Identifying entrepreneurial ideas and innovation

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

TABLE OF CONTENTS
INTRODUCTION:..........................................................................................................................1
LO1..................................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation..............1
LO2..................................................................................................................................................4
P2 Rational and market gap for specific entrepreneurial idea....................................................4
LO3..................................................................................................................................................6
P3 Data presented to support gap analysis in evaluation of entrepreneurial idea.......................6
P4 Interpret data to provide evidence of market potential..........................................................8
LO4..................................................................................................................................................9
P5 Apply SWOT to collect evidence to support objective assessment of .................................9
P6 Evaluate competitive and market environment to launch the idea of restaurant business..10
CONCLUSION:.............................................................................................................................11
REFERENCES:.............................................................................................................................13

INTRODUCTION:
An entrepreneur is a person who starts a business by executing his idea and with
available resources. Entrepreneur is solely responsible for success or failure of business. The
main purpose of starting business is to earn stable income or profit. Besides this, individual
needs to find out opportunities in order to expand his business (Davidsson, 2015). This helps in
surviving in market for long term and generating more revenue. Opportunities need to be
grabbed so that business can create competitive advantage. This report will show different
sources of business ideas and role of entrepreneur in it. In this report, the business idea is to start
a restaurant in UK. Moreover, it will describe type of innovation and environment factors that
affects success of new entrants. Furthermore, tools and techniques of generating new business
idea are described. At last, SWOT analysis is done for entrepreneurial idea. The idea of the
product is launching a new health watch which can track activities such as walking, sleeping etc.
of an individual and can provide him with required health improvements.
LO1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
A business is started by generating idea and executing it. Here the business idea is to
open up a restaurant. The business idea must be unique enough so that it has the ability to attract
large numbers of customers. Also, it should be able to survive in the market for long term
(Marvel, Davis and Sproul, 2016). Moreover, an innovative idea will lead to development of
effective product and services. The generation of business idea depends upon its source. It will
describe how unique an idea is and what difference it has with other businesses. Furthermore,
those sources create opportunities for people. It allows them to start a business by executing idea.
There are various sources through which business ideas are generated. They are described as
follows: -
The 7 Sources of Innovative Opportunity
The unexpected – It means the area that has to be targeted by starting a business. This includes
customers, market area, etc. that can be attracted (Hatak, Harms and Fink, 2015). Idea is

generally about how that area can be converted into an opportunity. What product or service can
be produced to attract them.
The incongruity – It refers to discrepancy between what current situation is and how it can be
changed. Business should always focus on market condition (The 7 Sources of Innovative
Opportunity, 2012) This will give brief idea about what can be done to fulfil needs of customers.
It can be done by finding out complaints or needs of people in own market area.
Process need- It refers to identifying weak areas of process of business so that it can be
improved by redesigning them. This means how business works or creates product matter rather
than target market. It helps in making business more innovative and unique. For example,
restaurant can identify that people have to wait for long time (Gartner, Carter and Hills, 2016).
Thus, it can eliminate this by changing its way of doing business.
Industry and market need- The market needs depend upon how industry is able to produce
goods that is fulfilling them. They both are interrelated to each other. Business should always
focus on change in these. It will help in making products accordingly.
Demographics- It is related to population, income level, age, etc. or people. So, business should
integrate all of them with market condition. It will provide data on both demographics and
segmentation of customers (Kohlbacher, Herstatt and Levsen, 2015). By this, business can pay
attention on change in these. It will allow business to change its product accordingly.
Changes in Perception, Meaning and Mood- These are related to change in perception, taste
and preference of people. Business should focus on them in order to survive in the market. It will
be beneficial in identifying needs of people. Change in perception and mood of people will affect
business process. In business can also take example of religion.
New knowledge – Change in technology has been a major factor in success of business. It can
help business to change in process and find opportunities for growth (Mueller and Shepherd,
2016). This refers to doing business in better ways by improving process.
An entrepreneur finds out opportunities by analysing sources of business ideas. There are
various types of innovation that are: -