Entrepreneurship, Enterprise and Innovation

This study material explores the practice and theories of entrepreneurship, opportunities for entrepreneurial activity, and the impact of external and internal factors on entrepreneurial culture. It also includes a situational analysis using SWOT and PESTLE frameworks. Learn about the newly established enterprise 'Lucy's Beauty Lab' and its mission to promote chemical-free beauty products.

Entrepreneurship, Enterprise
and Innovation

Executive Summary
The main mission of this proposal is to perfectly run a newly established enterprise within the
UK’s business environment for earning appropriate profit margins. For dedicating venture to the
pursuit of environmental, social change, for taking care of various customers by offering them a
very excellent quality product, and to regularly ensuring that own busines is running in very
proper manner with sustainable development. Basically, these all factors are also part of this
newly established enterprise’ mission. The name of this newly established enterprise is ‘Lucy’s
Beauty Lab’. It is basically a sole trader business that was founded just before few day ago due
to owner requirement of properly gain her aims as an entrepreneur. Currently the vision of owner
behind opening this new enterprise is to promote such beauty products within the market which
has not included chemicals and preservations. The owner of this small factory has decided to
launch its one exclusive product within the selected market place named ‘Natural Handmade Lip
Balm”. According to owner of this business, it has fully fulfilled all those all formalities which a
person has required to fulfil for becoming a legal sole trader within the United Kingdom.
Currently the main market place to this business is only its home country United Kingdom, East
London.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Practice and theories of entrepreneurship, innovation and enterprise.........................................4
Opportunities for entrepreneurial activity...................................................................................5
Behavior, competencies, personalities and characteristics of a range of entrepreneurs..............5
External and internal factors impact entrepreneurial culture.......................................................6
Situational analysis......................................................................................................................6
Positional Strategy.......................................................................................................................9
Marketing mix implementation.................................................................................................10
Impact that is impacting the sustainability and growth.............................................................11
Monitor, control and adjustment................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is an attribute or quality that mostly exists within an entrepreneur. So
that when a single person feels opportunity of business within the market, and starts new
enterprise for fulfilling that business opportunity, in which after starting new enterprise that
person comes an entrepreneur. This report discusses about the newly established enterprise
named Lucy’s Beauty Lab. The owner of this enterprise has established this enterprise by
considering market requirement of ‘cosmetics and skin care sector’. Currently owner of Lucy’s
Beaty Lab is aiming for making procedure in the enterprise by fulfilling maximum needs of
many customers. The mission statement of this business is to dedicate own operations for
motivating people or customers to avoid using those beaty products which made by harmful
chemicals. The owner has registered this enterprise in the private sole-trader category. The
owner of this enterprise has entered with the market one basis of its newly innovated “natural
handmade lip balm” product. Lucy’s Beaty Lab not has a wide market size, because currently
this enterprise has in its initial stage. Entrepreneur of this enterprise has innovated this product
just because fulfilling market need to skin care and cosmetics, in which entrepreneur is expecting
that its enterprise will be sold 1000 units of lip balm in the 1st year, and 1500 unites in the 2nd
year.
MAIN BODY
Practice and theories of entrepreneurship, innovation and enterprise
Innovators and researcher are two main entrepreneurs, in which innovator entrepreneurs
mostly come within market with their new innovative product or service (Carvalho, 2017). On
the other side, researcher entrepreneurs develop new product or service with their research skills.
The entrepreneur of Lucy’s beauty lab is an innovator entrepreneur. Its enterprise will be a
sole proprietor enterprise. It is just a single person enterprise and it will not be legally
incorporated. But, it will important to the existing entrepreneur for separating the business and
personal finances. Entrepreneur will can offer its newly innovate ‘natural handmade lip balm to
customers. Entrepreneurship’s opportunist model generally applied in this enterprise for driving
the need of market, technological push market put etc. On the other side, existing entrepreneur
has followed the ‘economic theory of entrepreneurship’, because I want to grow economically
through this enterprise.

Opportunities for entrepreneurial activity
There are various growth opportunities exists for Lucy’s beaty lab within the local,
national and global economics. Currently people want to buy quality products at any cost, in
which if this enterprise will provide quality goods to many customers or people, then it will be
had opportunity to earn great profit margins.
An enterprise that has minimum than fifty employees or people with turnover of up to
€10 million, in which that enterprise is known as small business within the UK, and then medium
size enterprise has minimum than two-fifty employees with turnover of up to €50 million, and
lastly a large-sized enterprise always has more than two-fifty employees or workers with
turnover of more than €50 million.
According to government, 5.9 million private enterprises exists in the country, in which
5.82 million are just small enterprises or businesses (Bouncken, Lehmann and Fellnhofer, 2016).
35,600 medium-sized enterprises and 7700 large-sized businesses. Currently 471,000 social
enterprise exists within the United Kingdom.
Behavior, competencies, personalities and characteristics of a range of entrepreneurs
There is some popular entrepreneur has been discussed below who has many well-
developed competencies, abilities, characteristics, personalities and behavior. This is the main
reason that, currently these all mentioned entrepreneurs are very successful in their personal life.
The owner of Lucy’s beauty lab will be able to learn many new things by learning about skills
and competencies of these all entrepreneurs.
Sir Richard Branson: Mr. Bronson was started his Virginia Group in year 1970, and nowadays
he controls approx. 400 businesses from many fields, such as: airlines, record stores, broadband
companies, spaceflights and many more. The quality leadership within Sir Richard has made him
enable to follow own dream of earning excellent profits within various market places. He is very
confident person and creative also to manager properly his different operations.
J.K. Rowling: She is very famous and very popular British author who generally known for her
Harry Potter series of book. She is very creative in her personal, because she J.K. Rowling like to
do things which has based on creativity and innovation. Due to this attribute, she had succeeded
in launching her great and legendry series of books on the “Harry Potter’
Philip Green: There are Philip Green is the chief executive officer of Arcadia Group, this is
basically a retail firm contains Top Man, Top Shop, Dorothy Perkins etc. (Cunningham and

et.al., 2019). Mr. Green is very disciplined, self-confident and very open-minded person, and he
has determined for working on own business. Mr. Green avoid to thinking about giving up,
because he mostly encouraged himself to achieve own dreams.
Comparison with the entrepreneur of Lucy’s Beauty Lab
The entrepreneur of this business is also very creative and innovative, and this is the real
reason that, he has succeeded in innovating handmade natural lip balm. On the other side, it has
well-developed time management skills as well, these skills help her for achieving its various
targets in the decided time duration. Basically, innovation skill is the main strengths of this
entrepreneur, in which this skill enables to this business for gaining huge profit within the UK’s
beaty and care market.
Different entrepreneurs
Schumpeterian: This type of entrepreneurs mainly starts a new enterprise to make its dream
come true. It gets highly motivated for achieving their final goals.
Intrapreneurs: An intrapreneur type of entrepreneurs is generally an employee of a business
who has quality of innovation and creativity, so whole company values it.
Managerial: Managerial entrepreneurs always start a new enterprise on the basis of their
managerial skills. This type of entrepreneur always capable to systematically managing activities
within the workplace.
Different typologies of entrepreneurial organizations
Defenders: This type of entrepreneurial organizations always be too active in the term of defend
and protect its business operations from negative factors and risks.
Reactors: This entrepreneurial organizations mainly formulated by those entrepreneurs who has
capability of finding new business ideas within the existing market.
Prospectors: Prospectors entrepreneurial organization always takes great advantages from the
different market conditions. Entrepreneurs how formulates this type of organizations always able
to generate great profit in any market condition.
These all are key typologies of entrepreneurial organizations, so that the entrepreneur of
Lucy’s Beaty Lab should consider these all types of entrepreneurial organizations for gaining
very appropriate outcomes within the market. Basically, entrepreneur of existing venture has
ability to formulate the prospector entrepreneurial organization.

External and internal factors impact entrepreneurial culture
Currently there are various internal and external factors exists within the business
environment of Lucy’s beauty lab, in which these factors will be impact this business positively
and negatively.
Iinternal factors: In the internal factors, there are business’ strengths, opportunities and threats
and weaknesses can highly affect it. In this situation, existing management and owner or
business should take some specific steps towards dealing with these all internal factors in
appropriate manner.
External factors: There are various external factors also can be impacted to the business
environment of Lucy’s beauty lab. In this situation, upper management of this company has
required to prepare a proper plane for dealing with these external factors (Rinkinen, Oikarinen
and Melkas, 2016). For example; currently customers’ demands, policies of government, climate
change, shortage of natural resources are some prime external factors which will definitely affect
this business
Situational analysis
There are two major situational analysis frameworks has used below named SWOT
analysis and PESTLE analysis. These frameworks are very beneficial in the terms of
systematically analyzing different situations. Situational analysis is very necessary for deeply
understanding the actual impact of different organizational factors.
SWOT Analysis
SWOT analysis includes four major factors which generally shows the internal structure
of a business. These all four factors have been discussed below;
Strengths
Currently Lucy’s Beauty Lab has an exclusive product to launch within the market, in
which this product can attract to those customers and people who seeks for consuming exclusive
range of products and services. So that, this business can business can attract lots of new
customers in its initial stage just due to this strength. The entrepreneur has creativity to make
nature handmade lip balm. Reason is, only selected people mostly has this type of talent.
Weaknesses
The owner of this business many times those steps which can negatively impact to its
business environment, so that it should develop its ability of decision-making (Gundry, Ofstein

and Monllor, 2016). On the other side, existing entrepreneur should improve its decision-making
process, because sometimes it takes such decisions in its workplace, which can negatively affect
to its daily operations.
Opportunities
Currently people within this country are seeking for purchasing products and services
with excellent quality, in which if thus business will provide its product with very excellent
quality, then it has opportunity to gain huge profit. Lucy’s Beaty Lab also has an opportunity to
attract lots of customers toward its brand with the support of digital marketing strategy, so that
Lab’s entrepreneur should take various steps towards take advantages through these existing
opportunities.
Threats
Currently the owner of this business has threat of economy slow down. Due to
coronavirus, many of people has lost employment and jobs, so now they are spending their fund
only on those things which are essential to them, like food, water, clothes etc. (Zakieva and et.al.,
2019). Regularly increasing competition within beauty and cosmetics industry is another key
threat to this company. So that, entrepreneurs should always focus on providing quality products
to customers on favorable prices for properly dealing with these threats.
PESTLE Analysis
PESTLE analysis framework involves six factors which shows external business
environment of an enterprise, in which these all six factors has been discussed below;
Political factors
Political factors can highly impact to Lucy’s Beauty Lab, because the entrepreneur of this
enterprise will responsible to fulfil those all formalities which has organized by the UK’s
government for various businesses, enterprises and companies. There is taxation is also a part of
government formalities, so that this enterprise will be required to fulfil tax as well.
Economic factors
In this time period with the coronavirus (COVID 19) the UK’s economy has a great
fluctuations and recession, this can make slow-down the spending confidence of many
consumers (Harrison and Leitch, 2018). So that, these existing economic factors can negatively
affect to the business operations of Lucy’s Beauty Lab.
Social factors

The social factors have a very necessary role within profitability of business. The
changing trends will make a huge demand for increasing or decreasing, this is the reason that lab
should have focus on the innovation for remaining highly reputed than competitors. On the other
side, many of people in the United Kingdom has like to pay huge cost as well for purchasing
products with excellent quality, in which this enterprise should be focused on producing only
quality products.
Technological factors
Technological factors of the United are enough to this business for achieving very
appropriate results within the market. By using different technological equipment and tools this
business can simply boost its performance within the selected market place. Basically, these
factors will always positively affect to this business, because by using different technologies it
can easily improve its performance and productivity within the market.
Legal factors
Laws, regulations and standards have a very necessary role in the achievement of
business, changing the regulations and rules can be affected the business and have a very prime
impact to it (Park, 2017). There are Lucy’ beauty lab’s entrepreneur will be required to adhere
each and every law which has formulated by the UK’s government and parliament.
Environmental factors
Many of the businesses invests in the sustainability, which make to a very good image of
business, and a very faster growth. On the other side, entrepreneur will need to avoid conducting
those all attempts which can negatively affect to the natural environment.
Positional Strategy
STP Model
This is very useful model which provides very appropriate framework to different
businesses for properly targeting their customers within the market. STP models indicates these
major elements of marketing which has been discussed below;
Segmentation
It is very important for organizations to have a plan and method to be able to launch their
products in the market and this is a very essential framework which can be used by the
organization. The company will be launching own product within the market place of United
Kingdom which would be in East London. It is too necessary for the company to target few

customers and place in the market so that it will able to achieve very appropriate profit.
Feedbacks have to be taken from the loyal customers which the company is having so that there
would be better functioning. Feedbacks is going to support the company to enhance the product
further and Lucy’s Beauty lab will be able to expand the product further without having much of
competitors and the best of quality is going to reach out (Pan and et.al., 2018). This factor is
good for the company because more customers will get attracted and the organization will be
able to have higher profit margins. There has to be a proper plan and strategy which needs to be
followed in the company so that there is going to be an effective functioning and the operations
in the organization can take place effectively.
Targeting
The company will be aiming for the women and men with the age of 16 to 26 which is
very great aspect to this company. The company will have to get the right customers who are
ready to pay for the right price for the quality which the organization is providing the customers
with. It is very important to get the right customers and social media and advertisement has a
great role which is being played by the organizations in the market for the companies to get in
the right revenue. There is a high expectation of the customers from the organizations as well
which will have to be maintained by Lucy’s Beauty lab and that is going to make the company
get a higher brand image and reputation in the market (Fuller and Pickernell, 2018). There have
to be less color addition in the lip balms so that there would be better functioning so that would
add a better advantage for the company to have. There are going to be natural and they have to
be no color on the lips for the customers because these lip balms are less in the market so that it
can gain maximum amount of profit. There is pricing of products have to be done effective so
that there is a better functioning and operations in the market.
Positioning
The logo of Lucy’s Beauty Lab is a very attractive factor which is present in the company
but that is going to be improved according to the product which the company is launching. The
company has come up with products with natural ingredients which will be supported and
appreciated by the customers in the market. It is very essential for the company to have a better
functioning and operations for themselves because the competition in the market is increasing.
There has to be a strong penetration method and strategy which the company should have in the
market so that it will achieve better outcomes and the company can be enabled for having higher

productivity (He, Jie and Wang, 2019). The natural ingredient has to be used which are going to
be liked and are famous in the market like Strawberry, lemon, blueberry, etc so that the company
can get in the right customers and there is going to be a higher productivity.
Marketing mix implementation
Marketing mix is one of the best strategies of marketing which mainly discusses 7Ps of
marketing. These 7Ps of marketing mix strategy has been discussed below;
Product: Lucy’s beauty lab is coming with various colors and scents, which used for fulfilling
lots of needs of daily protection from sun care. It also has planned to offer natural handmade lip
balm to customers. Entrepreneur of this venture has decided to provide the best quality products
to different customers.
Price: Lab will be used Strategy of Penetration; so, it will able to provide its product on very less
price than its many of competitors. It is necessary to attract many of new people towards own
brand. On the other side, this venture has planned to use competitive based price strategy as well
for gaining huge competitive advantage.
Place: Enterprise can sell its product Online through platform of eBay, through Facebook and in
its local suitable stores as well. It means, a customer easily buys business’ product through any
mode. After getting excellent success in two or three years of establishment, this venture can
expand its business operations in many other places as well.
Promotion: This beauty lab will advertise of own brand on platforms of Social Media, like;
Facebook, Twitter Instagram or Snapchat, etc. It will use some traditional tactics of marketing
also for promoting its product, like; banner, billboards etc. On the other side, entrepreneur should
has focused developing some new strategies also for effectively promoting its brand in the
market.
Impact that is impacting the sustainability and growth
The structure of organization is not much wider because Lucy’s beauty lab in its initial
stage (Fietze and Boyd, 2017). Entrepreneur of this lab has decided to use only modem business
strategies to conduct its various processes and practices. Reason is, with the support of these
practices it will be able to maintain great growth and sustainability within its business operations.
Pros and cons of the sustainability
Sustainability on an innovation, idea and creative solution can always provide
opportunity to entrepreneur for innovation many new exclusive products, in which this pros. On

the other side, the cons are, entrepreneur has required very large amount of fund for proceeding
its operations of innovation.
Monitor, control and adjustment
Entrepreneur of Lucy’s beaty lab will need to properly monitor, control and adjust its
daily business operations (ZHANG, 2020). It is very necessary task to her, because without
systematic monitor, control and adjustment on daily operations, she can’t achieve its aims on
time.
CONCLUSION
There is huge competition in market place which is why understands the customers and
inventing products accordingly is a very essential factor. The organization will have to get
natural ingredients for the customers because the trend and demand in the market is for this
product. The quality of the products will also have to be maintained so that they can give the best
of services and the company will have to promote them well so that they can get the right
customers in the company as well. Social media and advertisement has captured a lot of attention
in the market of the customers which is a great advantage and an opportunity for the
organizations which are functioning in the market (Lu and Zhu, 2017). The brand name is very
attractive but the logo is going to be invented for getting in the right customers and natural
ingredients is going to make the company have a stable and increase the productivity in the
market for a longer run.

REFERENCES
Books and Journals
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policies on regional innovation and entrepreneurship. The Journal of Technology
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Fietze, S. and Boyd, B., 2017. Entrepreneurial intention of Danish students: a correspondence
analysis. International Journal of Entrepreneurial Behavior & Research.
Fuller, D. and Pickernell, D., 2018. Identifying groups of entrepreneurial activities at
universities. International Journal of Entrepreneurial Behavior & Research.
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Harrison, R. T. and Leitch, C. M. eds., 2018. Research handbook on entrepreneurship and
leadership. Edward Elgar Publishing.
He, Y., Jie, X. and Wang, L., 2019. The Influence of Entrepreneurship on Enterprise
performance: The Mediating Role of Staff innovation behavior.
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education. In 2017 12th International Conference on Computer Science and Education.
(ICCSE) (pp. 629-633). IEEE.
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Park, C., 2017. A study on effect of entrepreneurship on entrepreneurial intention. Asia Pacific
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systems: a review of Finnish regional strategies. European planning studies. 24(4).
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