Sources of Business Ideas and Opportunities

This assignment provides an in-depth analysis of the different sources of business ideas and opportunities. It covers a range of topics including entrepreneurial perspectives, leadership styles, social capital, and marketing approaches. The assignment also examines the role of social networks, human capital, and psychological capital in identifying and exploiting entrepreneurial opportunities. Additionally, it discusses the importance of living standards in the UK, highlighting London as having the best living standards. Overall, this assignment offers a comprehensive understanding of the sources of business ideas and opportunities.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different sources of entrepreneurial ideas and innovation....................................................1
P2 Rationale and Market gap for specific entrepreneurial idea .................................................2
P3 Gap analysis in the evaluation of entrepreneurial idea..........................................................3
P4 Interpretation of data to provide evidence of market potential..............................................6
P5 SWOT Analysis to assess the entrepreneurial idea..............................................................11
P6 Evaluation of competitive and market environment to evaluate potential viabilities..........12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurs is a name given to people who have skills and capabilities to convert their
intellectual ideas into successful business ventures. For doing so they generally involve new and
innovative tools and techniques and also grab or fetch market opportunities and make utmost use
of it. Business ventures generally get launched in crowded markets where a lot of people can get
attracted towards their business idea (London living standards the best in the UK. 2018). This
report further focusses on various ways and means which entrepreneurs use for converting their
business ideas into successful goods and services. This report focusses on various elements such
as identifying various entrepreneurial opportunities that are available in market along with
marketing gap and competition analysis. Also this report focusses on various tools such as
porter's five forces model along with SWOT and PESTLE analysis. In this report an existing
business idea has been innovated into a new modified venture named as Sip and Whip cafe in
which managers have decided about launching or bringing in new products such as Choco
Frappe and Tiramisu with a delightful combination of ice cream and chocolate sauce over it.
Main aim of entrepreneurs in this business is to attract and influence a higher number of
customers so as to increase their productivity.
TASK 1
P1 Different sources of entrepreneurial ideas and innovation.
In present day scenario , UK government is providing financial aid to students who are
graduating from colleges sop that they can further develop their business ideas and convert them
into successful businesses. Various measures or sources that can be used in this context have
been mentioned as under:
Mass Media: It is an important tool that can help in influencing a huge number of people
in one go. Mass media sources include radio, newspapers, televisions etc. All these sources act as
guiding tools that provide ample of information to youngsters for developing their new business
ventures. By carefully examining all these sources entrepreneur of Sip and Whip cafe will be
able to evaluate choices and preferences of customers (Al Mamun and Ekpe, 2016).
Trade fairs: These are general events that occur almost at regular intervals and help in
enhancing customer base of businesses. These are main sources that provide knowledge about
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any sort of business ideas and that can be launched. Also entrepreneurs get to meet a lot of
professional individuals such as manufacturers, developers, franchisers etc.
Interests and Hobbies: Interests and hobbies are anything that an individual does for
refreshing themselves. These activities are generally based on liking of an individual. These
happen to be most vital source that help in generating new and creative business ideas. Activities
that are taken for mere fun also can get converted into successful business ideas and ventures by
just involving a sum of monetary funds (Blundel, Lockett and Wang, 2017). This will assist the
entrepreneur in gathering ideas related to launch of Sip and Whip cafe with innovative features
to serve the needs of customers.
Furthermore for evaluation of new business ideas entrepreneurs even consider Peter
Drucker's model which has been explained as under:
Incongruity: It is an important factor which examines how a business will further deal
with critical and complex situations in near future. By using this factor gap between expected
performance and standard performance can also be analysed.
Process Need: Second factor of this model is process need which states that employers
should always hire skilled and talented workforce so as to maintain effectiveness of services.
Industry and Market Structure needs: This factor assesses competitors and their
presence at marketplace. This further lends various growth opportunities to entrepreneurs along
with focussing on threats as well. Hence it has been analysed that entrepreneurs should always
study market structure before entering into market.
Demographics: Demographic is a combined key term which is used to explain culture,
choices, beliefs and preferences of people. It further helps in analysing demands of customers in
an effective manner.
Changes in perception, meaning and mood: Nowadays world has become quite rapidly
moving and hence there are always new innovations arriving in food sector. These techniques
help in enhancing sales performance of Sip and Whip cafe at great extent (Boling, Pieper and
Covin, 2016).
New Knowledge: Enhancing knowledge and providing education about new and
innovative technology helps in enhancing skills and expertise of entrepreneurs. Also this can
further be helpful in achieving innovative products and services.
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Unexpected: For successful business operations business individuals need to bring in
unexpected innovations in their ventures so as to enhance growth and profitability.
By using this model managers of Sip and Whip cafe will be able to analyse sources that
help in bringing new and innovative changes. For example, managers of Sip and Whip cafe will
have to increase their knowledge base by doing a market research and further check which
company is using which technology.
P2 Rationale and Market gap for specific entrepreneurial idea
In present context main idea developed by entrepreneur is to adopt innovations and
modifications in an existing cafe. In this Sip and Whip cafe has decided about enhancing its
effectiveness and quality of services. For this entrepreneurs have decided about provided
personalised or customised food products to their customers. Along with this entrepreneurs have
also decided about setting up as small personalised liquor bar and smoking area for their
customers as well. This cafe also hosts a number of events such as book fairs, poetry shows and
educational events on a regular basis (Guerrero, Urbano and Fayolle, 2016). Hence it is quite
important that entrepreneurs examine or analyse behaviour of customers so as to achieve a
competitive edge over their rival firms. Target customers of Sip and Whip cafe are generally
youngsters.
In context of Market Gap it is an important term which explains opportunities that are
available for analysing gaps that are present in market in relation to various goods and services
that have not been provided by any other cafe. By launching a new idea in market
entrepreneurs of Sip and Whip cafe will be able to fill market gap as technology used will be
more advanced and products and services provided to customers will be of highly better and
improved quality. Various factors of market gap has been mentioned as under:
Technological advancements: In today's modern world technology is taking an
important place in every individual’s life and is changing with fast pace. It is necessary for an
entrepreneur to keep themselves up-to-date with different emerging tools and techniques in order
to ensure sustainable growth. By taking advantage of different types of technological measures
entrepreneur can effectively launch their new business venture. With help of this, filling of
market gap can be done in formative way and demands customers can be fulfilled in subsequent
manner.
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Identification of opportunities: To gain more advantages in market it is essential for an
entrepreneur to analyse available opportunities prevailing in market (Top 10 Sources of Business
ideas & Opportunities. 2018). This will benefit them to fill market gaps in innovative way and
stay one step ahead form their competitors. With the help of identification of all opportunities
entrepreneur can form effective and innovative business ideas and ensure sustainable growth.
P3 Gap analysis in the evaluation of entrepreneurial idea.
COMPETITIVE ANALYSIS
BASIS Sip and Whip cafe Leila's The Bridge
Products and
Services
In present context Sip and
Whip cafe follows a policy
where they consider
preparing customised food
products for their
customers.
Leila's offer world-
class facilities to their
customers which
includes excellent
infrastructure and
modifications in their
menu as per customer
demand.
The Bridge offer
numerous range of
food and beverage
items and keeps on
modifying their menu
on regular basis as per
their customer
feedbacks.
Organisation
Structure
Sip and Whip cafe follows
a functional organisation
structure in their cafe
(Hmieleski, Carr and
Baron, 2015).
This cafe has adopted
departmental structure
in which subordinates
are only authorized to
take follow up order
from their managers.
This cafe have
implemented matrix
structure in which
roles and
responsibilities are
given to staff as per
according to functions
and product that are
being offered.
Major
Attractions
Cafe has incorporated a
personalise menu for
customers. Also they have
constructed liquor bar in
Leila's offer various
range of food,
beverages and mock
tails to their customer
The Bridge offer
excited range of
entertainment facilities
and different type of
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their cafe in accordance
with demands of
customers.
and offer flexible
working environment
to their staff (Koryak
and et. al., 2015).
cuisines in their Cafe.
Promotional
Strategy
In context of promotional
strategies, entrepreneurs
use mass media channels
and online platforms for
promoting their cafe.
This cafe promotes
their venture on big
public hoardings,
online websites and
different types of
social media
platforms.
The Bridge promotes
their business venture
via numerous social
media sites and online
websites.
In addition to this, there are a number of factors that need to be considered by
entrepreneurs of Sip and Whip cafe which have further been stated as under:
Market analysis: Market analysis is a combined process in which various key factors of
target market are analysed. In present context London is a centre of attraction for almost all
business concerns and provides them a number of opportunities so as to promote new and
innovative ideas (Nieto and González-Álvarez, 2016). By raising market growth, entrepreneurs
will be able to achieve a number of opportunities by providing excellent quality services to their
customers. Hence managers of Sip and Whip cafe will have to further assess current customer
demands.
Technology: In context of technology managers need to evaluate various technological
advancements and choose best suitable out of them. This will help in growth of a business
venture. In present context it is quite important that entrepreneurs of Sip and Whip cafe should
choose effective tools and techniques that will further help them.
Primary research:
Primary research refers to a process or method that helps in collection or gathering data
and information in a direct manner. Data is directly collected from individuals and is not based
on any other sources. Examples of primary data include questionnaires, survey, interviews etc. In
present context managers of Sip and Whip cafe have decided about using questionnaires for
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collecting data and information regarding their services. This will be effective as data collected is
fresh and there is no chance of bias.
QUESTIONNAIRE
NAME:
AGE:
ADD:
GENDER:
MAIL ID:
Q1) Are you aware of uniqueness in services offered by Sip and Whip Cafe?
 Yes
 No
Q2) What is your personal interest which you want to have in Cafe?
Hygienic and Healthy Environment
Gaming Zone
Free Wi-Fi Zone
Separate Smoking and Bar Zone
Q3) Are the pricing range of Sip and Whip cafe is affordable and as per according to the
services provided in the structure?
Yes
No
Q4) Are you satisfied with the food quality provided by The Family Bean Cafe?
Yes
No
Q5) Recommend valuable suggestions and further feedbacks of modifications in the services of
Sip and Whip Cafe?
P4 Interpretation of data to provide evidence of market potential
Theme 1: Services provided by Sip and Whip Cafe
Q1)Are you aware of uniqueness in services offered by Sip and Whip Cafe? Frequency
a) Yes 30
6

b) No 10
Theme 1:
Central Tendency Data
Mean 23.5
Median 23.5
Mode 13
Standard Deviation 9.19
Interpretation: From the above mentioned graph it has been interpret that 30 out of people are
aware about unique and innovative services provided by Sip and Whip cafe, 10 people on the
other hand do not have any knowledge in this context.
Theme 2: Facilities offered by Sip and Whip Cafe
7
a) Yes b) No
0
5
10
15
20
25
30
Column B

Q 2) What is your personal interest zone which you feel should be included
in the cafe?
Frequency
 Hygienic and Healthy Environment 9
 Gaming Zone 12
 Free Wi-Fi Zone 13
 Separate Smoking and Bar Zone 6
Theme 2:
Central Tendency Data
Mean 10
Median 10
Mode 3
Standard Deviation 3.16
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Interpretation: From the above mentioned graph it has been assessed that 40 individuals were
interviewed out of which 9 people believe that cafe should involve a hygienic and clean
ambience in their surroundings. 12 people focus on a gaming zone being brought in and 13
people expect the cafe to be well equipped with Wi-Fi and internet facilities. Lastly 6 people
wish the cafe may infuse a separate smoking area.
Theme 3: Price Range offered by Sip and Whip Cafe
Q3) Are the pricing range of Sip and Whip is affordable and as per according
to the services provided in the structure?
Frequency
a) Yes 35
b) No 5
9
Hygienic and Healthy Environment
Free Wi-Fi Zone
0
2
4
6
8
10
12
14

Interpretation: From the above mentioned graph it has been interpret that 35 out of 40 people
are satisfied with the pricing range of cafe whereas 5 people find it to be a little expensive.
Theme 3:
Central Tendency Data
Mean 20
Median 20
Mode 0
Standard Deviation 1.21
10
a) Yes b) No
0
5
10
15
20
25
30
35

Theme 4: Food Quality of Sip and Whip Cafe
Q4) Are you satisfied with the food quality provided by Sip and Whip Cafe? Frequency
a) Yes 30
b) No 10
Interpretation: From the above mentioned graph it has been interpret that 30 out of 40 people
being surveyed are satisfied with the quality and taste of food whereas 10 people believe that
flavours can still be enhanced giving it an authentic touch.
Theme4:
Central Tendency Data
Mean 20
Median 20
Mode 0
Standard Deviation 4.14
11
a) Yes b) No
0
5
10
15
20
25
30

GAP ANALYSIS
BASIS Current condition Desired condition Action plan
Products and services In present scenario Sip
and Whip cafe
provides excellent
quality innovative as
well as infrastructural
facilities to their
customers (Nijssen,
2017).
Managers main desire
at this current stage is
to modify and
innovate menu and
customise it as per
demands of their
customers.
For achieving
effectiveness managers
will have to adopt
effective measures and
also infuse
modifications as per
demands of customers.
Cost In current scenario
cafe is providing low
priced food products
so as to achieve
enhancement in
customer base.
Managers of Sip and
Whip have kept their
prices quite
competitive in relation
to their rivals.
Effective and stable
pricing strategies will
help the cafe in
achieving a
competitive edge over
their rival firms.
P5 SWOT Analysis to assess the entrepreneurial idea.
Examining the business idea is quit important and helps business entrepreneurs in
assessing effectiveness of their business ideas. Hence for undertaking such analysis, entrepreneur
of Sip and Whip cafe will have to use SWOT analysis. It is a systematic process which helps in
ascertaining strengths, weaknesses, opportunities and threats that are present for a specific
business concern. This will help a business concern in coping up with all complex situations and
maintaining effectiveness in business operations as well. SWOT analysis in context of Sip and
Whip cafe have been stated as under:
Strengths: It is quite important that entrepreneurs assess their strengths. This will help in
gaining a competitive edge against their rival firms. In present context as Sip and Whip cafe is
being modified and launched, hence major strengths of this cafe is that they have customisation
facility available in their menu where customers can choose as per their preferences (Nikraftar
and Hosseini, 2016). Also Sip and Whip cafe has a personalised smoking and liquor zone in their
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cafe. Entrepreneurs have further chosen a suitable geographical location for their cafe which
lends them a number of growth benefits as well.
Weaknesses: While launching a new business or modifying a new business it is
important that entrepreneurs examine or evaluate various drawbacks and weaknesses that may
come in their way. By doing so entrepreneurs can further develop effective strategies that will
help them in overcoming all such critical phases. In present context the geographical location of
Sip and Whip cafe is quite suitable yet has a number of drawbacks or weaknesses such as
expensive transportation, high amount of cost involved etc. All such weaknesses can be resolved
by adopting effective strategies.
Opportunities: Opportunities are an important aspect of every business which should be
effectively identified by entrepreneurs (Rahman and et. al., 2015). Assessment of market growth
opportunities will help a business concern in conducting their business processes in an effective
manner. In present scenario entrepreneur of Sip and Whip cafe will have to get a market research
conducted as that they can examine what all opportunities are available top them. Examples of
such opportunities include launching a new unit in some other location, increasing their number
of outlets.
Threats: Threat is something that may cause some kind of a damage to image of
business concerns. This can affect both internally as well as externally. Main important factors
that have been involved in this context include changing number of competitors, changes in
regulatory environment etc. An entrepreneur should carefully evaluate all these factors so as to
ensure a stable growth of their business venture.
P6 Evaluation of competitive and market environment to evaluate potential viabilities.
Every entrepreneur needs to assess current market trends and scenario in order to launch
or innovate their business ideas. Entrepreneurs can effectively execute their business operations
by adopting suitable and effective tools and techniques.
Competitive Market: For achieving a competitive edge at market place it is important
that entrepreneurs analyse all necessary details regarding market and its currently existing trends.
Also mangers need to assess overall internal as well as external factors so as to achieve
competitive edge along with growth and profitability (Read and et. al., 2016).
Competitive within industry: Competition within food and beverages industry is quite
common and prevails due to differentiation in choices of customers. It has also been found out
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there a number of cafes such as Leila and Bridge that provides excellent quality goods and
services to their customers. Hence Sip and Whip cafe will also have to frame strategies which
will help it in gaining growth and profitability as well.
Threat of New Entrants: First factor of Porter's five force model is threat of new entrants
which states that any and every business will require a quite huge sum of money which in initial
stage happens to be a barrier. Hence it is important that Sip and Whip cafe provides better quality
customer oriented services to their customers.
Bargaining Power of Buyers: Bargaining power of buyers is quite high in food sector as
customers wish to gain higher quality services that too in lesser amounts (Renko and et. al.,
2015).
Bargaining Power of Suppliers: Bargaining power of suppliers is quite low in food and
beverage sector. In this context, only labour and skilled staff gets to enjoy the benefit. Hence
managers should aim towards strategies that help in building brand image of the cafe.
Threat of Substitutes: Food and beverages sector is changing at quite fast pace and hence
threat of substitutes is always high. Managers in this context should keep updating their skills
and knowledge to enhance sustainability of firm.
Market Environment: In order to launch a new business idea, mainly there are two
environments that affect its functioning. Some of these are mentioned below: Macro environment: Macro factors include all those external elements that affect
functioning of business which is mentioned below in descriptive manner:
Political:Entrepreneurs of Sip and Whip cafe should always undertake business
operations as per legal laws and rules. Entrepreneurs if do so, then there are chances that they
may receive certain amount of benefits.
Economic: Factors that include monetary aspects are known as economic factors. In
present context it is important that entrepreneurs of Sip and Whip cafe adopt suitable pricing
policies that will lend them a stable competitive image. Examples of economic factors include
interest rates, inflation rates, export import taxes etc.
Social: Factors that affect society as a whole are known as social factors. These factors
examine current market trends based on culture, knowledge, beliefs and cultural trends of
customers. This will help entrepreneurs in fulfilling needs of customers (Swan and Morgan,
2016).
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Technological: Technology is the most rapidly changing tool which benefits
entrepreneurs in a number of ways daily. It is quite important that entrepreneurs of Sip and Whip
cafe measures all new technological changes and advancements that occur on a daily basis
(Wood and McKelvie, 2015). This will lend them a stable market position in competitive market.
Micro environment: Factors that affect internal business operations are referred to as
micro environment factors. Examples of micro factors include staff, vision, values, culture etc.
CONCLUSION
From the above mentioned report it has been concluded that identifying or recognising
entrepreneurial opportunities is today's fast growing world is quite important as it helps in
enhancing position of business ventures. This report also studies conceptions or thoughts of
common people by involving means of questionnaires. Various tools such as Porter's five force
model along with SWOT and PESTLE analysis has also been included in this report. All these
factors help in analysing market conditions and demands of customers as well.
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REFERENCES
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Online
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