Identifying Entrepreneurial Opportunities

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Evaluate sources of entrepreneurial ideas and innovation................................................3
TASK 2............................................................................................................................................5
P2 Explain rationale and market gap by using relevant tools and techniques........................5
TASK 3............................................................................................................................................9
P3 Evaluate gap analysis with specific entrepreneurial idea..................................................9
P4 Interpret data appropriately to provide evidence of market potentials............................13
TASK 4..........................................................................................................................................15
P5 Apply a SWOT framework to support an objective assessment of entrepreneurial idea15
P6 Evaluate the competitive and market environments.......................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Entrepreneurs are the persons who operate their business and bear risks thereon. This is
termed as an initiative exercise which is having immense opportunities to start own business and
run with the actual procedure. When own business is established then high opportunities can be
seen by an entrepreneur in order to take advantage of those opportunities and expand the
business. An entrepreneur is involved in lead situations and involves them within new goods and
services and methods to organise them. This report is made on Beauty Cosmetic which a
company dealing in cosmetic products such as highlighter, moisturisers, make up remover,
brows enhancer, foundations and many more. The major purpose of formulating this report is to
examine ideas for innovation within rationale market gap along with required tools and
techniques. Along with this data is gathered with the help of gap analysis in potential markets
and with evidences. At the last part of the report SWOT analysis and evaluation of market
environment is performed along with potential viabilities and feasibility (George and et. al.,
2016).
TASK 1
P1 Evaluate sources of entrepreneurial ideas and innovation
With the help of current trends new and innovative business ideas are stimulated and are
encouraged by market and are summarised on the basis of current market trends and
examination. With the help of proper research and study customer needs and wants can be
understood and that can be treated as sources of idea. By taking help of skills and knowledge
thoughts can be implemented in ideas and that can be converted into passion. Changes are
exhibited within extrinsic environment where high opportunities are taken and their sources are
described below:
Macro environment: Beauty cosmetics is based on circumstances which are there in the
economy or in some sector of region. So innovation within this product is having some
challenges within economy and that are explained as under:
Social factors: The customer gets attracted towards emerging taste and habits along with
market changes. People are highly focused on green customers who are highly active in using

those good and services and diminish environmental negative impacts. This is helpful for the
entrepreneur to encourage so as introducing innovation in product.
Technological factors: This source is dependent on enhancing new technologies which
is going to be helpful for the business and their venture as they are providing best possible
solution in the market. Beauty cosmetics is having leading technologies in their production and
they are highly obeying rules which are imposed by government. This is giving them immense
opportunities to the entrepreneur with their personal capabilities that is associated with the
business (Jarvis, 2016).
Drucker’s sources of innovation:
This source of innovation helps entrepreneur as they are leading within opportunities and
enhance further improvements in existing product and services. Beauty cosmetics entrepreneur is
having improvements in their business in order to meet market demand. They have come up with
new business idea in which several innovation sources are elaborated by Peter F Drucker they
are as under:
Unexpected: This innovation is taking place undoubtedly which has happened by chance
and came up with an emerging innovation. Beauty Cosmetics is considering a predictable
innovation which occurs accidently. In this, their gathered new ideas which is required to be
implemented and they come up to them accidently (Nieto and González-Álvarez, 2016).
Incongruities: An entrepreneur solves incongruities which have risen in the business
organisation along with the source of new innovation. This is known as human nature that to
solve incongruities which are there in the business. This source of innovation helps the
entrepreneur to stay motivated and search for new opportunities in order to introduce new
product range in beauty cosmetics. With the help of solving these incongruities a business may
have high recognition to ideas and market opportunities.
Market Structure: This source is giving high chances to see market innovation by
which entrepreneur may have their business growth. Within this parameter beauty cosmetic the
entrepreneur is using World Wide Web to search out various information by taking help of
Google browser. This is helping them to cater market and grab those market opportunities which
may be helpful for the company to flourish.