Entrepreneurial Development in Universities

This assignment delves into the concept of entrepreneurial development within university settings. It requires a critical analysis of various models proposed to foster entrepreneurship in higher education, examining their strengths, weaknesses, and practical implications. The assignment emphasizes understanding the role of universities in nurturing entrepreneurial ecosystems, identifying key factors influencing success, and evaluating the impact on regional economic development.

Development

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Section 1: Introduction of idea and proposed development.........................................................1
Section 2: Opportunity formulation.............................................................................................2
Section 3: Opportunity development...........................................................................................6
Section 4: Conclusion..................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurship is an art which is used by entrepreneurs to analyse market and create
innovative ideas to establish a successful business (Entrepreneurship, 2019). Now a days various
new businesses are launching in the market with the help of entrepreneurial development in
which individuals analyse market and the issues. Afterwards form effective solutions to resolve
the same. It is a process which involves creativeness and uniqueness and helps to improve
knowledge and skills of individuals by providing them proper training. Main objective of this
process is to enhance number of entrepreneurs. People with creative mind analyse market and
identify problems then find solution for the issues and formulate a business idea. This project
report is based upon a Roehampton assignment in which we had to develop a new business
opportunity as part of a group presentation done in class. Our business opportunity is concerned
with the introduction of new perfumes in market targeting people with perfumes intolerance,
people suffering from asthma, or just anyone that would like to avoid using harsh chemicals used
in most existing perfumes in the market.
This report covers various topics such as new business idea and its proposed
development, formulation of new idea and its perceived uniqueness, opportunity development
with the help of development pathway etc.
MAIN BODY
Section 1: Introduction of idea and proposed development
As part of an assignment for entrepreneurial development I had to work in a group to
develop a business opportunity. Me and my team did a ppt presentation in class and from that i
had to make an assignment based on the business opportunity found. One of my team members
came up with the idea of a perfume to target everyone that cannot used the normal perfumes
available in the market. The new business idea is covering requirements of them and the
company has planned to launch daring fragrance plain-woven with rose, lavender and jasmine
flowers, ginger with particles if gold and diamond. All of them are going to have spicy, sensual
and floral fragrance which will attract people who do not use perfumes with harsh chemicals. It
has been planned by organisation that three different perfumes will be introduced and all of them
can be mixed and used separately. It is a unique feature of the business idea which is going to be
launched in the market very soon. Most attractive feature of new perfumes is that it can be used
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by female as well as male and it can also help it to deal with competition of the market (Allen
and O'Shea, 2014).
It has been planned by us to develop new products in the market with the help of digital
media and we will use social media websites such as Facebook, Instagram and Twitter to
promote new perfumes. Strategy regarding marketing is also been formulated by us in which we
have decided to distribute free samples so that people can try them and get motivated to buy it.
Section 2: Opportunity formulation
The way in which idea is being formulated: Idea of the new business is formulated by
analysing market conditions and the problems of people. We, as founders of Femme Fatale
conducted market research and analysed that most of the individuals are ignoring perfumes due
to asthma, noxious chemicals, strong fragrance, allergy and medical issues. We thought that new
scents should be introduced in market that can resolve their problems and help them to use
perfumes. A solution for them is being proposed by Femme Fatale in which we have planned to
use natural ingredients to make three variants of scents which can be used separately and mixed
to create a unique fragrance (Audretsch, 2014). All of them are going to be made with no
artificial supplements, chemicals and harmful elements that can leave negative impact upon
health of the users. For the purpose of idea formulation following activities are conducted by
Femme Fatale:
Activities Duration
Market research 15 days
Problem recognition 20 days
Analysis of problems 12 days
Opportunity recognition 10 days
Solution formulation 30 days
Formulation of new business idea 20 days
All the above described activities are conducted by founder, me and the other co-founder
of Femme Fatale in order to formulate a business idea which can help us to launch new variants
of perfumes in the market.
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Proposed uniqueness of the idea: Perfumes of a start-up business are having unique
features as compare to existing sellers such as Lavanila, Pacifica Malibu, Korres etc. of scents in
the market. Three different perfumes are going to be launched in market which are innovation of
a new start-up company Femme Fatale. First one is having aroma of woodsy violets and lilies. It
is going to be versatile, modern and sultry (Blackburn, 2016). Second scent will have light and
charming aroma of lemon blossom and a base of salty sea breeze. The ingredients which are
going to make this perfume will be transported form California coast. Third perfume will have
fragrance of freesia, lush greens, rose, white jasmine and bergamot. All these scents can be
mixed by buyers and make a unique perfume.
For the purpose of market analysis PESTLE is being conducted by me and my group and
it is not compulsory that all the factors affect the company some of them may leave negative
impact on Femme Fatale in future. All of them which can result in unfavourable impact are as
follows:
Economic: Fluctuation in inflation, deflation and foreign exchange rates are the part of
such factors. When they suddenly get changes then it directly affects purchasing power of
clients. As we have decided to set high price for new perfumes so it can affect revenues of the
company in future. In order to deal with such type of problem we are planning to gather
information of such elements and formulate effective strategies to deal with them.
Social: Perception, buying behaviours, taste, age, gender, education level etc. are social
factors that can affect sales of new company in future. Customers who think that all the perfumes
made from harsh chemicals will never buy the new products that are going to be offered by us
and it can affect whole company by reducing its sales. In order to respond such factors
appropriately we are planning to use use various strategies such as providing detailed
information of products to clients. It can help clients to gather information regarding perfumes
and change their buying behaviour and perception towards perfumes (Davidsson, 2015).
SWOT analysis is being conducted by us and we analysed some of strengths, weaknesses
and opportunities. Strengths includes the idea which is being proposed by us is unique which can
help us to attain competitive advantage in the market. It has been decided by us that all the
perfumes will be sold in online as well as offline stores which will help to reach maximum
numbers of customers. Attractive packaging will be used by us for all the perfumes which will
help to attract large number of clients (Fayolle and Redford, 2014). Weakness is that We are
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planning to launch a start up so will be very difficult for us to attain sustainability to survive in
the market. For us it is not possible to establish broad distribution channel and when we do not
have a good distribution channel then it will not be easy to sale products in the market.
Opportunity is that, there are end number of individuals who does not use perfumes due to
allergy, asthma and other issue and it is a great opportunity for me to establish my business
because I am going to offer such scents that are made from natural ingredients. It will not harm
the health of people and also will not create issues for them (Halabi and Lussier, 2014).
By analysing all the above described aspects, a detailed plan is being formulated by us as
founders so that we can introduce our unique idea in the market successfully. This plan has
certain stages and all of them are described below:
Process of formulating entrepreneurial idea: Founder and co-founder of Femme Fatale
has formed the idea by following some steps. All of them are as follows:
 Market analysis: First of all, we conducted market research in order to analyse problems
available in the market. The research is being conducted for the purpose of analysing
opportunities. I have assessed that most of the people are ignoring the use of perfumes
due to various issues such as harmful chemicals, strong fragrance, asthma, allergy etc.
 Problem recognition: In this stage I recognised the problem and try to figure appropriate
solution for the same so that the issue gets resolve and new start up can be establish
successfully (Hayter, 2016).I, as co-founder of Femme Fatale identified that in order to
attain sustainability for the company they should resolve the issue and use solution for the
launch of new entrepreneurial idea.
 Monitoring opportunities: There are end number of opportunities available in the
market that can be chosen by a new business venture to be launched. One of them is
being monitored by Femme Fatale which is related to perfumes that customers are willing
to use scents made from natural ingredients and will not harm their health (Hayter,
Lubynsky and Maroulis, 2017).
 Formulation of strategies and plans: The opportunity is being grabbed by me and my
team and we have planned to launch new scents in the market which are made from
natural ingredients. Various strategies are being formulated which includes prices of new
perfumes, promotional strategy in which organisation will promote perfumes online etc.
The financial plan for 1000 units of new scents is as follows:
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Particulars Amount (Pounds)
Cost of material such as flowers and other flavours 9000
Cost of salaries to the new employees 8000
Researching activities 1500
Bottles for packaging 2450
Advertisements and promotions 450
Rent 2500
Miscellaneous expenses 1100
Total cost 25000
Selling price of each unit= Total cost / total units
= 25000/1000
= Cost per bottle of perfume is £25.
Break even analysis:
Particulars Amount
Sales (1000 units) 28000
Less: Variable expenses
Material -9000
Researching activities -1500
Bottles -2450
Advertisements and
promotions -450
Miscellaneous expenses -1100
Contribution 13500
Less: Fixed expenses
Salaries -8000
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Rent -2500
Profit 3000
PV ratio: Contribution/ sales*100
= 13500/28000*100
= 48.21%
Contribution per unit: 13500/1000
=13.5
Break even sales: Fixed cost/ PV ratio
= 10500/48.21%
= 21780
Break even units: Fixed cost/ Contribution per unit
= 10500/13.5
=778
I have estimated that the selling price of each bottle of perfume will be around 28 pounds
as we have decided that our profit margin will be 3 pounds per unit. The above table showing
financial feasibility of Femme fatale which is very good as it can helps the company to attain
higher profits. In order to recover all the costs we are required to sale at least 778 bottles of
perfumes and acquire a sales of 21780 pounds. If this level is not been achieved by us then we
may have to face loss in future. Selling more than 778 bottles of perfumes will help us to
generate profit. We have been decided that the new perfumes will be sold on online as well as
offline stores like Harrods. The targeted segment will be upper class customers of UK who do
not use perfumes which are having noxious chemicals, strong fragrance etc.
 Measuring compatibility: Under this stage comparability of new business idea is being
measured by comparing it with existing companies in same market. For this purpose,
Femme Fatale can use competitive rivalry strategy of Porter's Five force model which can
help to analyse the competitors. I have analysed that there are end number of competitors
in the market such as Armani, Dolce and Gabbana, Davidoff etc. but Femme Fatale is
having a unique feature which all of them does not have. It is that natural ingredients are
used by the company to make scents. It has been evaluated that the company is highly
compatible for others (Mack and Mayer, 2016).
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 Implementation of the idea: By taking all the above steps in to consideration idea will
be implemented, and feedbacks will be taken from customers who buy scents of Femme
Fatale (Westhead and Solesvik, 2016).
Section 3: Opportunity development
We as the founders of Femme Fatale, decided to formulate a plan which focuses on all
the important elements. One of them is business canvas model which is required to take an
insight of whole business. This model for the company is as follows:
Key Partners:
 Customers
 Suppliers
 Investors
 Founders
 Initial
promoters
Key Activities:
 Advertisin
g
 Selling
different
variants of
perfumes
Key Resources:
 material
for
perfume
 Monetary
resources
 Skilled
employee
s
Value
Proposition:
Offer such type of
attractive
perfumes to
customers which
does not harm
their health and
made from
natural
ingredients.
Consumer
Relationship
 Sale good
quality
perfumes
with three
different
variants
and
fragrances
which can
be mixed
to make a
unique
aroma.
Channels
 Online
stores
 Offline
stores
 Retailers
Consumer
Segments
 Asthmatic
people
 Allergic
individual
s
 People
who do
not apply
perfumes
with
strong
fragrance
 Women
Cost Structure Revenue Streams
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 Material
 Salaries
 Research
 Promotion
s and
advertisem
ents
 Bottles for
scents
 Selling unique variants of perfumes that can be mixed or used
separately.
Different pathways:
Femme Fatale should be launched in the market as border less mobile application such as
Instagram, Twitter etc. It can help to reach maximum number of clients and also help to generate
large amount of profits. We have decided that attractive promotional activities will be used for
the purpose of providing detailed information to customers regarding the new entrepreneurial
venture. It has been proposed by the founder that free samples are also going to be distributed as
tester in order to enhance sales in future (Malecki, 2018). Products will be sold on website of the
company and in retail stores so that maximum people can reach to the perfumes. It will be
beneficial for whole organisation to achieve long term sustainability.
It is very important for Femme Fatale to acquire sufficient funds for the purpose of
successful execution of business activities. Total requirement of the company is around £27,000
and it is vital for it to arrange this amount of funds. It can be arranged from various sources such
as personal savings of founders, bank loan, venture capital etc. For promotional activities extra
fund is requires so I think we should apply for a bank loan of 40,000 pounds so that in future we
can ignore the situation of lack of monetary resources (Schumpeter, 2017). It has been estimated
that financial feasibility of Femme Fatale is very good, and it can help to attain higher profits in
future. I have also forecasted that the company can enhance its sales upcoming period by using
attractive methods of promotions such as social media marketing.
Femme fatale may face following risks in future:
 There are end number of competitors in the industry of perfumes which can leave
negative impact upon Femme Fatale.
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 As it is a new company so it can face issues such as improper sales due to its small
distribution channel.
 Lack of material as Femme Fatale is going to use natural ingredients for perfumes.
In order to mitigate all the above described risks different strategies are being formulated
by Femme Fatale. To respond first risk the company is going to use unique features in its
perfumes which are not used by its existing organisations. It will help to deal with competition in
the market (Varamäki and et.al., 2015). To manage the distribution channel CMO has proposed a
plan in which enterprise will offer the products on website so that it can be bought by customers
where ever they are in the world. To deal with last risk organisation is planning to establish good
relations with suppliers in order to buy material on time to make perfumes and sale them in to the
market.
Section 4: Conclusion
While working on this module I have learned various things such as analysing market,
identifying existing opportunities and grab them. It has provided me great experience and I have
gained knowledge from it. In order to complete the project we are required to formulate a
business plan with some unique features and we did the same. Me and my team members worked
together to complete it and tried our best to make it appropriate and proper. The project is being
assigned to a group and all the members working on it. Some of us were responsible to gather
information and others for compilation of the same. All of us also faced some issues such as
disagreement and conflicts due to lack of communication. If we get same opportunity again then
first of all we will make sure that all of us communicate with each other properly so that we can
work effectively. This experience is beneficial for us as it can help to develop other similar
products because we gained knowledge to develop an idea which can be used by us next time.
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REFERENCES
Books and Journals:
Allen, T. J. and O'Shea, R. P. eds., 2014. Building technology transfer within research
universities: An entrepreneurial approach. Cambridge University Press.
Audretsch, D. B., 2014. From the entrepreneurial university to the university for the
entrepreneurial society. The Journal of Technology Transfer. 39(3). pp.313-321.
Blackburn, R. A., 2016. Government, SMEs and entrepreneurship development: Policy, practice
and challenges. Routledge.
Davidsson, P., 2015. Entrepreneurial opportunities and the entrepreneurship nexus: A re-
conceptualization. Journal of Business Venturing. 30(5). pp.674-695.
Fayolle, A. and Redford, D. T., 2014. Handbook on the entrepreneurial university. Edward Elgar
Publishing.
Halabi, C. E. and Lussier, R. N., 2014. A model for predicting small firm performance:
Increasing the probability of entrepreneurial success in Chile. Journal of Small Business
and Enterprise Development. 21(1). pp.4-25.
Hayter, C. S., 2016. A trajectory of early-stage spinoff success: the role of knowledge
intermediaries within an entrepreneurial university ecosystem. Small Business
Economics. 47(3). pp.633-656.
Hayter, C. S., Lubynsky, R. and Maroulis, S., 2017. Who is the academic entrepreneur? The role
of graduate students in the development of university spinoffs. The Journal of
Technology Transfer. 42(6). pp.1237-1254.
Mack, E. and Mayer, H., 2016. The evolutionary dynamics of entrepreneurial ecosystems. Urban
Studies. 53(10). pp.2118-2133.
Malecki, E. J., 2018. Entrepreneurship and entrepreneurial ecosystems. Geography Compass.
12(3). p.e12359.
Schumpeter, J. A., 2017. Theory of economic development. Routledge.
Varamäki, E. and et.al., 2015. The development of entrepreneurial potential among higher
education students. Journal of small business and enterprise development. 22(3).
pp.563-589.
Westhead, P. and Solesvik, M. Z., 2016. Entrepreneurship education and entrepreneurial
intention: do female students benefit?. International Small Business Journal. 34(8).
pp.979-1003.
Online
Entrepreneurship. 2019. [Online]. Available through:
<https://www.tutorialspoint.com/entrepreneurship_development/entrepreneurship_devel
opment_introduction.htm>
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