Identifying Entrepreneurial Opportunities TABLE OF CONTENTS INTRODUCTION 1 1. Why the Idea of Entrepreneur is Feasible, Viable and What are its Strengths and Weaknesses 11 7. Why the Idea of Entrepren

Identifying Entrepreneurial opportunities TABLE OF CONTENTS INTRODUCTION 1 MAIN BODY1 1.Background information about different sources that inspired the business idea 1 2. Background information about different sources that inspired the business idea : The inspiration can be drawn from anywhere and entrepreneur has developed this thought on the basis of below mentioned sources : Attending trade shows, events and exhibitions : The entrepreneur build its idea of starting a dining place in the UK by attending different trade shows and exhibitions where different restaurateurs showcases their skills,

Identifying Entrepreneurial
opportunities

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1. Background information about different sources that inspired the business idea..................1
2. Introduction to business idea ..................................................................................................3
3. Competitors analysis...............................................................................................................4
4. Gap analysis and objectives of business ideas........................................................................6
5. Market research for supporting viability of business idea .....................................................7
6. Why the idea of entrepreneur is feasible, viable and what are its strengths and weaknesses
...................................................................................................................................................11
7. Recommendations on overcoming risks of competition and tapping of potential
opportunities .............................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Entrepreneurship can be refereed as the act of developing a new business entity by
undertaking risk in order to earn profits. In other words, it means the process or set of activities
of designing, launching and operating a new business by a person (Bruton and et.al., 2015). The
present project report is going to discuss the different sources that generated the idea of opening
a dining restaurant in United Kingdom. It will also include what the business idea is, who are the
target customer, hewer the restaurant is supposed to be open in UK. A competitive analysis will
be done for assessing the competitiveness of the market place, what the entrepreneur can do to
face such competition. The assignment will also cover a gap analysis which will show what is
the current situation of the entrepreneur and its resources and how can it fill those gaps. A market
research will be conducted for checking out the viability of the business thought.
MAIN BODY
1. Background information about different sources that inspired the business idea
The inspiration can be drawn from anywhere and entrepreneur has developed this thought
on the basis of below mentioned sources :
Attending trade shows, events and exhibitions : The entrepreneur build its idea of
starting a dining place in the UK by attending different trade shows and exhibitions where
different restaurateurs showcases their skills, experiences and valuable insights. Entrepreneur
met some distributors, suppliers, sales representatives , franchisers that influenced it to enter into
this industry. The strength of this source is good because it helped the entrepreneur in knowing
and observing the real and useful insights of the actual restaurateurs.
The limitation is that only listening and meeting people at the trade shows might not
provide the actual scenario of the food industry. People do throw fake stories about their business
for making these shows attractive and lucrative (Top 7 sources of business ideas & opportunities
for entrepreneur, 2019).
Personal experience and talents : A lot of business thoughts generates with
entrepreneur's own experience and personal talents. The entrepreneur recognised that it posses
good sense of operating a restaurant business on the basis of which it made its decision of
entering into this specific industry. It is beneficial because learning from own experiences and
developing a business idea out of that is more solid and concrete. Also, natural talent helps a
person in to a thing where its talents gets explored.
1

However, for developing a idea and sticking to it on the basis of personal talent and
experience cannot make a thought viable and feasible.
Brainstorming : It is technique of solving problem by undertaking the activity of
evaluating different course of actions and selecting the best one which perfectly solves that
problems. The advantage of this source is that business idea based on brainstorming practise is
more viable as entrepreneur thinks of the various things and its advantages and disadvantages
and then decides to take a particular action which best meets its desire.
However, practising this technique is very time consuming and entrepreneur might
sometime pick up the wrong of business idea believing it to be viable.
Interest, hobbies and Dreams : This is an important source where the entrepreneur has
developed its business idea of opening a restaurant. The entrepreneur's dream and interest of
becoming a restaurateur played a big role developing this thought. The strength is that hobbies
and interest drives a person to passionately work. This helps in increasing the productivity of that
person (Burns and Dewhurst, J. eds., 2016).
The limitation is that not all hobbies and interests gets materialised. The entrepreneur has
to more practical while forming and choosing a specific direction and industry of doing business.
Drucker's model entails the innovative opportunities for the entrepreneur :
Unexpected success or failure : Entrepreneur's could develop innovative opportunity
from its unexpected success or failures in life. For example, Marriott hotel's , DW was the only
one which was performing well amongst its other restaurants and the reason was later found out
that it was near the airport. The company then decided to tie up airports for catering meals to the
passengers.
Incongruities: The model states that a discrepancy exist in what it should be and what
actually happened. This inconsistency encourages an entrepreneur in developing an innovative
idea for filling that gap. For example, most of restaurant provides unhealthy and high calories but
people are inclining towards healthy and nutritious diet. Thus, this made entrepreneur to think
out of box and developed an idea of providing highly nutritious food.
Process need: This source includes determining a weak point of company process
whatever and redesigning that process. For example, a restaurant recognises that waitrers are not
effectively been able to take orders, therefore it decided to provide devises that takes orders and
directly sends to kitchen electronically.
2

Market structure and industry change: Entrepreneurs always keeps an eye on the
market structure that who is performing how.
Demographics: It means changes in ethnicity, population, education level etc. It is one of
the predictive factor that helps entrepreneur in developing an innovative opportunity.
Changes in perceptions: Generations changes, mood and perceptions of people changes.
This calls for innovative business ideas. For example, nowadays teens prefers high protein food
because of the growing trend of fitness. This have led companies to change their menu tio cater
to the needs of customers.
New knowledge: Latest and new knowledge help entrepreneur in creating a more
innovative idea. For example, in the technology driven era, people using technology in their
operations are way ahead of entrepreneurs that are using traditional methods of running a
business (Concepts and Characteristics of Entrepreneurship, 2019).
2. Introduction to business idea
What is it?
The entrepreneur has formed a thought of developing a dining restaurant called 21
Midpoint Cafe and Dining, a restaurant that will serve proper meals and will also include a
cafeteria providing wide range of coffee variants. The restaurant is supposed to serve both vegan
and non vegan dishes to its customers.
Who is the target audience?
The entrepreneur has decided to serve its products and services to professionals and
average earning, working class people do not get time to cook food because of their long and
unusual working hours. Also, the tourists segment of market has been chosen by the entrepreneur
along with working professionals (Burton, Sørensen and Dobrev, 2016).
Where is it ?
The proposed business venture is supposed to open in Manchester, one of the biggest city
of England. The entrepreneur decided to start its restaurant business in this city because of high
class working people base, natural beauty and historical architecture of place. The entrepreneur
has also one underlying interest in opening up its business in city because of its high rate of
tourism.
3

3. Competitors analysis
The entrepreneur would face intense competition from established restaurants in
Manchester. A competitor analysis for assessing the competitiveness of market is done below:
Criterion McDonald Mr. Cooper House &
Garden
Taco Bell
Products It offers quick food
such as burgers, fries,
beverages. It includes
both vegan and non
vegan food items.
It is one of the local
restaurant that
provides British
classic dishes with
new twists.
Taco Bell offers
Mexican food such as
tacos, burritos, nachos
etc. It offers authentic
taste of Mexican food.
Price The food offerings of
McDonald's is priced
moderately.
Its prices are slight
higher than other
dining restaurants in
Manchester.
Taco Bell believes in
cost leadership
strategy of pricing. It
offers food at the most
reasonable prices.
USP Quick delivery of
food, world biggest
restaurant chain
(Cooper and Folta,
2017).
It provides the best
ambience and its
restaurant theme of
trees and birdhouses is
one of a kind in
Manchester. Its
cocktail servings have
won many awards.
The mouthwatering
taste of its products is
the USP of Taco Bell.
Marketing strategy It focuses on
competitive strategies.
It uses every possible
medium for
advertising and
promoting its business.
It focuses on serving
best to customers that
create good word of
mouth. It does not
market its place
aggressively.
It uses social media
and mobile apps
advertising to its
maximum. It started
offering kid meals for
beating competition.
4

Customer satisfaction
is ultimate goal.
No. of employees It has around 440000
employees in 2017 in
its 37241 restaurants
globally.
For running one
restaurant, it requires
15-20 to operate
efficiently.
It has about 210000
employees in its 7000
restaurants across
world.
The entrepreneur can take advantages of some weak points of these established brands. It
can make its highly fresh by using organic inputs, avoiding frozen foods and microwaved food.
It can promote its 21 Midpoint restaurant through social media, spreading templates near the
offices etc. It can employ technology in reducing que, digitally taking orders, the latest kitchen
equipments and a local chef which has abundant knowledge of cultural and authentic dishes. It
can make restaurant's theme more attractive, open kitchen and can make its place hygienic which
would help entrepreneur in gaining attention of customers (Camp, 2015).
Success of restaurant industry:
 Growing tourism making restaurants highly profitable
 Demand from people working at unusual hours at workplace.
 Increase in purchasing power and in living standards of people.
 Quick accessibility to great food at moderate prices is one of reason of its success
(Davidsson, 2015).
Failures :
 Strict regulations of government regarding health and safety.
 Employment laws and high employee turnover
 Unusual working shifts leading to exploitation of societal factor.
 Shifting preferences of customers towards low calorie food (10 Reasons Restaurants Fail
to Survive, 2018).
The restaurant industry is highly competitive and dynamic all over the globe. There is
high risk but risk provides high rewards. The competition and dynamics of this industry could
be handled by keeping an eye on competitors and needs of customers (Kirzner, 2015).
5

4. Gap analysis and objectives of business ideas
A gap analysis is the assessment of actual performance with estimated or desired results
(Eckhardt, Ciuchta and Carpenter,2018). A comparison is done of current state and future state
for analysing that situation and strategies are formed filling those gaps.
GAP analysis
Criterion Current situation Target situation Action plan
Freshness in food Many restaurants are
serving that is
preheated or frozen.
To provide freshly
produced food using
wood ovens for giving
authentic taste.
 Daily
purchasing
vegetables and
other items for
producing fresh
food.
 Avoiding
excessive use
of microwave
and frozen
food.
Price Proper dining
restaurants charge very
high from customers
with very less quantity
(Hitt and Duane
Ireland, 2017).
The entrepreneur
could fill the gap by
pricing its products
low.
 Finding cost
effective
supplier
 Controlling
wastage while
making food.
Staff Restaurants fails to
provide dishes that are
fusion of local dish
with modern touch due
to ignoring local chefs.
Proper mixture of
cultural dishes could
be blend with new
twists and adding a
protein and nutritious
 Hiring
experienced
local chef for
understanding
needs of
6

touch to it. working class
people and
giving them
home like food.
The entrepreneur has various objectives behind its restaurant opening and wishes to achieve
them through formulation of strategies in the following manner:
Objectives of 21 Midpoint Restaurant
 Earning stability and competitive position in market.
 Earning desired financial results.
 Achieving maximum satisfaction.
 Developing a competitive advantage
Strategies for achieving these objectives
 Serving what customers wants for achieving customer satisfaction.
 Making cost of operations effective for achieving high profitability.
 Employing local chefs and staff who can understand the taste of customers better.
 Providing consistency in services and products and low prices would help in beating
completion and maintaining a stable position in market.
5. Market research for supporting viability of business idea
The entrepreneur has done some market researches for determining the viability of its
idea of opening of a dining restaurant in Manchester, UK. There are two methods of conducting
researches that are primary and secondary (Suddaby, Bruton and Si, 2015). The entrepreneur has
conducted primary research for finding out whether its idea would be a viable or not.
Primary sources : The entrepreneur prepared a questionnaire and included a sample size
of 25 people.
Questionnaire
Q.1 How often do you dine at restaurant?
 Twice in week
 only on weekend
 Once in a week
7

Q.2 Do you prefer vegan or non vegan food?
 Vegan
 Non Vegan
 Both
Q.3 What do you hate most about a restaurant?
 Hygiene factor
 Frozen and Microwaved food
 Both of the above
Q.4 Are you price sensitive ?
 Yes
 No
 Not sure
Q.5What do you recommend on price, quality, staff and ambience....
THEME 1: Customer often visit restaurant Twice in week.
PARTICULARS RESPONDENTS
Twice in week 15
Only on weekends 8
Once in a week 2
Interpretation- From the above questionnaire conducted from 25 potential customers of
21 Midpoint Restaurant and it was identified that, 15 respondents said that they visit a restaurant
twice in a week. They cited the reason behind this that they do not get time to cook food
themselves due to their jobs. 8 people said that they go a restaurant only on weekend and 2
people only once in a week.
8

THEME 2: Maximum customers preferred
PARTICULARS RESPONDENTS
Vegan 6
Non Vegan 8
Both 11
Interpretation- From the above questionnaire conducted from 25 potential customers of 21
Midpoint Restaurant and it was identified that, 6 people in the survey preferred vegan because of
their personal reasons. 8 People only eats non vegan food and the reason they gave was that they
never liked vegan food. 11 respondents said they do not mind trying out both the segments. They
said that they prefer having best of both the worlds.
9
Twice in week
Only on weekends
Once in a week

THEME 3: Hygiene factor and Frozen and Microwaved food preferred by customers.
PARTICULARS RESPONDENTS
Hygiene factor 8
Frozen and Microwaved food 3
Both of the above 14
Interpretation- From the above questionnaire conducted from 25 potential customers of 21
Midpoint Restaurant and it was identified that, 8 people strongly prefers a complete hygiene in
restaurant. 3 people were of option that they restaurant's microwaved and frozen food which
sometimes restricts them in visiting the places. 14 people said that they dislike both of the above
things.
THEME 4: Maximum customers are price sensitive.
PARTICULARS RESPONDENTS
10
Vegan Non Vegan Both
0
2
4
6
8
10
12
RESPONDENTS
Hygiene factor
Frozen and
Microwaved food
Both of the above

Yes 16
No 5
Not sure 4
Interpretation- From the above questionnaire conducted from 25 potential customers of 21
Midpoint Restaurant and it was identified that, majority of people said that they were price
sensitive and do not visit the place again if they find out that prices are very high. 5 said that they
are insensitive of change in prices and 4 people were unsure about their behavior regarding the
prices.
THEME 4 : Recommendations
The customers suggested their views regarding the changes in prices of the main dishes,
they said that they prefer the quality food at the most competitive prices. Respondents were of
views that attractive decors, interior and ambience are amongst on their priority list. Welcoming
and generous staff was suggested by the potential customers.
6. Why the idea of entrepreneur is feasible, viable and what are its strengths and weaknesses
The business thought of the entrepreneur is viable because result of customer survey
supported the idea. It was found from the survey that people prefers high level of hygiene at
place and supreme level of freshness and taste in the food. This supported idea of entrepreneur of
serving fresh and nutritious dishes to customers. Similarly, people prefers low cost with good
11
Yes
No
Not sure
0 2 4 6 8 10 12 14 16 18
RESPONDENTS

quantity and quality that supported the entrepreneur in its thought of serving average earning
working class people (Kuratko, 2016).
Feasibility of the business proposal could be determined by preparing forecasted cash
flow for the 21 Midpoint restaurant for twelve months.
Particulars
Initi
al
inve
stm
ent
Jan
uar
y
Feb
ruar
y
Mar
ch
Apr
il May
Jun
e July
Augus
t
Septe
mber
Octob
er
Nove
mber
Dece
mber
Product
Foo
d
servi
ces
Foo
d
servi
ces
Foo
d
servi
ces
Foo
d
servi
ces
Foo
d
servi
ces
Foo
d
servi
ces
Foo
d
servi
ces
Food
servic
es
Food
servic
es
Food
servic
es
Food
servic
es
Food
servic
es
Number of
consumers
120
00
132
00
145
20
159
72
175
69
193
26
212
59 23385 25723 28295 31125 34237
Average selling
price 20 20 20 20 20 20 20 20 20 20 20 20
Total revenue
from Food
240
000
264
000
290
400
319
440
351
384
386
522
425
175
46769
2
51446
1
56590
7
62249
8
68474
8
Product
Coc
ktail
Coc
ktail
Coc
ktail
Coc
ktail
Coc
ktail
Coc
ktail
Coc
ktail
Cockt
ail
Cockt
ail
Cockt
ail
Cockt
ail
Cockt
ail
Number of
consumers
150
00
165
00
181
50
199
65
219
62
241
58
265
73 29231 32154 35369 38906 42797
Average selling
price 45 45 45 45 45 45 45 45 45 45 45 45
Total revenue
from Cocktail
675
000
742
500
816
750
898
425
988
267.
5
108
709
4.25
119
580
3.67
5
13153
84.04
25
14469
22.44
675
15916
14.69
1425
17507
76.16
05675
19258
53.77
66242
5
12

Total revenue
(cash inflow)
915
000
100
650
0
110
715
0
121
786
5
133
965
2
147
361
7
162
097
8
17830
76
19613
84
21575
22
23732
74
26106
02
Expenses
Salaries to staff
200
0
200
0
200
0
200
0
200
0
200
0
200
0 2000 2000 2000 2000 2000
Ingredients 500 550 600 650 700 680 650 520 450 500 550 580
Advertisement
and distribution
120
0
110
0
100
0 900 950 800 920 750 650 400 550 480
machineries
400
0 0 0
350
0 300 0 0
100
0 0 0 1500 0 2000
Interest on loan
135
0
135
0
135
0
135
0
135
0
135
0
135
0 1350 1350 1350 1350 1350
Equipment
150
0 0 400 0 0 500 0 0 600 0 300 150 0
Total expenses
(cash outflow)
550
0
505
0
540
0
845
0
520
0
550
0
483
0
592
0 5220 4450 6050 4600 6410
Net cash flow
-
550
0
909
950
100
110
0
109
870
0
121
266
5
133
415
1.5
146
878
6.65
161
505
8.31
5
17778
56.14
65
19569
33.76
115
21514
72.13
7265
23686
74.35
09915
26041
91.78
60906
5
Owner's capital
100
00
Government
grant
500
00
Loan
900
00
Opening cash 150 144 105 205 315 436 570 716 87849 10562 12519 14671 17039
13

balance 000 500
445
0
555
0
425
0
691
5
106
6.5
985
3.15
11.46
5
767.6
115
701.3
7265
173.5
09915
847.8
60906
5
closing cash
balance
144
500
105
445
0
205
555
0
315
425
0
436
691
5
570
106
6.5
716
985
3.15
878
491
1.46
5
10562
767.6
115
12519
701.3
7265
14671
173.5
09915
17039
847.8
60906
5
19644
039.6
46997
2
From the above estimated cash flow, it can be interpreted that the proposed business idea
of entrepreneur is feasible as it generating positive cash flow for the coming twelve months. The
idea could be materialised and the entrepreneur can start its business of restaurant with its
available resources.
The entrepreneur conducted an analysis for assessing the internal strengths and weakness,
what are the opportunities it can tap in future and what threats could come in its way.
Strengths:
 The business proposal is viable and is supported by the primary research.
 The entrepreneur will provide low cost dishes to people.
 Industry's weakness is targeted by entrepreneur by offering freshly produced food
(Storey, 2016).
 Location is perfectly chosen for proposal due to high density of working professionals
and tourists in Manchester.
Weaknesses:
 Lack of experience in entrepreneur in this industry.
 Cost cutting will somewhere affect the quality of dishes.
Opportunities:
 Serving to different segments of market.
 Adding more kid meals in menu for attracting young people.
 Venturing into quick food.
 Highly balanced offerings (Liang, Wang and Lazear, 2018).
Threats:
 Cut throat competition from established restaurants.
14

 Increase in prices of inputs will increase the cost of producing dishes.
 Changes in customers preferences and changes in government regulations.
7. Recommendations on overcoming risks of competition and tapping of potential opportunities
Recommendations : The entrepreneur can overcome the risk of competition by getting
its restaurant highly differentiated from its rivals. This can be done by making its dishes unique
that have exotic flavours which no other restaurant offers. It can make restaurant, a theme based
, making its decor and interiors highly attractive. It can employ best staff that knows how to treat
customers and provide them the utmost pleasure and worth to their money they have spent on the
dishes. The quality needs to be supreme with the most reasonable prices. For building a
competitive edge, it can use more technological factor in its operations in terms of billing
system, taking orders, online business, customer support services through AI etc (Siqueira,
Webb and Bruton, 2016).
Future development depends on how well the entrepreneur identifies and grabs the
opportunities available in the market (Shepherd and Zacharakis, 2018). It has to constantly look
and analysis the market scenario like who is entering and what are its offerings, government
regulations regarding food industry, introduction of more evolved technology, competitor's
position in market etc. It can expand its operations once this outlet proves to be profitable, it can
jump into another segments of the market such as young and college going people who prefers
quick food at the lowest prices. It can add special diet segment in its menu for attracting fitness
conscious people. The entrepreneur must have the resources available for grabbing these
opportunities (Nambisan, 2017).
CONCLUSION
From the above project report, it can be summarised that entrepreneurship helps an
individual in developing and building a viable business idea of designing, launching and
successfully running the operations of new business. The entrepreneur developed its idea on the
basis of its interests, hobbies, brainstorming sources of opening up of a dining restaurant in
Manchester. Further, the report concluded that entrepreneur will have to differentiate its proposal
largely from its potential competitors for entering smoothly into the market. The restaurant
industry is highly competitive and have high risking growth area because of the constantly
changing of customers preferences and their ever increasing demands of always wanting
something new. The entrepreneur can overcome such risks by understanding its targets
15

audience's needs and requirements and serving them according to their demands. It can also
target the weak points of its competitors and makes its products and services highly innovative
based on such weak points.
16

REFERENCES
Books and Journals
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Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Burton, M. D., Sørensen, J. B. and Dobrev, S. D., 2016. A careers perspective on
entrepreneurship. Entrepreneurship Theory and Practice. 40(2). pp.237-247.
Camp, S. M., 2015. Entrepreneurship Development, Patterns of. Wiley Encyclopedia of
Management. pp.1-5.
Cooper, A. and Folta, T., 2017. Entrepreneurship and high‐technology clusters. The Blackwell
handbook of entrepreneurship. pp.348-367.
Davidsson, P., 2015. Entrepreneurial opportunities and the entrepreneurship nexus: A re-
conceptualization. Journal of Business Venturing. 30(5). pp.674-695.
Eckhardt, J. T., Ciuchta, M. P. and Carpenter, M., 2018. Open innovation, information, and
entrepreneurship within platform ecosystems. Strategic Entrepreneurship Journal. 12(3).
pp.369-391.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship. pp.45-63.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Liang, J., Wang, H. and Lazear, E. P., 2018. Demographics and entrepreneurship. Journal of
Political Economy. 126(S1). pp.S140-S196.
Nambisan, S., 2017. Digital entrepreneurship: Toward a digital technology perspective of
entrepreneurship. Entrepreneurship Theory and Practice. 41(6). pp.1029-1055.
Shepherd, D. A. and Zacharakis, A., 2018. Conjoint analysis: A window of opportunity for
entrepreneurship research. In Reflections and Extensions on Key Papers of the First
Twenty-Five Years of Advances .(pp. 149-183). Emerald Publishing Limited.
Siqueira, A. C. O., Webb, J. W. and Bruton, G. D., 2016. Informal entrepreneurship and industry
conditions. Entrepreneurship Theory and Practice. 40(1). pp.177-200.
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