Identifying entrepreneurial opportunities and innovation 3 TASK 13 P1. Determination and evaluation of different sources of entrepreneurial ideas and innovation

IDENTIFYING ENTREPRENEURIAL OPPORTUNITIES INTRODUCTION 3 TASK 13 P1.Determine and evaluate different sources of entrepreneurial ideas and innovation 3 TASK 24 P2.Market gap for a specific entrepreneurial idea using relevant tools and techniques 4 TASK 36 P3.Present data needed to support gap analysis in the evaluation of a specific entrepreneurial idea 6 P4.Interpret data appropriately to provide evidence of market potential9 TASK 413 P5.SWOT framework to collate evidence to support an

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.Determine and evaluate different sources of entrepreneurial ideas and innovation.........3
TASK 2............................................................................................................................................4
P2.Market gap for a specific entrepreneurial idea using relevant tools and techniques.........4
TASK 3............................................................................................................................................6
P3.Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea.........................................................................................................................................6
P4.Interpret data appropriately to provide evidence of market potential...............................9
TASK 4..........................................................................................................................................13
P5.SWOT framework to collate evidence to support an objective assessment of a specific
entrepreneurial idea..............................................................................................................13
P6.The competitive and market environments in which the idea will be launched to assess
potential viability..................................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Now a days entrepreneur opportunities are becoming significant competitive. It is
considered as a situations where products or services can be sold at a price more than the
production cost. With this entrepreneurs can take action to make profitability (Bagheri and Lope
Pihie, 2013). Within the present report. firm which has been taken into consideration i.e. Zylla
cafe, which will be launching it's products and services within the United Kingdom's potential
market. Report is going to be enclosed with ample number of sources, that are linked with
entrepreneurial ideas along with innovation. Analysis of market gap by utilising tools and
techniques. On the other hand, data interpretation has also been performed of potential market of
United Kingdom. Along with this identification of their competitors and SWOT into business
environment i.e. linked to viability will also be considered within the report.
TASK 1
P1.Determine and evaluate different sources of entrepreneurial ideas and innovation
Entrepreneurship is considered as an opportunities for people to execute its ideas. For it,
this is essential for them to adopt advantageous option among varieties. Opening a new business
is a tough task as for it they need to examine available sources to execute effectual ideas in that.
Few external environment sources of change also useful to form new opportunities.
Social factors: This is essential for an entrepreneur to examine the preference, choice and
tastes of consumer for particular products or services. This will assists them to execute their
ideas easily to facilitates standard services in innovative manner in order to attract customer.
These types of sources gives a grate opportunities for new business.
Technological factors: As per current scenarios, technology advancement have large
effect upon all industry. Within restaurant sectors, it assists to enhance profit through
minimising wastage as well as giving on time services to clients.
Entrepreneur role: Entrepreneur is the one who gives its effective contribution into growth as
well as improvement of economy. They launch innovation ideas in its new business. This will
aids them to acquire various opportunities from targeted marketplace (Cassar, 2014). Crucial
role are it increase living standard into society, they facilitates employment opportunities to
proficient individuals and many more.
Scope and Kinds of innovation:

This is crucial for an entrepreneur to develop various kinds of ieas so that they can
facilitates quality services to its clients as process and product innovation. It is mainly utilise to
shows their goods or services quality to consumer. Through this firm can obtain benefits for
longer durations.
Innovation and Invention:
Both are the two different concepts. Invention is utilise to launch new goods or services
by personal observations. Where as innovation is considered as a process which is utilise to make
effectual changes into many services or products as per the innovative ideas (Bosio and et.al,
2018).
Within business enterprises, it is essential for their owner to execute its new ideas for
obtaining maximal benefits. With the help of systematized innovation seven sources which are
established through Peter Ducker are mentioned below: Unexpected: the main aim of innovation process is to ready for all the things through
utilising effective strategy in order to tackle them in simple manner. Incongruity: This is ascertain as an effectual model where person utilise to think
something innovative from another one. Innovation based on process need: Innovation is applied to execute new thoughts and
this shove be based upon procedures requirements. Changes into market and sectors: Innovation execution is utilise to adapt various
modification into sector as well as market. Demographics: This is based upon developing own enterprise into target marketplace by
facilitating satisfaction to customers. Changes in perception: By executing new or innovative thoughts into business, an
entrepreneur can modify purchaser perception.
 New knowledge: Innovation is mostly depends upon new ideas and conceptions of
person.
TASK 2
P2.Market gap for a specific entrepreneurial idea using relevant tools and techniques
The target market place of new business should has to particularly examine through
entrepreneur in order to fulfil gaps. Within this process, it can apply creative ideas to finding its

target consumers, needs, present competitor and demands. This is needed to find out these
components before introducing new ideas as well as products into market area. In order to
minimise marketing gap, entrepreneur have to examine:
Identifying consumers: In service industry, various kinds of consumers are available
that need and demand particular services (Gruber-Muecke and Kailer, 2015). By this,
entrepreneur can examine its needs easily and facilitate effective services to them. These forms
of practices assists to make direct connection with target clients for acquiring more benefits.
Marketing segmentation: Behavioural: these types of activities are depends upon values, believes and so on of
customers. So, a new entrepreneur need to facilitate its quality services to target clients as
per its purchasing behaviours. Geographic: In order to start new business, it is essential to examine services needs at
various areas. These places many be rural, urban etc where requirements of consumers
can be distinguished from others.
 Demographic: This can be a appropriate ideas that an entrepreneur examine demographic
market segment. These types of practices depends upon consumer gender, sources of
income and age.
Segmentation: Basically, demographic segmentation is being utilised by Zylla Cafe,
where income factor has been taken into consideration. Along with this, manager of this
organisation will be targeting the age group from 20 to 60, where products of this cafe will be
attracting customers with a unique taste.
Targetting: The respective cafe determine whom they want to target. Thus, it ascertain
each segment to determine what value exists within whole market segment. It targets upper and
middle class people. Moreover, provides the product quality at affordable cost so that middle
class clients can also purchase goods without any hesitation.
Positioning: Positioning is developed for whole target segment. Herein, cafe is
positioned competitively in segment and developed a USP for brands into that segment.
Products or services: Tangible: Organisational food products and services should has appropriate quality
which facilitate more satisfaction to users.
 Intangible: For Zylla cafe, it is need to give cost effectual services to its clients.

Benefits: By this, Zylla cafe entrepreneur can enhance its income as well as growth of their
business.
Market gap:
It can be find while firm faced a large gap among its own services as well as market
requirements. As per this, company can analyse its present position such as currently where its is
and where it want to be in future. In context of Zylla cafe, firm want to launch services of
restaurant into marketplace. Hence, for them there are need to find out effects of innovation and
technological advancement which they has to adapt for minimising marketing gap. This can be
analysed when company's consumers has various requirements from the services sectors. So, this
is essential for Zylla cafe to undertake strategies and market aspects of competitors effectively so
that gap can be minimised.
Gap analysis can be explained as the variations among exact position means at present
where the firm is and where they want to be. The initial part states that business present situation
about recent assets of the company which involves performance, attributes as well as
competency of the staff which effects upon their productivity (Keil, Maula and Syrigos, 2017).
Where as another part concentrates upon desired future from current time. Space that it have in
recent position and expected future is considered as gap. Due to this reason, it is known as gap
analysis that includes essential tools which can fulfil the gap. It is all about to examine potential
clients and their present performance.
Also, it is significant for an entrepreneur to develop innovative ideas in order to
distinguish its services from another one. Herein, it have to study kinds of its enterprise as well
as clients as this based on services that are facilitated through firm. By this, it can attain its
demand through standard and effective services. Whole these practices aids them to fulfil
marketing gap in simple manner. Zylla Cafe entrepreneur has to examine environment of the
industry to develop effectual strategy for obtaining more advantage as well as competitive edge.
TASK 3
P3.Present data needed to support gap analysis in the evaluation of a specific entrepreneurial idea
The upcoming expectancy can be minimised through utilising the report of market
research which is described in statistical form which shows the success of idea. The idea of “
Zylla Cafe” is developed that influence the coffee trends never become out-of-date. Individuals

always wish to tastes new varieties due to this cafe is introduce. In order to analyse market gap
of its products and services entrepreneur used two sources:
Primary Sources:
Generally, business actives are based upon primary method of data collection where
investigator find people opinions and thoughts. Whole these activities are refers as suggestions
for company by which company can perform modifications in its activities of businesses (Tiwari,
Bhat and Tikoria, 2017.). For it researcher can performed various activities like survey, interview
and many more.
DATA through this method can be as follows:
QUESTIONNAIRE
Q1. Are you aware about the services of Zylla cafe ?
 Yes
 No
Q2. Is there any necessity for Zylla cafe is to execute new and innovative ideas in their business
practices ?
 Yes
 No
Q3. Which is the most appropriate promotional activity adopted by Zylla cafe to promote their
business services in front of services users ?
 Internet marketing
 B2C
 Print media
Q4. Does Zylla cafe can easily attract their services users by offering variety of facilities ?
 Agree
 Disagree
Q5. What are the services provide by Zylla cafe to their customers?
 Table services
 Sitting facilities

Secondary sources: Some of the activities are depends upon secondary information by which
firm can obtain ideas of new business. Information through these sources can be:
 Information through online media: Online media is considered as one of the effective
tool to gather information which involves forums on social media website which
produces the number of consumers who wish to visit a cafe (Longworth, 2018). A cafe
which provides various kinds of coffees and dishes.
Factors GAP Solutions
Business Examine ratio of present consumer is
less.
Planning to introduce effective
strategies of marketing.
Application Applying the purchasers information. Arranging purchaser information fro
promoting new apps.
The recent gap can be minimised through promoting cafe between customers through
utilising techniques which finds the present situations which is the current performance then
examine gap as well as recognise gap after that solution can be identified which develops a
bridge to accomplish the final objectives.
Illustration 1: Gap Analysis
(Source: Gap Analysis. 2018)
Gap analysis can be fill up by gap performance which is the distinguish among actual as
well as desired performance. Market or product gap considered as the budget and exact sales
after that profitability gap which involves variances among real and targeted profitability that
expected to attain (McCann and Ortega-Argilés, 2014).

P4.Interpret data appropriately to provide evidence of market potential
Q1. Are you aware about the services of Zylla
cafe ?
Frequency
 Yes 12
 No 8
Mode 4
Median 10
Mean 10
Interpretation:
According to above graph, it have been examined that few of people know about the
services of Zylla Cafe. Among 20 participants, 12 has knowledge regarding this and 8 do not
know about it.
Q2. Is there any necessity for Zylla cafe is to
execute new and innovative ideas in their
business practices ?
Frequency
 Yes 18
 No 2
Yes No
0
2
4
6
8
10
12
14 12
8
Column C

Mode 0
Median 10
Mean 10
Interpretation:
As per the above bar graph, it is analysed that there are essential for Zylla cafe is to
execute new and innovative ideas in their business practices. As out of 20 participants, 18 are in
favour of this and 2 are saying no.
Q3. Which is the most appropriate promotional
activity adopted by Zylla cafe to promote their
business services in front of services users ?
Frequency
 Internet marketing 8
 B2C 6
 Print media 6
Mode 0
Median 6
Mean 6
Yes No
0
2
4
6
8
10
12
14
16
18
20 18
2
Column G

Interpretation:
From the above graphical representation it have been examined that among 20
respondents, more number of people are in favour that internet marketing is an appropriate
promotional activity that Zylla cafe should adapt to promote their business services in front of
services users. 6 are saying print media and another 6 are in favour of B2C.
Q4. Does Zylla cafe can easily attract their
services users by offering variety of facilities ?
Frequency
 Agree 15
 Disagree 5
Mode 0
Median 10
Mean 10
B2C Internet marketing Print media
0
1
2
3
4
5
6
7
8
9
6
8
6
Column C

Interpretation:
As per the above graph, it have been identified that from 20 participants 15 are in favour
that Zylla cafe can easily attract their services users by offering variety of facilities and 5 are not
agree towards it.
Q5. What are the services provide by Zylla
cafe to their customers?
Frequency
 Table services 10
 Sitting facilities 10
Mode 0
Median 10
Mean 10
Agree Disagree
0
2
4
6
8
10
12
14
16
15
5 Column C

Interpretation:
From the above bar graph, it has been analysed that among 20 respondents 10 are saying
table services are provide through Zylla cafe to their customers. Where as 10 are in favour of
sitting facilities.
TASK 4
P5.SWOT framework to collate evidence to support an objective assessment of a specific
entrepreneurial idea
Porter's five forces model:
This is considered as a tool that are utilise to analyse the business competition (Santos
and et.al, 2016). It includes 5 forces that are mentioned below:
 Threats of new entrants:
Within the economy various kinds of drinks and foods firm are available which facilitates
effectual services to consumers. Therefore, for new business, they need to examine its effects of
marketing in order to formulate appropriate strategy for it.
 Bargaining power of buyers:
Buyers are considered as a customers who purchase products or avail services. Therefore,
for it an entrepreneur needs to facilitates the effectual services at reasonable price. Through it
they develop relationship with their target clients for longer period. It can be efficacious strategy
for obtaining competitive advantage.
 Bargaining power of suppliers:
Within restaurants industry, suppliers can be considered as distributors who facilitates
raw material, fruits and vegetable as well as various other things (Sun, 2015). Entrepreneur need
Table services Sitting facilities
0
2
4
6
8
10
10 10
Column C

to study various places before buying these items into market place. For them it is need to utilise
quality material to facilitate proper services to customers.
 Threats of Substitutes:
In restaurant sectors, these are various numbers of competitors available instead of
substitutes. Thus, for it an entrepreneur need to formulate effectual strategy for existing rivals.
 Competitive Rivalry:
Zylla Cafe is considered as a new business, so for this it need to examine present rivals
into market place. These types of activities assists them to facilitate idea to an entrepreneur fro
formulating effectual strategies for acquiring efficacious success. This kinds of practices aids
them to operate their business for a longer period into that market area.
SWOT analysis is considered to examine the internal factors of the company which
involves overall positive as well as negative aspects of the Zylla Cafe. This stand for strength,
weaknesses, Opportunities and threats (Renko, 2017). So, SWOT analysis of respective firm are
mentioned below:
Strengths:
 There are many positive aspects which can grab attention of the clients such as their
variety into dishes and coffee.
 Hygiene as well as rules of safety are to be comply through workers and they are bound
to do so.
 Along with this, it has been found that Zylla Cafe uses ample number of strategies, which
leads the business firm to develop relationship with targeted customers for a longer
period of time and this aid them in obtaining high range of competitive advantages.
 Cafe interior and exterior looks gives a attracting view to customers. Also, this will
provide a positive impression among customers.
Weaknesses:
 Zylla Cafe may required various resources at the time of introducing it so that its
opening will be effective.
 Staff member required training to develop its skills such as how to communicate with
consumers and many more.

 Since, the bargaining supplier is very high for Zylla Cafe, company would require to
develop a range of plans and procedures that may increase the overall cost of products
and services offered by them and this can be considered as weakness.
 It have lack of technology which can amend their services in appropriate manner.
Opportunities
 While taking benefits of changing trends they can serve healthy drinks that individuals
prefer.
 Since, the business organisation is new in the market, this can be considered as one of the
crucial approach which may aid firm in analysing the strategies followed by other it's
rivals. This may aid firm in meeting the goals and objectives in much effective and
efficient manner.
 They should effort to serve organic drinks and dishes which can be advantageous for
human health.
Threats
 Zylla Cafe is a new business into UK marketplace so the large scale enterprise may be
threats as it has more than sufficient goodwill.
 On the other hand, if it is talked about drinks and food business organisations, then there
is a higher possibility for Zylla cafe to go through high competition within the market.
 Target audience have its favourite place where it expenses their dollars, therefore bring
them in new area is somehow difficult.
 Investors can take off its finance if it do not view any types of growth.
P6.The competitive and market environments in which the idea will be launched to assess
potential viability
For an entrepreneur who is planning to introduce a new business that is Zylla Cafe. It is
essential for them to analysis the competitive and market environment so it have conducted a
PEST analysis that are mentioned below:
PEST analysis:
This is considered as a strategic tool which is required to examine market environment. It
stands for political, economic, social and technological (Stouraitis and et.al., 2017.). All these are
mentioned below:

 Political factors: Herein, Zylla cafe has to consider the all rules and norms that are
enforced through UK government. In case if they are performing changes then it has to be
ensure that whole set norms are to be followed. Also, it can comply corporate governance
in all stages of their business. Economical factor: As most of the company are facilitating finances to develop the
particular country's economy. So, Zylla cafe is a new business so unstable economy can
get impact their business. Therefore, it has to analyse the economy of the respective
country. Social factor: Society is always considered as an essential factors. So as a new start up
Zylla Cafe should operate in cooperation with social system to acquire better reputation
as well as effectual image among public. Thus, it have to provide some quality services to
society.
 Technological factors: As technology are advancing day by day so it has effects on all
industry. As Zylla Cafe is new start up so it can use new machinery so that it can provide
fast and quality services to their customers which help them to gain competitive edge.
INDUSTRIAL LIFE CYCLE:
This depicts the several stages in which businesses operates, progress, prospect as well as
slump into an sectors. In includes 5 stages such as start up, growth, shakeout, maturity and
decline.
Start up stage: Zylla Cafe at start up stage are want to produce zero or very less revenue as well
as experience negative cash flows and profitability because of large amount of capital initially
invest into technology equipment and another fixed costs.
Growth stage:
at this stage, Zylla Cafe revenue may raise as well as they initiated producing optimistic
cash flows and profitability as product revenue and costs break even.
Shake out stage:
In this, Zylla Cafe revenue growth, cash flows as well as profit start slowing down as
sector approaches maturity.
Maturity stage:
Herein, Zylla Cafe realize increase revenue, profitability as well as cash flows as
consumers demand is fairly high and consistent.

Decline stage:
For this stage, Zylla Cafe may select to concentrate on its most profitable product lines
to enhance profitability and stay into industry.
CONCLUSION
From the above report it has been concluded that an entrepreneur is the one who take risk
at the time of introducing new business into marketplace. It main aim is to acquiring profit as
well as success by its personal ideas, knowledge and skills. For it they required to examine the
demands and wants of the consumers so that they can facilitate quality services to them. Also,
through this, it can develop a better image into competitive market as well as sustain for the long
time periods.

REFERENCES
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Online
Gap Analysis. 2018. [Online]. Available Through: <https://businessjargons.com/gap-
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