Identifying Entrepreneurial Opportunities

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

INTRODUCTION
In today's competitive world, there are various opportunities that exist in the market place
that needs to be identify and exploit by entrepreneur in an effective and efficient manner. Beauty
and cosmetic product is consider as one of the growing and leading sector (Block and Wagner,
2010). This is the main reason why entrepreneur is keenly interested in launching their business
venture in this sector with an aim of earning higher profits and revenues. In the given report,
chosen company is Natural Essence that mainly deals in providing cosmetic and skin care
products. The report covers assessment of various sources of entrepreneurial idea, market gap,
interpretation of collected data, SWOT analysis and evaluation of competitive and market
environment in order to assess firm potential viability.
TASK 1
P1 Determine different source of entrepreneurial innovation and ideas
Entrepreneurs are the one who identifies the opportunities and grab them effectively to
implement their innovative idea for establishing a new venture. They set up their own business
by taking financial risk with the hope of earning high revenues and profits. They are the one who
contribute immensely towards the growth of country by executing innovative and noble ideas. In
today's era, where nothing is constant a new innovation or invention takes place. Similarly
business environment keeps on changing constantly because of innovative technology introduced
by entrepreneurs. Basically they first identify various market opportunities by understanding the
needs and wants of customers and domestic population by implementation of STEEP factor.
Peter's 7 sources of innovation also play key role in executing innovative ideas and establishing a
new business venture. There are some other key elements that needs to be taken into account
before developing a new product in the market.
These are listed below:
Social factor: The factor is mainly related with identifying that people must be able to
understand technology value. It is essential for an entrepreneur to have an adequate amount of
funding that is needed to launch a new business venture. However, due to Brexit there are several
changes that takes place in terms of change in law and regulation from which domestic public is
not fully aware of. Therefore it is primarily important for an entrepreneur to analyse each and
every aspect that is related with establishing new business venture (Ekpe, Mat and Razak, 2010).

Economical factor: These factors are normally related with country's per capita income
and GDP rate that signifies stability in the economy. If entrepreneur wants to invest high capital
in their business venture then the economic condition of respective country must be stable or
good. If there is economic stability found in the respective country then it is the right time for
entrepreneurs to establish and launch their new business venture i.e. Cosmetic product industry
(Dimov, 2011).
Technological factor: In the modern era, there are several new technologies that are
available in market and creates extensive opportunities for companies and people as well. In
order to gain high competitive advantage in overseas market it is essential for an entrepreneur to
produce cosmetic products with the help of innovative and high end technology.
Environmental Factor: Before launching new business venture it is important for an
entrepreneur to consider that their new venture should not harm the environment all factors
related with environment needs to be taken into account by entrepreneurs. After analysing all
such factors protective measures should be taken so as to ensure that and activities of new
business venture does not harm the environment.
7 Sources of Innovation
The framework has been developed by Peter Drunker. It encompasses:
Incongruity: It is mainly concerned with the gap regarding what is produced and what is actually
needed. It is mainly related with the production process of different cosmetic products.
Process needs: It has been believed that in order to perform or carried out different business
operation and activities in an effective manner, it is essential for every business entity to
implement unique and innovative technique that give them high competitive advantage.
Market structure and industry need: Any change in price of the product must be done
according to the needs and wants of the customer and as per the market trend as well. Therefore
company needs to design effective or clever pricing strategies so as to beat market competition.
Demographic: It is important for every form to pay attention towards any changes that has been
continually occurring in population education age or income level of the customer.
Change in meaning perception and mood: The main objective of natural essence is to which
products that changes the mood or perception of the customer. Their management team needs to
understand what the perception of customer towards organic cosmetic products are. It help them