Entrepreneurial Opportunities and Challenges

This assignment delves into the complexities of entrepreneurial opportunities, examining how factors like individual identity aspirations, prior entrepreneurial experience, technological advancements, and social networks influence opportunity identification. It draws upon various scholarly sources to analyze these concepts and their implications for aspiring entrepreneurs.

IDENTIFYING
ENTERPENURE
OPPORTUNITES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation..............1
TASK 2............................................................................................................................................4
P2 Rationale and the market gap for a specific entrepreneurial idea..........................................4
TASK 3............................................................................................................................................6
P3 Present data needed to support gap analysis in the evaluation.............................................6
P4 Interpret data appropriately to provide evidence of market potential....................................8
TASK 4..........................................................................................................................................11
P5 Apply a SWOT framework to collate evidence to support an objective.............................11
P6 Evaluate the competitive and market environments............................................................12
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Entrepreneurship is a core procedure which is identify need of a person to start a new
venture. In this procedure, individual needs to identify their dreams and believing in themselves
to accomplish their vision and missions properly. An individual who takes risk in order to
making money is known as Entrepreneur (Farmer, Yao, and Kung‐Mcintyre, 2011). They are the
individual who believes in transform their vision and objectives into a business idea. An
individual needs to create a effective market image of their new venture in order to getting higher
competitive advantages easily. These activities helps to acquiring long term benefits and growth.
Through this, they can easily get various opportunities to manage their business activities
properly. This report is based on a new start up named “Bake Hut” that provide bakery products
to their customers. This report represent different sources of entrepreneurial ideas and
innovation, market gap for a specific entrepreneurial idea and data representation to support gap
analysis. At last it also determine data interpretation to provide evidence of market potential and
SWOT analysis of firm.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
Entrepreneurship is not an easy task because it is required analysis of market and
customer to represent quality products as well as services in front of them. In this procedure,
entrepreneur requires to implement innovative ideas and creative thoughts to grabbing maximum
opportunities from target market. There are different sources are determine below that consider
entrepreneurial ideas and innovation as -
External environmental sources: These factors has major impact on a business organisation.
External environmental factors are beyond the control so for this firm needs to make impactful
strategy to reduce its negative impacts easily (Farmer, Yao, and Kung‐Mcintyre, 2011). These
factors are also helpful in providing several opportunities to Bake hut.
 Social factors – These are the most important factors that are requires to analysis
properly. Its consider customer's demand, desire, changes in fashion as well as trends. All
these factors has direct impact on customer's demand. So for Bake hut is is require to
examine market competition and users requirement to provide them quality services
easily.
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 Technological factors- This is a most effective factors that has direct impact
organisational productivity, profitability and growth. In this process, management of
Bake hut needs to implement new and innovative ideas as well as advance technology to
serve quick and quality services in front of customers. All these activities aid to maximise
brand image by promoting them through online medium.
Drucker's 7 sources of innovation:
 Unexpected – Innovation is impactful procedure that enhance capability to adopt
unexpected ideas for business development (Duru, 2011). Through this, employees of
Bake hut can provide new products and services to customers to maximise their strength
in target organisation .
 Incongruity – For an entrepreneur, it is require to adopt new and different idea in their
business organisation to provide unique services in market. Through this, they can easily
build their own image in front of target audience to maximise their growth and
profitability.
 Innovation based on process need – Innovation is a impactful process that requires to be
based on process need. It is not an easy task because it consider several changes and
modification in overall procedure.
 Changes in industry and market – Innovation helps to make desirable changes in industry
and market of specific product. So before implementing such activities in business, it is
required to analyse each and every factors in appropriate manner. Through this Bake hut
can easily get desirable outcomes.
 Demographics – Each and every entrepreneur wants to create own business in target
market by providing quality services to customers. For this manager of Bake hut needs to
build direct connection with customers to create demographic values easily.
 Changes in perception – Main objective of implementing innovation in business is to
changes perception of customers for specific services (Grégoire and Shepherd, 2012). A
new venture always established to provide unique and different services to customers by
implementing creative thoughts easily.
 New knowledge, both scientific and non-scientific – Innovation is impactful procedure
that require proper knowledge. It can be scientific or creative.
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Role of entrepreneur: Entrepreneur is an individual who takes risk in order to making money
and getting higher incomes easily. They are basically implement creative ideas and thoughts to
start a new venture. To be a successful entrepreneur, it is require to have passion about learning
and taking risk. In this procedure, some of the individual using past experience and others are
adopt new ideas from studies as well as practical learning. For them, it is require to believe in
themselves to attain their vision and missions in proper way. Major role of entrepreneur is
 Create new ideas to introduce a new start up in target market.
 Implement innovation to manage quality of products and services.
 Grabbing opportunities from target market.
Types of innovation: For an entrepreneur, it is require to use different types of innovation to
create unique and different services for customers (Fuentes and et. al., 2010). Types of
innovation can be -
 Products and process innovation- Product innovation implement new changes and
modifications in good and services on the bases of customer's demand and their
requirement. Process innovation is also a effective methods that used to implement
significant changes and improvement in production and delivery process.
Difference between invention and innovation and the role of creativity: Innovation and
invention are two different terms that uses to make effective changes. Innovation is basically
uses to make proper modification and changes in existing products and services. This activities is
based on changes in customer's requirement and employees demand. Invention is basically uses
to introduce new products and goods by implementing advance technology and creative
thoughts. Invention is a process in which new things are introduced for the first time in front of
target audience (Korsgaard, 2013).
Difference between a product or service idea and a business idea: Bake hut is a new start up
in which entrepreneur implement new ideas to make quality products and services for customers.
Products and services are two different things in which products ideas includes modification in
its taste and features while as services ideas include different manners in which employees needs
to understand customer's requirement to provide them quality services easily.
Role of ‘clusters’ in fostering innovation: This is a most effective procedure in which
employees provide their ideas to make positive changes. Cluster innovation is basically uses to
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implement several ideas to introduce a specific and quality product easily. All these activities are
helps to represent unique idea in front of target customers in proper way.
Exploring creativity:
 Uses creativity techniques to generate ideas – In a new venture, it is require to use
creative techniques and innovative ideas to maximise numbers of customers for firm. By
implementing such modifications, management of firm can easily capture customer's eyes
toward their services.
TASK 2
P2 Rationale and the market gap for a specific entrepreneurial idea
In a firm, it is required to make effective changes by implementing innovative ideas and
creative thoughts. Entrepreneur needs to analyse different market activities and their future
targets in order to filling gap properly (Nassif, Ghobril and Silva, 2010). For this, they needs to
implement new ideas to maximise organisation's profitability and growth. Market can be a major
element of this process that determine customer's requirement, needs, changes in products and
trends that affect their requirement. To filling market gap Bake needs to use different techniques
as -
Identifying customers – For an entrepreneur, it is required to analyse target market and
customers in order to manage quality of products. Identifying customers is a beneficial approach
that helps in analysing their demand and requirement for specific services. For bake hut, it is
require to analyse target customers to start their new venture at specific location. This activity
help to build direct connection with audience to getting long term benefits and growths as well.
Marketing segmentation -
 Behavioural – These activities are based on lifestyle, believes, culture and its values for
customers. For entrepreneur, it is required to analyse all these activities properly to
provide them appropriate services and products as well (St-Jean and Audet, 2012). These
kind of factors are based on marketing segmentation that are affected by purchasing
behaviour of consumers.
 Demographic - All these activities are classify on the bases of age, gender, occupation,
nationality and income sources of customers. These activities has major impact on
business organisation, so for this bake hut needs to analyse such factors to provide quality
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services to customers. This procedure requires flexibility in cost of products to cater
affordable services to audience.
 Geographic – For an entrepreneur, it is require to analyse requirement of customers to
provide quality services at several places. Bake hut is a new venture which is established
to provide bakery products and services to target customers at several locations. Main
objectives of this segmentation is to provide effective services to customers easily.
Product or services -
 Tangible – These services are based on quality of products and services. Major
advantages of this process is to provide higher satisfaction to customers by fulfilling their
requirement properly.
 Intangible – For an entrepreneur, it is required to use different ideas and concepts in
order to maximise customer's strength in their organisation. For this, they needs to use
cost effective strategy as a promotional tool to capture customer's eyes easily toward
their services (Kotha and George, 2012).
Industry environment -
 Industry competitors – These are the existing organisations of market that can be a
industry competition for new start up. In this procedure, an entrepreneur requires to
analyse different existing organisation that also provide similar services to customers.
Through this, they can easily implement effective ideas and creative thoughts to
maximise values of their firm.
 Bargaining power of suppliers – They are the suppliers of services who can easily
manage costs of different products to maximise profitability easily. For Bake hut,
suppliers can be their employees who provide different goods to customers on the bases
of their demand. For them it is require to analyse capacity of customers to afford cost of
different services.
 Bargaining power of customer’s – They are the key strength of an organisation who
provide helps to maximise profitability and growth of firm to make a effective market
image easily (Burg and et. al., 2012). Main objective of a new venture is to provide
higher satisfaction to customers by analysing their requirement and desires as well.
 Threats of substitute – These factors can be a major threat for an organisation.
Sometimes, different organisations provide similar services to their customers at different
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cost. These prices are more reliable that capture consumers eyes toward them. These
substitute services can be a weakness of firm in order to render similar products at
different costs.
 Threats of New entries – In an economy, different organisations are established to
making their own image and goodwill in target market. These firms can be a major threat
for those organisations those arr already providing similar services to customers. So for
this Bake hut needs to make impactful strategy to reduce negative impact of such
activities.
TASK 3
P3 Present data needed to support gap analysis in the evaluation
For an entrepreneur, it is require to make effective strategy to reduce impact of marketing
gap. This process determine different activities of an organisation that helps to provide them
effective growth and advantages (Perrini, Vurro and Costanzo, 2010). For a business
organisation, it is require to use different tools and techniques to analysing market condition and
customers demand as well. For a proper market research, organisation can use different types of
resources to manage activities of organisation on the bases of customer's opinion and their
requirement as well. A proper market research can be done through two different methods that
can be -
Primary research – In this research, analyst always uses fresh data and proper
information that provide authenticate information to firm. Main objective of this research is to
analyse opinion of customers on the bases of their demand and requirement for specific services.
For Bake hut, it can be a beneficial move that helps to provide appropriate information of
customers view point on firm's services. Through this, firm can easily maximise their values and
effectiveness to build a positive image in front of target customers. In this research, data is
collected by employees of firm to understand customers views properly.
Secondary research – This research is provide pre determine information to customers
on the basis of customers requirement and need. In this procedure, data is collected on the basis
of historical approaches and representation. All these activities provide appropriate information
to management of organisation to getting higher opportunities and benefits as well. In this data
collection method, organisation needs to hire a mediator who analyse each and every information
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properly to maximise growth and effectiveness of firm. These kind of information is based on
past and historical data (Abu-Saifan , 2012). In the context of “Bake hut”, this research method
will help in industry as well as competitor analysis so that organisation can easily create their
own market place with appropriate strategies. On the basis of secondary research practices,
management of Bake hut can identify their potential buyers so that they can introduce quality
services for them. All these kind of business process are assist in attaining desired competitive to
a firm by implementing appropriate plan as well as strategies.
New technologies for audience research – For entrepreneur of Bake hut, it is require to use
different technologies to getting proper information related to customers requirement and need.
For this, they can use several ideas and techniques that help to provide effective information to
employees. New technologies for audience research can be -
 Survey – This is a most effective procedure in which organisation uses several ideas and
techniques to analyse information through several customers. In survey methodology,
employees analyse individuals opinion for organisational products as well as services.
This survey and research helps to making desirable changes in business activities.
 Data collection – In this procedure, analyse choose random person from a larger
population to getting authenticate information easily. It can be -
Questionnaire
Name-
Email ID-
Contact No.-
Q 1. Do you think that Bake hut provide unique and quality services in target market as well as
to customers ?
A. Yes
B. No
Q 2. Is there any requirement of training for employees of Bake hut ?
A. Yes
B. No
Q 3. Do you feel that implementation of Innovation help to provide long term benefits to Bake
hut ?
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A. Yes
B. No
Q 4. Do you agree that Bake hut can easily getting higher competitive advantages from target
market ?
A. Yes
B. No
Q5. Any suggestion for future improvement.
1: Unique and quality services that are provided by Bake hut in target market
Particulars Frequency
A. Yes 12
B. No 8
2: Requirement of training for employees of Bake hut
Particulars Frequency
A. Yes 15
B. No 5
8
12
8
A. Yes
B. No

3: Implementation of Innovation help to provide long term benefits to Bake hut
Particulars Frequency
A. Yes 16
B. No 4
4: Bake hut can easily getting higher competitive advantages from target market
Particulars Frequency
A. Yes 12
B. No 8
9
15
5
A. Yes
B. No
16
4
A. Yes
B. No

Gap analysis - Gap analysis is basically a representation that helps to analyse
organisation's current position and their future requirement. All these activities are based on
organisation's future vision and mission that needs to be accomplish through different strategy
and planning procedure. On the bases of Gap analysis, a new start up can easily enhance their
productivity and performance to getting maximum profits and growth all these activities are
based on future objectives and target that are requires to attain properly. Gap between such
activities are determine how an business organisation making effective and impactful plans to
maximise effectiveness of such business activities.
P4 Interpret data appropriately to provide evidence of market potential
Theme 1: Unique and quality services that are provided by Bake hut in target market
Particulars Frequency
A. Yes 12
B. No 8
Total 20
Mean 10
Median 10
Mode 4
Interpretation – As the above graphical representation, it has been analysed that out of
20 candidates, average 10 percent are agree with the quality of the Bake hut bakery. They likes
the quality of the products that are provided by the bakery. On the other hand, there 10 percent
people who are not satisfied by the quality. As it result, it has been identified that customer's of
10
12
8
A. Yes
B. No

Bake hut are more likely to buy its products because organisation provide them better quality
and unique services as per their required needs. On the basis of these practices, organisation
can build positive relation with their services user that help them to sustain in the market for a
long run duration.
2: Requirement of training for employees of Bake hut.
Particulars Frequency
A. Yes 15
B. No 5
Total 20
Mean 10
Median 10
Mode 0
Interpretation – As per the above representation it has been identify that in between 20
candidates, 10 percent people are voted yes for the training of the Bake hut organisation. This
will improve their skills to assist the people in an eminent way. On the basis of above ratings, it
has been analysed that Bake hut requires to conduct training session for their employees so that
they can implement unique ideas in business operation. Through this, firm can serve desired
services to their customers in order to attaining higher competitive advantages and business
growth easily.
3: Implementation of Innovation help to provide long term benefits to Bake hut
Particulars Frequency
A. Yes 16
B. No 4
Total 20
Mean 10
Median 10
Mode 0
Interpretation – On the bases of above data representation, it is analysed that
implementation of innovation assist to proving long term benefits to Bake hut. There are average
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ten percent candidates voted for innovation which helps them to gain long term benefits. With the
help of innovation in products organisation can easily create their own image in market so that
they can attaining desired growth easily. The customers of organisation are also more likely
towards the innovative products of firm so that it can be a beneficial approach for firm that
provide them opportunity of market success.
4: Bake hut can easily getting higher competitive advantages from target market
Particulars Frequency
A. Yes 12
B. No 8
Total 20
Mean 10
Median 10
Mode 4
Interpretation – On the basis of above presentation, it has been analysed that Bake hut
can easily getting higher competitive advantages from target market by using new ideas and
creative thoughts. An average 10 percent of of people favours to gain the competitive advantage
from target marketplace. These business idea will be more beneficial for firm through which
Bake hut can attain their desired objectives as well as can grab maximum success. In this
process market research activity of firm determine them area of growth so that firm can enhance
their share easily.
TASK 4
P5 Apply a SWOT framework to collate evidence to support an objective
In swot S stands for strength,W for weakness, O for opportunity and T for threats.
Swot is done to identifying strength,weakness,threat,opportunities of a company. Its a measure
to know what a company or organisation can and cannot do,it also tell about future opportunity
and threats. SW is internal factors and OT is external factors. It assist the firm in achieving its
objectives and what problem it must overcome or minimize to achieve desired result & tell the
organisation current position and where it can be in future.
Strength
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Whatever firm offer is the most common and foremost thing to look after. Bake hut offer
variety of products with its consistency and the quality to go long run. Their baked is different
or distinct from its competitor as its in the form of unique flavour,organic material or in small
batches (Kraus, Kauranen and Henning Reschke, 2011).
Stores highly visited by a people as it located in engaged traffic location. Also get benefit of non
competing firm by acquiring its client as their customer. Enjoy advantage by displaying product
pictures on the store and gave sample to the person who walk in.
The dealer and the staff are main person, as they are fully responsible to extract maximum result
out of the products. Our company invest in not only promoting company products but also in the
training of our sales team as they present them.
Weaknesses
The major challenge of bake-hut is that there are various other bakery business which are
situated in similar locations. They are able for creating positive impression and managing
development in badly manner.
Opportunities
They will try to expand their business operation and its functions in other place which
attract large number of customers. There are various people who consume cakes, breads, snacks
on regular basis that will push their new products in perfect manner. Also they have load of
people which need to learn how to bake for identifying government approved bakery institute for
fulfilling all goals and targets. They need to establish other type of products in the large market
place.
Threats
The threat is mainly likely for gong to comfort which are competing with already
established bakeries who provide similar type of products to their customers and there are some
other entrepreneurs who are majorly deliver bakery products for their desired buyers (Kraus,
Kauranen and Henning Reschke, 2011).
P6 Evaluate the competitive and market environments
In the present scenario, every business organisation consider environmental aspects
which consist range of factors or elements and they have direct impacts on the business
organisation. Entrepreneurs also have to consider several factors which can affects on their ideas
and thoughts while launching a new business venture in the marketplace. Therefore, individual
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requires to consider a proper study and environment analysis so that they can identify such forces
in an appropriate manner. In the study, organisation consider micro and macro factors which
change as per the environmental fluctuations which can affects negatively on the business
operations and its profitability as well. It is necessary to analyse various forces regarding
changing climates, systems and other aspects so that business can formulate better strategies and
adopt tools or techniques to survive from critical circumstances in well manner which support in
attaining set goals or targets in efficient manner. There is business selective business idea which
is Bake Hut Bakery which is going to be establish by adopting new strategies and tools or
techniques in well manner(Kraus, Kauranen and Henning Reschke, 2011. It is necessary to
research about particular market and find targeted customers. This can be possible through
conducting survey so that they can collect an appropriate data and find suitable customers in
more appropriate ways. This Bakery is providing various foods items such as cake, pastries,
cream rolls and many more in the marketplace. There are number of competitors available who
are dealing with same products so it is necessary to undertake environmental factors and their
impacts on business firms so that they can make better plans for adopting new tools or
techniques and business strategies for achieving competitive advantages. Political, legal,
technological, economical and environmental are macro factors that can affects on outside of the
organisation.
Pestle analysis of Bake Hut
Political factor : Organization working get affected by the political condition of the
country. If the political condition of some country is stable than business does not have to make
lot of changes in their policies and working. Political condition of the UK is uncertain due to
which bake hut have to face lot of problems in carrying their business effectively. Every new
government make new policies and strategies in respect of trade restriction ,tax policies and
many more which is essential for bake hut to adopt in their establishment whether it create
positive or negative impact.
Economical factor : UK separation from the European nation is a situation which create
a adverse impact on the UK economy. Due to which the country get depends on the foreign
direct investment. By the help of foreign direct investment business get suitable environment for
carrying out it activities. FDI support bake hut to run its business effectively in the UK market.
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Social factor : Bake hut wanted to provide its product to the customer so they need to
understand taste and preferences demand of the particular market in which they want to operate.
In present scenario customer demand is changing time to time in such situation. Bake hut is
require to analyses market competition product and users demands in order to provide quality
services to them.
Technological factor : In present time techniques is continuously changing due to which
organization able to provide quick and cheaper services to the customer. Bake hut need to
understand this and should try to adopt new techniques in their business like self checkout
machine ,mobile apps for ordering which save customer time which they can invest in some
other important area.
Legal factor : In today's time government make several laws and regulation for the
protection of the society. Every business have to follow them in order to sustain in the market.
For example : Health and safety law and food safety act which describe about the ingredients
quantity in the particular product which bake hut should follow otherwise have to face lot of
consequences. Food and safety act is formulated by the government in order to provide good
product to human for the consumption.
Environmental factor : Now a days, society people is educated and they get attracted to
the organization who protect environment and fulfill their social obligation . Bake hut can
support nature either by linked with some environment friendly campaign or recycle packaging
in order to fulfill their responsibility and to attract customer. When bake hut manufacture the
product whose exterior body is recyclable after use than they are able to create separate image in
the society persons.
Drucker seven source of innovation
Unexpected : Bake hut can take advantage of the unexpected situation by bringing new
product and services without making a thought on the positive or negative outcome and take the
opportunity for the change. By the help of this respective organization able to increase their
market share and sales in order to strengthen their position in the external environment.
Incongruity : Many companies got failed because they develop a product without proper
analyses the target customer wants. Bake hut should take customer feedback, reviews and
complains in a positive way as it was the great source of bringing innovation in the business.
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When business provide the product or services according to the customer needs and demands
than are able to sustain for longer period in the society.
Innovation based on process need : Bake hut should look after the process of the
organization and then find the weak links which need to improved by the way of innovation.
After knowing weak links business able to create effective and innovative answers. Innovation
should be done according to the process not on the situation.
Changes in industry and market : In today ' s time market and industry is changing at
a very rapid rate in such a situation business need to analyses each and every factor properly. by
the help of this study bakery business able to make make desirable changes in their product and
achieve the growth. The leaders of the bakery business should treat these changes as a
opportunity for their business not the threats for making their strong existence.
Demographics : The demographics such as age,education ,employment can create
positive or negative impact on the environment it depends upon the bakery firm how they handle
it. Demographics can be beneficial for respective organisation if they mange it properly to adopt
the opportunities.
Changes in perception : Due to presence of new technology and involvement of social
networks changes in the customer thoughts are happening at a faster rate than ever. Changes in
the perception of people create a big opportunity for bake hut to develop a innovative product
and services which was accepted easily by the customer.
New knowledge, both scientific and non-scientific : Businesses who adapt the changes
due to the new discoveries of the market failed. Innovation should be done with the help of new
knowledge so that it can help in understanding the customer buying behaviour and to do analyses
of the market. When proper detail study is done than organisation able to make best use of the
existing scenario. Bake hut can also hire new employee for the working in the organisation as
they bring different perspective and ideas in the establishment.
CONCLUSION
From the above report, it has been conclude that, an entrepreneur needs to have its trait
and good personal qualities to become a successful businessman. The entrepreneur traits are the
main value that need to be learned, followed and applied by each and every individual in order to
become successful entrepreneur. An example of the entrepreneur traits are full determination,
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not to afraid, craving learning, good understanding of monetary management and ability to sell
and promote.
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