Identifying Entrepreneurial Opportunities

IDENTIFYING
ENTREPRENUERIAL
OPPORTUNITIES

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK1 ............................................................................................................................................4
P1. Different sources of entrepreneurial ideas and innovation...................................................4
TASK2 ............................................................................................................................................6
P2. Rationale and market gap for a specific entrepreneurial idea with the help of relevant tools
and techniques.............................................................................................................................6
TASK3.............................................................................................................................................7
P3. Present data which will be needed in supporting gap analyses of new entrepreneurial idea.
.....................................................................................................................................................7
P4. Interpret data appropriately to provide evidence of market potential...................................8
TASK4...........................................................................................................................................11
P5. SWOT Analyses..................................................................................................................11
P6. Evaluate the competitive and market environment in which the idea will be launched.....12
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................15

INTRODUCTION
Entrepreneur is the person who is responsible for bringing new, innovative ideas and
opportunities for the businesses. The individual who is interested in starting own business looks
for several opportunities through which they can attain the profits and revenues. The
identification of such opportunities is referred to as entrepreneurial options. This report will
evaluate the possible sources of entrepreneurial ideas and innovation. It will also explain the
choice of specific entrepreneurial idea for investigation and market gap. Furthermore, this will
adopt the primary and secondary sources of data collection for identifying the potential of
markets. The last part of the report will concentrate on identifying entrepreneurial idea in context
of market and competitors and further makes an assessment of potential viability.
TASK1
P1. Different sources of entrepreneurial ideas and innovation.
Each and every entrepreneur has different set of mind, goals, skill and have different
innovative ideas which they wish to put into the action. Even the ideas which the entrepreneur
have today in mind can be changed by tomorrow due to the highly competitive world. These
ideas are required to be changes time to time because of changing market conditions. Changes
are inevitable part of business life and creates a numerous opportunities for an entrepreneur.
Such changes occurs when the external environment changes and develops innovative means for
an entrepreneur. For instance, if the use of technology increases then the entrepreneur will adopt
different types of technologies in order to maintain the sustainability and productivity of the
organisation. For better understanding of different sources of entrepreneurial ideas and
innovation, the Drucker model will be used.
Drucker 7 sources of innovative opportunities
The model of innovative opportunities was developed by Peter F. Drucker where the 7
different sources are explained. The Drucker is considered to be one of the most important
consultant in management. The 7 different sources are discussed below:
 The unexpected: The market of business is highly dynamic in nature and unexpected is a
key term which can make the entrepreneur satisfied and dissatisfied as well by bringing
unexpected success and unexpected failure. The unexpected situations can be the very
powerful source for the businesses. By carefully understanding the unexpected can

benefit an entrepreneur in looking for opportunities and constantly studying market. At
same time, its weakness is that unexpected circumstances generally destroys all the
workings of a person.
 Incongruities: There is always the inconsistency between what is and what should be.
The incongruities are the important ingredient for developing successful business but this
is a complex procedure. The best way to know the drawbacks and plus points for the
company is taking customer feedback, complaints, etc. It benefits in setting wildly
successful business by an entrepreneur by carefully analysing macro environment
phenomena existing within business sector. It provide advantage of producing better
outcomes by exploiting rising demand and is mainly considered by business persons
when presenting themselves. The disadvantage of the source is that it assumes various
things that may not possible to occur and results in losses.
 Process need: This source of creating innovative opportunities is highly focussed
towards the specific set of tasks. It helps in examining the tasks thoroughly and deeply
and identifies the weak points and the manner in which it can be improved. With this, the
entrepreneur and their team will be able to create more appropriate plans. The biggest
advantage of process need is that it helps entrepreneurs to focus of situations and closely
emphasising weak spots for their improvements. The disadvantage of the source is that it
fails to evaluate capabilities of business that entrepreneur is setting that can affect further
operations.
 Industry and market structure change: The industry and market structure can be
constant and consistent in functioning and operation but due to the changes in external
business world, they can be affected adversely and needs to be changes as rapidly as
possible for the existence of the company. The leaders and other expert people needs to
continuously review the changes and ready to accept them as the newer opportunity for
the business rather than threat. The advantage of the source is that it helps in more
emphasising towards changing situations within industry and market so that
entrepreneurs can set their workings. It also had disadvantage of it lacks emphasis on
other things which are too important.
 Demographics: The demographics changes have a very crucial impact on developing
new opportunities of the businesses. For instance, the changes in the trends and demands