Identifying Entrepreneurial Opportunities

IDENTIFYING
ENTREPRENEURIL
OPPORTUNITIES
Unit 27

Table of Contents
INTRODUCTION.......................................................................................................................3
LO 1.............................................................................................................................................4
P 1 Different sources of entrepreneurial ideas and innovation...........................................4
M 1 Evaluation of sources of innovation..........................................................................5
LO 2.............................................................................................................................................5
P 2 Entrepreneurial idea and the market gap by using relevant tools and technique.........5
M 2 Justification of entrepreneurial idea which helps to fill the gap of the market...........6
LO 3.............................................................................................................................................6
P3 Gap analysis in evaluation of entrepreneurial idea-......................................................6
P 4 Data Interpretation for the potential of market.............................................................7
M3 Justifying method of data collection-.........................................................................11
LO 4...........................................................................................................................................11
P 5 SWOT Analysis..........................................................................................................11
P 6 PESTLE Analysis.......................................................................................................12
M4 Critical evaluation business idea as per the competition-..........................................14
CONCLUSION..........................................................................................................................14
REFERENCES..........................................................................................................................15

INTRODUCTION
Entrepreneurial opportunities are usually defined as situations where products and
services can be sold at a price greater than the cost of their production. An entrepreneurial
opportunity, thus, is a situation where entrepreneurs can take action to make a profit.Being a
budding entrepreneur it is essential for me to known about business practices that needs to be
followed by new business to gain success in market. This report covers issues such as sources
from where ideas and innovation can be obtained. Idea and the gap of it in the market. Primary
and secondary research. Interpreting the data and the last section was covered by SWOT and
Pestle analysis of the company.
LO 1
P 1 Different sources of entrepreneurial ideas and innovation
This model is used to analyses opportunity of specific innovation to business unit. By
this way success or failure of specific innovative idea
There are 7 sources of innovation which is described by the model of Drucker.
The Unexpected-
The place of market is the area where many of the entrepreneurs look for opportunities.
In order to generate the idea entrepreneur must study the market so that they can assess a
product or service and its needs with the level of demand. This way opportunity for bringing a
product or service is founded out and is attempted to convert into success.
The Incongruity-
Many entrepreneurs do not conduct a research and directly develop a product which
has high demand in the market. These types of assumptions lead an entrepreneur to failure.
But it is considered as one of the greatest sources for entrepreneurs to get innovation so that
they can get inspiration from it (Karimi and et.al., 2016).
Process Need-
This aspect focuses more on task instead of situation. This aspect states that innovation
comes from closely observing the process of the company and take out the errors which can be
improved. This way entrepreneur will be able to get innovative idea.
Change in industry and market-

Structure of industry and market is not predictable as it rapidly which is why
entrepreneurs needs to observe these changes on a continuous basis to look out for an
opportunity.
Demographics-
Any change in the factors related to demographics will affect the market. These
changes affect the market as it assesses the demand of the products and services. Age,
education and employment of people helps an entrepreneur to act in the new prospects.
Changes in Perception-
Entrepreneurs need to understand the way people perceive things as it changes with
time and it can help the entrepreneur to come up with an idea which will fulfill their changing
needs and target new customers (Karimi and et.al., 2016).
New Knowledge-
There are various sources of innovation such as technical and scientific area.
Entrepreneur cannot ignore change instead it needs to be adapted by them so that they can
discover something new which is improving the chain of supply and hiring talented
employees.
M 1 Evaluation of sources of innovation
Model by Drucker helps to assess all the factors which helps an entrepreneur to
generate idea. It states that proper research needs to be conducted of the market as if the
entrepreneur is just working on assumptions and demand of the product or service in the
market then they won't be able to get an innovative idea. Other than that they need to
understand the process of working of the company so that they get an proper insight to it
(Jarvis, 2016).
LO 2
P 2 Entrepreneurial idea and the market gap by using relevant tools and technique
Entrepreneur is coming up with the idea of getting into a business of accommodation
provider such as Airbnb. The name of the venture is going to be Cloud 9. The reasons for
choosing this business is because it deals in service industry and the flow of money and rate of