Entrepreneurship Literature Review

This assignment tasks students with reviewing a selection of academic papers on entrepreneurship. The focus is on understanding how entrepreneurial opportunities are discovered and influenced by factors such as gender perspectives, human capital endowments, and individual learning styles. Students must analyze the provided texts and synthesize their findings into a cohesive review.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1 ................................................................................................................................................1
P.1 Evaluate different sources of business idea..........................................................................1
LO2 ...............................................................................................................................................4
P.2 Rational and market gap for entrepreneurial idea ................................................................4
LO3 .................................................................................................................................................6
P.3 Data which supports gap analysis in evaluation of entrepreneurial idea..............................6
P.4 Interpretation of data to identify market potential................................................................6
LO4 .................................................................................................................................................7
P. 5 SWOT analysis to assess the entrepreneurial idea ..............................................................7
P6 Evaluating competitiveness and market environments..........................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
........................................................................................................................................................12

INTRODUCTION
Identifying entrepreneur opportunities is important so that company can innovate new
and innovative ideas. It is important so that firm can earn more profits and satisfy the customers.
Company can create different unique products and launch in market. By the same, it can
maintain a distinct position in market as well as in the minds of all customers. Organization can
also give a strong competition to other companies(Alvarez, Barney and Anderson, 2013)Report
discusses about the Quality clothing company which is a start-up firm. Firm creates different
designs and helps in printing on t-shirts. Ithas different stores and it promotes business through
online sources. Assignment discusses about evaluating different sources of entrepreneurial ideas
and innovation, rationale and market gap for innovative designs using various techniques. Project
also explains about data which can support gap analysis in monitoring of entrepreneurial idea
and interpret data according to potential of market. Further, it studies SWOT analysis which can
assess the idea and evaluate competitive as well as market environment in which ideas are
launched.
LO 1
P1. Evaluating different sources of business idea
There are different sources through which company can create and develop new and
innovative ideas. It includes external factors such as Drucker's seven sources of innovation and
different internal factors. They are monitored by the firm so that it can find new ideas for
printing of shirts. External factors of Quality clothing are-
Peter 7 sources of innovative opportunity – There are 7 sources of entrepreneur opportunity.
They are:
Unexpected – In this, entrepreneur can evaluate innovative ideas which entrepreneur has
not expected in the market. For example: evaluating demands of peopleand then create ideas
according to requirements (Audretsch, 2012). Company has to monitor that business can satisfy
the needs and requirements of all customers. These points are to be considered by company and
then only, it can create new ideas. There is the second idea which is of moving coffee shops and
it can attract customers a lot.
Incongruity – In this stage, entrepreneur can develop such an innovative or unique idea which is
different from the competitors. Company in the future can develop new techniques of printing
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which can attract more customers. Firm wants to create such ideas which can provide unique and
different experience to all people so that they can purchase the clothes (Chaston, Sadler and
Smith, 2012). Organization can apply audio techniques in moving coffee shops which is the
second idea to capture more consumers.
Process need – It means identification and removing weak points and firm can create
unique and innovative ideas according to demands of all customers. For example: firm can
evaluate the needs and requirements of all people and create printing ideas as well as process
which they can apply in their clothes. Company can provide coffee at cheaper rates and can
provide extra products with coffee to attract more customers.
Industry and market structure – Company can evaluate changes in industry and market.
Firm after evaluating the market can make changes in processes and other activities. For
example: organization can change techniques of printing and create new and innovative designs
which are different from competitors. In second idea, firm can hire more employees so that it
increases the delivery process and can provide coffee at cheaper Rates whixch helps in
gatheuiring more customers.
Demographics – In this stage, company can evaluate the changes in population. They can
evaluate that T-shirts are used by youth. So, firm has to create innovative designs of printing
according to the needs of youth. There is second idea which is of moving coffee shops and it is
targeted to youths and children. So, firm wants to change prices and activities according to the
requirements of youth and children.
Changes in perception – It has to evaluate the thinking and views of all customers. Thus,
after evaluating this, firm can put emphasis on advertising and promotional techniques so that
more people can become aware about printing designs (Gartner, Carter and Hills, 2016). In
second idea firm can do online promotion of coffee products which helps company to attract
more consumers.
New knowledge – Firm has to evaluate different technologies in printing to attract more
customers. Company can apply the latest and recent technologies which can produce good
quality of coffee and increase delivery process to satisfy customers.
STEEP factors
There are different external factors which can affect company. It includes-
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Social – Company can create designs of printing according to values and needs of all
customers. Firm can create coffee products and change process according to people.
Technological – Company can do online promotion and use innovative technology for the
promotion of printing designs (Gonzalez, Alvarez and Solis Rodriguez, 2011). Firm wants to
increase production and so, hence it uses innovative technology which can produce more amount
of coffee in only 5 hours and can satisfy more customers.
Economic – Inflation can affect company. Due to this, firm can sell printing t shirts at
lesser cost so that people can purchase it. In second idea also company charges low prices of
coffee products.
Environmental - In first idea, company cannot waste items which are required in printing
so that there is less pollution to environment. In second idea, firm uses systems and machines
which can reduce the garbage in producing coffee.
Political – In both the ideas, company can set prices which are fixed by government and
hence, can decide the prices of all products and can think of innovative ideas which can be
applicable to all products.
There are various types of innovation such as process, product and incremental innovation.
Process innovation: It refers to the implementation of a new and improved production
method. It helps the company to remain competitive and meet customer demand more
effectively. It is a function which is used to. increase production and reduce the costs. If
company innovates in process or methods in development of product then it is called process
innovation. Company can change the process such as they can develop machines which can
provide more amount of coffee and in other idea, they can use unique online tools processes to
promote their products.
Product innovation: It means changing the features or uses in the product. So, company
can develop new designs of printing for customers. In the second idea, firm can create different
types of coffee which can attract more customers.
Increment Innovation: In incremental innovation, there are changes in the existing
features and uses then there is development of new product. Company can make changes in
existing printing designs to give unique experience to customers(Gruber,MacMillan and
Thompson, 2012) .
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Big bang: In big bang innovation, company uses new techniques and tools to produce
new product and give different experience to the people. It is a more effective and cheaper way
for innovation as compare to others.
Difference between invention and innovation:
Invention Innovation
 Invention refers to the creation or
introduction of a product for the first
time.
 It is an original idea and required a lot
of research.
 It is concerned with single product.
 It is possible with technical and
scientific skills.
 Innovation refers to the improvements
in existing product.
 It is a practical implementation of a
new innovative idea.
 It is concerned with various products
and processes.
 It is possible with technical as well as
marketing skills.
Schumpeter’s Theory of Innovation
According to this theory innovation is crucial for increased investment in business and
for fluctuations of company (Haase and Lautenschläger, 2011). It means use of new and latest
technologies,new methods and new materials which can bring innovative ideas in business. It has
developed two stages which is first approximation in which influence of innovative ideas are
observed. Second is the second approximation in which responses from the applications are
observed. In this speculation is there. Company can use this method to innovate new ideas in the
business.
LO2
P.2 Rational and market gap for entrepreneurial idea
There are lot of differences between products which are actually manufactured and in the
market(5 Great 'Gap in the Market' Startup Ideas, 2016). Different ways to identify gap are-
Identifying the customers – In this company has to identify the needs and requirements of
all the customers. They have to identify the needs and requirements of all customers. So hence
company identifies the need of customers and fulfils need that they want block printing so hence
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firm fulfils that need. Thus firm can fulfil needs of all customers and thus identify gap between
actual design and customers needs design.
Segmentation – It can be define to geographic segmentation. For example customers have
different needs and wants as they are located in different rural and urban areas. Their needs are
different as they belong to different age group such as teenagers or adults,customers do different
occupation such as industry or services so their wants are differentiate. Due to different needs
and wants of all customers and firm cannot fulfil all demand that's why gap exists between actual
and market. There are three types of market segmentation, that are described below:
Behavioural: It is mainly based on customer's perception or their buying behaviour. It is
a process of dividing total market in small uniform groups. It is done by the marketers by
keeping customer's buying behaviour in mind.
Demographic: It is used by various companies to target the consumers of products more
accurately. It is concerned with age, income, education, gender and family size of the customers.
Marketers divide target market in segments on the basis of above mentioned factors.
Geographic: It is based on region or the location of customers. This strategy is used by
companies when it is serving its products in a particular area. It is mainly used by small
businesses who serve products or services in a local or regional territory.
Features of product - There are lot of differences between tangible, intangible features
and benefits of product (Hansen ,Shrader and Monllor, 2011). For example block printing is
attractive and have a good design but it cannot give many benefits to all customers so hence it
cannot fulfil all demands of customers. Due to this there is gap between actual and market
demand. Types of features are explained below:
Tangible: It refers to the features that can be felt by senses such as packaging, size,
quantity, logo etc.
Intangible: It can be defined as those features which can be felt by the customers by
using the products.
Benefits or features of products:
 The products that are offered by Quality Clothing company are mainly based on current
trend of market, so it can attract the large number of customers.
 The marketers of the company to determine needs and fulfil them on time, which help to
set a positive market image of the company..
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 Products of Quality Clothing company are concerned with market fashion, which helps to
acquire more customers.
Porter five forces of model – There are various factors which can impact the company. They are-
Competition in the industry - There are various competitors in the market. So thus they
can charge higher prices for all products (Jennings and Brush, 2013). Firm charges prices at low
level. So due to this there is gap exists between actual and market price.
Potential of new entrants into an industry – In this new entrant comes in the market. They
uses latest and recent technologies which increases their profits. Firm is using old technologies
so hence there is gap which is existed between actual and market trends.
Power of suppliers – In market the supplier charges higher prices. But in company
supplier charges lower prices son hence there is difference between the prices which are charged
by supplier in firm, and in market.
Power of customers – If there are many customers are in market. So if there are many
customers they can put pressure on company to charge higher prices. But firm charges lower
prices of all products. So due to this there gap exists between actual and market demand.
Threat of substitutes – If there is an substitute which brings new strategy which is high
premium strategy in which it charges higher prices from all customers. But firm charge low
prices from customers. So hence there is difference between actual and market price.
There is industry life cycle which includes introduction,growth, maturity and decline.
 In introduction stage company brings lot of printing designs of clothes in the market.
Hence it can earn more profits and market share. Thus in this stage it starts new ideas to
create new designs of printing which can be printed in different clothes.
 In Growth stage company starts bringing new and innovative ideas through which
company can bring new and different designs in the market. It has evaluated new trends
and thus create printing designs according to latest trends in the market. Thus it can
bring variety of printing designs printed in clothes in the market. It can earn more
profits at growth stage.
 Third is maturity stage in which company reaches at top level and now trends are
changing but firm has changed itself according to recent trends. This is supreme stage.
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 Lastly is the decline stage in which company has created many changes and there are
various trends in market. (Kirzner, 2015)Thus it cannot made changes according to
recent trends in the market. Hence company cannot earn profits and in this stage there
are less profits earned by company . It cannot increase the market share and there is low
growth of company.
LO3
P.3 Data which supports gap analysis in evaluation of entrepreneurial idea
There is supporting data which provide necessary information. Due to this data there is
gap exited between actual and market data (Neck and Greene, 2011). Main reason is the potential
of new entrants in the market. In this company had used secondary research in which it has done
a survey to find the gap between actual and market demand. Data of company are-
Basis Company Rival industry
Competition in industry Company charges lower prices
that is 20000£ for all their
products.
Rival firms charges higher that
is 30000 pounds of all the
products.
Potential of new entrants in the
market
Company fixes 30000 pounds
as selling price which is low as
compared to rival firms.
New entrants fixes 50000
pounds as selling price which
is higher than company.
Power of suppliers Supplier charges 25000
pounds from all suppliers
which are low as compared
than supplier
Supplier charges 10000
pounds which is higher as
compared to firm.
Power of customers Firm charges 35000 pounds
from all customers.
Company charges 50000
pounds from all users which
are higher than company.
Threat of substitutes Company is charging 40000
pounds from all users which is
low as compared to substitutes.
Substitutes charges 50000
pounds from all customers
which is high as compared to
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all customers.
P.4 Interpretation of data to identify market potential
It can be interpreted from the above data that there are many differences between actual
and market data (Renko and et. al., 2015). Below is explanation of differences between actual
and market data -
 Company charges 10000 pounds lower as compared to rivals. It is due to different
competitors which are there in market. It charges lower prices so that it can attract more
customers and can beat the competitor. Therefore it charges lower prices from all
products.
 When there is new entrant in the market then company charges 30000 pounds from all
customers and it fixes 30000 as selling price which is lower as compared top rivals. It is
being done as there are many new entrants in the market (Renko, Shrader and Simon,
2012). This is the reason of charging lower price from all the customers.
 Company's supplier charges 25000 pounds from all customers and it is high as compared
to competitors. Thus firm can shift to competitors suppliers so that cost can be reduced
and they can earn more profits.
 Company charges 15000 pounds less from customers as compared to competitors as there
are many competitors in market. It is also done to capture more customers in minimum
time
 Company charges lower prices that is 10000 less as compared to substitute. It is done as
there are many rivals in the market. This is also done to capture more users and to
increase the profits in market.
LO4
P. 5 SWOT analysis to assess the entrepreneurial idea
Company can perform SWOT analysis and check the impact of macro environmental
factors ,market and competitor analysis on the SWOT analysis of company. Hence impact of
external factors on SWOT analysis are-
Strength – It uses latest technologies and has expanded various operations in many
countries. Due to social factors people are demanding more goods so hence company is using
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latest technology to increase profits and to increase operations. In market there is demand of
printing industry so thus company is using latest technologies so that it can increase the profits
and can increase the market share. Due to recent tools and techniques it can increase demand if
company and at same time satisfy the customers. Thus it can widens the operations. Competitors
are using latest technologies so that they can increase their profits an market share (Shepherd,
2015). Thus due to rival's strategy company uses latest and recent tools and techniques so that it
can increase the production and can do more printing on T- shirts. Hence it can easily widens and
expand their operations in many countries.
Weakness – It has charged higher price from all customers and there is highly diversified
portfolio of business which reduces the sales . There is a macro environmental factor such as
economic factor such as deflation in which products are charged at lower prices. Hence company
can charge higher price of all T-Shirts and other clothes. In industry there is higher demand of
printing company (Wright and Stigliani, 2013). So thus company give variety of printing designs
to customers thus they confuse the customers a lot. Hence it reduces the sales of company. There
are many competitors in the market. They are coming with latest and different designs hence
company is diversifying their products at larger scale. So due to this it reduces the sales as
consumers do not purchase the products as they are confused that which products they had to
purchase. Hence it directly reduces the sales and profits.
Opportunity – Company wants to increase the operations and widens the business. It has
to strengthen its brand image. There are good conditions and good progress in the market. Thus
company can easily widens the business and increases the operations in minimum time. There
are macro environmental factors such as technological factor which can impact the opportunity.
Company can adopt the latest and recent technologies so that they can have wide variety of
printing operation's printed on T- Shirts. Thus it can satisfy the customers and can increase the
profits of business. Hence it can easily widens and expands the business in minimum time. As
the competitors are using latest and recent technologies in market then company is using
innovative and latest technologies to beat the competitor. Hence they can earn more profits and
can increase the operations. Thus helps in maintaining good image in minds of all customers.
Therefore they can easily strengthen their brand in less time.
Threats – There are various threats in the market due to many competitors. Company is
not upgrading the employee related policies hence it increases the labour turnover and increases
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the absenteeism of employees in the company. It reducers the productivity and sales of company.
There are latest technologies for employees up gradation which are used in market. But company
cannot adopt latest technologies to upgrade employees. Hence it reduces the labour turnover and
increases the absenteeism of employees in the company. Competitors are creating latest
technologies for increasing employees productivity(Zahra and Wright, 2011) . But company
cannot adopt latest technologies and hence cannot increases the productivity of employees. Thus
it reduces the sales of the company. Thus firm cannot increase the profits.
P6 Evaluating competitiveness and market environments
Entrepreneur are individuals that create opportunity into business idea. While
establishing entrepreneurial unit it is important to evaluate competitors and market environment.
This evaluation will act as a tool to determine product's success or failure. To prevent any future
consequences market analyst conduct research to determine whether offering will appeal or will
face rejection from target customers. Quality Clothings conduct research for their newly
launched business in order to determine potential viability. It will help in analysing market
environments that will signify financial status in terms of profit returns and meeting commitment
of creditors. Following are competitive and market environment analysis that will help in
determining business viability of Quality Clothings: Demographics analysis: Here, segments such as family, age, income, are evaluated of
target audience. It helps in understanding customer's perception that will act as an input
for operational unit. Quality Clothings intend to deliver products that are economical for
buyers. Here, target market is for age group of 18-35 years. Generally, youth are focused
for offerings due to rising demands of customize printing. Hence, data collected shows
preference among youths for which low pricing strategy should be implemented. Psycho graphics analysis: Here, thought process of buyer is analysed in order to
determine acceptance and rejection of product. People are focused upon trends i.e. they
tend to follow what is in market. As per research it is concluded that small segment of
people are demanding for our product. Therefore, Quality Clothings will aim at
delivering t-shirts with tag-lines or printing that will connect buyer in some way or the
other. This strategy will leave an impact upon customer and will help in enhancing
productivity. It is important to meet needs and requirements of buyer by analysing
various factors present in market environment.
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 Behavioural analysis: In this category it is observed that how customer will respond
towards product. Analysis of customer behaviour such as shopping history, clothing
preference, internet usage, etc. is used here which will help in identifying market
positioning. For Quality Clothings online sale using digital platform will help in
acquiring large market segment. Company will offer customer with user friendly website
that will showcase multiple prints. As people are techno friendly, therefore customization
is one more feature that buyer can use where he can design its own print using our
designing tools that are attached with website. By analysing this factor it is clear that our
product and its associated services must possess convenience to enhance customer
experience.
 Environmental analysis: This factor helps in determining all the macro environment
such as political, legal, economical etc. that will affect business. Basically, three main
area that our business require focus are present economic status, payment method and
shipping charges. Current competitive market influence buyer by providing them with
shipping which is economic and fast in nature. By analysing this report Quality Clothing
will include advance and convenient payment method for their services and products.
Along with this vouchers or discounts can be given to frequent visitors. This will not only
increase customer base but will also help in delivering services that will cast long lasting
impact on customer's brain. There two types of market environments, explained below:
Macro environment: It is related to the whole economy rather than a particular region. It
includes various external factors such as gross domestic products, inflation, employment, fiscal
and monetary policy. It is linked with the business cycle of the company. The factors that are
related to the macro environment are uncontrollable.
Micro environment: It is defined as the environment which is affected by the nearby factors of
a company. It includes company, customers, suppliers, clients, intermediaries etc. These factors
also influence the decision making ability and performance of the company.
 Competitive market: It refers to the market where a large number of competitors compete
with each other to fulfil the demand of various customers. These is numerous producers
of same good in competitive market. It can be divided in to three parts, that are described
as follows:
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Substitute goods: It refers to the goods that can be used alternatively. These type of goods affect
the price and demand of same products. These goods are such products that a costumer perceives
as related or comparable. Substitutes are the products that can be used for same purpose by
various customers.
Demand: It is the quantity of the products that customers are willing to buy at various prices. It
is a consumer's desire and willingness to pay an amount for a particular product.
Target audience: It is a part of market that a company choose to sale its products. It can be
defined as a selected group of people which is identified by the marketers of the company as
supposed receiver or buyer of the products.
CONCLUSION
It can be concluded from above report that identifying entrepreneurial opportunities are
very important for every business. Company can create new and innovative ideas through
evaluation of different opportunities. There is evaluation of different sources of entrepreneurs
ideas and innovation. There are many tools and techniques of finding rational and market gap in
company such as porter's 5 forces model .There are different data through which gap analysis can
be evaluated and their interpretation. There is SWOT analysis and different factors such as
market,industry and competitor analysis which can affect SWOT analysis. There is evaluation of
competitive and market environments in which ideas are launched to evaluate potential of
company.
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REFERENCES
Books and Journals
Alvarez, S. A., Barney, J. B. and Anderson, P., 2013. Forming and exploiting opportunities: The
implications of discovery and creation processes for entrepreneurial and organizational
research. Organization Science. 24(1). pp.301-317.
Audretsch, D., 2012. Entrepreneurship research. Management Decision. 50(5). pp.755-764.
Chaston, I. and Sadler‐Smith, E., 2012. Entrepreneurial cognition, entrepreneurial orientation and
firm capability in the creative industries. British Journal of Management. 23(3). pp.415-
432.
Gartner, W. B., Carter, N. M. and Hills, G. E., 2016. 7. The language of
opportunity1. Entrepreneurship as Organizing: Selected Papers of William B. Gartner.
p.218.
Gonzalez-Alvarez, N. and Solis-Rodriguez, V., 2011. Discovery of entrepreneurial opportunities:
a gender perspective. Industrial Management & Data Systems. 111(5). pp.755-775.
Gruber, M., MacMillan, I. C. and Thompson, J. D., 2012. From minds to markets: How human
capital endowments shape market opportunity identification of technology start-
ups. Journal of Management. 38(5). pp.1421-1449.
Haase, H. and Lautenschläger, A., 2011. The ‘teachability dilemma’of
entrepreneurship. International Entrepreneurship and Management Journal, 7(2),
pp.145-162.
Hansen, D. J., Shrader, R. and Monllor, J., 2011. Defragmenting definitions of entrepreneurial
opportunity. Journal of Small Business Management. 49(2). pp.283-304.
Jennings, J. E. and Brush, C. G., 2013. Research on women entrepreneurs: challenges to (and
from) the broader entrepreneurship literature?. Academy of Management Annals. 7(1).
pp.663-715.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Neck, H. M. and Greene, P. G., 2011. Entrepreneurship education: known worlds and new
frontiers. Journal of Small Business Management. 49(1). pp.55-70.
Renko, M. and et. al., 2015. Understanding and measuring entrepreneurial leadership
style. Journal of Small Business Management. 53(1). pp.54-74.
Renko, M., Shrader, R. C. and Simon, M., 2012. Perception of entrepreneurial opportunity: a
general framework. Management Decision. 50(7). pp.1233-1251.
Shepherd, D. A., 2015. Party On! A call for entrepreneurship research that is more interactive,
activity based, cognitively hot, compassionate, and prosocial.
Wright, M. and Stigliani, I., 2013. Entrepreneurship and growth. International Small Business
Journal. 31(1). pp.3-22.
Zahra, S. A. and Wright, M., 2011. Entrepreneurship's next act. The Academy of Management
Perspectives. 25(4). pp.67-83.
Online
5 Great 'Gap in the Market' Startup Ideas. 2016. [Online]. Available.
<https://smepals.com/startup/5-great-gap-market-startup-ideas>
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