Entrepreneurship and Economic Development

The assignment is a collection of articles and research papers that explore the relationship between entrepreneurship and economic development. It includes studies on the role of entrepreneurship in promoting economic growth, innovation, and job creation, as well as the impact of government policies and programs on entrepreneurship development. The document also features case studies and empirical analyses of entrepreneurship in different contexts, including small business economics, technology and innovation policy, and arts entrepreneurship.

ENTREPRENEURSHIP
DEVELOPMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
IDEA FORMATION.......................................................................................................................1
Problem Identification............................................................................................................1
Market Opportunities..............................................................................................................2
Opportunities..........................................................................................................................6
Threats....................................................................................................................................7
Market Size and Customer Segmentation..............................................................................7
Contingency Plan....................................................................................................................7
Value Proposition Canvas Model...........................................................................................9
VENTURE DEVELOPMENT........................................................................................................9
Cost Analysis..........................................................................................................................9
Marketing Plan.....................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Entrepreneurship refers to the activity of setting up as well as managing one's own
business organisation. It is an essential task which is required to be appropriately managed in
order to ensure smooth success of the business organisation and sustainable development
(Storey, 2016). In addition to this, entrepreneurial development is associated with grabbing new
opportunities, and developing new ideas which ensures assured growth as well as profitability for
the business. The current report is based on HomeOsteo, which is business idea of providing
osteopathy services to the users. This would be achieved through creation of a mobile application
and website. The uniqueness of this idea is that it would provide ease in booking services
through this application for home users. It would be covering idea formation for the company to
attain maximum nationwide growth, as well as extend its business in Europe, mainly in Spain
and Switzerland. Along with this, it also covers effective venture development, the proposed idea
would be developed appropriately in order to achieve the set objectives like providing effective
osteopathy services to the users.
IDEA FORMATION
Problem Identification
Back ache is one of the major health issue faced by people within Europe and UK.
Within people of all ages, these problems have evident impact on their physical and mental
health. Almost 540 million individuals are affected by lower back pain at any random time and
this kind of problems is very common to be experienced by individuals globally. In addition to
this, in a period of last 20 years, there has been a 12% increase in probability of an individual
suffering from disability following lower back pain (Back pain: how to live with one of the
world’s biggest health problems, 2019). Thus, osteopathic organisations must effectively
develop solution to the problem to reduce its impact and appropriately deal with these situations.
Idea formation is necessary for the CEO to develop effective solution to this problem. It
is an important task as it is crucial to generate possible solutions which address the problem
mentioned above. There are several solutions to the back pain issues in the UK and Europe.
Osteopathic Organisations could work on few solutions to effectively address this health issue in
these countries. The possible solutions are described below:
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 Companies could approach individuals and communities through various social media
portals using Facebook, Twitter and Instagram. This solution would allow them to reach
a wide range of people spontaneously and it would help attract their attention and provide
them with effective services (Blackburn, 2016).
 Organisations could create a mobile application, where the users could acquire their
effective services and could book professionals in order to receive appropriate treatments
for their back problem.
As a CEO, the reason for proposing these solutions is to further brainstorm and identify
the most appropriate idea which the firm could adopt for addressing the problems of the market.
The most effective idea which could help the founders in attending these issues is through a
mobile application. The entrepreneurial idea of an app working on the format of Deliveroo and
Uber Eats would be a viable option for the company.
Market Opportunities
Environment Assessment
Environmental assessment is necessary for the idea as it would help in determining
opportunities in the external environment of the company which could possibly influence its
effectiveness (Acs, Szerb and Autio, 2015). There are few likely factors which could arise
several opportunities for this idea and its effectiveness in the future. These factors are described
below:
Political Factors
These factors are associated with the political scenario of a nation. It includes
government policies, guidelines, stability, etc., which would have certain impact on the
performance of the application.
Currently, the political environment of Europe is not as stable as it is required for a
business to extend its services in Spain and Switzerland. The reason for the same is Brexit.
However, the impact would likely to be subdued; however, there are still evident scenarios that
could be affect effectiveness of the application. The issue which is likely to rise for the business
idea is the model which would be followed by the company after its formation. Reason for the
same is that the membership structure for businesses would be changing after Brexit (BREXIT
IMPACT ON EUROPE’S EAST, 2019). This uncertainty could be an opportunity for the CEO as
the membership structure of the company could be kept flexible until the impact of Brexit.
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Moreover, this contingency plan could be an opportunity for the company to modify its structure
according to the market in the future and thus, would be beneficial for its idea as well.
Social Factors
These factors are the ones which are associated with social norms, attitudes as well as
beliefs of individuals (Audretsch, Belitski and Desai, 2015). People in the society these days tend
to lead a healthy life and are quite effective when it comes to approaching for medical treatment
to improve their medical conditions.
However, their attitudes as well as their preferences are likely to change with time.
Moreover, with ample of applications providing medical practitioners for individuals, the people
are likely to stick with their usual application. In addition to this, market trends are changing
drastically. Thus, it could be an opportunity for the business idea to consistently research the
market and effectively modify its mobile application and enhance the opportunity for its
maximum preference by the customers.
Technological Factors
Aspects covered under these factors are associated with all the technological
advancements that influence a company and its operations. It is important for the founders to
effectively enhance their operations of the company and present their offerings in ways which
help them to be technologically ahead. There are ongoing advancements in technology within
Europe. Within each sector, technology is being developed and modified to suit the current
market needs as customers appreciate new technologies and prefer the companies which are
technically sound and follow current trends.
Currently, the idea is being formulated for the users to access this app via their mobile
phones, tablets as well as through website. However, with advancements in communication and
information technologies, this could be a major opportunity for the idea as the company. This is
because, in future, the firm could adopt new technologies like Automation and Artificial
Intelligence to enhance the scope of effectiveness of the idea in the future as well. (Cooper and
Folta, 2017). This, could be a prominent opportunity as both Spain as well as Switzerland are
technologically advanced and customers seek to appreciate and adopt new technologies easily.
Legal Factors
There are several factors which could be an issue for the company where legal
environment of their business is concerned, for instance, there are several laws regarding mobile
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applications which are required to be strictly followed by HomeOsteo to ensure ethical
compliance and fulfilment of its CSR duties (Morris, Neumeyer and Kuratko, 2015). For
instance, Data protection Act requires the company to keep information of each patient safely
and securely with them to ensure confidentiality. Another act that the firm must comply with is
Equality Act which requires them to provide appropriate home services to these customers
regardless of their race, caste, gender, etc. It thus, arises several opportunities, as compliance of
ethical standards would develop a positive perception of the companies in eyes of customers.
Thus, it is essential for compliance of these legislations as this would provide their business idea
with government support..
Industrial Attractiveness
After analysis of the opportunities, CEO and other founders are required to determine
attractiveness of the idea. The firm would be going by the name of HomeOsteo, and the
application would be HomeOsteo App. Moreover, this would allow the firm to build appropriate
and competitive strategies in order to sustain in the market for long term. In addition, it would
also help in determining attractiveness of the idea and how best this company could
appropriately and adequately modify its idea to cater to consumer needs in the market. There are
several factors which could help the company in deciding the attractiveness of its idea which is
HomeOsteo App. These elements are evaluated below:
Bargaining Power of Suppliers
Suppliers refer to those individuals who provide the firm with necessary materials or
programs which aids an organisation in transforming the idea into concept. They are an essential
elements for a firm as they provide offerings which aids an organisation in saving time for
developing those offerings which are provided by them.
Suppliers for the company are software and interface providers for its HomeOsteo App
and website. Software requirements for the website and application are the ones which provide
the company with an interface, protection as well as software which automates the building
process of the software, like Apache Ant (Hardware and Software Requirements, 2018). Out of
various companies, there are just handful of organisations which are effective in providing
software for HomeOsteo App and Website. A few examples of these companies are Geeks Ltd,
Apiumhub and Futurice (8 Software Development Companies Doing Great Things in Europe,
2018). Since the switching cost in acquisition of interface as well as software is very high and
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with such limited number of suppliers, their bargaining power would be high in respect of
HomeOsteo.
Bargaining Power of Buyers
Customers are the reason for a company's existence. The current problem of back ache in
customers in the UK is an opportunity for the company. However, it is essential for HomeOsteo
to judge attractiveness of its idea within customers to appropriately enhance scope of its success.
It is because its attractiveness among customers would be on the basis of various factors such as
the services provided by the company, the ease in use of the application and website, its
effectiveness in finding professionals and acquiring effective services, etc.
Buyers of HomeOsteo App and Website expect the organisation to present their product
at lower prices and higher product quality. Within the market, there are various users of social
media as well as smartphone owners, who use applications for approaching companies for home
services. However, there are various buyers of services provided through HomeOsteo App and
Website and their preferences shift quickly in case of other other clinics charging lower prices
for their services. Moreover, customers could easily switch to other clinics which enhance their
bargaining power with HomeOsteo.
Threat of Substitutes
Substitutes refer to those products as well as services which could be used in place of
existing products and services. HomeOsteo App as well as the website would be providing
effective home services related to Osteopathic problems and back ache suffered by their service
users.
However, there are various effective substitutes of this application and website in the
market. For instance, this application would allow individuals to book their services for home.
However, there are several individuals who prefer taking proper treatment at clinical centres as
they could acquire better assistance, which is one of the potential threats for HomeOsteo App
and Website. In addition to this, there are other treatments to treat back ache in contrast to
Osteopathy, such as allopathic treatment, homeopathic treatment as well as Yoga which could
appropriately help them in receiving ease, as well as, reduction and complete mitigation of their
physical problem. Thus, the threat of substitute for HomeOsteo App is quite high with so many
substitutes available in the market.
Threat of Existing Competitors
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Competitors, in a business environment, refer to those organisations that offer similar
services to their clients and use different and effective strategies to stay ahead in the market.
Each sector is comprised of various companies that are highly competent and appropriately
situate and offer their services and products that serve the aroused needs of individuals and
communities.
As for HomeOsteo, there are several other organisations in Europe which provide their
service users with osteopathic consultations and treatments. One such organisation is Wimborne
Osteopathic Clinic, which have physical clinics situated in Europe. This organisation provides its
customers with treatments of physical ailments like Back pain, sciatica, joint pain, etc. The firm
has quite recently established various online channels. However, they have a very low online
presence with almost 270 online followers and less than 40 reviews. Nonetheless, there are other
direct competitors for HomeOsteo in the market as well. As an example, one such organisation is
Mason Clinic, which is a private osteopathic organisation which also provides treatment of
various backaches and joint pains. In addition, the company has an effective online presence in
the market. Thus, after such analysis, is could be claimed, that threat of existing competitors for
HomeOsteo is moderate in the market.
Opportunities
There are several opportunities for HomeOsteo in the marketplace; these opportunities are
duly listed below:
 The rise in back ache in Europe would develop a perception and need for patients to
acquire treatment and other osteopathic services in their homes and thus, it would be an
opportunity for the company to extend their business in Europe through HomeOsteo App
and Website.
 Another opportunity for the company is the lack of organised and coordinated
organisations providing effective mobile services which enhances the scope of its
success.
 Musculoskeletal problems caused a loss of 31 million work days in the UK in 2016,
which enhances the need of the market to have home services like HomeOsteo app
(Leyden and Link, 2015).
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Threats
 One of the major threats for the company is its competitors which are expanding their
legal presence with provision of variety of services.
 Brexit could be a possible threat for its operations in coming span of time.
 Changing preferences and presence of substitutes are vital threats for HomeOsteo.
Market Size and Customer Segmentation
Lower back pain is quite common globally and is associated with various activities such as
no physical fitness, long working hours, mishandling of heavy objects, slip disks, etc. Global
market statistics of this problem are not very impressive. Worldwide, more than 1 individual out
of 10 suffers from back pain issues, which makes the market quite large for HomeOsteo App and
website (More than 1 in 10 worldwide suffer lower back pain, 2019).
However, despite having such vast market, HomeOsteo is required to determine their target
market on which these services would be centralised. Customer segmentation for the same is
discussed below:
 The company is planning to target customers from urban areas of Europe for their
services.
 These customers would be mostly women who would be aged between 45-64 years,
belonging to middle, upper middle and upper class groups (Chang and Wyszomirski,
2015).
 Those customers would be targeted who are suffering from back problems and are
habitual of using mobile applications and websites to book services.
Contingency Plan
In addition to these threats, there are several risks present for the firm with its application as
well as the website. Thus, it makes it imperative for HomeOsteo to prepare a contingency plan
for the same. To attain this, the mitigation plan is mentioned below:
RISK SEVERITY CONTINGENCY
ACTION
MITIGATION
ACTION
Unapproachable
Therapists During
Sessions
HIGH The app would be
segregating
employees on the
basis of their skills
Install an active and
offline feature in the
app to effectively
make only those
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and experiences
which would allow
users to immediately
book other
professionals in case
this contingency
arises.
professionals
available to patients
who are active on
duty.
Disloyal Employees MEDIUM
Immediate dismissal
of those employees in
question and hire new
employees on zero-
hour basis till the firm
finds a permanent
employee.
Acquisition of
employment
practices liability
insurance and regular
monitoring and
communication with
employees to ensure
their engagement and
loyalty.
Potential Danger of
Entering Someone’s
House
LOW
Immediately taking
precautious actions by
contacting neighbours
and emergency
helpline after
witnessing any ill
activity.
Training to staff to
deal with unforeseen
situations and
providing them a
safety feature giving
their location and
dispatch of security
professionals
immediately after
activation.
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Value Proposition Canvas Model
Illustration1: Value Proposition Canvas Model
The canvas model effectively explains the range of benefits and features possessed by
HomeOsteo App and its potential experience derived from the wants, needs and fears of
customers. There are several effective aspects of the app which would mitigate the risk, help the
patients in receiving quality treatment and receive other benefits associated with the application
and website (Adekiya and Ibrahim, 2016).
VENTURE DEVELOPMENT
After analysing external market, idea attractiveness, potential risks associated with service
delivery and mitigation plan; as a CEO, the next step calls for development of HomeOsteo App
and Website. The pathway which the company would be following to implement the idea into
the market is through generation of mobile application and website. Following is the cost
analysis of the company, as well as its marketing plan for marketing this application and website.
Cost Analysis
Cost of creation of Application and Website:
Particulars Amount (£)
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Contribution from Founder 1 20,000
Contribution from Founder 2 20,000
Contribution From Founder 3 20,000
Bank Loan 15,000
TOTAL 75,000
Each founder will be contributing equally to development of the application and website
which includes software acquisitions, development of interface, hiring of new resources, etc.
Furthermore, founders would be acquiring bank loan of £5,000 each for additional cost as regular
testing and modifications would be performed till first 12 months to fill the gap.
Cost of Services:
Particulars Amount (£)
New Patients (Including Consultation) 70.00 per 45 minutes session
Existing Patients 80.00 per hour
The amount acquired would be distributed in a ratio of 7:3, which means 70% of the
amount would be received by practitioners and 30% of the amount will be acquired by the
application and website.
Marketing Plan
Marketing of an idea is very important for consumers to effectively know its deliverables
and uniqueness and how well it is different from other similar products in the market.
HomeOsteo App as well as the Website provides speedy and quality treatment to its patients. To
attain this, the company has effectively acquired various employees from UK osteopathic
schools and providing a form for these individuals to join the application.
The marketing plan of this mobile application and website would be completely based upon
digital marketing. There are several activities which would be included by the company to
effectively market their website and mobile application. These activities are mentioned below: Creation of Website: The first and foremost step in the marketing plan would be to set up
a company website for customers to get an idea about range of services it offers, areas in
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which the company operates, cost of services, etc. this is the most important process to
help patients in enhancing their familiarity with the company. Search Engine Optimisation: This step would help HomeOsteo to increase the online
visibility of its website. It helps the firm in appearing in maximum results whenever a
patient searches anything similar to the company or its services, Thus, it would help the
firm in maximising its presence and change the psychological preferences of customers. Social Marketing Advertisements: Social Media tends to be one of the highest used
platforms for communication and sharing information (Biryukov and et. al., 2015).
HomeOsteo could further market its services in various social media platforms such as
Facebook, Instagram, YouTube, etc., which is highly used by customers to gain
knowledge. In addition, push notifications could also help company in gaining
appropriate momentum in the marketing front.
 Setting-up KPI: The last step of marketing plan calls for setting up of Key Performance
Indicators. These would help the company in determining effectiveness of its marketing
plan. Various KPI’s in respect of marketing HomeOsteo App and Website is mentioned
below:
o The number of people visiting and acquiring services from company website.
o Total number of individuals and groups engaged with the presence of company on
online platforms.
o Number of likes, shares and retweets received by the firm for its online content
CONCLUSION
Thus, it is concluded from the above information, that entrepreneurial development is
crucial to develop an effective business idea. While working on this project, it was required of
the team to be consistent, creative and innovative while working on the problem as well as its
possible solution. A range of ideas were provided by the team members from which, the most
feasible idea was selected for this project which was HomeOsteo App and Website. While
environmental analysis was easily performed, it was very challenging to determine attractiveness
of the idea and identifying its potential opportunities and threats. Time management throughout
the project has been the most difficult element and so is the conflict management regarding the
direction. If this opportunity arises next time, I would be encouraging the team to take external
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help in determining roles and responsibilities to remove hindrances in work. Moreover, time
management strategies and time tables would be developed to manage time and effectively
perform the activities.
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REFERENCES
Books and Journals
Acs, Z.J., Szerb, L. and Autio, E., 2015. The global entrepreneurship and development index.
In Global Entrepreneurship and Development Index 2014 (pp. 39-64). Springer, Cham.
Adekiya, A.A. and Ibrahim, F., 2016. Entrepreneurship intention among students. The
antecedent role of culture and entrepreneurship training and development. The
International Journal of Management Education. 14(2). pp.116-132.
Audretsch, D.B., Belitski, M. and Desai, S., 2015. Entrepreneurship and economic development
in cities. The Annals of Regional Science. 55(1). pp.33-60.
Biryukov, V.V., and et. al., 2015. Cyclic-temporal competitive advantages of the national
economy and entrepreneurship development. Mediterranean Journal of Social
Sciences. 6(4). p.64.
Blackburn, R.A., 2016. Government, SMEs and entrepreneurship development: Policy, practice
and challenges. Routledge.
Chang, W.J. and Wyszomirski, M., 2015. What is arts entrepreneurship? Tracking the
development of its definition in scholarly journals. Artivate: a journal of
entrepreneurship in the arts. 4(2). pp.11-31.
Cooper, A. and Folta, T., 2017. Entrepreneurship and high‐technology clusters. The Blackwell
handbook of entrepreneurship. pp.348-367.
Leyden, D.P. and Link, A.N., 2015. Public sector entrepreneurship: US technology and
innovation policy. OUP Us.
Morris, M.H., Neumeyer, X. and Kuratko, D.F., 2015. A portfolio perspective on
entrepreneurship and economic development. Small Business Economics. 45(4). pp.713-
728.
Storey, D.J., 2016. Entrepreneurship and new firm. Routledge.
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