Identifying Entrepreneurial Opportunities

This project examines the process of identifying and evaluating entrepreneurial opportunities using the example of a proposed hotel in London, Matrix Hotel, which offers customizable accommodation options. It analyzes the sources of innovative ideas, market gaps, SWOT analysis, and competitive and market environment to assess the feasibility of the business idea. It also includes a questionnaire and data interpretation to provide evidence of market potential.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Sources of innovative entrepreneurial ideas.....................................................................1
P2. Rationale and market gap for entrepreneurial idea using relevant tools and techniques. 2
P3. Gap analysis in the evaluation of entrepreneurial idea....................................................3
P4. Interpretation of data to provide evidence of market potential........................................9
P5. SWOT Analysis to assess the entrepreneurial idea........................................................11
P6. Evaluation of competitive and market environment to assess potential viabilities........12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
An entrepreneur can be referred to as a person who is willing and capable of taking risk
to start a new venture so as to create a new idea or process of conducting things in a business
environment or bringing improvements in the existing procedures. Entrepreneur develops his
concept of carrying out tasks by using innovation and creativity. Identification of entrepreneurial
opportunities is essential for an entrepreneur while starting a new venture project (Dimov, 2011).
Also, in this competitive and fast changing world, any person starting a business possess various
idea which may seem potential but it is necessary to ascertain one feasible idea that can be
launched successfully in marketplace. The present report is based upon the idea of launching a
hotel in London named Matrix Hotel which provides the option of possible customisation in
relation to accommodation in case of prior booking by guests. This report will explore the
sources through which business idea can be evolved along with gap analysis. Also, it will include
the SWOT and market analysis of the entrepreneurial idea so as to start the venture successfully.
P1. Sources of innovative entrepreneurial ideas
In today's modern and digitalised world, many people are looking for ideas so as to create
a startup in the marketplace. The economy of UK is especially very supportive in terms of
providing assistance to new business persons and small businesses and ventures. Also, UK
government takes every initiative to accelerate employment levels the in the country. Especially,
government focuses upon young graduates who are willing to take up a new project. This largely
motivates the citizens of country to come up with new and innovative ideas in relation to
development of a product or service, or bringing improvement in the existing processes and
commodities. Unique and creative business ideas aid the entrepreneurs to feasibly start a new
venture project in an efficient and effective manner. Also, it is essential that entrepreneurs keep
looking out for new opportunities in market so as to tap the advantage of converting the idea into
a business venture ahead of competitors in industry (Siegel and Renko, 2012). Some of the most
innovative sources through which the idea of commencing a business can come in an
entrepreneur's mind are briefed below:-
Online Sites: In modern era, there are a number of websites present on web that assists
an entrepreneur in getting a feasible business concept around which a venture can be started.
MakeUseOf.com, kickstarter.com, entrepreneur.com and quirly.com are some of the most used
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and famous websites to gather new and innovative ideas about developing a business project
(Websites For Creative Business Ideas If You Want To Be An Entrepreneur, 2018). Information
available on these websites is relevant and authentic and thus, this can be considered as a
powerful source for developing entrepreneurial ideas.
Business Opportunities and Ideas: This is a blog where various bloggers give their
views and opinions about the latest trends and techniques used by companies persisting in
market. Here, an entrepreneur can discover and explore various business ideas to establish a new
venture in UK and gain success in marketplace.
that covers topics about business opportunities and ideas. Here you can find a category related
to business ideas where you can explore them.
Brainstorming: This is an innovative technique through which problems faced by the
people in society are solved by creation of new ideas and processes. Here, normally, generation
of one idea gives rise to various more new ideas. The major objective, here, is to come up with
maximum ideas so as to select the most feasible one and develop a business start-up around that
(Top 10 Sources of Business ideas & Opportunities, 2018). The principle is to successfully
launch a business idea in marketplace in an effective and efficient manner with minimum use of
resources.
Business Idea Forum: Another source through which business idea can be developed is
business idea forum. It is an online website where users can discuss, post and discover new and
potential ideas. Also, this is a place where entrepreneur can meet potential partners and explore
business concepts for commencing a start-up.
Mass Media: Television, radio, commercial magazines, journals and newspapers can
also be an effective source for generation of a business idea (Kohlbacher, Herstatt and Levsen,
2015). By going through all these, entrepreneurs can gain an insight into the current market
situation and then bring an effective solution to the problems of consumers in terms of product,
service or process in marketplace.
P2. Rationale and market gap for entrepreneurial idea using relevant tools and techniques
The business idea that is proposed by entrepreneur is about launch of a new hotel. This
entity would provide the guests an option of possible customisation. This reflects that the
customers who book the hotel room atleast one month prior to the actual date when the
accommodation will take place, would be eligible to get the option of bringing modifications in
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relation to their stay at hotel. These modifications would only include those aspects where hotel
can possibly bring changes. Such areas are modifications in relation to rooms like linen, scenic
beauty, bedding, flooring or any other possible change and in relation to services like
entertainment, gym, club, bar or fun activities within hotel premises. It is important that
entrepreneurs take into consideration the market situations so as to successfully tap the
advantage of such new and innovative feature in hotel industry. It is also essential for
entrepreneur taking up this business idea to assume all the risks that are associated with launch of
hotel in London. Also, it is imperative that entrepreneur gains an insight into the strategies and
techniques that used by competitors so as to bring changes in own procedures and gain a
strategic edge in marketplace. Market gap is referred to as the provision of such products or
services to customers which are not yet available in marketplace (Grégoire and Shepherd, 2012).
The concept of hotel which offers customisation is a new and innovative idea not yet proposed or
being used by any of the existing hotel. Market gap is associated with every entrepreneurial idea
and is ascertained through the following:-
Technological advancements:- In today's era, changes in relation to technology takes
place at a rapid pace. It is essential that entrepreneurs keep an updated knowledge about this
while introducing a new venture project. By doing so, market gap can be filled and customer
demands can be met effectively. Also, by making the business technologically viable,
entrepreneur can aim at sustainability and staying ahead of customers by gaining a strategic edge
over competitors.
Identification of opportunities: It is essential that entrepreneur identifies and analyses all
the opportunities that are available in hotel industry or marketplace so as to tap the advantage of
these and ensure the sustainability and growth of business for long duration of time (Tang,
Kacmar and Busenitz, 2012). These opportunities can help the entrepreneur in staying ahead of
rivals and meeting the goals and objectives of business in relation to demand and generation of
revenues as well as profitability in a timely manner. These aspects can largely help the
entrepreneur in successfully executing the business idea of hotel in London while making use of
least money and resources.
P3. Gap analysis in the evaluation of entrepreneurial idea
Gap analysis is generally conducted by business persons when they are introducing a new
business idea or concept in marketplace. This helps them in ascertaining whether the current
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performance of business entity is in accordance with the desired future performance. In relation
to launch of hotel, there are various aspects in relation to market scenario which needs to be
considered by entrepreneur. These are explained below:-
Technology: Entrepreneur should be technically sound or hire employees who are aware
of technology used in market. Automatic technology should be used for check-in and check- out
to increase efficiencies. For this mobile check-in and check-out should be implemented, app
should be used to open and close door (Suddaby, Bruton and Si, 2015). Robots can be
implemented for cleaning rooms and providing guests better experience. Various technology are
present in market which can be used in the hotel that is going to be launched in London.
Competitors: Wide range of hotels are present in London as it is the capital of UK. This
city largely supports new and innovative businesses and offer lucrative features to attract guests.
Entrepreneur analyses the techniques used by other hotels and implement the techniques in
accordance with the industry and rivals so that they can get a strong customer base and ensure
viability in market for a longer time. Business strategies are to be developed in such a way that
they can attract large number of persons and stay in market for long. Also, they should be up-to-
dated with technology that they are using.
Quality: Services offered by any entrepreneur are foremost factors which will depict
quality of individual's business. Quality is an important quotient for hotel as if quality is not
good, it would reflect that customers will not be willing to come again and it will lead loss of
business and corporate image in market. Everyone is treated nicely by staff, customer services
are provided at all times, technology are some of basic amenities which entrepreneur should
provide.
QUESTIONNAIRE
NAME:
AGE:
ADD:
GENDER:
MAIL ID:
Q1) Are you aware with innovative services provided by Matrix Hotel?
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 Yes
 No
Q2) What type of accommodation you generally want more?
 Variety of healthy food items
 Wi-Fi Services
 Gaming zone
Q3) The price rates demanded by Matrix Hotel as per services are effective or not?
 Yes
 No
Q4) Are you satisfied with the customer services provided by Matrix Hotel?
 Yes
 No
Q5). Recommend some suggestions for improving services of Matrix Hotel...
Theme 1: Matrix Hotel provide effective services
Q1) Are you aware with innovative services provided by Matrix Hotel? Frequency
 Yes 32
 No 18
5

Theme 2: Accommodations
Q2) What type of accommodation you generally want more? Frequency
 Variety of food items 10
 Wi-Fi services 14
 Gaming Zone 16
6
Yes No
0
5
10
15
20
25
30
35
Column B

Theme 3: Matrix Hotel offer services at effective price rates
Q3) The price rates demanded by Matrix Hotel as per services are effective
or not?
Frequency
 Yes 40
 No 10
7
Variety of food items Wi-Fi services Gaming Zone
0
2
4
6
8
10
12
14
16
Column B

Theme 4: Customers are satisfied by Matrix Hotel
Q4) Are you satisfied with the customer services provided by Matrix Hotel? Frequency
 Yes 32
 No 18
8
Yes No
0
5
10
15
20
25
30
35
40
Column I

P4. Interpretation of data to provide evidence of market potential
Here, entrepreneur collects data related to launch of hotel from various sources. This data
can be used by entrepreneur to assess when would it be feasible to launch hotel in London so as
to gain maximum attention from customers and generate high revenues with a view to sustain in
market for a long run (Barazandeh and et. al., 2015). The major sources for collection of
information are primary and secondary. While primary resources consists of surveys and
questionnaires to gather data, secondary sources are inclusive of books, online sites, journals,
articles etc.
 The hotel launched by entrepreneur has an option of possible customisation on prior
booking which helps in gaining acceptance from public in marketplace. It builds
customer loyalty as the organisation runs in a way that best suit the needs and demands of
customers.
 The major emphasis of this hotel is upon meeting the preferences and requirements of
customers in relation to rooms, linen, surroundings, scenic beauty. This helps in gaining
attention of a large number of people.
Interpretation of above data:
Theme 1:
9
Yes No
0
5
10
15
20
25
30
35
Column E

Central Tendency Data
Mean 25
Median 25
Mode 14
Standard Deviation 9.89
Interpretation 1: It has interpreted from this statistical data, that people are much aware of
services offered by Matrix Hotel. In order to promote business in other market era, this company
needs to use social media.
Theme 2:
Central Tendency Data
Mean 13.34
Median 13
Mode 10
Standard Deviation 3.05
Interpretation 2: As per this statistical data, customers are attracted more towards those hotels
who offered gaming zone facilities for their entertainment.
Theme 3:
Central Tendency Data
Mean 25
Median 25
Mode 0
Standard Deviation 21.22
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Interpretation 3: According to this data, Matrix Hotel has offered its services on much affordable
price rates. This would help in enhancing its customer base.
Theme 4:
Central Tendency Data
Mean 25
Median 25
Mode 14
Standard Deviation 9.89
Interpretation 4: As per this data, customers are happy with the way, they served by staff of this
hotel. But, still its management need to concern more on providing best services.
In today's competitive world, it is significant that entrepreneur takes into account all such
possibilities wherein customers can switch to alternative hotels for getting services. They are
required to function in a manner that best suit the needs and demands of people so as to retain
them for a longer duration (Barazandeh and et. al., 2015).
P5. SWOT Analysis to assess the entrepreneurial idea
It is important for entrepreneurs to ascertain whether the idea proposed by them for
starting a venture project is feasible or not. For conducting this research, SWOT Analysis can be
used. This is a powerful tool for analysing the probable strengths and opportunities to
successfully launch the project along with carefully assessing the weaknesses and threats to be
overcome so as to ensure that there are no glitches while establishing the start-up business.
Launching a hotel in London which offers the option of possible customisation to customers is
an innovative idea. Thus, conducting SWOT analysis of this entrepreneurial idea holds
significance as this would reflect that business looks out for the positive and negative aspects in
relation to the startup so as to ensure its successful launch (Autio and et. al., 2018). The SWOT
analysis of prescribed idea is as follows:-
Strengths: The core strength of every business helps in successful launch of business
idea in marketplace. In relation to the idea of hotel offering possible customisation option, the
main strength lies in the fact that no hotel organisation till now offers the option of bringing
modifications in way and style of living proposed by hotel management for guests (Welter and
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Alvarez, 2015). This feature ensures that by way of prior booking, customers can get the chance
of booking a room which best suits their needs and preferences and gives them a standard of
living as per their own accord. The best thing about such hotel is that this style of providing
accommodation services is totally new and innovative and specifically made to meet demands of
guests. Also, the strength of this business idea lies in clean and proper maintenance of rooms
along with an efficient and well-mannered staff that provides a luxury standard of living to
guests with all time. Furthermore, London has always been known for business excellence and
bringing innovation. Launching a hotel in such a technologically viable place would benefit the
start-up and its long term growth.
Weaknesses: In relation to any business idea or concept, the major task of an
entrepreneur is to assess all the probable shortcomings in the venture project so as to rectify them
and launch the start-up successfully. The place selected by entrepreneur for launch of hotel is
London. Although the city offers best infrastructure in terms of water supply, communication,
international travel and electricity yet it has some limitations. Being the capital of UK, the prices
of every expense is quite high along with the soaring property prices and one of the most
expensive transportation system of world (London living standards the best in the UK, 2018).
Thus, entrepreneur needs to assess these and launch the project keeping in consideration all these
aspects.
Opportunities: Exploring the future scope of business idea assists entrepreneur in
identification of any business opportunity that may arise within due course of operations of
venture. In relation to launch of hotel in London which offers option of possible customisation in
case of prior bookings, it is imperative that entrepreneur keeps analysing and researching upon
market so as to identify any business plan that may aid the concept proposed by him. This helps
in tapping the advantage of such concept and taking the business to higher scale.
Threats: These are the probable challenges that can be faced by entrepreneur while
launching the hotel in London. The possible threats for the launch of this business idea can be
decrease in pricing of competitive businesses, high operating cost, coming up of new and
innovative hotels in London with high tech services and features or high rental prices.
P6. Evaluation of competitive and market environment to assess potential viabilities
To successfully launch the business idea, entrepreneurs need to carry out an analysis of
market and industry environment so as to gain knowledge of the latest trends and techniques
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being used by competitors. The activities in relation to execution and functioning of business
idea should be in such a way that it ensures to get maximum acceptance and satisfaction from
people.
Competitive Market: It is important to carry out a research of market and to ascertain all
the external aspects of business. Doing so would help the entrepreneur in gaining edge over
competitors and sustaining and growing in marketplace for a long duration of time (Fuentes and
et. al., 2010). Evaluation of strategies and techniques adopted by rival hotels would assist in
gaining knowledge of the latest tools and methods being functional in hotel industry. The hotel
can thus bring improvisations in its features and services and grow in market. Substitutes- Entrepreneur need to keep an updated knowledge of the services being
provided by rivals along with the price at which they are being offered to public.
 Target audience- Before launching the hotel in London, entrepreneur decides the target
audience for which the facilities are being launched. This involves an approximate
measure of the demand which will be created by customers in relation to rooms and
other hotel services.
Market Environment: In relation to business, there are two major market environments
that influence the launch and functioning of a business idea. These are:- Macro environment- These are the external factor that influence the functioning and
launch of a feasible business idea in marketplace (Audretsch, 2012). Such factors are
political, environmental, legal, social, technological and economic factors that impact the
overall running of hotel. For this, PEST analysis is conducted below:-
Political: Entrepreneur should run the hotel in a way that do not contradict with laws in
relation to tax, employment, trade, environmental and tariffs. Also, political condition of UK
would impact the hotel and thus this should be considered by entrepreneur.
Economic: The operations of Matrix hotel should be conducted in a way that it complies
with the economic conditions of UK and decide the pricing policy accordingly. Entrepreneur
needs to consider factors like interest rate, inflation rate, disposable income of people etc.
Social: Entrepreneur needs to keep in mind the latest trends and techniques persisting in
hotel industry so that hotel can meet the needs and preferences of customers (Tang, Kacmar and
Busenitz, 2012).
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Technological: With time, many technological changes and advancements have taken
place in hotel industry like use of online booking facility, mobile application for hotel which
need to be taken up by entrepreneur in relation to Matrix Hotel.
 Micro environment- These are the internal factors of business that impact running and
functioning of hotel business. These basically include aspects such as hotel staff, culture,
values, practices, organisational culture etc. which can encourage the business to function
in market for a long period of time.
The above mentioned competitive and market environment helps an entrepreneur in
assessing the potential visibility of market in which the idea will be launched.
CONCLUSION
From the above report, it can be concluded that in modern world, entrepreneurs have a
number of opportunities that can be grabbed by them to develop a business idea and then,
commence a business venture around it. Also, it has been analysed that it is essential for business
persons to assess all the external environmental factors to ensure the successful launch of venture
project. Along with this, it can be observed by using SWOT analysis that there are various
positive and negative aspects in relation to launch of a business idea.
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