Analysis of Entrepreneurial Opportunities and Challenges

The assignment involves analyzing different factors to sustain within the market for a long period. It requires identifying strong points, areas where improvement is needed, opportunities that can be capitalized on, and threats that may impact the business. The analysis includes SWOT, PESTLE, and Porter's five force models to provide a comprehensive understanding of the entrepreneurial ecosystem.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Determination and evaluation of different sources of entrepreneurial ideas and innovation.
................................................................................................................................................3
TASK 2............................................................................................................................................5
P2 Introduction to business idea and their potential customer's.............................................5
TASK 3............................................................................................................................................5
P3 Gap analysis for evaluation of entrepreneurial ideas........................................................5
P4 Interpretation of data to provide evidence of market........................................................6
Task 4.............................................................................................................................................12
P5 SWOT framework to support an objective assessment of a specific entrepreneurial idea.12
P6 Evaluation of competitive and market environments in which the idea will be launched.13
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................17

INTRODUCTION
Entrepreneur refers to an individual who identify requirement of market and works in
fulfilment of those needs. It has an effective role within economy. In other words, entrepreneur is
a person who can take risk to start new venture with innovative ideas in context to existing
products or services (Audretsch, 2012) . This report includes an entrepreneur who is having a
new idea i.e. “Mr. Happy cafeteria” which is theme based in market of United Kingdom. This
report will ascertain and assess sources of entrepreneurial innovation. Moreover market gap is
analysed by usage of appropriate techniques and tools. Furthermore, SWOT analysis is done to
analyse different factors to support entrepreneurial idea. Apart from this market environment is
evaluated to find out competitive marketplace.
TASK 1
P1 Determination and evaluation of different sources of entrepreneurial ideas and innovation.
In this era, entrepreneurs are looking forward for innovative ideas by which they can
establish themselves within competitive marketplace. Entrepreneur have their own position
within economy of country. They plays an effective role in simulation of ideas and innovations.
Ducker's sources of innovative opportunities have been used by entrepreneur so that new idea
can be evaluated. This has been explained below:
Unexpected success and failure: Innovations are unexpected as anything can come in
mind of individual at any time. Opportunities can be found within marketplace easily if
individual is creative. In this, entrepreneur needs to observe market where they want to establish
their product (Autio and et. al., 2018.). Furthermore, unexpected conditions can provide
individual with great ideas as they can motivate and inspire individuals to do good for economy.
Incongruities: Sometimes entrepreneur launch their product without evaluating target
market and target customers. It is essential for an entrepreneur to analyse their target customers
and evaluate their needs so that they can excel within competitive marketplace. For this, they
need to find out difficulties and different sources of enthusiasm related with innovation. Thus to
determine incongruities, entrepreneur must take reviews, complaints and feedback from
customers.
Process needs: In process need, individual must focus on task rather than on situations,.
Entrepreneur must study different sources of creativity and innovation by finding out weak links

and execute different strategies to enhance them. By this, entrepreneur can make knowledge so
that effective solutions to innovation can be build.
Industry and market structure change: Entrepreneur must analyse structure of
industry and market (Barazandeh and et. al., 2015). Individual must be focussed and observe all
those factors which can have impact on their ideas. Apart from this, they must consider these
threats as an opportunities.
Demographic: Idea of an entrepreneur gets affected by buying patterns or demographics
of customers within market. For this entrepreneur needs to analyse its target customers in terms
of their buying patterns so that they can meet requirements of customer's in new market.
Change in perception: To create a unique and effective awareness in minds of
customers, entrepreneur needs to come up with different idea in competitive market. For this
individual or an entrepreneur must build their unique identity with distinguishable services in
market of United Kingdom so that they can stay within market for longer interval of time.
New knowledge: In this context, entrepreneur must acquire knowledge in terms of
market, innovation and technologies used within market. Furthermore, this knowledge will help
entrepreneur to build and provide services or products which can help them to stay stable within
market by remaining competitive (Dimov, 2011).
These are the different sources of innovation which helps to obtain new intuition in
reference to growth of business. This will also lead to enhanced productivity within growing and
competitive market.
In present context, an entrepreneur is looking forward to come up within market with an
unique innovation i.e. theme based cafeteria into market of United Kingdom with a unique name
Mr. Happy. The focus of entrepreneur is to make people happy as its name suggest. Apart from
this, its a family cafeteria. Its theme is on gaming like its chairs are like a dice, table is in form
ludo, some are like chess. Moreover, walls are racing track. Everything present within cafeteria
is related to games. This is done so that people must be aware of different games which are
played world wide. Focus is on youngsters and kids who are future of country as if they see
something which attracts them, they go for searching that particular options in this case it will be
different games.
Entrepreneur is providing a innovative thought based on gaming theme. Idea of this
cafeteria is to provide their customers with enhanced services with pleasing environment. Games

theme includes different games like chairs are in form of dice, table provides layout of chess and
many more. Young generation is now more involved in playing games in their smart devices.
When they will see these games they come to know about different games. There is no
restrictions when individual becomes boss. Individual have their own responsibilities and goals
and for their accomplishment they can work from anywhere and any time. Motivation behind
launching a venture is flexibility and control. When individual becomes boss then they have a
call to all shots, from hiring to formulating strategies.
TASK 2
P2 Rationale and market gap for entrepreneurial idea.
Idea of entrepreneur was to launch a cafeteria. This cafe provides their customer with a
theme based space. The theme is of gaming means there all infrastructure is based on games like
there chairs are in a form of dice. It is essential for entrepreneur to acknowledge behaviour of
market and customer of UK. Gap analysis is done by an entrepreneur for introduction of new
concept or idea within a market. This will aid organisation in identifying whether they will meet
expected future performance in respect to their current performance. It is comparison between
their present performance with required business standards (Fuentes and et. al., 2010). This will
aid entrepreneur to define and refine their fresh innovation and idea to acquire a standard level of
performance. This will help new venture to enhance their growth and profit within market. By
this, entrepreneur will be able to analyse their competitors and their own business in terms of its
success and failure. For this they need to opt unique strategies in their services and products by
which they can ensure their sustainability within marketplace for long. Furthermore, when new
product or new venture is launched then their high risk in terms of its success. Market gap is
analysed by different factors mentioned below:
Advancements in technology: Changes in technology and advancements are occurring
at regular intervals. It is insistent for entrepreneur to remain updated with latest techniques and
tools which are used by competitors. This will assist them in launching of new venture within
market feasibly. With this, market gap can be filled to satisfy requirements and expectations of
their customers.
Identification of opportunities: It is essential for entrepreneur to analyse and ascertain
opportunities which are accessible within market so that vantage can be gained and profitability

can be enhanced. These opportunities aids entrepreneurs to analyse and fill market gap so that
they can stay ahead from their competitors. This will help to formulate business idea of
launching Mr. Happy cafeteria with gaming theme.
TASK 3
P3 Gap analysis for evaluation of entrepreneurial ideas
In this scenario, entrepreneur is looking forward to launch their venture in market of
United Kingdom. Entrepreneur is opting for opening a theme based cafeteria and theme is
gaming. Gap analysis is used by entrepreneur to find out whether they can meet performance
expectations in future. Objective of this idea is to provide enhanced view of venture and provide
effective services to their customers. For this entrepreneur is opting for evaluation of products in
terms of venture, their spacing and kind of services they are being provided. This will help
entrepreneur to formulate their own strategies with respect to what they must include in their
venture, what all products should be added and their pricing strategies. This will aid them to cope
up with present as well as future needs.
GAP ANALYSIS
Basis Current condition Desired condition Action plan
Services and products Providing theme based
space which based on
gaming.
Customers are
demanding for
customisation in their
menu.
To make customers
comfortable,
provision of
customisation has
been provided.
Cost Offering services at
reasonable prices.
They want that their
prices are set as per
their competitors so
that they can earn high
profits.
Pricing strategies can
be used.
Innovation Business idea is
creative and unique to
ensure customer
There are chances for
business to
acknowledge more
Opt for customer
centric approach and
take review from

driven approach. innovations which will
make sure their
sustainability within
market.
customers to bring
more innovations.
Business objectives of Mr. Happy Cafeteria
Objectives Strategies
Ensure satisfaction of customers and
develop sense of loyalty and trust in
them
 By providing theme based space.
 By providing customisation in menu.
 By using customer centric approach and deliver
high quality services.
Sustainability of business within
market
 Consistency in services.
 Taking reviews and feedback from customer
and giving effective consideration to those.
 Opting for latest techniques and technologies to
deal with competitors.
Primary research: It is a research which is done by researcher first-hand (Grégoire and
Shepherd, 2012). These are managed within small group or with an individual. In present
scenario, researcher has opted for questionnaire method to find out and analyse market so that
gap which is formulated can be overcome and new venture can have distinguishable position
within market. Main respondents are youngsters but as it is family restaurant, some of
respondents are families. Sample size which has been considered is 30.
Secondary research: It refers to accumulation of existing thesis, journals, books and
internet sources. This information is collected by other researcher but entrepreneur or any other
individual is using this information for reference. Secondary research is used by researcher as it
is less expensive and takes less time in processing.
Q.1: Are you aware about the concept of theme based restaurant ideas in the market ?
 Yes

 No
Q.2: What kind of theme will attract you the most ?
 Gaming theme
 Wooden theme
Q.3: Do you want that employees and staff member should have their uniform related with
gaming theme?
 Yes
 No
Q.4: Do you think people will visit such theme based restaurants ?
 Yes
 No
Q.5: Who will be target audience?
 Teenagers
 Adults
P4 Interpretation of data to provide evidence of market.
Data is interpreted below based on information received from individuals.
Theme 1: Awareness about concept of Cafeteria
Are you aware about the concept of theme
based restaurant ideas in the market ?
Frequency
Yes 18
No 12

Central Tendency Data
Mean 15
Median 15
Mode 6
Standard Deviation 4.24
Interpretation: From above, 18 respondents are clear about idea of cafeteria and
services they are going to offer. But still they need to improve their advertisement strategies.
Theme 2: Different themes which are awaited.
Q.2: What kind of theme most awaited as per
your consideration ?
Frequency
Gaming theme 29
Wooden theme 1
Yes No
0
2
4
6
8
10
12
14
16
18

Central Tendency Data
Mean 15
Median 15
Mode 0
Standard Deviation 1.98
Gaming theme Wooden theme
0
5
10
15
20
25
30

Interpretation: From above, it can be interpreted that 40 individuals are waiting for
gaming theme based cafeterias which will look impressive. 1 individual is not in favour of this
concept.
Theme 3: Dress code on basis of theme.
Does the employees and staff member have
their uniform related with gaming theme?
Frequency
Yes 2
No 28
Yes No
0
5
10
15
20
25
30

Central Tendency Data
Mean 15
Median 15
Mode 2
Standard Deviation 1.84
Interpretation: From above, as per 2 respondents Mr. Happy is having dress code for
their employees but 28 respondents said that they do not have any knowledge about this.
Theme 4: People will visit Mr. Happy.
Do you think people will visit such theme
based restaurants ?
Frequency
Yes 25
No 5

Central Tendency Data
Mean 15
Median 15
Mode 5
Standard Deviation 4.14
Yes No
0
5
10
15
20
25

Interpretation: It can be interpreted that 25 respondents people will visit cafeteria but 5
people said that people will not visit.
Theme 5: Target audience
Who will be target audience? Frequency
Teenagers 25
Adults 5
Central Tendency Data
Mean 15
Median 15
Teenagers Adults
0
5
10
15
20
25

Mode 0
Standard Deviation 4.14
Interpretation: From above it is clear that 25 respondents said that teenagers will be
there target audience and 5 respondents said that adults will be target audience.
Task 4
P5 SWOT framework to support an objective assessment of a specific entrepreneurial idea.
Mr. Happy is a cafeteria which provides a unique space for its customers based on theme
of games. This will aid them to beat their competition as they will be able to attract large number
of customers because of its space. Apart from that, their services will also play vital role to have
strong customer base (Kohlbacher, Herstatt and Levsen, 2015). SWOT analysis is presented
below which will help entrepreneur to identify its strengths, areas in which they need to work out
means their weaknesses, their opportunities which they can grab to enhance their growth and
threat from competitors or any other. Business idea is feasible as it is a unique perception of
entrepreneur. This will also help young generation to gain knowledge of different games which
exists. It will also help to attract people as apart from their infrastructure they are opting for
enhanced services within feasible prices.
Strengths: They refer to strong points of business which aid them to provide
competency. Strength of Mr. Happy is its uniqueness and innovation which it accumulates. They
provide great infrastructure which is based on gaming theme. Apart from this, there staff is
multilingual and well mannered which works hard to fulfil requirements of customers at all
them. Beside this, Mr. Happy can develop in strategical manner by gaining advantage of their
location. If it is launched within market then it will present different outlook to people. Young
generation will also get to know different games as most of them are involved in their smart
devices..
Weaknesses: As they (Mr. Happy) is new within market they do not have appropriate
funds. This is the major weakness. Apart from this latest tools are also required which also needs
lot of investment.
Opportunities: In this section of SWOT analysis, different external factors are presented
which can lead to development and growth of organisation. Some opportunities which Mr.

Happy can have are : expand themselves in other cities of UK, partnership with other
organisations and elaboration in their services. This will aid them to enhance their revenues by
having their cafeteria in developing markets. Apart from this, they can make alliances or
partnership with other firms as they have unique infrastructure. This will help them to strengthen
their market shares and presence. They need acquire knowledge about future scope of business
so that feasible venture can be built. This will help them to identify opportunities in future
aspect. Mr. Happy must carry out market research to gain vantage of any market opportunity,
this will aid them to take their business into new heights.
Threats: In this section, threats related with business are evaluated or identified. These
are external factors which will limit or trim down performance of business. Major threats to Mr.
Happy are: competitors who offer same services like Costa Coffee, new ventures and imitation
of their idea by someone else in terms of their theme, their services and products, etc. There are
threats of new entrants, high competition and change in policies of government.
P6 Evaluation of competitive and market environments in which the idea will be launched.
Mr. Happy is a new venture which has opted for theme based cafeteria. Although it came
with an innovative idea but there are large number of competitors like Costa Coffe, present
within market. For this they need to ensure that they have provided their theme effectively and
apart from that, they must ensure that they provide high quality of services. This will help them
to have sufficient number of customers. They have potential growth of opportunities as they can
enhance their services depending upon requirements of customers and enhancement in
technologies. This will ensure their sustainability within market.
For becoming successful within market, entrepreneur needs to analyse environment of
industry and market so that they can acquire effective knowledge related to techniques and trends
which are being followed by their competitors (Suddaby, Bruton and Si, 2015). To ensure
extreme satisfaction and acceptance, entrepreneur must make sure that all the business ideas are
executed effectively.
Competitive Marketplace: For ascertaining internal and external aspects related with
business, entrepreneur needs to carry out relevant research of market. This will help them to stay
within market for longer duration and grow their. Apart from infrastructure which is based on
theme of games, they must also focus on providing better services in terms of products they are
being offering.

 Substitutes: Entrepreneur needs keep an eye on their rivalry in terms of services they are
provided and this information must be updated on regular basis (Tang, Kacmar and
Busenitz, 2012). With this they can formulate their strategies to make their unique
identification within market and acquire different technologies and products as per
requirement of market.
 Target audience: Before entrepreneur enters within market of United Kingdom, it is
necessary for them to identify their potential customers and provide services on that
basis. Furthermore, it includes requirements of customer so that healthy relationship can
be build with them
Market environment: Entrepreneur of Mr. Happy is opting for PESTLE analysis for analysing
environment of market with respect to services they are offering. PESTLE analysis is presented
below:
Political factor: They refers to factors which helps to identify rules and regulations
formulated by government. These may have impact on functioning of business. In this scenario,
entrepreneur of Mr. Happy must evaluate and find out rules made by government of United
Kingdom while entering or launching their venture. This include legal framework, political
stability, promotion and pricing strategies which are ethical. By this entrepreneur can have
opportunity for development and growth of their services within market of UK. This will help
Mr. Happy to acknowledge all the rules and regulations made by government. This will prevent
them from lying into any kind of illegal activities.
Economical Factors: These factors deals with inflation rate, saving rate, interest rate,
etc. which have impact on operations and functions which are carried out within business. Apart
from this, entrepreneur must provide locals of UK with opportunities of employment without any
favouritism. Apart from this, they need maintain effective quality and cost of raw materials
depending on what they are offering (London living standards the best in the UK. 2018).
Entrepreneur can have stability in terms of economy if they are able to maintain inflation rate.
Entrepreneur can use this opportunity to make their own pricing policies and consider factors
like disposable income of people, inflation rate, interest rate, etc.
Social Factors: These factors customer's buying pattern, recent trends and culture of
specific country. For this entrepreneur needs to analyse interest of customer (this will help them
to identify different games which they can project within their cafeteria) and buying patterns

(this will aid them in finding out what all products and services customers are looking for). They
need to make sure that services and products must be offered to customer's depending upon
personality and style of their customer's. These factors must be addressed by Mr. Happy as it will
help them to find out demands of customers and this will aid them to provide products and
services as per requirements.
Technological Factor: This will aid entrepreneur of Mr. Happy to opt for different
technologies based on market analysis. They can adopt latest technologies and tools depending
on their requirement, this will aid them to enhance their productivity (Welter and Alvarez, 2015).
Like they can offer their customer's with home delivery options and in this case they have opted
for packaging based on their theme. This will help them, as people are now opting for online
services more rather than visiting any place. If latest tools and technologies are used by Mr.
Happy then this will make their work easier and simpler. Apart from this they will be able to
accomplish their services faster.
Legal Factor: Entrepreneur of Mr. Happy needs to evaluate legal factors of UK before
they open up their new venture within market. For this individual must be highly alert about
health and safety of their staff and employment legislation. With this entrepreneur can sustain
within market for longer time by being competitive. When Mr. Happy will follow all legal
factors, then they will tend to follow all laws of UK government which will aid them to stay
away from any kind of legal issues.
Environmental Factor: These factors will aid entrepreneur to acknowledge market in an
impressive manner. Furthermore, this will help them to understand laws and climate change
related with waste management and environmental pollution in effective way. By this,
entrepreneur can function its activities in eco-friendly way. If Mr. Happy cafe will follow these
factors then they can have effective number of customers as they will be hygienic and will be
maintaining a desired standard in quality of their services. This will eliminate risk of their
sustainability within market.
Porter's Five Force Model Analysis
Entrepreneur of Mr. Happy Cafeteria is making use of Porter's Five Force Model
analysis to know competitive position of organisation within market of UK. This analysis is
presented below:

Threat of new entry: This force identifies various barriers which are present while
entering a competitive market. There is a large possibility of high competition and cost which is
essential to enter within market and provide services. In case of Mr. Happy cafeteria based on
theme of gaming, they need to have large capital for launching their venture. Apart from this cost
of services, employees and other factors will also be present. As number of cafe's are opening
more within market, then Government should implement certain policies to increase barriers like
policies related with waste management, limited access to raw materials.
Threats of substitutes: With respect to this, customers have different options for
services they are being offered, this means that there are various alternatives which are being
offered by their competitors. This can have impact on venture. An example can be considered in
this respect, if people have got taste for product offered by their competitors then they will
hardly go for products which Mr. Happy is offering. For this entrepreneur needs to offer
reasonable prices to their customer's and brand their products in effective way (Top 10 Sources
of Business ideas & Opportunities. 2018). Organisations can eliminate threat of substitutes by
offering good qualities in their product at reasonable prices and make their products available
within market at stipulated time. So that customers do not go for alternatives.
Bargaining power of suppliers: Entrepreneur must opt for great quality of raw materials
which will available easily within market. Furthermore, some factors can enhance bargaining
power of suppliers as there are only few suppliers who can provide customised furniture based
on games. This will enhance bargaining power of suppliers within market. Mr. Happy is a new
venture and may not be aware of suppliers. In this case suppliers will have high bargaining
power as they will be having only few options available with them Example only few suppliers
provide customised furniture.
Bargaining power of buyers: Within market, there are large number of options which
are available with customers. Ultimately competitors tends to provide their customers with
different options to attract them. This will intensify bargaining power of buyers. In this case,
entrepreneur needs to have reasonable prices and must position themselves and their services
effectively. This will build distinguishable image of cafeteria in customer's mind.
Competitive Rivalry: In this competitive era, there are many strong competitors present
within market. In this scenario, entrepreneur needs to acknowledge prices of their services and
products. They need to come up with innovative and competitive ideas so that they can remain

sustainable within market (Dimov, 2011). Therefore, they must focus on quality of services they
are offering and they remain on theme on which they have started their venture. This can lead to
attract great number of customers.
CONCLUSION
From above report, it can be concluded that entrepreneur is an individual who comes with
a new idea within competitive market. Different sources of innovation are presented, their
potential customers are youngsters and families. Furthermore, gap analysis is provided. In this
report, entrepreneur has came with an innovative idea which includes theme based cafeteria and
the theme is gaming. This venture is launched within United Kingdom. Moreover, entrepreneur
has done SWOT analysis to identify their strong points, points in which they lack, opportunities
they have and threats which are present within market. Apart from this PESTLE analysis is done
to identify different factors so that they can sustain within market for long period. Porter's five
force analysis is done to identify their position within market.

REFERENCES
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Online
London living standards the best in the UK. 2018. [Online]. Available
Through:<http://www.cityam.com/article/london-living-standards-best-uk>.
Top 10 Sources of Business ideas & Opportunities. 2018. [Online]. Available
Through:<https://www.profitableventure.com/sources-of-business-ideas/>.