Identifying Entrepreneurial Opportunities

This document discusses the process of identifying entrepreneurial opportunities and evaluating new business ideas. It covers the evaluation of possible sources for new and innovative ideas, rationale and market gap for a specific entrepreneurial idea, and gap analysis in the evaluation of the entrepreneurial idea. It also explores the application of SWOT frameworks and competitive analysis to assess the viability of the idea. The document is relevant for students studying entrepreneurship or business management.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Evaluation of possible sources for new and innovative business idea...................................3
P2 Rationale and market gap for specific entrepreneurial idea...................................................5
P3 Gap analysis in the evaluation of entrepreneurial idea..........................................................6
P4.................................................................................................................................................9
P5 Application of SWOT frameworks to support the entrepreneurial idea..............................11
P6 Evaluation of competitive and market environments to assess the viability of idea...........12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Entrepreneurial opportunities are the situations that needs to be identified by the
businessmen in order to develop new and innovative ideas for the business. These are
prospective for the entrepreneur as large amount of profits can be availed by selling distinctive
ideas in the market. Customers constantly need changes in form of goods and services to gain
more satisfaction thus entrepreneur must come up with something new to achieve this purpose.
Being an aspiring entrepreneur Food and celebration business of food truck is going to be
pitched in front of the investors (Aggestam, 2014). The report covers areas such as evaluation of
possible sources for new and innovative ideas, explanation on the market gap of idea, presenting
gap analysis, an interpretation of the collected data. Apart from this in later section use of SWOT
model and competitive analysis will explain the potential viability of the selected idea.
TASK 1
P1 Evaluation of possible sources for new and innovative business idea
Innovation is defined as new idea and creative thoughts in the form of device or method.
It is defined as application of better solutions that aids to meet out the new requirements.
Generating ideas is not one day task, it takes significant amount of time and efforts to build ideas
into reality. Peter Ducker's specifies these sources in book called innovation and
entrepreneurship. An explanation regarding these are given below:
Business idea: Idea of opening a food truck named “food and celebration” has been selected for
the purpose of starting up business. Food truck is like a moving restaurant which includes
cooking and selling variety of food items like burgers, pizzas, pasta and other junk food items to
customers. As there are large school going and working people who prefer quick food services
therefore age group of persons between 15 to 35 is the target audience for the business. There are
sources through which ideas can be generated as are-
The unexpected: There are number of ways to look for opportunities, the core requirement is
managers ability to look for the cues as there is possibility of opportunities hidden behind them.
An extensive research in the market has help in identifying requirements of either goods or
services, in food tuck case it was analysed that audience wanted more casual set up of food
business also pocket friendly in nature. Thus, this gave me motivation to work on food truck
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idea. These opportunities can be concerned with either certain demand that is prevailing in the
market or non-availability of demand that needs to be generated (Douglas, 2017).
The Incongruity: As per this source it is explained that there is deviation in how things
are going and it needs to be done. This can be an effective way to identify new ideas as managers
can change the way things are going around. For example, Facebook identified that there should
be platform through customer's need of forming more connections can be satisfied. This is risky
for the entrepreneur as there are high chances that people rejecting innovation, but taking risk is
important for entrepreneur as their opportunities can arrive out of it. There was unconventional
way of providing food services to customers therefore this inspires for the development of food
truck.
Process Need: Through this source opportunities can be developed by making
improvement in the way tasks are being performed. Managers need to assess the process and find
the weak areas this would lead to effective and innovative solutions. For example, in restaurant
the staff is unable to provide delivery to customers on time in order to deal with this they
developed an app to ensure quick delivery of items. As customers must wait long hours to give
and receive order in the restaurants this inspire motivates me to start up business of food truck
where orders and delivery are made in quick span of time (Goe and Jones 2016).
Industry and market structure change: This is the source in which changes in the rules
and regulations made by the government gives opportunity to entrepreneur to develop ideas. Free
registration policy made by the UK government to start up a food business was also one such
source which gave the motivation to start business of food truck.
Demographics: These are concerned with the changing dynamics of factors like
population, human capital and income level. By conducting martop food trucked research it was
found that there in increment in the population of food lovers which are demanding easier access
to the food services this motivated to build accessible outlets like food truck to satisfy large of
food lovers.
Changes in perception, meaning and mood: change in the perception of people also
gives opportunities to build business ideas therefore it is vital to analyse the changing taste and
preference of people. There was large section of people who considered food truck unhygienic
but now the scenario has changed availability of qualitative food by ensuring hygiene at an
affordable price have attracted large number of customers.
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New knowledge: Several new technologies are providing opportunities to potential
entrepreneurs to start up a business. This is the reason that businesses are now spending huge
sum of money in research and development sector. Technologies like mobile POS for food truck
is in trend therefore more knowledge about this aspect amongst the market has motivated to start
up the concerned business (Guerrero, Urbano and Fayolle, 2016).
P2 Rationale and market gap for specific entrepreneurial idea
The business idea of an entrepreneur launched food truck which can provide different
types of fast food. The food truck provides online facility and good sitting arrangement near
garden as well customisation in food. The alternation can be carry out different elements which
is related to sitting arrangements as well as pricing strategy of food. It is important of an
entrepreneur to reckon the consumer behaviour according to that business can gain competitive
advantage in London. But there are identified market gap which is processing of providing
products and services is not available at the marketplace.
Identification of the business opportunities is defined as to identifying gaps in the market.
This provides opportunity to provide something new in market. There are several ways that can
helps to identify the ways that use to fill gap in market to investigate business opportunity. These
are defined in following manner as are-
Innovation- The innovation is about the Idea of opening a food truck named “food and
celebration” has been selected for the purpose of starting up business. Food truck is like a
moving restaurant that is inclusive of cooking and selling variety of food items like burgers,
pizzas, pasta and other junk food items to customers.
Process- With help of this idea, the customer can be attracted by using better process of selling
commodities. Thus, online delivery system, tracking truck all are the facility that can attract to
customers.
Product- In this they are providing food items and also organic food commodities that are better
for the health of customer's.
The idea of food truck that people can customise food as per their taste and fulfil the need and
demands of customer in impressive way. The concept of market gap connected to each business
idea and is evaluated through:
Technological advancements – In present time every one-use advance technology to
spread out their business and gain more profit. It is abjuratory that entrepreneurs are use advance
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tools and techniques in order to up to date business and being used by competitors. With the help
of this launch new business project in market feasibly. It can help to reduce market gap through
fulfil customer needs and wants on time (Hui-Chen, Kuen-Hung and Chen-Yi, 2014).
Identification of opportunities – It is major that an entrepreneur finds out and determine
all available opportunities as per the market demand. As a result, it can help to gain competitive
advantage to gain overall profitability. Such opportunities guide to an entrepreneur to determine
and filling gap of market to stay ahead of its competitors. In addition, it will help to successfully
implement business and launch their idea of food truck with the option of provide in night.
Competitive Analysis -
Basis Food and celebration Shades Food truck
Products and
services
To provide their products
and services on time to
use PMS software which
can use by new opening
food truck to manage
order and create space
time to time. It is provide
facility to customise food
as per their taste.
This food truck provides
wide variety in beverage as
well as junk items.
Organization
Structure
The Functional
organisational structure
followed in which each
person holds the authority
and accountability of
performing assigned tasks.
This one follows flat
structures in which rules and
regulations are not made with
regard to the performance of
business.
Promotional
Strategy
Phamplates will be
distributed outside the
school and universities
which would help in
attracting younger base.
Advertisements are given in
the newspapers and
magazines to promote the
business activities.
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In the general sense to get success to find out many opportunities which is related to food
industry and help to an entrepreneur to enter in sustain market. As technology is the factor that
will influence on business in positive manner and provide an opportunity to new entrepreneur to
provide unique and different services to customer as per the specifications. There are many ways
of failing which is related to technological and innovation concept.
P3 Gap analysis in the evaluation of entrepreneurial idea
Gap analysis is generally carried out by an entrepreneur where they are launching a new
idea within market. It directs to analysing several variances related to current performance of
actual project and desirable future performance. With reference to launch of food & celebration
in London, there are several factors connected with market scenario that need to be considered
by the entrepreneur, these are as following -
Primary sources: These are sources are exploratory in nature as data collected from
these are directly from the sources. For the selected business idea primary research has been
conducted by preparing questionnaire which is discussed below:
Secondary sources: Under this data is collected from varied published sources. For the
concerned business idea Internet has been used (McCann and Vroom, 2015).
QUESTIONNAIRE
NAME:
AGE:
ADD:
GENDER:
MAIL ID:
Q1) Are you aware about the food truck?
a) Yes
b) No
Q2) Do prefer buying food from food trucks?
a) Yes
b) No
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Q3) Are you conscious about the Hygiene factor in relation to this business?
a) Yes
b) No
Q4) Which of the characteristic of food truck you like the most?
a) Location
b) Affordable price
c) Casual environment
Q5)Rate the success factor of food truck business?
a) High
b) low
c) Average
Q1) Are you aware about the food truck? Frequency
a) Yes 35
b) No 5
Q2) Do prefer buying food from food trucks? Frequency
a) Yes 20
b) No 20
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Q3) Are you conscious about the Hygiene factor in relation to this
business?
Frequency
a) Yes 25
b) No 15
Q4) Which of the characteristic of food truck you like the most? Frequency
a) Location 10
b) Affordable price 15
c) Casual environment 15
Q5)Rate the success factor of food truck business? Frequency
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a) High 15
b) low 10
c) Average 15
P4
Q1) Are you aware about the food truck? Frequency
a) Yes 35
b) No 5
Mean 20
Mode 0
Median 20
Interpretation: As from the above table, it has been analysed that there are 35
respondents are aware about the food truck whereas 5 respondents does not aware about the
concept of food truck. In this case Mean = 20, Mode = 0 and Median is 20.
Q2) Do prefer buying food from food trucks? Frequency
a) Yes 20
b) No 20
Mean 20
Mode 0
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Median 20
Interpretation: As from the above table, it has been analysed that there are 20
respondents are prefer buying food from food trucks besides that there are 20 respondents does
not prefer buying food from food trucks. Here Mean = 20, Mode = 0 and Median is 20.
Q3) Are you conscious about the Hygiene factor in relation to this
business?
Frequency
a) Yes 25
b) No 15
Mean 20
Mode 10
Median 20
Interpretation: As from the above table, it has been analysed that there are 25
respondents are conscious about the Hygiene factor in relation to this business whereas 15
respondents does not conscious about the Hygiene factor in relation to this business. Here mean
is 20, mode is 10 and median is 20.
Q4) Which of the characteristic of food truck you like the most? Frequency
a) Location 10
b) Affordable price 15
c) Casual environment 15
Mean 13.33
Mode 15
Median 15
Interpretation: As from the above table, it has been analysed that there are 10
respondents, who prefer location in context to characteristic of food truck whereas 15
respondents, who looks for affordable price in context to characteristic of food truck. Along with
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this there are 15 respondents, who prefer casual environment in context to characteristic of food
truck. Here mean = 13.33, mode = 15 and median is 15 (Nijssen, 2017).
Q5)Rate the success factor of food truck business? Frequency
a) High 15
b) low 10
c) Average 15
Mean 13
Mode 15
Median 15
Interpretation: As from the above table, it has been analysed that there are 15
respondents who rate the success factors is high in context of food truck business whereas 10
respondents says that success factor is low in context of food truck business. Apart from these 15
respondents says that success factor is average in context of food truck business. Here mean =
13, mode = 15 and median is 15.
P5 Application of SWOT frameworks to support the entrepreneurial idea
In order to ascertain the abilities of ideas SWOT is used. This is the framework that
explains the strength, weaknesses, threats and opportunities of concerned business idea. They are
explained below:
Strengths: The strengths of organisation give a boost to the success and growth of the
business; these are the potential attributes which entrepreneur can used further to make profits.
The strength of “Food and celebration” lies in its ability to provide effective food items to
customers in lower price. Also, the concerned business idea does not require too much of
investment which increases would lead to higher revenues at lower cost.
Weakness: These are the characteristics that can become hindrance in the success of the
business. The weakness of chosen business idea is that it does not have the privilege of organised
process like billing and storing which established restaurants possess. This can affect the overall
efficiency of business. Also being new venture, it would require high promotions to attract large
customer base which would increase the cost of business (Sahut Gharbi and Mili, 2015).
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Opportunity: Grasping opportunities at right moment would require recognition at right
time also. Managers should identify the potential situations that would help in growth and
development of business. The fact that food truck business does not require specific location
gives opportunity to take advantage of personally meeting requirements of customers. Also, the
business has scope of including additional items like beverages and snacks will increase the
interest of buyers.
Threat: These are the obstacles faced by every business thus mangers should identify
them and take measures to lower the risk. With respect to the Food and celebration business,
government creating rules and regulations to control the business poses severe threat to the
profitability of business. Apart from that traffic situation can make delay in reaching prospective
location at right time. It is important to determine how these hurdles can be tackled in future.
P6 Evaluation of competitive and market environments to assess the viability of idea
Every entrepreneur should analyse the market and industry conditions in which the
business will operate. Gaining knowledge about the market would help determining the
approaches through which effective decisions can be taken.
Competitive market: Gathering appropriate information about the market is essential to
understand the position of business idea. Assessment of all the concerned factors of market
would help in gaining competitive advantage and will ensures the long-term stability of business.
Food and celebration truck use the information to form effective strategies to be able to fight
with its competitors.
Competition within industry: There are new emerging as well as existing food trucks
that are posing direct competition to the “Food and celebration”. After analysing their profile, it
was found that some of them such as off Shades food truck and Mother Clucker are spending
huge sum of money in IT department to effectively manage the orders. Therefore, increased
focus of managers is required with respect to handling such matters. Below is the Porter's five
force model that will explains the different factors affecting the idea:
Threat of new entrants: As their food truck business require lower capital investment
this creates the higher threat of new entrants. It is important to deal with this factor by creating
more barriers as it would lower the profitability of business. Thus, the viability of idea depends
on the amount of competition prevails in the market (Wood and McKelvie, 2015).
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Bargaining Power of Buyers: The food truck business is very common therefore buyers
have the power to which to other brands in case “Food and celebration” does not comply to their
pricing demands. This shows that bargaining power of buyers are high in the chosen scenario.
Managers needs to develop effective pricing strategies in order to lower the consequences of this
factor.
Bargaining power of Suppliers: The food industry has large number of suppliers
therefore it lowers the bargaining power of suppliers. Managers of food and celebration should
maintain effective supply chain in order to gain competitive advantage in the market.
Threat of substitute: There are several street vendors which are acting as substitute for
the market this can negatively impact the profitability of the chosen idea. The Food and
Celebration can obtain competitive advantage with respect to this factor by improving the
hygiene of food items and providing services as per the specification of customers as lack of
quality is the main concern for the street businesses (Xie and Lv, 2016).
CONCLUSION
From the above report it has been concluded that in order to develop successful business ideas
recognising business opportunity is very essential. There are different sources such as
unexpected, Incongruity, Process Need, Changes in perception, meaning and mood that helps
entrepreneur in identification of creative ideas. Selecting particular is linked to advantages that
can be availed both from the business and customer satisfaction point of view. In order to
ascertain the viability of the chosen business models like SWOT and Porter's five can be used
which would help in providing competitive advantage to the business idea.
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REFERENCES
Books and Journals
Aggestam, M., 2014. Conceptualizing entrepreneurial capital in the context of institutional
change. International Entrepreneurship and Management Journal. 10(1). pp.165-186.
Douglas, E., 2017. Perceptions: Looking at the world through entrepreneurial lenses. In
Revisiting the Entrepreneurial Mind(pp. 41-59). Springer, Cham.
Goel, S. and Jones III, R. J., 2016. Entrepreneurial exploration and exploitation in family
business: A systematic review and future directions. Family Business Review. 29(1).
pp.94-120.
Guerrero, M., Urbano, D. and Fayolle, A., 2016. Entrepreneurial activity and regional
competitiveness: evidence from European entrepreneurial universities. The Journal of
Technology Transfer. 41(1). pp.105-131
Hui-Chen, C., Kuen-Hung, T. and Chen-Yi, P., 2014. The entrepreneurial process: an integrated
model. International Entrepreneurship and Management Journal. 10(4). pp.727-745.
McCann, B. T. and Vroom, G., 2015. Opportunity evaluation and changing beliefs during the
nascent entrepreneurial process. International small business journal. 33(6). pp.612-
637.
Nijssen, E. J., 2017. Entrepreneurial marketing: an effectual approach. Routledge.
Sahut, J. M., Gharbi, S. and Mili, M., 2015. Identifying factors key to encouraging
entrepreneurial intentions among seniors. Canadian Journal of Administrative
Sciences/Revue Canadienne des Sciences de l'Administration.32(4). pp.252-264.
Wood, M. S. and McKelvie, A., 2015. Opportunity evaluation as future focused cognition:
Identifying conceptual themes and empirical trends. International Journal of
Management Reviews. 17(2). pp.256-277.
Xie, X. and Lv, J., 2016. Social networks of female tech-entrepreneurs and new venture
performance: the moderating effects of entrepreneurial alertness and gender
discrimination. International entrepreneurship and management journal. 12(4). pp.963-
983.