Entrepreneurship Opportunity Recognition

This assignment delves into the topic of entrepreneurial opportunity recognition, drawing from a range of academic sources including journals such as Management Decision, Academy of Management Journal, and Technovation. It examines how demographic changes can give rise to new business ventures and explores the role of market and technological knowledge in recognizing entrepreneurial opportunities. The assignment also touches on the construction and discovery of entrepreneurial opportunities through a qualitative lens and discusses the effect of entrepreneurial competencies on business performance.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................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..............................................................................................................................16

INTRODUCTION
Entrepreneur is an individual who establish, launch, regulate and maintain a new business
while taking risk. They are those individuals who recognize various opportunities and with the
help of innovation add value to their new business venture (Audretsch, 2012). In order to become
a successful entrepreneur, it is essential to analyse competitive market and then invest required
time, efforts and skills accordingly. This will help them to create an effective plan by developing
formative vision in order to gain success in their entrepreneurial journey. In this Present case
study, UK government launch a initiative to provide financial help in order to increase
employment level in country, for this they have decided to help new start-ups and provide young
graduates financial assistance. In this report a new venture The Family Bean Cafe is going to set
up. This cafe has planned to have exotic environment and include delightful range of coffee.
Beyond being a place to drink coffee, this cafe offers variety of innovative themes like
educational events and conferences. In this project, source of ideas and gap analysis with the
help of SWOT are included to launch this venture in successful way.
P1 Different sources of entrepreneurial ideas and innovation
In present case study, UK government formatively initiate a drive in which they
financially aid young graduates’ entrepreneurs to start their new business ventures. In order to
take approval of government to take finance help form them young graduates are required to
submit their business proposal. For this, various ideas can be taken from different types of
sources that are described below in descriptive manner:
Mass Media: Mass media mainly include, radio, magazines, internet, newspapers and
television. All these are a major sources of opportunities, ideas and information. An individual in
order to develop a new venture is required to have careful look on commercial and
advertisements advertised on these media as to find out new and unique innovations. All these
sources can benefit entrepreneur of The Family Bean Cafe to analyse current trending fashion,
perceptions of customers and other sales interest that will aid them to start their new business
venture.
Trade fairs and exhibitions: These are regular events and one of the top sources in
developing a business idea in formative way. An individual can join these fairs and exhibitions
as they are consistently being advertised on newspapers, internet, televisions and radio. By
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attending these exhibitions and trade fairs emerging entrepreneur of The Family Bean Cafe can
meet successful manufacturers, franchisers, renowned sales representatives and distributors who
can solve their queries and inspire them to thrive success in their entrepreneurial journey.
Interests and Hobbies: Interests and hobbies include those activities that an individual do
in their free time. It is one the major primary source of ideas generation for business. For
example, if a person has interest in cooking, music or travelling then they can seamlessly create
that into a business venture. They can start hospitality, entertainment and tourism sector on cost
effective way and enter in the world of successful entrepreneur. This will assist the entrepreneur
in gathering ideas related to launch of The Family Bean Cafe with innovative features to serve
the needs of customers.
Customer surveys: First base to start any business venture include costumer so it is
necessary to examine their actual needs and demands in order to provide valuable products and
services to them and gain profitability simultaneously. Customer survey help an entrepreneur to
conduct a throughout analyses and find effective sources of ideas generation. In the formative
process of launching entrepreneur of The Family Bean Cafe various form of formal and
informal questionnaire has been conducted, different observations and interviews has been
included in surveys as to bring out some innovative business idea.
With the help of all these measures and sources remarkable idea to launch a new business
venture can be generated. As UK government is playing an important role in order to encourage
these graduates by providing them effective source of finance (Hansen and Shrader, 2016). This
will help in maximising rate of employment in UK and profitability of country in gradual
manner. This effort initiated by government benefits in improving the quality of goods and
services and implementation on unique innovations in country business sector in simultaneous
way. Therefore, it is important for young emerging entrepreneur to analyse various new
opportunities and take advantages form them in order to take their career towards effective
growth path.
P2 Rationale and Market gap for specific entrepreneurial idea
New business idea developed by entrepreneur is launching of a cafe. The Family Bean
Cafe not only is going to offer exquisite range of coffee to their customers but also provides a
magnificent environment which includes colleagues meet, friends talk and healthy culture for
family. Cafe include various unique variety of full course meal and desserts in attractive way so
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to attract customers in effective way. The Family Bean Cafe separately going to take care of
family needs as for according to which low-seating chairs and short tables are offered to those
family who have old members. This cafe also includes different types of conferences and
educational events on regular intervals of time as to provide a healthy and positive environment
for students. It is important for an entrepreneur to evaluate actual behaviour of consumers in
order to gain more competitive gain in United Kingdom. The Family Bean Cafe mainly target
young adults and teenagers by providing them separate section to spend their time as an art or
pet lover. Market Gap is an opportunity as to analyses gap in market related to a product or
services which is not yet offered by anyone and provide the same. Idea of providing Low-seating
tables and chairs and regular educational events and conferences is something a unique and well
effective to satisfy needs of customers in remarkable way. Mentioned below there are concept of
market gap described below in detailed manner:
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 (Park, 2017). 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.
Identification of opportunities: To gain more advantages in market it is essential for an
entrepreneur to analyse available opportunities prevailing in market. 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
COMPITITIVE ANALYSIS
BASIS The Family Bean Cafe Leila's The Bridge
Products and
Services
Offer exquisite range of
coffee and other food
items. In addition to this
Leila's offer world-
class facilities to their
customers which
The Bridge offer
numerous range of
food and beverage
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delighted environment
where regular educational
events and conferences
will be offered.
includes excellent
infrastructure and
modifications in their
menu as per customer
demand.
items and keeps on
modifying their menu
on regular basis as per
their customer
feedbacks.
Organisation
Structure
Cafe follow functional
structure according to
which task is allotted to
individuals as per their
functions.
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 (Welter
and Alvarez, 2015).
Major
Attractions
Cafe adopted consumer
centric approach and
provide decent
environment to their
customers in order to make
them loyal.
Leila's offer various
range of food,
beverages and mock
tails to their customer
and offer flexible
working environment
to their staff.
The Bridge offer
excited range of
entertainment facilities
and different type of
cuisines in their Cafe.
Promotional
Strategy
Cafe promote their venture
by making advertisements
in radio, televisions,
newspapers, magazines
and pamphlets.
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.
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This is a growth area with having a low and medium risk. The Family Bean Cafe adopts
a consumer centric approach will benefit them in future to make numerous loyal customer and
maintain their growth rate on regular basis. In addition to this, cafe offer wide range of food
products and provide various types of educational events and conferences that will help help to
growth their venture as this can attract more amount of teenagers and adults towards their cafe.
There are different types of factors which is required to be taken into consideration by
The Family Bean Cafe that are briefly described below:
Market analysis: Being a centre of attraction in all over world, London, offer various
opportunities for business organisations to promote more unique and innovative ideas. Rising
entrepreneur can take various opportunities by providing effective services to customer. They
can gain more competitive advantages against their competitors and can ensure formative
suitability. It is essential for entrepreneur of The Family Bean Cafe to formulate strategies
according to actual needs of customers and maintain systematic measure in order to satisfy needs
of customer in effective way.
Technology: It is important for an entrepreneur to take proper use of technology and lead
their business venture towards growth path (Suddaby, 2015). It is necessary for entrepreneur of
The Family Bean Cafe to take effective use of technology and promote their new business
venture on social media sites and other promotional websites in order to ensure more
profitability.
Primary research:
It is a methodology in which collection and gathering of data are done in direct way
rather than taking the information from secondary source. In this there are numerous measures
such as, survey, interviews and questionnaire with the help of which an individual can
accomplish their objectives. With the help of primary research entrepreneur of The Family Bean
cafe can allocate fresh and correct data and can implement the same in their idea.
QUESTIONNAIRE
NAME:
AGE:
ADD:
GENDER:
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EMAIL ID:
Q1) Are you aware of uniqueness in services offered by The Family Bean 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 The Family Bean 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
The Family Bean Cafe?
P4 Interpretation of data to provide evidence of market potential
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Theme 1: Services provided by The Family Bean Cafe
Q1)Are you aware of uniqueness in services offered by The Family Bean
Cafe?
Frequency
a) Yes 30
b) No 10
Interpretation: As per the graph, it has been evaluated that most of the individuals are aware
about unique services offered by The Family Bean Cafe. In order to promote their new business
venture cafe, need to take advantage of social media.
Theme 1:
Central Tendency Data
Mean 23.5
Median 23.5
Mode 13
Standard Deviation 9.19
7
a) Yes b) No
0
5
10
15
20
25
30
35

Theme 2: Facilities offered by The Family Bean Cafe
Q 2) What is your personal interest which you want to have in Cafe? Frequency
 Hygienic and Healthy Environment 9
 Gaming Zone 12
 Free Wi-Fi Zone 13
 Separate Smoking and Bar Zone 6
Interpretation: As per the above graph, it has been seen that most of the costumer want free
Wi-Fi zone as technology is taking place every individual life in effective manner.
Theme 2:
Central Tendency Data
Mean 10
Median 10
Mode 3
Standard Deviation 3.16
8
Hygienic and Healthy Environment
Gaming Zone
Free Wi-Fi Zone
Separate Smoking and Bar Zone
0
2
4
6
8
10
12
14

Theme 3: Price Range offered by The Family Bean Cafe
Q3) Are the pricing rage of The Family Bean Cafe is affordable and as per
according to the services provided in the structure?
Frequency
a) Yes 35
b) No 5
Interpretation: As per the graph, 35 out of 40 customers’ belief that The family bean cafe has
quite affordable range of food services. This will benefit in increasing overall base of customers.
Theme 3:
Central Tendency Data
Mean 20
Median 20
Mode 0
Standard Deviation 1.21
9
a) Yes b) No
0
5
10
15
20
25
30
35
40
45

Theme 4: Food Quality of The Family Base Cafe
Q4) Are you satisfied with the food quality provided by The Family Bean
Cafe?
Frequency
a) Yes 30
b) No 10
Interpretation: As per the above graph, it has been analysed that 30 out of 40 customers are
satisfied with the quality of food served by the cafe. They are much more happy with the quality
of food being served by cafe staff.
Theme 4:
Central Tendency Data
Mean 20
Median 20
Mode 0
Standard Deviation 4.14
10
a) Yes b) No
0
5
10
15
20
25
30
35

GAP ANALYSIS
BASIS Current condition Desired condition Action plan
Products and services Provide more
innovative
infrastructural and
decent facilities to
attract attention of
customers
Market condition
currently include
modifications of menu
as per customer
demand.
Proper provision of
modifications in cafe
menu according to
consumer need in to
satisfy their wants.
Cost Cafe is offering bit
low food products and
beverages.
Cafe wish to maintain
their pricing strategy
as per pricing range
offered by their
competitors to gain
more earning.
Effective and
systematic pricing
strategy will aid them
to maintain their
pricing range in
balanced way.
P5 SWOT Analysis to assess the entrepreneurial idea
It is important for an entrepreneur to analyse whether the proposed business ideas is
effective or not (Siegel and Renko, 2012). In order to determine this, SWOT can be done by an
entrepreneur. SWOT is a systematic process with the help of which ascertainment of various
strength, weaknesses, opportunities and threats can be determined. This will further help
entrepreneur to cope up with future issues in effective them and ensure sustainable growth on
same page. Launching a cafe which provide low-seating chairs and tables and educational events
and conferences include new uniqueness. Therefore, SWOT will aid in analysing in all positive
and negative aspect of their business venture in systematic way. Mentioned below there are
SWOT of proposed idea:
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Strengths: It is essential for an entrepreneur to evaluate their strength in order to gain
more competitive advancements and success in an effective time frame. In relation with,
launching of The Family Bean Cafe main strength of business venture is their uniqueness in low-
seating tables and chairs to aged members and various educational events and conferences. This
will magnificently benefit in attracting large amount of customer base. In addition with this,
major strength of this cafe is their well-mannered and hard-working staff which thrives to satisfy
needs of customers in best possible way. Besides this, geographical location which is selected by
entrepreneur offer remarkable opportunities for rising business ventures, thus The Family Bean
Cafe can run their business activities by taking various advantages offered by this location.
Weaknesses: In order to launch new business idea in a marketplace it is essential for an
entrepreneur to evaluate all possible end results in effective way and develop certain measures to
overcome them in formative manner (Audretsch, 2012). As to launch The Family Bean Cafe
attractive location in London is selected, yet it is a beautiful place but it possesses some major
drawbacks which include, high price of transportation channel. With the formation of proper
pricing strategy and policy and selecting an affordable yet effective transportation channel these
weaknesses can be overcome in efficient manner.
Opportunities: It is necessary for an entrepreneur to find various opportunities
prevailing in market in order to develop their business venture in more feasible manner. This will
help them to identify various opportunities that may aid them to conduct their business activities
in effective manner. In relation with, The Family Bean Cafe, it is important for entrepreneur to
conduct firm market research as to find different opportunities like creation of new outlet in
nearby areas which will benefit them to take their business ventures towards high growth.
Threats: Threats include those elements that affect functioning of business in both
internal and external manner. Some of the factors included in this factor are, emerging number of
competitors and changing regulatory environment. It is important for an entrepreneur to analyse
all these factors as to ensure sustainable growth. Entrepreneur of The Family Bean Cafe is
required to evaluate some basic elements like possible threat in relation to pricing strategy of
rival business and high rate of operating cost.
P6 Evaluation of competitive and market environment to evaluate potential viabilities
In order to launch a new business idea, it is important for an entrepreneur to evaluate
current industry conditions prevailing in market. With help of effective tools and techniques
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entrepreneur can execute their business in more effective manner and provide remarkable
satisfaction to their customers:
Competitive Market: It is important for a business venture to analyse all possible market
research in relation to current prevailing trends and perceptions. It is necessary for a manager to
examine overall external business factors in order to gain more competitive advancements and
long term sustainability. Business can evaluate current adopted strategies of their rival Cafes and
possess proper knowledge of technology and tools. This will allow them to take suitable
measures in their products and services. With the help of Porter Five Force Model this can be
described in more effective way:
Competitive within industry: Rivalry in food and beverages industry is mainly high due
high rate of switching and low rate of product differentiation. In addition to this there are wide
range of Cafes like Leila's and The bridge who provide exceptional range of services to their
customers (Kohlbacher and Levsen, 2015). Therefore, it is essential for entrepreneur of The
Family Bean Cafe to formulate their strategies accordingly to gain more advancements.
Threat of New Entrants: To enter in food and beverage industry a huge investment of
fund is required which act as a barrier in the path of new entrants. Therefore, it is essential for
entrepreneur of The Family Bean Cafe to offer more consumer centric services for example
educational events and conferences.
Bargaining Power of Buyers: In food and beverage industry power of buyer is
simultaneously high as they have various options to switch to any other brand. Customers wants
to make less expenses and take more advantages in cost effective price band.
Bargaining Power of Suppliers: In food and beverage industry there is low power of
supplier exists. While effective labour and skilled staff is the only individual who enjoy power in
this sector. Therefore, entrepreneur of The Family Bean Cafe is required to take necessary steps
while considering strategies in order to ensure long term sustainability of cafe.
Threat of Substitutes: In today's recent environment threat of substitutes within food and
beverage industry is quite high. Thus, it is essential for entrepreneur to make themselves up-to-
date with all necessary knowledge related to this industry that are being offered by their
competitors. This will aid them to make proper strategies and on the same hand, benefit them to
gain more advancements.
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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: It is important for entrepreneur to perform their functions related to Cafe in
systematic manner and abide all rules and regulations stated by UK government. It is essential
for entrepreneur of The Family Bean Cafe, to follow all rules that are related to environmental
law, current tariff rates, taxes and employment rates. This will provide them benefit to conduct
their functions in such a way that is desired by country law.
Economic: It is important for entrepreneur of The Family Bean Cafe to perform their
business activities in such a way as to comply all legal compliances of United Kingdom
government. By taking various advantages from this factor entrepreneur can develop effective
pricing policy by analysing factors related to inflation rate, net income of an individual and
interest rate.
Social: It is essential for an entrepreneur to evaluate and analyse all current elements
related to latest technological tends that is currently prevailing in hospitality industry in order to
ensure sustainability. By doing this entrepreneur of The Family Bean Cafe can fulfil need and
demands of customers in effective way.
Technological: Technology is changing with fast phase and there are numerous
advancements taking place in regular manner (Grégoire and Shepherd, 2012). It is essential for
an entrepreneur to measure these changes in effective manner while setting up their Cafe in
London. This will benefit them to books tables for their customers via mobile apps and online
bookings. This will aid them to gain more competitive advantages against their competitors.
 Micro environment: Micro environment include those elements that affect internal
functioning of business. There are different types of micro factors such as Cafe staff,
values, vision, practices and culture.
All the above mentioned market environment benefit an entrepreneur to examine all
potential visibility in a market where there are going to launch their new business venture.
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CONCLUSION
As per the above concluded report, it has been analysed that in this fast changing
technological world it is important for an entrepreneur to take advantages of various
opportunities prevailing in marker to ensure their sustainable growth. With the help of all these
opportunities entrepreneur can develop a successful business idea. In this project, it has been
evaluated that it is essential for an entrepreneur to examine all external environment factors to
ensure formative growth. They can also take advantage of SWOT to analyse internal strength
and weaknesses and measure all possible positive and negative aspects that impact on launching
of a new business venture. By doing this entrepreneur can ensure long term sustainability and
profitability.
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REFERENCES
Books and Journals
Audretsch, D., 2012. Entrepreneurship research. Management Decision. 50(5). pp.755-764.
Grégoire, D. A. and Shepherd, D. A., 2012. Technology-market combinations and the
identification of entrepreneurial opportunities: An investigation of the opportunity-
individual nexus. Academy of Management Journal. 55(4). pp.753-785.
Kohlbacher, F., Herstatt, C. and Levsen, N., 2015. Golden opportunities for silver innovation:
how demographic changes give rise to entrepreneurial opportunities to meet the needs
of older people. Technovation. 39. pp.73-82.
Siegel, D. S. and Renko, M., 2012. The role of market and technological knowledge in
recognizing entrepreneurial opportunities. Management Decision. 50(5). pp.797-816.
Suddaby, R., Bruton, G. D. and Si, S. X., 2015. Entrepreneurship through a qualitative lens:
Insights on the construction and/or discovery of entrepreneurial opportunity. Journal of
Business venturing. 30(1). pp.1-10.
Tang, J., Kacmar, K. M. M. and Busenitz, L., 2012. Entrepreneurial alertness in the pursuit of
new opportunities. Journal of Business Venturing. 27(1). pp.77-94.
Welter, C. and Alvarez, S., 2015. The state of opportunities: clarifying the transitions between
opportunity types. Management Decision. 53(7). pp.1398-1411.
Autio and et. al., 2018. Digital affordances, spatial affordances, and the genesis of
entrepreneurial ecosystems. Strategic Entrepreneurship Journal. 12(1). pp.72-95.
Barazandeh and et. al., 2015. Investigating the effect of entrepreneurial competencies on business
performance among early stage entrepreneurs Global Entrepreneurship Monitor (GEM
2010 survey data). Journal of Global Entrepreneurship Research. 5(1). p.18.
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.
Park, J. Y., Sung, C. S. and Im, I., 2017. Does Social Media Use Influence Entrepreneurial
Opportunity? A Review of its Moderating Role. Sustainability. 9(9). p.1593.
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