Identifying Entrepreneurial Opportunities

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Sources of Entrepreneurial ideas and innovation...................................................................1
LO2..................................................................................................................................................2
P2 Rationale and market gap for the specific venture idea with the help of tools and
techniques....................................................................................................................................2
LO3..................................................................................................................................................4
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea...............................................................................................................................................4
P4 Interpret the data to provide the evidence in market potential...............................................8
LO4..................................................................................................................................................8
P5 SWOT analysis of specific venture idea.................................................................................8
P6 Competitive and market environment idea to assess the potential viability...........................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurial opportunity is the situation where the products and services is being sold
by identifying the potential clients and from the past leads. It is basically to target the potential
customers by fulfilling their needs, wants, challenges and frustration from the society for these it
is very important to identify the entrepreneurial opportunities. In this the new business venture is
being started that is cafe by offering the innovative product that is Affogato espresso coffee. This
report contains the seven sources of systematic innovation that is being given by the Peter
Drucker. This report also elaborate the present data that is support by the gap analysis by doing
the evaluation of specific entrepreneurial idea.
LO1
P1 Sources of Entrepreneurial ideas and innovation.
Peter Drucker seven sources of systematic innovation is about the monitoring of seven
sources to have the innovative opportunity at the same in his famous book 'Innovation and
Entrepreneurship' he has discussed about the power and requirement of systematic innovation.
These seven sources of innovation are
The Unexpected
As the business world is full of unexpected surprises as the result may be unexpected
failure or it might be the unexpected success (Arregle and et.al ., 2015). It is difficult to predict
about the product and services that we want to offer is having the anticipated demand or greater
and lesser. For example it is the time when Marriott is restaurant chain and their one of the outlet
in Washington DC is performing outstanding and generating huge revenue and while
investigating they found that passengers will buy the meals to take it in their journey than they
suggested to airlines to give the snacks to the passengers and thus the airline start catering
business (Peter Drucker on the Seven Sources of Systematic Innovation, 2019).
Strength – it is beneficial in success of business
Weakness – most ideas are not successful as nothing is expected.
Incongruities
Several entrepreneurs start their business and develop the product without doing the
appropriate market research that to which customer they want to target as it is the economic
reality of the every business between the what is and what “ought” to be and that leads to the
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downfall of the company (Davidsson, 2015 ). But at the same customer reviews, feedback and
complaints is the best way to identify the incongruity.
Strength- the product developed is new and unique.
Weakness- the product does not fulfil needs of people
Process Need
As per the Drucker innovation is more task focused rather than they have to focused on
situation. So the idea of innovation is being come after analysis of whole process of the venture
and at the same try to identify the weak sports and try to find the ways to overcome. For example
the Elijah Mccoy has done the engineering but he could not find the suitable job and he has to do
the work of doing the oil by hand in the central rail road than he figure out the best way to do the
oil by lubricating cup that is automatic dripped oil and it becomes the hit in the market.
Strength – it led to innovation in process
Weakness- there is change in process constantly
Change in Industry and market structure
From the year's industry and market structure are stable but from the advancement in
technology many industries are being disrupted overnight. Leaders need to have an eye on these
changes and try to adopt the new technology and take it as an opportunity.
Demographics
Many companies are being affected by the change of demographics that is change in
population, age, level of education, income etc. are one of the main reliable predictors for the
future and give the ideas for innovation (Kohlbacher, Herstatt and Levsen, 2015 ).
Changes in perception
During the last few years there is a drastic change in the perception of human. As there
are involvement in new technology that is social networking as these changes are happening at
the faster rate. People have change their perception about the whole market and the way of doing
the business as everyone is expecting the innovation.
New knowledge
New knowledge is equivalent to the innovation because the scientific and technological
are the sources of innovation that is being taken care by every business (Kraus and et.al., 2015 ).
Knowledge based innovations were never based on the one factor as there are many types of new
knowledge is there.
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