pain point? Define its Scope (who it hits) and its Impact (what they lose, like time, money, or energy if it isn't fixed).

Step 6: Define the Final Problem

Defining a problem means turning your strongest research findings into a clear statement of what is happening, who is affected, and why it matters.

A final problem statement should be strictly objective. It must stay within what the evidence supports. It should never exaggerate, blame people without proof, or sneakily include a proposed solution.

📝 Annie’s Problem Definition

"Children ordering from the La Bombom ice cream truck experience longer waits during the busy 5:00 p.m. stop."

  • How often does the problem occur? (Daily, weekly, hourly?)

    The pattern appears consistently during the busy 5:00 p.m. daily stops

  • Who is affected, and exactly how many people experience it?

    Children, parents, and Mr. Martin are all directly affected.

  • What specific difficulty, financial loss or disruption does the problem create?

    Customers become frustrated, some leave without buying, and Mr. Martin loses daily sales revenue.

Annie can fully support this statement with her waiting-time measurements, customer interviews, and field observations. She can also explain the limits of her research and identify what still needs to be confirmed.

  • What negative outcomes will happen in the future if this problem continues ignored?

  • How consistent, reliable, and large is your research data?

    Annie has one solid observation track and a small number of interviews. More visits would strengthen her conclusion.

  • What temporary fixes or workarounds are people already trying to use right now?

    Children try to decide while waiting, but they cannot clearly see the available choices from far away.

Tips to writing a great problem statement

đź’ˇ

APPLY THIS TO YOUR STARTUP

Combine your findings into a single, professional Problem Definition Statement. Ensure it outlines the People, the Context, the Contributing Factors, and the Impact.

đź“ť Spot the Difference

Observation or Assumption?

Select the box to learn whether the statement is an Observation (a hard fact Annie can see or measure) or an Assumption (a guess or opinion that hasn't been proven yet).

🧠Knowledge Check