Sources of Entrepreneurship and Biodegradable Packaging Idea

This study discusses sources of entrepreneurship and ways to bring innovative ideas. It also focuses on biodegradable packaging idea and its effectiveness. The study includes SWOT and PESTLE analysis.

Unit 27

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Sources of entrepreneurship with cons and pros.........................................................................3
Entrepreneurial idea and market gap analysis.............................................................................4
SWOT analysis............................................................................................................................6
PESTLE analysis.........................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
An ability to run a new business is known as entrepreneurship. This study is going to
discuss some different sources of entrepreneurship or ways by which people can get better ideas
of running a new business such as: experience and others. On the basis of critical analysis, it
becomes easier in selecting one. There are number of attractive business idea and biodegradable
packaging is one of the best ideas that this study will discuss. It will also show effectiveness of
SWOT and pestle analysis and ways in which it can help people in making improved decision.
MAIN BODY
Sources of entrepreneurship with cons and pros
Before discussing about sources of entrepreneurship, it is important to understand the
meaning of entrepreneurship and in this regard, it can be said that it is an ability of people to
organise as well as develop a business enterprise (Landström, 2020). Starting a new business is
an example of entrepreneurship. As in this modern digital era, organisations are striving hard and
people are focusing on starting a new business by which they can foster their family and can
accomplish their goals. Running a new business or starting a new business is not an easy task as
entrepreneurs need to possess number of skills and also they need to select some appropriate
sources of entrepreneurship via which they can bring innovative ideas. Some examples of
entrepreneurship sources include:
Experience: It is one of the best sources that encourages and make people able to think
better ways of opening and developing a new business. Experience makes them able in becoming
successful and also protects them against failure (de Lourdes Cárcamo-Solís and et.al., 2017).
Unexpected events: Business environment is made us of number of factors and when
changes happen in these factors then it affects people in both positive and negative manner.
Some people learn from such negative or unexpected events and it increases their knowledge and
encourages them for thinking in a unique manner. People try to identify ways by which they can
continue their tasks and can work in adverse situations. These unexpected events lead
entrepreneurship. Covid-19 can be considered as unexpected events and after this, many people
have started new business of providing online unique and nutritional values of food and other
items.

Drucker’s 7 sources: It consists of 7 sources from where, entrepreneurs can bring
innovation and can start new business such as:
The unexpected: It refers a situation or eureka moment in which something unexpected
happen and it encourages people to bring innovation and produce new product.
Incongruities: It refers a situation where there is a difference between what should and
what actually is and in between, people or entrepreneurs find innovative opportunities. It is weird
feeling but it leads entrepreneurship.
Process needs: When people try to improve their existing process then it leads to
innovation. It happens when people identify new ways of doing something.
Market structure: Market needs is one of the best source that encourages people for
thinking in an innovative ways by which they can satisfy market needs and can identify untapped
opportunities (Saxena, 2021).
Demographic: Changing demographic like age, education and income also leads
innovation. Changing demographic or increment in income also increases ability of people to
start new business by bringing unique features of product.
Change in perception: There is no doubt as people’s needs get changed over time and on
the basis of changed needs, people can identify better ways of satisfying their needs and and lead
entrepreneurship (Nikolova-Alexieva and Angelova, 2020).
New knowledge: New knowledge as well ss technologies can be known as one of the best
source that can make people able to start a new innovative business. There are number of
successful entrepreneurship or organisation that make use of technologies and have become the
market leader.
On the basis of above discussed sources, it can be said that people can grab opportunities and can
make they able to start a new business.
Entrepreneurial idea and market gap analysis
On the basis of above discussed definition of entrepreneurship, it can clearly be said that it
is all about setting up a new business and providing satisfactory services t customers. For this
purpose, entrepreneurs focus on bringing innovative business idea because of satisfying
customers’ changing needs (Korpysa, Halicki and Lopatka, 2020). Business idea can be
developed by analysing both internal and external environmental factors. By analysing both
factors, one of the best business idea has been selected that can help out entrepreneurs in

becoming successful. The best idea that has been selected on the basis of environmental analysis
is: biodegradable packaging of products.
Biodegradable packaging: In this context, it can be said that it refers a type of packaging
in which eco-friendly materials or recyclable products are being used. All those materials taht are
being used in biodegradable packaging are easier to recycle. The main aim of selecting this idea
is to make enterprise successful and having no negative impacts on environment. Due to
increasing factories and industries, environmental is getting affected as process that is being used
for producing products lead wastes to the great extent (Potluri and Phani, 2020). This waste and
materials used for packaging products like plastics and other also have negative impacts on
environment. So, for decreasing negative environmental impacts, this business idea has been
selected.
Market gap analysis: Effectiveness of this business idea can better be known by market
gap analysis. It is an effective way by which entrepreneurs research sales and identify
opportunities as well as area where the demand is high and accordingly, they select business idea
and supply their products accordingly. For better analysis and grabbing opportunities,
McKinsey’s 7 S model will be applied such as:
McKinsey’s 7 S model: This model discusses 7 effective internal elements of an organization
that need to be aligned for becoming successful and its elements are being divided into 2 types
such as:
Hard elements: System, strategy and structure
Soft elements: skills, staff, shared values and style
Strategy: Businesses have some strategies that are known as business plan. They develop
business plan before performing any function and the main aim of developing business plan is to
maintain and building competitive advantages over competitors. In regard to this business or
entrepreneurship, it can be said that providing biodegradable packaging and making people
aware about it is its main strategy.
System: It refers business operations and daily activities that are being performed by
employees in order to get their job done. For biodegradable packaging, everyone will require
focusing on using only those materials that can be recycle (Coglan and et.al., 2020).
Structure: It refers the way in which business is organised and this enterprise will make
use of hierarchical structure.

On the basis of above discussed hard elements, it can be said that this business idea can
be succeed if entrepreneur provide training to its all employees about better ways of packaging.
Style: It refers style that leaders use for guiding their employees as biodegradable
packaging is an innovative ideas so, for this, enterprise must use transformational leadership
style. In this style, leaders guide and encourage employees for bringing innovative ways and
performing their functions in order to improve performance as well as meeting goals.
Staff: It includes all employees who help company in accomplishing goals and they are
known as one of the most important resource. For this enterprise, HR will hire experienced
employees who have knowledge regarding recyclable materials.
Skills: Skills and capabilities that are being used by employees in order to improve their
performance. For increasing skills, enterprise will provide training to employees and tell them
better ways of biodegradable packaging (Gechkova and Kaleeva, 2020).
Shared valued: It refers core values of organisation and it is considered as super ordinate
goals. For this purpose, entrepreneur will make use of appropriate communicational modes by
which he can share all important information with stakeholders and engaging them with goals
and values of company.
On the basis of above discussed elements and model, it can be said that enterprise can take
competitive advantage by providing products in biodegradable products and making use of
appropriate organisational structure, system and skills.
SWOT analysis
Strength
While biodegradable packaging keep the experience and knowledge for the staff and also
work as major strength. This could also help for create more manufacturing process to make the
biodegradable and finding more companies who basically required for products (Ibrahim and
et.al., 2021). Owning patents for the biodegradable packaging is also the manufacturing for the
strength and won't need to pay any licensing and investor that can easily invest more and also
keep their work for creating for new products. Biodegradable packaging is also keep more
manufacturing and help company for knowing about how usually the products have been created
and government that also take participants in such business.
Weakness

The cost of research and development for which the new or developed biodegradable
packaging options that can represents about the major weakness (Vlachokosta and et.al., 2021).
While this could also another potential weakness and keep the typical or fake products to the
customer that could also led for the weakness. This means that be may be forces to keep the
business within the own profits low and sell what about how the manufacture. If producing more
packaging than keeping the currently about sell and affects more towards the cash flow. The
costs of using the biodegradable packaging customer would need to factor that into the prices of
their own products.
Opportunities
Biodegradable packaging means more potential interested from the manufacturing about
who can choose into compliance with their working customer about the requirements. This might
be also important for becoming the depleted and oil prices rise, the need for keeping the
biodegradable packaging more than their opportunity as a solution to the problem (Puglieri and
Iritani, 2021). As countries that could promote more biodegradable packaging and more than 50
percent of their material from the vegetable origin and representing opportunity for growth.
Biodegradable packaging which keep their high percent and easily make their more products and
sales them with best prices.
Threat
As large retailers that could work within the biodegradable packaging that could be threat
for the industry and sometime that could create more high costs rather than any other firm.
Which would reduce the market and also increasing their vulnerability for which the competition
from the manufacture that starts developing (SMOl and SzołDrowSka, 2021). This could also
help them for working as biodegradable packaging are another threat. As keeping the best
business idea this could costs for decreasing the oil prices and more fossil fuel which are being
located.
PESTLE analysis
Political
Factors are the means by which and how much an management intercedes in the
economy. In exacting, political basics incorporate regions, for example, charge strategy,
exchange limitations, and political strength (Loizia and et.al., 2021). Political variables may
likewise incorporate labour and products which public influence requirements to give and those

that public authority would rather not given negative mark products. Moreover, state run
administrations have unexpected impact on the wellbeing, training, and structure of a country.
With this guideline, mirrors from customary plastic to biodegradable plastic consequently,
associations have for most part around biodegradable plastic since they believe that innocuous to
climate as assists with advancing natural mindfulness.
Economics
Factors incorporate financial development, trade rates and expansion rate. These
variables significantly affect how organization work and decide. For instance, loan fees an
association expense capital and thusly business develops and extends. Trade rates control the
expenses of sending out goods the stock and cost of imported products in an economy (Do Thi
and et.al., 2021). This is the reason after why people general accepts that biodegradable plastic
isn't hurting climate and that numerous associations all throughout market themselves being
green so, making clients have such judgment about biodegradable plastic.
Social
Factors incorporate the social viewpoints and incorporate populace development rate, age
dissemination, and accentuation on security. Pattern in friendly factors influence the interest for
an organization items and how that organization works. For instance, growing populace might
suggest modest and less-willing labour force. Moreover, organizations might change different
administration methodologies to adjust to these social patterns. Most associations have forced the
biodegradable guide on grounds shoppers imagine that elemental, and about portion of the buyer
incline toward biodegradable bundling. Framework must be approved out general society zero
bio plastics, and along these lines, it may create turmoil public again they should know what bio
plastics and does and how benefits.
Technology
Incorporate innovative perspectives like research and development action, innovation
motivators and pace of mechanical change. They decide limitations to passage, least skilful
creation level and impact rethinking choices (Uvarajan and et.al., 2021). Moreover, mechanical
actions can influence expenses, and lead to growth. Along these lines, associations decide to
advance plant life utilizing the less costly elective which is biodegradable plastic, as bio-plastic
that is made from regular materials can cost multiple times more contrast with regular plastic.

Legal
Factors incorporate segregation law, antitrust law, business law, and security and security
law. These variables can pressure how an organization works, its expenses, and the interest for
its items. In this manner, biodegradable plastic is unsafe as methane is delivered into climate
when it corrupted in the landfill. Biodegradable plastic isn't quite as great when contrasted with
bio-plastic. However, not fault associations for lauding its showcasing and what really useful for
the climate.
Environment
Factors incorporate natural and ecological angles like climate, and environmental change,
which may particularly control businesses like cultivating, and protection. Moreover, developing
consciousness of the possible belongings of environmental change influencing how organizations
work and items they offer, making new business sector and decreasing or obliterating existing
ones (Puglieri and Iritani, 2021). The two plastics can case be debased, however, that when bio-
plastic separates, they don't produce a net increment of carbon dioxide, which is 80% less ozone
harming substances careful, differentiated to biodegradable plastic and conservative plastics.
Bio-plastic produced using normal materials while biodegradable plastic is shaped using
conventional petrochemicals.

CONCLUSION
It has been summarised from the above study that entrepreneurship is important as an
ability to run a business in unique manner can make beneficial to customers and entrepreneurs. It
has discussed some sources of entrepreneurship such as: experience that people have, unexpected
events from which people learn new things and Drucker’s 7 sources. It has further discussed
effectiveness of biodegradable packaging business idea and ways of identify effectiveness of
selected business idea. SWOT and PESTLE analysis makes people able in knowing all factors
that may affect selected business idea. This analysis makes them able in deciding the best option
and accordingly accomplishing goals. Market gap analysis and McKinsey’s 7 S model also help
entrepreneurs in selecting effective structure, skills and style that can be suitable with selected
business idea and by which people can run their business in an effective manner.

REFERENCES
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