Sources of Entrepreneurship Ideas and Innovation

The given assignment is about the sources of entrepreneur ideas and innovation which inspires and motivates them to set up their own business. It includes discussions on market researches, analysis of potential customers, target audience, and competitors. The objectives of the start-up, its future scope, analysis of market gap, and ways of filling them are also discussed in this assignment.

Translating an Opportunity
into Business Idea

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Determine and evaluate different sources of entrepreneurial ideas and innovation........1
P2. Rational and market gap for specific entrepreneurial idea using relevant tools and
techniques...............................................................................................................................4
P3 Data needed to support gap analysis in the evaluation of Green Herbs............................8
P4 Interpret data appropriately to provide evidence of market potential...............................9
P5 Apply a SWOT framework to collate evidence to support an objective assessment of Green
Herbs.....................................................................................................................................11
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability.......................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
The most important thing when starting a business is being passionate about the idea, and
translating that message into a greater audience. Entrepreneur is a main entity of any business
organization and they manage and control the operations, bring innovative ideas to the
improvement on the firm and is responsible for the success and failure of activities induced in a
company (Al-Debei and Avison, 2010). This project on translating opportunities into business
ideas discusses about the role of an entrepreneur, various sources of entrepreneurial innovation
ideas and several data collection methods on behalf of Green Herbs a new start up business in
UK which deals with herbal products. It also analyses and investigates market to assess potential
viability of the developed idea through SWOT and competitive study. Study and assessment of
several market researches to identify the opportunities and market gap are also done in this
project which will enable entrepreneur to attain a rationale by use of applying different tools and
techniques.
TASK 1
P1. Determine and evaluate different sources of entrepreneurial ideas and innovation
1

2

3

P2. Rational and market gap for specific entrepreneurial idea using relevant tools and techniques
4

5

6

P3 Data needed to support gap analysis in the evaluation of Green Herbs.
Data collection- It is a process of information collecting from every relevant sources
available to find answers to the research problem, test hypothesis and evaluate outcomes for
Green Herbs. This is a challenging work which requires planning, understanding, determination
and ability to complete the assignment effectively. It is of two types: Primary and Secondary
methods.
Primary data collection is the information gathered by the researcher himself through
questionnaire, surveys, observations, personal interviews etc. It is a time taking process and
expensive but the data is reliable and raw. It is of two types:
Quantitative methods- These are based on mathematical calculations in several formats.
It includes questionnaire with closed ended questions, methods of correlation, regression, mean,
median and mode.
7

Quantitative methods- It is mainly related with words, sounds, feelings, emotions, and
other elements. This ensures great level of depth in understanding and involves interviews,
questionnaires with open ended questions, case studies, observation etc. (Haanstra, Toxopeus
and Van Gerrevink, 2017).
Secondary method of data collection is the using of information which was already collected by
someone else earlier or from published and unpublished data. It is quick and easy also
economical. This can be obtained from government publications, websites, books, journals,
articles and internal records.
To find out the demand and supply needs of the herbal products in UK the use of both
primary and secondary data collection methods are implemented by Green Herbs. This
combination helps the firm attain maximum relevant data which may assist the firm in
understanding the market availabilities, scope of the products, competitor information and trends
of the economy (Arogundade, 2011). There is a huge need of herbal products in UK as the
people are health conscious and the market is lacking good quality genuine products. The need of
the customers is not fully supplemented with such products offering a reach for Green Herbs to
the economy. Rise in demand for such goods are not met in the market by needed supply which
also gives a positive attribute to Green Herbs to render their services and gain competitive
advantage.
Sampling- This is the process of collecting data which selects a subset of individuals
from the large population to find out characteristics of the whole masses. The researcher cannot
collect information from every single individual so they choose a smaller sample of individuals
that present a larger group (Girotra and Netessine, 2013). And after if it comes to be
representative of the population in question, researchers take their results and generalize them to
public. Green Herbs also uses the same sampling method to collect data for the understanding of
the market gap in UK. It also selects or groups the masses into predetermined number of
observations from the large population by using simple random or systematic sampling.
P4 Interpret data appropriately to provide evidence of market potential.
Value of publishing market report is really important and it can be from business groups,
libraries and trade associations. The interpretation of these market researches are needed to test
them against what is available already in market.
8

Theme 1: Herbal products
Particulars Respondents
Yes 28
No 72
Total 100
Interpretation: This questionnaire was raised for knowing the interest of people towards the
herbal products, will they buy or not? Or how many will buy such kind of products. As a
response to this around 70% of individuals said a no and the rest of them are willing to go for
such commodities. Out of this Green Herbs came into a conclusion that the average population
are not aware of this product kind or their benefits which made them deny such goods and
remaining masses is ready to buy these products and has some knowledge and information
regarding it.
Theme 2: Frequency of buying
Particulars Respondents
Once a week or more often 65
Around once a month 20
Around once a quarter 15
Total 100
Interpretation: Green Herbs asked the public through this questionnaire about the level of buying
nature or time period in which people consume these kind of products usually (Brem, 2011).
They arrived at a result that 65% of the masses buys these once in a week or more often, 20%
around once a month and 15% around once a quarter. This shows that there is lack of
availabilities in the market for the product but presence of good demand.
Theme 3: Type of organic product
Particulars Respondents
9

Yes 84
No 16
Total 100
Interpretation: This questionnaire was aimed at knowing the type of product that the population
may choose. Green Herbs arrived at a conclusion that 84% opts organic and natural products
rather than chemical based commodities, and the rest 16% opts non organic goods to meet their
needs. This again shows that the demand for herbal or chemical free commodity is having wide
acceptance and good demand in UK market.
Currently, due to the rise in pollution and wide spread if infections and illness in UK
there is a rise in adoption of herbal supplements by the health conscious people. The consumers
prefer these products than the conventional synthetic ones. Green Herbs collects secondary data
from many different sources like journals, articles to gather information regarding the demand
and use of herbal organic products all over UK. The research conducted to study and analyse the
trend for these products showed that:
The value increase in sun care market for visible radiation protection and customers led
by frequent usage rather than advances in innovation are trading down to basic to overcome
expenses. Out which most them opt for natural ones which does not cause any irritation or health
issues. Ethical consideration is closely connected to perceptions of natural or herbal with
consumers associating brands with strong positioning as being moral. The herbal personal care
market has grown within supermarket channels with many users opting to buy these kind of
products now than they did a year ago.
P5 Apply a SWOT framework to collate evidence to support an objective assessment of Green
Herbs.
Strengths- Green Herbs understands the need habits of the customer as well as the issues
that they face in products that they are using currently. Their products is capable of removing
problems which are rise due to in pollution, UV rays and climate change. Using of natural
ingredients and herbal materials after the proper research and testing is an added advantage to
10

Green Herbs. They also have a plan of effective pricing as the products available in the market
are of low quality and high priced which Green herbs can overtake, while providing better goods.
The firm also can gain a top position as per the demand for such products in the economy by
gaining popularity and market share.
Weaknesses- Green Herbs being a new start-up venture has low penetration in foreign
markets and may take time to gain popularity globally (Bryk, Gomez and Grunow, 2011).
Inadequacy of investment is also a drawback for the company as it is a fresh business with low
market share and economic recognition may find hard to make an impression at the present.
Opportunities- UK's people are more health conscious which makes them choose
products that does not harm them in any way for that they are ready to spend more on high
quality and safer goods adding advantage to Green Herbs (Czarniawska and Sevón, 2011). Also
there is a huge demand for herbal and organic or natural supplements in the country, along with a
majority preference for such commodities is another possibility for the company. The main
reason is increased level of pollution in UK which have caused many serious health issues
among people making Green Herb's products a chance to help customers resist these
consequences with their superior quality commodities.
Threats- Main factor which hinders growth and development of Green Herbs is existing
multinationals who have more demand than the present domestic products. Companies like 3M,
A&H and Acorus.
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability.
Herbal or traditional products compete for sales with over the counter drugs by
promoting their natural components offering competitive pricing, providing awareness to
consumers about the commodity's benefits and market share increasing (Katz, 2014). The
expansion of these products is expected to rise on behalf of the accelerative health consciousness
and a growing interest in natural product, beauty and personal care and consumer health. Herbal
paediatric dietary supplements saw a dynamic increase in sales as a result parents are more
concerned about the nutritional intake of children and trust these commodities.
Competition market includes the following -
11

 Demand – The demand of products and services changes due to various factors such as
change in perception, price etc. Demand of goods affects performance and productivity of
organisations.
 Substitute goods – Substitute products also influence functions and activities of
businesses in order to produce more competitive goods and services to attract customers. Target audience – Audience refers to customers of an organisation or company, it is very
essential to attract more and more individuals to buy a product. Companies needs to
select target audience which can help in obtaining maximum profit.
Market environment
 Macro environment – Macro environment refers to the external factors influencing
business functions and activities which also affects overall performance of an
organisation. These factors include – Economic conditions, Environmental factors etc.
 Micro environment – This includes various factors within an organisation that affects its
functioning. Micro environment also refers to internal elements or factors such as
employee motivation, organisational structure etc.
CONCLUSION
From this report on translating an opportunity into business idea it can be concluded that
for starting a new venture an entrepreneur needs to undergo several investigations. These may
include market researches, analysis of potential customers, target audience, and competitors. It
discusses the several sources of entrepreneur ideas and innovation which inspires and motivates
them to set up an own business. The objectives of the start-up, its future scope, analysis of
market gap and ways of filling them are also discussed in this assignment.
12

REFERENCES
Books and journals
Al-Debei, M.M. and Avison, D., 2010. Developing a unified framework of the business model
concept. European Journal of Information Systems, 19(3), pp.359-376.
Arogundade, B.B., 2011. Entrepreneurship education: An imperative for sustainable
development in Nigeria. Journal of emerging trends in educational research and policy
studies (JETERAPS), 2(1), pp.26-29.
Brem, A., 2011. Linking innovation and entrepreneurship–literature overview and introduction
of a process-oriented framework. International Journal of Entrepreneurship and Innovation
Management, 14(1), pp.6-35.
Bryk, A.S., Gomez, L.M. and Grunow, A., 2011. Getting ideas into action: Building networked
improvement communities in education. In Frontiers in sociology of education (pp. 127-162).
Springer Netherlands.
Czarniawska, B. and Sevón, G. eds., 2011. Translating organizational change (Vol. 56). Walter
de Gruyter.
Girotra, K. and Netessine, S., 2013. OM forum—business model innovation for
sustainability. Manufacturing & Service Operations Management, 15(4), pp.537-544.
Haanstra, W., Toxopeus, M.E. and Van Gerrevink, M.R., 2017. Product life cycle planning for
sustainable manufacturing: Translating theory into business opportunities. Procedia CIRP, 61,
pp.46-51.
Halme, M., Lindeman, S. and Linna, P., 2012. Innovation for inclusive business: Intrapreneurial
bricolage in multinational corporations. Journal of Management Studies, 49(4), pp.743-784.
Katz, J.A., 2014. Education and training in entrepreneurship. In The psychology of
entrepreneurship (pp. 241-268). Psychology Press.
Palo, T. and Tähtinen, J., 2013. Networked business model development for emerging
technology-based services. Industrial Marketing Management, 42(5), pp.773-782.
Short, J.C., Ketchen Jr, D.J. and Ireland, R.D., 2010. The concept of “opportunity” in
entrepreneurship research: Past accomplishments and future challenges. Journal of
Management, 36(1), pp.40-65.
Soininen, J., Martikainen, M. and Kyläheiko, K 2012. Entrepreneurial orientation: Growth and
profitability of Finnish small-and medium-sized enterprises. International Journal of
Production Economics, 140(2), pp.614-621.
13