Entrepreneurship and Opportunity Identification

This assignment delves into the core principles of entrepreneurship and the crucial process of identifying business opportunities. Students are tasked with examining various theoretical perspectives on entrepreneurship, such as Kirzner's theory of alertness and the role of demographic changes in shaping entrepreneurial opportunities. Furthermore, they need to analyze how individual factors like role identities and past experiences influence opportunity recognition and selection. The assignment encourages a critical understanding of the complex interplay between theoretical frameworks, real-world contexts, and the entrepreneurial mindset.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.........1
TASK 2............................................................................................................................................4
P2 Explain the rationale and the market gap for a specific entrepreneurial idea...................4
TASK 3............................................................................................................................................6
P3 Presenting data to support gap analysis and evaluation....................................................6
P4 Interpretation of data availed.............................................................................................7
TASK 4............................................................................................................................................8
P5. SWOT analysis to assess the entrepreneurial idea...........................................................8
P6 Evaluating competitiveness and market environments.....................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Identification of entrepreneurial opportunities are considered as an eminent part because
with help of this organisation will develop new and creative ideas for business (Davidsson,
2015). By modify items as per requirement of consumers they will satisfy their desires and it
leads in improvisation of revenues. Present assignment is based on Natural Essence, it deals in
skin care and beauty items. It is must to identify and evaluate distinctive source of
entrepreneurial thoughts and innovation. To analyse internal market, organisation will conduct
SWOT investigation. Firm is going to launch organic cream for clients which will help them to
increase their market share. To take benefits from rivals, certain type of strategies as well as
policies will be formulated by management.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
Entrepreneurs are considered as individuals who obtain opportunities so that they will
apply creative thoughts into business. This will assist them to earn maximum benefits for an
organisation. It aids in success and enhancement of country (Kohlbacher, Herstatt and Levsen,
2015). Through applying STEEP component, numerous employment chances will get enhanced
in nation. There are many approaches which will support them to manage distinctive framework
of an association. Peter 7's innovation source plays essential part in establishment of firm. It will
be described as follows:
Social factor: This aids to identify whether people are able to comprehend technological
value or not. When an entrepreneur is going to begin their business then, it is must for them to
have good financial condition. After Brexit, there are many alterations in laws and regulations of
country which provides affect to each sort of industry.
Economic factor: If condition of the nation is much stable, then they will easily gain
maximum investors. GDP as well as per capita income of the country presents its economic
circumstances. Hence, it is correct period of time to establish cosmetic industries.
Technological factor: In the recent era, it is required for organisations to utilise the latest
tools or methods as this will help them to produce items or products in a creative manner
(Kirzner, 2015). To manage this, entrepreneur will appoint some people who possess knowledge
regarding technology. For production of cosmetic items, company needs to perform distinctive
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kinds of activities. Through manufacturing goods and services in an innovative way, firm will
capture attention of numerous individuals towards them.
Political factor: Before establishment of association, it is must for manager to obtain
requisite knowledge regarding country's political status. This will aid them to know about the tax
policy of nation effectually.
Environment factor: It is needed for superior to know about environmental condition of
country before implementation of new plant. Along with this, they need to analyse that it will not
provide harm to surrounding or nature of country.
Seven innovation ideas were given by Peter F. Drucker, which are described as beneath
to produce cosmetic items, such as Natural essence: Incongruity: Company needs to manufacture products according to demands of persons
so that they will accomplish their requirements. This procedure is much obsessed with
manufacturing of distinctive cosmetic items. Process needs: It is must for the firm to produce products by implementing new
methodologies; therefore, they will execute varied operational activities (Karimi and et.
al., 2016). Industry and market structure needs: Association has to apply many kinds of
modification in value of goods; this represents inventive strategy of pricing. Demographics: To improve profits, it is must for affiliation to implement innovative
alterations in business. Changes in perception, meaning and mood: Natural essence has to take response from
their clients as this will assist them to launch latest cosmetic items; as a result, they will
be able to improve revenues. New knowledge: Through implementing new and latest techniques, organisation will
easily take benefits from rivals. This will help them to enhance market share and brand
image. Unexpected: By applying new thoughts, Natural essence's entrepreneur will develop
more opportunities for individuals of specific place (Renko and et. al., 2015).
Type of Innovation:
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Innovation is fundamental for an association as this aids to cater success and
enhancement to company. They need to implement new thoughts into business because this helps
in increment of production and performance.
Product: It plays prominent part in success and improvement of an organisation. This
needs to be entirely different from other kind of items.
Process: This is much important to manufacture new items or services at market. With
support of this, firm will easily attain coveted targets and objectives within set period of time
effectively.
Place: It is required for manager to cater right item at right place because this will help to
capture attention of numerous people towards them. As a result, profits of firm will get improved
significantly (Karimi and et. al., 2016).
Incremental vs. Big Bang Innovation: Small modifications will be done on existing
products of association. It aids to improve effectiveness and appropriateness of merchandises.
Schumpeter’s sources of innovation:
It is considered as an efficient hypothesis which plays an eminent part to improve
operational activities of an enterprise. If financial condition of company is adequate then, this
will assist them to produce items in a creative manner. Henceforth, innovation in cycle of
business will termed as Schumpeter’s innovation source.
Comparison amongst innovation and invention is stated as beneath:
Innovation Invention
It means when company implement new
thoughts or ideas into items as well as
procedure to make them more effective. This
will also be done in existing products to
improve its effectiveness.
This defines, when superior develop entirely
new items for individuals so that they will
improve customer base and in addition profits.
This will be done by formulating new
procedure as well.
There are some sorts of distinctions amongst business idea and product which are stated
as beneath:
Product idea Business idea
This is like procedure which assists to produce This is much appropriate procedure which
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latest and creative goods for people at
marketplace; therefore, they will be able to
accomplish requirement of people timely.
helps to set up new business as this will
support them into their success and
improvement. It is considered as a huge
concept which aids to render guidance to
entrepreneur so he will be able to formulate
new business.
TASK 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea
Modifications in extrinsic environment will transform business on daily basis because it
is essential for them to adopt changes (Johnson, 2016) (Suddaby, Bruton and Si, 2015).
Fundamental targets of association is to apply latest methods into products as this enables them
to make them more effective. After Brexit, there are numerous alterations take place in country
due to changes in laws and acts. Many persons were not much aware about it, so that they will
not able to accomplish operational activities appropriately. It is required for an entrepreneur to
examine environment timely; therefore, they will be able to acquire opportunities at marketplace.
Business person needs to think about welfare of both, company as well as society and in some
situation, he has to think about nation also. Natural essence is going to produce new skin item
which is totally organic and produced by applying natural ingredients. It is not containing any
artificial things as this will provide impact to skin of people. This item will easily capture
attention of many clients and help firm to obtain maximum share of market. Product is
acceptable by each individual because it can be apply by them on every type of skin, like oily,
dry etc.
Other feature of this item is that, person of any age group will use this because it is
organic and in addition natural. This will not cater affect on skin; thus, it is much demanding by
people. Hence, cream is produced by firm through take care of each type of people. Quality and
price of product is also good (Dees, 2017).
Some of ideas related to entrepreneurial are stated as beneath: Example for all: New item will easily gain attention of clients and along with rivals. If it
is entirely unique, creative and distinctive from current good then, this will help firm in
improvisation of profits and production. In context of Natural essence, they produced an
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innovative item for people which is manufactured by implementing natural ingredients.
Quality of product is much effective and it fits for every type of skin. Therefore,
numerous people use it or will get attracted towards this. Create benefits for all: Any new item will easily hit overall marketplace. This will render
maximum advantages to individual in many context, such as it helps to generate
maximum employment. Along with, this will assist to contribute in entire GDP of nation.
Market Segmentation: It is method through which company will classify people on some basis.
This will aid to examine clients so that firm will make modifications in products as per needs of
individuals (Ramoglou and Tsang, 2016). It will be described as beneath: Behavioural segmentation: As indicated by this, clients behave will be evaluated by
dividing them into some categories. For instance: if person is much conscious for his
health then, he always want to purchase organic merchandise. Demographic segmentation: This assists to classify individuals as per gender, age,
income etc. Items associated with skin care need to be sold to persons as per their
requirements. Geographic segmentation: As indicated by this, persons will be divided as per their
region, where they are living. For instance: policy of UK will vary as comparison to
Australia.
Tangible and Intangible features and benefits of a product and service:
Tangible Intangible
This is like a visible aspect which will be seen
by purchasers or clients in items as well as
services. Fundamental advantage of this, it will
be consume or utilize by individuals
effectually.
It is like a invisible features which cannot be
seen in items. This will comprise services only.
Porter's five model on Natural Essence: Industry competitors: Competition will high when, there are many organisations of
similar nature are present at market and providing same kind of goods and services to
people (Koryak and et. al., 2015). To take benefits from rivals, it is required for manager
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to utilize promotional methods, pricing strategies, latest items and many others. In
context of Natural Essence, they are facing many issues, such as huge investment,
product differentiation, exit risk etc. recently, main competitor of firm is, Lavender
industry group. Pressure from substitute products: As there are many contenders of firm in market; thus,
substitute items will easily available. If clients are not having sufficient amount of fund
then, they will try to determine alternative of costly items. Bargaining power of suppliers: They will cater huge affect on manufacturing process of
company. They render crude material as well as some required goods to firm; thus, they
will produce products and services for consumers effectually. There are many suppliers
available in market so that there affect is high. Therefore, they will increase resource
value which will provide impact to cost of enterprise (Mueller and Shepherd, 2016). Bargaining power of buyers: They will force firm to down value of items and will
demand for quality goods etc. this will reduce profits of affiliation. As there are numerous
clients are there in market which will provide impact to value of goods and services
either directly or indirectly. Their satisfaction as well as retention is essential for
organisation (Consumers are changing their purchase behaviours, 2018).
 Potential entrants: There are some obstacles related to this, stated as below:
▪ Differentiation of goods, loyalty of clients and their satisfaction.
▪ Company needs sufficient finance; thus, they will be able to manage their
production and will begin another business as well.
▪ Economies of scale will push some other people to start similar kind of business.
▪ If any people is going to open an organisation then, they have to utilize some
promotional or marketing techniques.
▪ Rules, policies or regulations of government will also obstacle for new entrant
(Mathias and Williams, 2017).
TASK 3
P3 Presenting data to support gap analysis and evaluation
Company regulates in society and it is required for entrepreneur to take care of social
components. Numerous elements will provide impact to thinking of individuals. Therefore, it is
must for business person to examine them so that they will be able to diminish adverse affect. It
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is essential for manager of Natural Essence to make some effective strategies as this will help
them to take benefits from them. Cosmetic industry's scope is much broad; thus, many firms
want to take entry into this market. Requisite data and information of enterprise is shown as
beneath:
Basis Company Competitive firm
Competition in market Cost of organisation is much
less as comparison to another
affiliations and this helps into
their success and
enhancement. Product value is
$7500.
Rivalry organisations' product
price is almost 4.5% higher
than Natural Essence. It has
been analysed that, clients
never want to purchase items
on high rates.
New entrances in industry Quality and prices of goods
and services are affordable and
they are providing almost 2%
discount to their regular
purchasers.
There are many new entrants;
thus, value is fixed by them i.e.
$9900.
Power of supplier They are providing material to
them at $1900 which is low as
comparison to contenders.
Competitive firm's supplier
charging $2400 commission
from them and this is affecting
their revenues.
Power of customer They provide maximum
weightage to clients which
assist into their retention.
Their main aim to earn
maximum profits; therefore,
they are unable to satisfying
requirement of people.
Threat of substitute Subscription charges is $650
which is less as comparison to
another firms.
Rivals are charging $999 as a
subscription fees.
A questionnaire is prepared in order to collect the feedback of different respondents about
the satisfaction level of customers after using the new product:
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Questionnaire
Name
Id
Contact No.
Respondents 60
Q.1 Is Natural Essence an effective product in cosmetic industry?
Yes 45
No 15
Q.2 Are you satisfied with the results of Natural Essence?
Yes 35
No 20
Can’t say 5
Q3 What is the most attracting feature of natural essence?
Results 15
Costing 25
Suitability 20
Q.4 Dose price charged against the product is high?
(a): High 25
(b): Low 20
(c):Moderate 15
Graphical representation:
1.
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(a): Yes (b): No
0
5
10
15
20
25
30
35
40
45
50 45
15
Respondent in %
2.
(a): Yes (b): No (c): Can't say
0
5
10
15
20
25
30
35
40
35
20
5
Respondent in %
3.
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4.
25
20
15
(a): High
(b): Low
(c): Moderate
P4 Interpretation of data availed
Interpretation of data is described as beneath:
 Competition is much high in this segment; therefore, it is required for firm to take care of
demands of buyers. Otherwise, they will switch to other brand, as they are providing
items at $7500 which is low as comparison to another association.
 Discount is providing by company to their regular clients. They cater additional offers to
existing consumers if they bring new people. This will assist firm into their development
and success.
 It is needed for firm to maintain an appropriate relationship with suppliers as they
providing material to organisation as per requirement. Cost for this is $1900 which is less
as relation to rivals.
 Clients are fundamental for each affiliation as they help to maintain appropriate brand
image of firm at marketplace.
 To reduce complaints, manager of firm offers products to them as per their needs and
wants. Almost $650 is charged by Natural Essence as a subscription fees.
Interpretation of the above collected data is given below using different central tendency:
1.
Total 60
Mean 30
Median 30
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Mode 0
Interpretation – From the above data it is analysed that an average of customers finds the new
product good for the cosmetic industry which shows that there are chances for the firm to grow.
There median is 30 which shows that half of the respondents are in favour of this product.
2.
Total 60
Mean 12.5
Median 12.5
Mode 0
Interpretation – Mean is 12.5 which shows that most of the respondents are satisfied with the
results of this brand and median is also same.
3.
Total 60
Mean 22.5
Median 22.5
Mode 15
Interpretation: The observation has high mean value showing different respondent are happy
with the aspects discussed showing that company can grow in the long run.
4.
Total 60
Mean 17.5
Median 17.5
Mode 10
Interpretation – Mode of the collected data is 10 which shows that much respondents are having
same perspective about the product. Thereafter mean value showing that prices are accepted in
market to a great extent.
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TASK 4
P5. SWOT analysis to assess the entrepreneurial idea
Company will utilize SWOT investigation to examine their strengths and weaknesses.
Along with, this will assist them to examine opportunities and threats which are available in
market (Davidsson, 2015).
Strengths Weaknesses
Organisation is using latest tools and
methodologies which assist to capture attention
of numerous individuals towards them. They
modify items as per requirements of people.
Along with, quality is much effective which
help them into their success and enhancement.
Prices of items are high which will affect their
sales and production. Some items, such as
cream, oil soaps etc. are not affordable by
individuals who belongs from middle class.
Opportunities Threats
To enhance sale, it is must for them to sell
items online as well. It enables them in
increment of customer base and revenues and
will take benefits from rivals.
There are many organisations who are taking
entry into this sector, which will affect their
profits and market share.
P6 Evaluating competitiveness and market environments
Entrepreneur needs to examine market as this will cater affect to business activities. It is
must for affiliation to analyse preferences and taste of people (Kohlbacher, Herstatt and Levsen,
2015). Along with, organisation needs to analyse their rivals and compete with them, for this,
they will formulate some policies or strategies. In context of Natural Essence, they are going to
launch organic cosmetic; therefore, it is must for them examine market.
Competitive market: It is must for association to evaluate rivals so that they will develop
products and services for clients accordingly. There are numerous types of items which are
available in market, like eternal skincare, green people etc. By analysing competitors, manager
will formulate some strategies. Hence, there are some elements which will be taken into under
consideration at the time of competitive evaluation:
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 Substitute products: In market, numerous utility will be available of products. Therefore,
if organisation wants to take benefits from rivals then, it is required for them to use
certain strategies, such as pricing, promotional etc. Target audience: Enterprise is concentrating on women or girls for their items (Kirzner,
2015). Thus, it has been evaluated that they are much clear about their target market and
this will help them to attain coveted goals within limited period of time.
 Demand: Requirement of organic items are much high because there is no side effect of
it. Thus, people will easily get attracted towards this; as a result, demand of product will
be high at marketplace.
Market environment: This will classify into two components which are stated as
beneath: Macro environment: This will comprise PESTLE, i.e. political, economical, social,
technological, legal and environmental element. It is required for superior of Natural
Essence to analyse these factors; therefore, they will easily survive at marketplace for
maximum period of time. If prices of goods and high then, this will provide affect to
buying behave of individuals. It is must for firm to apply proper laws and rules into
business; thus, they will be able to operate business in an ethical manner (Karimi and et.
al., 2016).
 Micro environment: It will include intrinsic elements which will provide affect to overall
business activities, for instance: behaviour of staff members, culture, attitude, value and
so on. Superior has to render training to workers; therefore, they will deal with any type
of circumstances effectually. It assists into success and development of an enterprise
(Renko and et. al., 2015).
CONCLUSION
From above assignment it has been concluded that entrepreneur needs to determine
opportunities which are accessible for them at marketplace; thus, they will acquire growth and
development. It is must for company to implement new and innovative ideas into products and
services because it helps to make them more effective. Manager will formulate some strategies
as this enables them to take benefits from rivals at competitive place. Analysis of market and
competitors is discussed in this project as it will entire working operations either in a direct or
indirect manner.
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REFERENCES
Books and Journals
Davidsson, P., 2015. Entrepreneurial opportunities and the entrepreneurship nexus: A re-
conceptualization. Journal of Business Venturing. 30(5). pp.674-695.
Dees, J. G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability. pp. 34-42. Routledge.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Karimi, S. and et. al., 2016. Fostering students’ competence in identifying business opportunities
in entrepreneurship education. Innovations in education and teaching
international. 53(2). pp.215-229.
Karimi, S. and et. al., 2016. The Impact of entrepreneurship education: A study of Iranian
students' entrepreneurial intentions and opportunity identification. Journal of Small
Business Management. 54(1). pp.187-209.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kohlbacher, F., Herstatt, C. and Levsen, N., 2015. Golden opportunities for silver innovation:
how demographic changes give rise to entrepreneurial opportunities to meet the needs
of older people. Technovation. 39. pp.73-82.
Koryak, O. and et. al., 2015. Entrepreneurial leadership, capabilities and firm
growth. International Small Business Journal. 33(1). pp.89-105.
Mathias, B. D. and Williams, D. W., 2017. The impact of role identities on entrepreneurs’
evaluation and selection of opportunities. Journal of Management. 43(3). pp.892-918.
Mueller, B. A. and Shepherd, D. A., 2016. Making the most of failure experiences: Exploring the
relationship between business failure and the identification of business
opportunities. Entrepreneurship Theory and Practice. 40(3). pp.457-487.
Ramoglou, S. and Tsang, E. W., 2016. A realist perspective of entrepreneurship: Opportunities
as propensities. Academy of Management Review. 41(3). pp.410-434.
Renko, M. and et. al., 2015. Understanding and measuring entrepreneurial leadership
style. Journal of Small Business Management. 53(1). pp.54-74.
Suddaby, R., Bruton, G. D. and Si, S. X., 2015. Entrepreneurship through a qualitative lens:
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Business venturing. 30(1). pp.1-10.
Online
Consumers are changing their purchase behaviours. 2018. [Online]. Available through:
<http://cosmeticschinaagency.com/10-trends-chinese-consumers-cosmetics/>.
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