Entrepreneurial Opportunities & Challenges

This assignment delves into the landscape of entrepreneurial opportunities and challenges within Nigeria. It examines concepts like industry life cycles, technology-market combinations, prior knowledge, social networks, mentoring, and resource constraints as they relate to identifying and exploiting entrepreneurial chances. The analysis also touches upon the role of experience in equity distribution and resource mobilization for entrepreneurs.

IDENTIFYING
ENTERPENURE
OPPORTUNITES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation..............1
M1...............................................................................................................................................2
D1................................................................................................................................................3
TASK 2............................................................................................................................................3
P2 Rationale and the market gap for a specific entrepreneurial idea..........................................3
M2 Drucker’s 7 sources of systematic innovation .....................................................................5
D2 Benefits and drawbacks of different approaches and sources of entrepreneurial ideas.......6
TASK 3............................................................................................................................................6
P3 Present data needed to support gap analysis in the evaluation..............................................6
4 Interpret data appropriately to provide evidence of market potential......................................7
M3 Justify specific source and method of data collection..........................................................8
D3 Justify business objective and identify market potential.......................................................8
TASK 4............................................................................................................................................9
P5 Apply a SWOT framework to collate evidence to support an objective...............................9
P6 Evaluate the competitive and market environments............................................................10
M4 Critically evaluate entrepreneurial idea in the context of the marketplace and competition
...................................................................................................................................................10
D4 How a specific entrepreneurial idea can be developed, managed and sustained................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneur is the person who comes in market with some innovation and creative ideas
as well every individual have some idea to start a new business. The thoughts they are bringing
should be commenced in proper manner so that they can achieve proper as well effective
outcomes (Farmer, Yao and Kung‐Mcintyre,2011). The individual who is brining new thoughts
have to analyse their opportunity, threats and capability which is necessary for sustaining in
market which is full of competition. This assignment is about launching new cafe because now a
days going cafe Is became trend. Thus, name of the same is Mr. Happy cafe which is situated in
London. Below mention report explain various sources that are available for an entrepreneur for
selecting proper option along with this it discuss the factors affecting same utilising the several
tools.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
Entrepreneur is the individual person who is risk taker and bring new innovative thoughts
and idea in market at their own. The new concept they are bringing have capability of attracting
more and more customers along with profit maximisation. For launching a cafe in market there is
need of several external factors (Grégoire and Shepherd,2012). There are several external or
macro environmental factors which is source of change and create opportunities are stated
below:-
 Economical factor: In order to covering large market area and share. For this it is
important that they have to launch such thing which is easily acceptable by market.
 Social factors: It is totally related with demand of goods and services in society thus it is
main reason because of that cafe is launching. Young generation are more found of cafe
now a days so they can easily attract customers.
 Technological factors: For starting a business there is requirement of several
technologies which require huge investment amount. But in start up risk is high so for
them it is risky to choose costly or expensive applications. Thus, cafe launching is
beneficial because in this there is less investment cost and results can be achieved.
 Political factors: Every country have their different political condition which highly
influence selection of a new business. If nation is high tax rate and some restrictions

which is imposed by government for selected idea then launching idea will effect. As
well if idea is from the sector which don't have high restriction then it will be beneficial.
Innovation and its scope – It Is the process of bringing new idea and thoughts into
market so it will create value in market as well attract customers (Fuentes and et.al., 2010). This
is called innovation the idea brining by company is replaced and fulfilling needs and wants of
customers. Innovation have scope such as entirely new product, improving performance
products, lower cost product, repackaging or renamed goods, focus on technology and market
theme.
Product and process innovation – Product innovation is introduction of new goods in
market or that has improved characteristics. The same includes both new products and new users
for current product. These involve significant modification in technical specifications,
components and materials, incorporated software, user friendliness or other functional
characteristics.
Process innovation is the way of implementing improved product or it is also procedure of
delivery. Intention of implementing this is to reduce unit cost of production, improve quality,
produce or deliver latest improved products. The same includes both delivery and production
method.
M1
Drucker’s 7 sources of innovation – Every organisation have to implement some
innovative and new ideas for getting advantages. Thus, there are 7 source which is given by
Drucker through which systematic innovation can be introduced:-
 Unexpected:- Innovation take place unexpectedly because these don't have chance of
happening.
 Incongruity:- When requirement is in-congruent with supply, at that time innovation
take place (Korsgaard, 2013). As well it is the gap within reality and common belief
which do not fit together.
 Innovation based on process need:- For implementing new idea there is requirement
of proper process.
 Changes in industry and market:- Applying innovation is used to adopt several
modification in market or industry.

 Demographics:- It is rely on building their own business in target market with the help
of providing high satisfaction to customers.
 Changes in perception:- By the use of innovative idea in company an entrepreneur can
modify perception of customers.
 New knowledge, both scientific and non-scientific:- Innovation is totally based on
new thoughts and ideas.
D1
According to the words of (Nassif,Ghobril and Silva,2010) entrepreneur is the person
who is risk taker for making money. There is requirement of using several ideas for achieving
future targets and goals. Along with this these are product and business idea as well both are
different from each other.
Products or service idea:- This is dependent on requirement and need of customers for
particular thing. For production of this entrepreneur have to apply their new thoughts in
manufacturing process so they can provide quality of goods and services.
 Benefits- with the assistance of this entrepreneur can build strong relationship with their
customers.
 Drawbacks- If customers are not satisfy by offerings of company then they can give
negative feedbacks to others.
Business idea:- these are the ideas which is used by Mr. Happy cafe and all are innovative for
exploit changes for grabbing various opportunities.
 Benefits- It provide options to buyers for choosing one from several.
 Drawbacks- Start-up need a specific time and proper cost in development procedure.
TASK 2
P2 Rationale and the market gap for a specific entrepreneurial idea
Customers and their segmentation - Customers is the person or business who purchase
goods and services from a particular company. As well they are those who create demand for
products and services. Enterprise divide their customers in different segmentation on the basis of
their need, wants, taste, income, age and several others. Segmentation of customers description is
given below:-

 Behavioural segmentation – This is also known as attitudinal segmentation in it
customers are divide into several groups on their attitude, beliefs, opinions as well
perceptions towards the products and services offering by the Mr. Happy Cafe.
 Demographic segmentation – In the demographic customers of company are divided
into small groups as per their age, gender, level of income and religion or ethnicity.
 Geographic segmentation - These types of segmentation use factors like state, region,
nation, cities, postal code for dividing customers into several groups.
Intangible and tangible products and services features:-
Intangible products don't have their physical evidence and they cannot be touch but only
can feel (St-Jean and Audet2012). Their is no transfer of ownership in it but only provided when
customers demand it. Whereas tangible goods are those who have their evidence in market and at
the time of purchase transfer of ownership take place.
Intangible and tangible products and services benefits:-
An organisation have high value of their tangible products because these can be turn into
liquid or cash at the time of requirement. Tangible product have their physical evidence these can
be touch and feel. On the other hand intangible goods are those which cannot be touch and also
don't have physical evidence. Major benefit is that there is no transfer of ownership to other
person. Such goods are most valuable because they help company in its growth and
development.
Porter's five force model:- this includes five forces which help in competitive analysis to Mr.
happy cafe description is given below:-
 Level of Rivalry – for the cafe amount of competition is high because in this industry
there is large number of cafes. Thus, the same organisation have to implement something
unique and innovative so differentiation can be create between them and others.
 Entry Potential – Starting a cafe don't require huge amount to invest so entry of
potential buyers is high. Because of low investment amount everyone can come and
invest their money in same sector.
 Power of Suppliers – there is large number of suppliers in the organisation so more
suppliers will results in low supply cost. Hence, power of Supplier is high for Mr. Happy
Cafe.

 Power of Customers – High power of customers main reason is that huge number of
cafe which reduce customers number for a particular firm (Kotha and George,2012). In
this situation customers can bargain down price of products and services.
 Substitute products – In this industry everyone is selling same kind of products thus
there is high ratio of substitute goods.
Industry life-cycle – This is an normal stage through which industry goes at the time of its life-
cycle in the market area. It is divided into five parts such as early phase, innovation phase, cost
phase, maturity and decline phase.
(Source: Industry life-cycle, 2017)
M2 Drucker’s 7 sources of systematic innovation
For an entrepreneur, it is needed to make innovative ideas and thoughts to distinct their
services easily from others in the same industry. In this procedure they require to examine kind
of their business and buyers because it is totally dependent on services which are offering by
administration. With the assistance of this, they can achieve their demand with quality services
and goods. All these activities aids to fill market gap easily. For entrepreneur of The Cafe, it is
needed to study business environment for making impactful strategy to getting high benefits and
competitive advantages.
Illustration 1: Industry life-cycle

D2 Benefits and drawbacks of different approaches and sources of entrepreneurial ideas
According to the words of (Burg and et.al., 2012) For an entrepreneur, it is needed to
measure a particular entrepreneurial thoughts and ideas based on investigation and interpretation.
Through this they can easily examine market and customers along with their need and
requirement. Major motive of this analysis is to give quality of services to their consumers.
Interpretation and investigation help to setting up a start-up easily in the market which is full of
competition. Through this, an entrepreneur can make effective strategy for building their
efficacious image in target market area or in front of new targeting customers. All these ideas
help in creating direct forward connection with customers by identifying their obligation and
requirement.
TASK 3
P3 Present data needed to support gap analysis in the evaluation
Gap analysis is the procedure through this difference within actual and desired results are
identified. It is an effectual technique and tool as through which it can be acknowledged that why
deviations are ascertained so that the similar don't repeats again in future. In order to apply the
latest idea and thoughts in market area successfully it is needed that correct training is provided
to the personnel's so that their share can be utilised to reach at the in demand standards. For
collecting information related the latest idea help from different primary and secondary sources
can be taken as this will assist in minimising the gap. There are several tools and techniques of
gathering data some of them is discussed below:-
Survey – This is the best and foremost method through which customers response are
collected. As well organisation can interact with their customers. Along with this it assist in
making offering of organisation more acceptable as well difference between actual and expected
sale is reduced.
Data on net – there is one more method of gathering data is from the past information
which is available on net. Through this it can be identified that how customers are responding
products so if their any requirement then offerings are easily modified.
Gap analysis of hospitality industry
Aspects to be analysed Gap Solution
Business New order process method Implementation of COTS

application
Application Consolidated buyers data Improvement in the data of
clients.
Illustration 2: Estimated % of cafe
Upper mention graph shows that in United Kingdom demand of food item offering by
cafe is increasing because customers respond more actively when new product was launched in
market. Thus, it is the best idea to start a new company in the same industry as the chances of
getting high success and hence the pre determined goals can be accomplished in the desired
manner.
4 Interpret data appropriately to provide evidence of market potential
As per the above data is has been founded out that it is necessary to use effectual
marketing strategy because it help company in establishing the brand in market place. Business
success is totally depend on the way how the marketer shows their business in from of the
customers (Perrini, Vurro and Costanzo,2010). Their are several ways through which
entrepreneur can approach their customer one of them is online medium this is best as well most
commonly used by several companies. Because with the assistance of this enterprise reach to
their customers and also can take their reverts or feedback about products and services.
Furthermore, in future also it aids in making required changes as per the demand of customers
for fulfilling their needs and wants. For cafe it is important to store data so that they can use it in

future also and when information is stored properly then it will be easy to take decisions as per
requirement. Attractive marketing strategies can be used by Mr. Happy Cafe such as food
combos, discount coupons etc. this is the easiest way through which brand image can become
popular and familiar in the market area. Apart from this feedback company is taken from
customers at the initial stage when cafe is launched so that good relation between employees
working and between their customer is maintained. To staff members incentives should be given
for boosting the ideas or suggestions which is given by customers.
M3 Justify specific source and method of data collection
Market research is important for identifying current market trend, customers needs and
wants. For this there is requirement of collecting data so there is two method of collecting data
such as:
 Primary – This is the first hand data collected by organisation as well it has been not
used before by any organisation. There are several method through which data is
collected such as internet forum, social media, questionnaire, feedback form and several
other. It identify need and demand of buyers and also perception about existing products
in market.
 Secondary - This is the form of research in which data collected is second hand or
already used before (Abu-Saifan,2012). Source of gathering information and data in
secondary method is internet, google, news paper, research paper, journal etc.
D3 Justify business objective and identify market potential
Main objective of launching Mr. Happy cafe is to provide quality of food variety with
sitting facility. Along with this to grab customers from entire market. For this their uis
requirement of market research in that data collection is required. For cafe primary data
gathering mode is beneficial because customers taste and preferences changes as well market
trend also. With the assistance of fresh data enterprise can modify their products and
manufacture new as per demand of customers.

TASK 4
P5 Apply a SWOT framework to collate evidence to support an objective
SWOT analysis is the best tool for successful planning. It is used for examine strength,
weakness, opportunity and threats. Below mention analysis is done of Mr. Happy Cafe further
description are:-
Strength -
 Food offering by them have multiple choice which can attract customers easily and
offering is outside of the geographical boundaries also.
 Meal offering by them is affordable and in reach of every type of customers.
 Mr. Happy cafe in new in market thus, it can easily attract large number of customers
easily.
Weakness -
 the same cafe is offering variety of food products but people living in that particular area
is Spanish and French so they mostly don't like variety of such foods.
 It is going to be open shortly but weak marketing strategies and lack of customer
influencing strategies can stop its opening expectations.
Opportunity -
 they can provide variety of international food which is not offering by others.
 Affordable price can easily reach every type of customer segmentation.
 With the assistance of innovative and creative products in market they can grab
customers from entire industry as well generate more and more revenue.
Threats -
 hospitality industry have huge competition because of large number of organisation. Still
many are entering in market thus, Mr. Happy cafe have fear of new entrance.
 For starting a cafe there is requirement of investment but because of competition if cafe
will not work then they can loose their investment amount.
 Creating brand image in new market is not easy.

P6 Evaluate the competitive and market environments
There are variety of factors which gives impact on the success of business existing and
also to the new which is launching by company in market. Before any start-up it is needed that
company have to do proper research of micro and macro environmental factors. For identifying
strength, weakness, opportunity and threats SWOT analysis is the best tool which is micro
environmental factors. On the other hand, for macro PESTEL is the best which analyse political,
environmental, social, technological, economic and legal factors (Kraus, Kauranen and Henning
Reschke,2011). The chosen business idea have competitive advantage in nature and hence
requirement to be launched by using effectual strategies. The audience necessity to be targeted
earlier as this will assist in providing the most demanded goods and thus or same selected
marketing tool must be implemented with care. Apart from all this the the micro factors also has
its determinant on the same like it faces threats form the biog players that are already exist in the
market and it is hard to substitute the same.
M4 Critically evaluate entrepreneurial idea in the context of the marketplace and competition
According to ((Duru, 2011) the selected idea of opening a cafe and lounge is effective
enough as it involves less risk of failure and can help business in earning the desired goals and
objectives. there is much demand in the market for food related business and hence by
maintaining quality of services competitive advantage can be achieved. through SWOT analysis
it is identified that there are range of areas which supports the chosen area of business and also
there are very few factors in the external surroundings which affect the day t day functions of
any food related business. There is high rate of stability in the political and economic factors
which shows that
planning for implementing the idea can be kept constant.
D4 How a specific entrepreneurial idea can be developed, managed and sustained
After analysing the different aspect of the chosen business idea it is evaluated that this is
beneficial to be carried out as profit maximization can be done in long run and chances of failure
is very less in same. It is recommended that before implementing same n market deep analysis is
done so that all those factors which an have direct and indirect impact on the business are
identified well in advance. this will help in reducing the variations in actual and desired

outcomes which is much required to achieve the targets. At initial stage it should be given care
that no compromise with the quality is done as it is important to create a brand image in market.
Once the cafe is established further add on to its services can be made to grow and expand the
market share.
CONCLUSION
From the above report it has been concluded that there are several ideas through which an
person can start their business. But before doing anything they must have to do market research
for identifying current market trend and customers needs or wants. Apart from this it is important
that the decision is taken by entrepreneur must be capable of giving return according to the
amount invested by them. So that resources are not waste and hence lead in success. There are
number of factors that has their directly and indirectly effect on the choice of business idea and
thought. Hence require to be evaluated in early so that the options can be made by the
entrepreneur. The idea taken in the above assignment is found to be pleasing because it is least
effected by the micro and macro environment forces and includes less degree of risk.

REFERENCES
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Online
Industry life-cycle, 2017. [Online]. Available through: <https://financetrain.com/industry-
lifecycle-phase-and-ma/>.