Analyzing Entrepreneurial Opportunities and Innovation Sources

The given assignment involves analyzing entrepreneurial opportunities and sources of innovation. It includes various studies and research papers on the topic, such as Drucker's Seven Sources of Innovative Opportunity, Porter's Five Force Model, and others. The assignment also requires identifying elements of entrepreneurial opportunity constructs and recognizing what scholars are really examining. It provides a comprehensive understanding of entrepreneurial opportunities, market knowledge, and innovation sources.

Identifying Entrepreneurial
Opportunities

INTRODUCTION
An entrepreneur is the person who is responsible to evaluate the business opportunities in the
market and to commence the business operations to achieve those opportunities while bearing all
the risk involved. To be an entrepreneur it is necessary to develop creative ideas and effective
ways to start the business activities in the desired manner to survive successfully in the present
competitive advantage. Entrepreneurial opportunities are the process of formation a new business
venture which is started on the basis of a new idea or opportunity identified in the market.
Finding a new business possibility is essential for establishing a business venture in the
competing market. The business environment consists of a dynamic nature and it results in
changing the competition in the market on regular basis(Grégoire and Shepherd, 2012). So, the
entrepreneur is required to introduce some new idea in the market to sustain for a longer period
of time. The present report is based on the idea of launching Solar Patches for mobile phones to
help them charge directly with the sunlight without the help of electricity under the new
company Power. The report will contain the methods and framework that will assist in building a
business venture. The report will also define the product, targeted market base and the
knowledge of the competitors. Market research is explained and the SWOT analysis of the
organisation is also performed.
1. Sources that inspire the new business idea and motivated for set up a new business
The recent trends in the market give encouragement to develop several business ideas to the
entrepreneurs with the help of different sources which are online research or developed on the
basis of future perspective. The new business idea that is generated from the recent trends is
situated in Milton Keynes, UK. The entrepreneur will provide the solar patches to charge the
mobile phones with the help of sunlight. The concept of defining the new business venture is
introduced by Ducker in the famous book “ Innovation and entrepreneurship” that explains about
the sources of innovation which are as follows:
 The Unexpected: The business environment involves many unexpected events and
changes which results in success or failure for the business venture in the market. The
unexpected conditions in the business environment are considered to be very powerful as
it inspires the business person and allow them to innovate best ways for the specific
situation in the market. This will help the entrepreneur of Power to establish their product
according to the opportunities of the market successfully.
 Incongruities: The success of the business venture depends on the products the company
is supplying to their customers and what is actually required by the customers. It can be
achieved by the help of proper research of the actual needs and desires of the customers
before launching the product. The demands and feedbacks of the customers are the
appropriate way to define incongruity. This will help the new venture power to
successfully launch their product in the market (Drucker's Seven Source of Innovation
Opportunity, 2015).
 Process needs: This is explained by the ducker to be more focused on the task instead of
focusing on the situation. The opportunities and innovations are required to be analysed
properly to determine the strengths and weaknesses of the business. This will help the
entrepreneur to develop effective solutions to overcome these weaknesses.
 Industry and Market Structure needs: The new business venture is required to
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construct specific modification in the service they are planning to provide to the
customers. The company is required to analyse the change in the technology which will
increase the opportunities for the company in the market.
 Demographic: The changes taking place in demographic will definitely affect the
business in any manner whether it may be positive or negative. The new venture is
required to analyse the current scenario and to construct their plans accordingly. The
changes in the demographic will help the new business venture to attract the customer
base with the new and innovative product.
 Change in perception: In the recent time the market is changing on regular basis and
these changes leads to change the perception of the people in the market. These changes
are noticed very rapidly because of the social media that will assist the entrepreneur to
launch its products that is innovative and which is designed to target the customers
effectively.
 New knowledge: The knowledge is the utmost way to launch a new product in the
market in most effective manner. Appropriate knowledge of the changes in the market
will help in targeting the market in proper manner and will help the company to gain
competitive advantage in the market effectively (Hang, Garnsey and Ruan, 2015).
All these sources assist and encourages entrepreneurs to develop new business ideas and to
attract the market by fulfilling the demand and needs.
2. Introduction of business idea, finding potential and targeted audience for the product
The advancement in technology helps in completion of task smoothly and in very productive
manner. The demand for the advanced products are really high in the market as compared to the
outdated ones. The technology has evolved so much that the importance to introduce products in
the market is required to be consist of latest technology to attract the customers. As, the use of
mobile phones is increasing hugely it will be a great opportunity to attract the users with these
solar patches. These solar patches will attract the customers as it will help them to charge their
phones with sunlight at day time when they are not able to put their phone on charger as it is not
possible to find a socket everywhere. To encourage the new entrepreneurs the government of UK
is helping the newly graduate with financial support for a innovative business idea. The
graduates are required to give the presentation of their business idea and if the government feels
the importance of the new idea to be launched in the market will provide funds accordingly. The
funds for developing new business opportunity in the market will be £150,000 out of which
£90000 will be provided in form of loan at a very nominal rate of interest. Whereas, for the rest
amount £50000 will be given as grant and the remaining £10000 will be invested by entrepreneur
as capital.
The targeted customer base for the new product will be the mobile phone users and specially
those who work on fields and open areas as they will be most benefited from the new device. As
the solar patches will be costlier so, it will attract the customers who are curious to use new
technologies and move with the market trends (Mitchelmore and Rowley, 2013). The potential
customer base for the future objectives will be the large number of mobile users as the company
will try to find alternate to reduce the price to gain more market share.
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3. Competitor analysis that looks at competitive marketplace
The competitor analysis can be defined as the examination of the strengths and weaknesses of
the competitors present in the market. This analysis is considered to be very important as it helps
effective planning for the new products. The analysis helps in providing strategies to evaluate the
threats and the opportunities by the use of offensive and defensive strategies. The best way to
analyse the competitive market the entrepreneur can conduct porter's five force model.
Porter's five force model: The porter's five force model consists of different tools which are
used to analyse the competition present in the market for the new venture. The new business
venture is required to analyse the competition as it will affect the business activities in
unattractive manner and it will result in failure for the new business idea. The model is described
as follows:
I
llustration 1: Porter's five force model,2018
Source: Porter's five force model,2018
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Suppliers Power: The supplier power force helps in describing the power of a supplier that how
easily they can increase the price of the product in the market. The number of suppliers for the
product defines the bargaining power for the particular product. The small number of suppliers
are capable enough to proceed more bargain in order of the large number of buyers for a
particular product in the market(Wood and McKelvie, 2015).. As, power is the new company in
the market and the suppliers for solar patches will be less so, the business venture will enjoy the
bargaining power at a higher level.
Consumers power: Bargaining power of the user is related with their power of affecting the
price of the product and its sustainability in the market directly. When a particular product
consists of less customers then the users has the power to dominate the price of the product
accordingly. Whereas, large number of customers will lead in making the price inelastic in the
market. The new product of solar patch will be dominated by the consumers as it is new in the
market.
Threat of new entry: The business ventures which indulge huge investments to formulate the
business operations face less threat of new entry in business environment. The companies which
run products related with technology are required to make changes according to the time. Power
will face threat of new entries in the market as the product is related to technologies comes on a
regular basis I the market.
Threat of Substitutes: The threat of substitutes affects the price and the productivity of the
business venture in the market. When the customers are easily accessible to the substitute
products brings threats for the company to reduce their market share. The product Power is
launching solar patches for mobile phones will not face threats of substitutes as it is a innovative
idea for now in the market.
Competitive rivalry: In the highly competitive business environment no one organisation is in a
position to control the prices of the products in the market. Whereas, the organisation which is
running the market with a high number of market share dominates it all power to control the
price of the product. The new business venture will not deal with this rivalry in the initiating
process of it's business operations.
The new business idea of solar patches for mobile phones by the entrepreneur will definitely set
the market trend for the new business venture and will help in attaining the market share
successfully. There are many alternates in the market to charge the mobile phones but the solar
patches is a new innovation that will surely attract a large customer base.
4. Gap analysis, current and future situations and objects of business ideas
This analysis helps in evaluating the comparison between the actual performance of the business
with the potential or desired performance. The business venture is required to utilise the
resources in appropriate manner that will definitely lead in attaining the desired goals and
objectives for the company. Gap analysis helps in analysing the requirements of the business is
met effectively or not. The identification of gap between the performance and the conditions for
these differences helps in filling these gaps with the help of corrective measures. The recent
trends are defining the changes in the technology industry and in the demands and needs of the
customers as well (Tang, Kacmar and Busenitz, 2012). The introduction of solar patches for
mobiles in Milton Keynes the new business venture will face less competition for this
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technology. The competitors will increase for this business venture in the future as it the market
trend will come up with various ideas that will be technology advanced and will increase the
competition in the market. Objectives of the new business venture are defines as follows:
Introducing innovative technology: the innovation in the technology will always be
appreciated in the market for a period of time. The basic objective is to provide products to the
customers with the advanced technology in it and to capture the market share at high rate. The
entrepreneur introducing new product in the market will definitely gain advantage and great
success.
Profitability and employment generation: The long terms goal for any business organisation is
to be successful in the market and to sustain their for a long period of time. The new business
venture will generate the opportunities for employment in the market. The company is required
to launch their product to a smaller section of the society at first to get the feedback of the
customers regarding the product as, it will help in improving the product if there are any changes
required before launching it to a large platform(Hansen, Monllo and Shrader, 2016)..
Capturing market share: The new business venture is considered to have a low competition in
the markets which are coming with the new innovative products. This leads in gaining the
profitability in the market and helps in acquiring large market share. As, the times goes on the
new business venture will face competition automatically as technology changes at a very fast
pace.
5. Market research to support viability of business using range of sources such as primary and
secondary
Market research is very essential for the new business venture to conduct its business operations
in effective manner. The market research can be conducted with the help of two sources which
are primary and secondary sources. The primary sources is used to collect the data for the first
time and includes activities like questionnaire, surveys, etc. whereas, secondary research is the
collection of data from the previous researches and the past records (Neneh, 2012).
The new business venture by the entrepreneur will select primary research as the product is to be
launched for the first time in the market. The research will be processed with the help of a
questionnaire and it will include 30 people in the research that is defined as follows:
QUESTIONNAIRE
Name:
Age:
Profession:
Address:
Contact Number:
Q1. Are you aware about the solar patches?
A. Yes
B. NO
Q2. Do you need a advanced technology for charging the phones?
A. Yes
B. No
Q3. Does future of the market dependents on the technology products?
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A. Agree
B. Disagree
C. Don't Know
Q4. Do you think solar patches will be successful in the market?
A. Agree
B. Disagree
C. Can't Say
Q5. Do product introduced by Power will gain competitive advantage?
A. Yes
B. No
Q1. Are you aware about the solar patches? Frequency
A. Yes 17
B. No 13
Total 30
Mean 15
Median 15
Mode 4
Interpretation: From the above chart it can be evaluated that from the unit of 30 people 17 are
aware about the solar patches. Mean of this information is 15, median is 15 and mode is 4.
6
A. Yes
B. No
Total
Mean
Median
Mode
Q1. Are you aware about the solar patches?
Frequency
A. Yes
17
B. No
13
Total
30
Mean
15
Median
15
Mode
4

Q2. Do you need a advanced technology for
charging the phones? Frequency
A. Yes 25
B. No 5
Total 30
Mean 15
Median 15
Mode 0
Interpretation: From the chart available above it is concluded that 25 persons out of 30 need
advanced chargers for their phones. Mean of this data is 15, median is also 15 and mode is 0.
Q3. Does future of the market dependents on
the technology products? Frequency
A. Agree 16
B. Disagree 8
C. Don't Know 6
Total 30
7
A. Yes
B. No
Total
Mean
Median
Mode

Mean 10
Median 8
Mode 4
Interpretation: the information above it can be concluded that 16 persons out of 30 believes
that future of the market depends on the technology products. on the other hand 8 disagree to this
statement. 6 persons are not in favour or against. Mean of this data is 10, median is 8 and mode
is 4.
Q4. Do you think solar patches will be
successful in the market? Frequency
A. Agree 13
B. Disagree 10
C. Can't Say 7
Total 30
Mean 10
Median 10
Mode 6
8
A. Agree
B. Disagree
C. Don't Know
Total
Mean
Median
Mode

Interpretation: 10 persons out of 30 agree on the statement that solar patches will be successful
in the market, on the other hand 13 are disagree. 7 persons do not possess any opinion. Mean of
this information is 10, median is 10 and mode is 6.
Q5. Do product introduced by Power will
gain competitive advantage? Frequency
A. Yes 16
B. No 14
Total 30
Mean 15
Median 15
Mode 2
9
A. Agree
B. Disagree
C. Can't Say
Total
Mean
Median
Mode

Interpretation: 16 persons believes that the company will gain competitive advantage and 14 do
not believe this. Mean and median of this statement is 15 and mode is 2.
6. Viability and feasibility of business idea, strength and weakness of business
The new business idea of bringing solar patches to charge the mobile phones is tend to be a very
feasible idea and is considered to be a great opportunity for an entrepreneur to enter the market.
As, this new product is innovative and user friendly and comes with less competitors in the
market will lead to a great success for the new business venture (Elenurm, 2012). The innovative
idea will be backed by the government of UK with a adequate amount of financial support to
commence the required business activities.
To analyse the strengths and weaknesses of the new business venture SWOT analysis is
performed which is described below:
Strength Weakness
 The business venture is based on the
product which is advanced in
technology and will satisfy the
customers needs and will acquire a
large market share.
 As, the business environment is of a
dynamic nature and new technology is
entering in the market on regular basis
it will make the current product
outdated.
10
A. Yes
B. No
Total
Mean
Median
Mode

 The product is new and will attract the
customers with its uniqueness and
usefulness as well.
 To capture the market share on a wider
platform will require a huge amount of
fund which is a problem for new
ventures to gather.
Opportunities Threats
 New innovation with a nominal price
will attract the customers towards the
product.
 Use of natural resource for charging the
phones will help the entrepreneur to
gain competitive advantage in the
market.
 The change in technology with a new
product in future time will result as a
major threat for new company Power.
 Entry of new entrepreneur with better
innovative idea in the same sector will
be consider as threat and a loss to the
market share of the company.
Analysing strength and weaknesses of business leads in creating proper and adequate strategies
to make balance in the business operations to run successfully.
7. Risk of competition and potential opportunities for growth and development
The business operations consists of risk in each and every activity they proceed to
accomplish success in the market. The more risk involves more chances of profit for the
business venture. It is very crucial for the entrepreneur to control the risk which is related
to different issues. The new business ventures faces risk of high competition in the market.
The entrepreneur is required to formulate proper steps to minimise the risk and to run the
business operation smoothly. The new organisation is required to hire a team that should
focus on the changes taking place in the business environment. All these measure will
result in developing the new business venture successfully in the market and will allow
them to sustain for a long run in the market (Baldacchino, 2013). The new company Power
has a great opportunity for the growth and development in the long run as they can capture
the large market share by targeting a large customer base as, the product is useful for each
and every person who uses mobile phones.
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CONCLUSION
The above given report can be summarised as, it is very essential to have an innovative
idea to commence a new business in the market. The various sources are defined that helps in
generating information in starting a business successfully. The competition in the market and the
targeted audience for the product is explained. Gap analysis is performed to calculate the dilution
from the target of the actual performances. A proper research is conducted to analyse the market
conditions and the needs of the customers and their feedbacks are generated.
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REFERECNES
Books and Journals
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identification of entrepreneurial opportunities: An investigation of the opportunity-
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recognizing entrepreneurial opportunities. Management Decision. 50(5). pp.797-816.
Mitchelmore, S. and Rowley, J., 2013. Entrepreneurial competencies of women entrepreneurs
pursuing business growth. Journal of Small Business and Enterprise Development.
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Wood, M. S. and McKelvie, A., 2015. Opportunity evaluation as future focused cognition:
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Tang, J., Kacmar, K. M. M. and Busenitz, L., 2012. Entrepreneurial alertness in the pursuit of
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Hansen, D. J., Monllor, J. and Shrader, R. C., 2016. Identifying the elements of entrepreneurial
opportunity constructs: Recognizing what scholars are really examining. The
International Journal of Entrepreneurship and Innovation. 17(4). pp.240-255.
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enterprise (SME) sector: A South African perspective on fostering small and medium
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Elenurm, T., 2012. Entrepreneurial orientations of business students and entrepreneurs. Baltic
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Baldacchino, L., 2013. Entrepreneurial experience and opportunity identification: the role of
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Hang, C. C., Garnsey, E. and Ruan, Y., 2015. Opportunities for disruption. Technovation. 39.
pp.83-93.
Tseng, C. C., 2013. Connecting self-directed learning with entrepreneurial learning to
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Online
Drucker's Seven Source of Innovation Opportunity. 2015. [Online]. Available through:
<https://thepitcher.org/peter-f-druckers-seven-sources-innovative-opportunity/>
Porter's five force model. 2018. [Online]. Available through:
<https://www.visual-paradigm.com/guide/strategic-analysis/what-is-five-forces-
analysis/>
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