Entrepreneurship Research and Competencies

This assignment delves into various aspects of entrepreneurship research, including opportunity recognition, entrepreneurial competencies, and education models. It provides an overview of key studies and frameworks on entrepreneurship, such as the McKinsey 7S Change Model, effectuation, causation, and bricolage. The assignment also touches upon social and commercial entrepreneurship, regulatory focus, self-efficacy, and dynamic capabilities.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1 .Background information about those sources that inspired your idea and what motivated
you personally in wishing to set up your own business.........................................................3
2 .An introduction to your business idea and what it is, and who and where your potential
customers and target audience are..........................................................................................5
3 .A competitor analysis that looks at the competitive marketplace and analysis company
failures and successes.............................................................................................................6
4 .Conduct Gap analysis by identifying situation now and what is the future. What are the
objectives of business idea and how do to achieve?..............................................................8
5.Market research to support viability for your business idea and identify market potential
using a range of sources that could be both primary and secondary......................................1
6.Why your business idea is viable and feasible and how you qualify this belief. What are the
strengths and weaknesses.......................................................................................................5
7. How will you overcome the risks of competition and the potential opportunities for growth
and development in the future with recommendation............................................................6
CONCLUION..................................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
An entrepreneur is a person who is working in as a employees, founder or running a
small business. A good entrepreneur has various quality and characteristic such as innovative
skills, creative skills, communication skills, leadership skills and many others. Before starting a
new business an entrepreneur has to identify appropriate idea of business which help them in
gaining profitability and market shares (Grégoire and Shepherd, 2012). This assignment is based
on Coffee with Art cafe which is going to launch in United Kingdom. It has attractive and
innovative features like it has inter art gallery and customisable interior wall which will change
on a weekly basis. Topics which is covered in this assignment are background of idea, business
idea and competitive analysis of business ideas. Along with this it evaluate gap analysis and
identify market potential. It also explain strength and weakness of new idea and opportunities for
growth in the market place of respective cafe by which they able to make appropriate decision
and improvement.
MAIN BODY
1.Background information about those sources that inspired your idea and what motivated you
personally in wishing to set up your own business
In today's scenario there are various peoples who want to start their own business
in order to become an entrepreneur and independent. Government of United Kingdom also
promote those individuals who want to establish a start up. By this they able to become
independent and also generate employment opportunities to others. To start an entrepreneurship
or start up there are various factors and sources which encourage and motivate employees.
Owner of Coffee with Art get inspiration and motivation from Drucker's 7 source of systematic
innovation which is explain below:-
The Unexpected: When owner of respective cafe decide to launch cafe with new idea of
art gallery and customisable interior wall, they may face either of the two unexpected situation
that is failure and success (Tang, Kacmar and Busenitz, 2012). In this their is possibility that
respective cafe idea will attract customers and they like idea. But they may also face situation of
failure it means there is possibility of customers didn't like idea.
The Incongruity: It refers to situation or gap which occur between reality and belief of a
person, product or any thing. In other word it is a condition when assumption and reality didn't

fit together. Such as what Coffee with Art cafe want to offer their customers is different what
customers are assuming.
Process Need: It refers to identifying weak point or need and demand of customers and
then design products accordingly in order to attract customers in appropriate and effective
manner (Suddaby, Bruton and Si, 2015). In context of respective cafe they identify and evaluate
that sometime peoples get bored in cafe and some peoples are more interested in art and craft.
Along with kids who come to cafe with someone, get bored. So owner of Coffee with Art design
their cafe according to customers need and demand.
Industry and Market structure change: It refers to source which give inspiration to adopt
changes and innovation in business model, distribution channel, mode of business, products and
many others. In this regard respective cafe design and develop their interior, product and services
according to changing demand of customers.
Demographics: It refers to situation when any change occur in various demographic
factors such as age, policies, religions, income and many other. When any change occur,
company has to develop or update its products accordingly. Such as Owner of Coffee with Art
analysis demand and need of customers of all age group peoples and they also decide price
product which is affordable by all.
Changes in Perception, meaning and mood: It refers to source or situation which is
uncertain and which may occur any time. Such as need and demand of customers change
according to time and need. So respective cafe owner design their cafe products and services
accordingly which attract customers.
New Knowledge: It refers to adopting new knowledge or any idea which attract
customers and increase profitability ratio. Coffee with Art is design with new technology and
ideas which attract more and more customers in appropriate manner which help them in gaining
more profitability.
Type of innovation:
There are various type of innovation which can be adopted by a company in order to
grow their business in effective manner, from which two main are are explain below:-
 Product Innovation: It refers to type of innovation which is related to products and
services offered by a company in order to attract customers and gain huge profitability

ratio. In this innovation can be adopt in several forms such as adopt new technology,
design attractive product and many more.
 Process Innovation: It refer to type of innovation when changes are adopted by
company in their production and operation functions. It is generally related to
manufacturing process, technology, software and many more. Through this company
conduct their function and operations in effective manner.
Scope of innovation for small firm
If a firm adopt innovation at their workplace their get various benefits and it will also
help in developing scope for future. This will also essential for small firm to adopt innovation
because through it they able conduct their business in effective manner which will help in
gaining huge profitability ration and market shares. Along with this by adopting innovation small
firm also able to improve their existing operation and function that leads to conducting work
properly.
2.An introduction to your business idea and what it is, and who and where your potential
customers and target audience are
Business Idea:- Coffee with Art is a cafe which is going to launch in United Kingdom. It
is based on need and demand of customer and it has various unique features which attract
customers (Renko, Shrader and Simon, 2012). In this cafe customers able to enjoy there coffee
with some art because Coffee with Art has their own inner art gallery. They are also come up
with idea of customization interior wall where customers can decorate wall as they want and it
will be change on weekly basis. Coffee with Art also provide discount or gift according to rating
which is given by other customers or audiences on decorative wall. This customized wall is for
both age group customers such as young customers and kinds who come with someone. The
respective cafe also organized event related to singing, poetry, story telling and many more on
weekly basis. Along with this they are also providing books to those customers who love
reading.
Target Audiences:- According to respective company their potential customer are
peoples who are more incline towards arts and craft (Boyles, 2012). This is so because they can
enjoy their coffee and other product with art and craft gallery. Along with this Coffee with Art
focus on youth and kids who come with someone.

3.A competitor analysis that looks at the competitive marketplace and analysis company failures
and successes
Market gap refers to situation through which owner of a company can identify need and
demand of customers and offer product which is unique and fulfill customers demand. Along
with this by conducting gap analysis company can know their potential and actual standard
where they are existing. This will help manger or owner of a company to develop strategies by
which they can reduce gap in effective and appropriate manner. Owner of Coffee with Art
conduct research and identify issues and demand of customers then they develop and design
products and services of cafe. There are various ways through which respective company can
conduct gap analysis such as SWOT analysis, fish bone analysis, McKinsey 7S and many more.
But Coffee with Art owner decide to adopt McKinsey 7S method, which explanation is given
below:-
McKinsey 7S method- This method is develop by McKinsey & co. which is a consulting
firm in year 1980. It is a frameworks by which an organization able to identify there seven
internal factors and strengthen them in effective manner in order to reduce gap in appropriate
manner (Wang, Ellinger and JimWu ,2013). This will help Coffee with Art in analysis and
evaluating their business and identify gap and then make startles to reduce it in appropriate
manner. This in method elements are divided into two part which is hard elements and soft
elements.
Il
lustration 1: McKinsey 7S Change Model
(Source:McKinsey 7S Change Model, 2019)

Hard elements:-
Strategy: It refers to plan of action which a company develop in order to gain
competitive advantage and attract customers. Strategy of Coffee with Art is to provide additional
facilities along with cafe such as they are providing art gallery for peoples who are incline
towards arts and craft. They provide customized wall where customers do art and craft work and
they will get rating accordingly. On respect of this customers also get discount coupons and gift
vouchers.
Structure: Structure refers to style or management style in which work is conduct in an
organization (Gruber, MacMillan and Thompson, 2013). Organizational structure which can be
follow by Coffee with Art is flat structure. In which employees are treated as a same level and
each staff have right to take part in decision making process.
System: It refers to technology and infrastructure which is use by a company in order to
make their daily work easy. In this respect Coffee with Art use advance technology which make
work and task of staff easier and simple. By it employees able to conduct their work in effective
time with less or minimum wastage.
Soft elements:-
Shared value: It refers to objective of a business which they share in order to attract
customers. Share value of Coffee with Art is that they want to attract customers who are more
tend towards arts and craft. They want to develop solutions to all peoples and try to create
positive image.
Style: Coffee with Art follow cross culture leadership style by which they able to attract
all type of customer at there cafe. Due to which they are also offer products and services
according to every religions.
Staff: To attain goal and objective in appropriate manner Coffee with Art hire employees
who are skilled and trained (Austin, Stevenson and Wei-Skillern, 20120). So that they able to
satisfy customers in appropriate manner. Employers of respective company also provide training
and develop according to requirement on regular basis.
Skills: Skills refers to ability and knowledge of employees which is required for
conducting work in appropriate manner. For this Coffee with Art hire employees who have
several skills such as professional, personal, communication skills and many more.

Porter's five force model:
This is conducted by Coffee with Art in order to analysis its position at a marketplace and
through this they also able to develop proper strategies and plans, explanation of respective
model is given below:-
Rivalry: In respective sector there are various other coffee shop which are operating their
business from many years such as Cafe Coffee Day, Costa Coffee Shop and many more and this
will impact on respective company business. Here rivalry of respective company is high.
Threat of Substitutes: There are various substitutes are available of Coffee With Art products
such as tea, energy drinks, soda and many other. So here threat of substitute is high for respective
company.
Buyer Power: In respective industry power of buyers is high because there are various company
which are operating in this sector and offer same type of products.
Supplier Power: The power of supplier in respective sector is low because there are various
competitive suppliers which offer same kind and standard products at different different price.
Barrier to Entry: In this market entry is easy because there are no government rules and
regulation in this sector. Along with this, it is consider as high profitable sector which have huge
numbers of customers.
4.Conduct Gap analysis by identifying situation now and what is the future. What are the
objectives of business idea and how do to achieve?
Gap analysis refers to the strategic tool and technique which is use to evaluate gap
between standard result and actual result. By this an organization able to make comparison
between what they want to do and what they done and then they make strategies and plans
accordingly (Sánchez, 2013). Coffee with Art conduct gap analysis by which they able to make
change and innovations according to requirement. By analyzing current market trends of
respective industry it is identify that now a day major customers of coffee shop are students and
youngster and there are more attracted towards those shop which offer quality coffee in
minimum price. But when this situation compare with Coffee with Art they offer quality coffee
but its price is little bit high. This will develop gap in the situations and this is essential for
respective company to understand it and resolve the gap properly. Explanation of respective
analysis in context of Coffee with Art is given below:-

Coffee with Art Rival company
In this cafe customers can spend their time
easily by doing creative works because they are
offering services of art gallery and customized
wall.
Whereas no other cafe offer this type of
services at there cafe. They only offer services
like book reading, conduct events and others.
The respective cafe offering their products and
services at economic and affordable price.
Other rival cafe or company charge more price
in order to offer services and products.
Coffee with Art is designed by considering
demand and need of customers. Main aim of
this cafe is to entertain and satisfy their
customers.
Whereas other cafe's main motive is to earn
profit by providing product and services.
For analysing gap analysis in effective and appropriate manner Coffee with Art conduct
research through questionnaire method. The research is conduct with 20 respondent, Which is
mentioned below-

Q1. Do you think customers are aware about the concept of cafe with art and craft ?
Yes
No
Q2. What kind of concept are most awaited by customers now a days ?
 Creative ideas with interior
 Quality of food with new ideas
 Theme based concept
Q3. Is there any requirement to implement dress code for the workers with our new idea ?
 Yes
 No
Q4. Do you think the changes in the concept of new idea requires to be based on customer's
feedback and reviews ?
 Yes
 No
Q5. Is there any requirement of advertising practices in order to promoting our business idea in
the market ?
 Yes
 No
5.Market research to support viability for your business idea and identify market potential using
a range of sources that could be both primary and secondary
Theme 1:
Q1. Do you think customers are aware about
the concept of cafe with art and craft ?
Frequency
Yes 15
No 5

Mean 10
Mode 0
Median 10
Interpretation: From above data it can be evaluate that 15 person from 20 respondents are
known about cafe with art and craft but 5 respondent don't know about this.
Theme 2:
Q2. What kind of concept are most awaited by
customers now a days ?
Frequency
 Creative ideas with interior 7
 Quality of food with new ideas 6
 Theme based concept 7
Mean 6.67
Mode 7
Median 7
2
Yes No
0
5
10
15
15
5 Column B

Interpretation: from the above data it can be evaluate that the concept that has been most
awaited by the customer now a days is Creative ideas with interior and Theme based concept as
these aspects gets higher ratings as 7 in respect of others.
Theme 3:
Q3. Is there any requirement to implement
dress code for the workers with our new idea ?
Frequency
 Yes 12
 No 8
Mean 10
Mode 0
Median 10
3
Creative ideas with interior
Quality of food with new ideas
Theme based concept
5.5
6
6.5
7
7.5
7
6
7
Column C

Interpretation: From above graph it can be conclude that 12 peoples out of 20 think that
respective company requiremented to implement dress code for the workers with there new idea.
Theme 4:
Q4. Do you think the changes in the concept of
new idea requires to be based on customer's
feedback and reviews ?
Frequency
 Yes 12
 No 8
Mean 10
Mode 0
Median 10
4
Yes No
0
2
4
6
8
10
12
12
8
Column C

Interpretation: From the above data it can be analysis that changes in the concept of new idea
requires to be based on customer's feedback and reviews 12 respondent this but 8 of them didn't
this like this.
Theme 5:
Q5. Is there any requirement of advertising
practices in order to promoting our business
idea in the market ?
Frequency
 Yes 15
 No 5
Mean 10
Mode 0
Median 10
5
Yes No
0
2
4
6
8
10
12
12
8
Column C

Interpretation: On the topic of requirement of advertising practices in order to promoting our
business idea in the market 15 respondent out of 20 think that they shout do this but 8 of them
didn't think this.
6.Why your business idea is viable and feasible and how you qualify this belief. What are the
strengths and weaknesses
Coffee with Art is viable and feasible idea because they are offering other attractive
services as compare to their competitors which make them different. Such as they are opening art
gallery inside cafe which attract customers which are more incline towards arts and craft
(Tumasjan and Braun, 2012). Along with this they are offering customized wall where customers
can do decorative activities and they get rating accordingly. For identifying appropriate strength
and weakness respective company conduct SWOT analysis, which is given below:-
Strength Weaknesses
 Coffee with art providing additional
attractive services and products.
 They use quality raw materials and
products.
 Staff of cafe are trained and skills, they
know how to attain customers.
 Interior and other products like cup,
decorative items are very attractive and
elegant.
 There are huge number of cafe in
United Kingdom.
 Respective company is start-up they
didn't have any experiences of business.
 According to idea owner of Coffee
with art required more funds in form of
loan and investors.
Opportunities Threats
 Respective cafe has new ideas which
can attract customers at large basis.
 There are lot of other huge brand in
cafe business such as cafe coffee day,
6
Yes No
0
5
10
15
15
5 Column B

 They can open more outlet in different
locations to enlarge their customers
base.
Starbucks and many others.
 Change in economic condition or
situation may affect business of coffee
with art.
` By conducting SWOT analysis Coffee with Art owner able to know their strength,
weakness, opportunities and threats. Due to which they able to design and develop strategies and
plans in more effective and appropriate manner that help them in gaining competitive
advancement (Davidsson, 2015). Along with this they are able to increase their profitability ratio
and customers base.
7. How will you overcome the risks of competition and the potential opportunities for growth
and development in the future with recommendation
Market analysis is a tool which is use to evaluate and analysis market situation and
conduction. By conducting market analysis an organization is able to plan their operations and
functions in more effective and appropriate manner in order to attain goal and objectives in
proper ways (Fisher, 2012). Coffee with Art is offering product and services with some
additional features or services which attract customers. For identifying effectiveness of their
business respective company conduct market analysis which is mentioned below:-
Competitive environment- It refer to situation related to competition which a company
face at marketplace. If products and services are more like and demand by customers, it means
company is gaining competitive advancement. So to avoid huge competition Coffee with Art
launch additions features like art gallery in cafe and customize wall which attract customers on
high rate. Demand: Demand of products and services which is offer by respective company is high
because they offer two services at one place like art gallery at cafe. Which attract and
encourage customers which are more focus towards arts.
 Substitutes goods: Products, services and additions facilities which this cafe is offering is
not having any substitute now a days because in today time cafe are only offering
addition services like book reading, events and so on.
Market environment- It refers to micro and macro environment factors of environments and it
help a company in operating their functions in appropriate and effective manner (Audretsch,
7

2012). There are some external factors which can influence business operations and functions of
Coffee with Art. Micro environment: These are those factors which affect business operations and
function on directly basis. There are various factors of micro environment such as
suppliers, customers, competitors and many other. So before launching Coffee with Art
cafe their manager will conduct analysis so that they effectively develop plans and
strategies.
 Macro environment: It is a huge concept of environment which influence business. A
business organization conduct macro environment analysis by using. PESTEL refers to
factors such as political, economic, social, technological, environmental and legal
(Arentz, Sautet and Storr, 2013). This will help respective company in making strategies
and plans in appropriate manner.
So it is important for Coffee with Art to conduct analysis in appropriate manner in order
to gain competitive advancement. By this they also able to know current trends, need and
demand of customers.
CONCLUION
From above mentioned point it can be analysis and conclude that when a person wants to
launch an entrepreneur they have to conduct various type of analysis in order to make
appropriate decisions and plans. An entrepreneur who want to launch a new business they have
to identify new and unique idea which attract customers. For this they can conduct market and
gap analysis in order to know what is demand of customers and they are offering. When a
company want to identify their potential they will conduct evaluation through primary and
secondary. This can be done by using SWOT, competitive and market analysis which help
company in attaining goal in effective manner.
8