Identifying Entrepreneurial Opportunities (Solved)

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

Table of Contents
INTRODUCTON.............................................................................................................................1
TASK 1............................................................................................................................................1
P1Determine and evaluate different sources of entrepreneurial ideas and innovation..........1
M1 Detailed evaluation of Drucker’s 7 sources of systematic innovation providing specific
examples.................................................................................................................................3
D1 Critically evaluate the benefits and drawbacks of different sources that can lead to the
identification of entrepreneurial ideas....................................................................................3
P2 Explain rationale and market gap for a specific entrepreneurial idea using relevant tools
and techniques........................................................................................................................3
M2 Justify how specific entrepreneurial idea fills a market gap using different techniques for
gap..........................................................................................................................................5
D2 Critically evaluate a specific entrepreneurial idea based on appropriate interpretation...5
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea.........................................................................................................................................6
M3 Justify specific sources and methods of data collection and how data collection chosen
and how data relates to identifying market potential............................................................11
D3 Analyse specific sources of data to provide justified business objectives and identify
market potential....................................................................................................................11
P4 Interpret data appropriately to provide evidence of market potential.............................11
P5 Apply a SWOT framework to support an objective assessment of a specific entrepreneurial
idea.......................................................................................................................................13
P6 Evaluate competitive and market environments in which the idea will be launched to
assess potential viability.......................................................................................................14
M4 Critically evaluate a specific entrepreneurial idea in the context of the marketplace and
competition...........................................................................................................................15
D4 Valid conclusions and justified recommendations on how a specific entrepreneurial idea
can be developed, managed and sustained...........................................................................16
CONCLUSION..............................................................................................................................16
REFRENCES.................................................................................................................................17

INTRODUCTON
An entrepreneur is a person who starts and run a new small business rather than working
under some organisation as an employee. All the rewards and risks associated with the business
are managed by that individual only. Entrepreneurs are considered as an innovative person as
they initiate and implement new ideas, services, products & associated procedures. These
individuals play a significant role in building the economy of UK. Identifying entrepreneurial
opportunities is a vital aspect before initiating a new start-up and business as it helps the
entrepreneur in acknowledging whether the idea to initiate a particular business is feasible or not.
This report is based upon the idea to launch a Cafe i.e. Foodie Flavour in Thame, England which
will offer oil free and nutritious food to their customers. Along with this, cafe will be offering
soft drinks made from fresh fruits and eatables while considering the health of its customers
(Boyles, 2012). This report also includes different sources associated with innovative idea and
entrepreneurship to setup new business. Also, market gap is specified by using different
techniques and relevant data is presented along with its interpretation. SWOT analysis is carried
out to acknowledge internal and external factors. Market and competitive environment is also
analysed.
TASK 1
P1Determine and evaluate different sources of entrepreneurial ideas and innovation
In accordance with today's modernisation and technological advancement, every
individual prefer unique and stylish products to differentiate themselves from rest of the crowd.
In this scenario, there are many individuals in UK which are initiating new ideas and concepts to
launch a new business within marketplace. Government in UK is very supportive and provides
financial aid to the people who are interested in initiating their own business rather than working
as an employee. Due to this, competition among individual is increasing and they are coming up
with new & innovative ideas to impress government as grants and financial aids to individuals in
UK will only be provided if government appreciates their business idea. In this respect,
government is paying special attention towards young graduates which are willing to start their
own businesses and posses new innovative ideas to satisfy the customers of UK in a more
desired manner (Wang, Ellinger and Jim Wu, 2013). As government is actively supporting new
business, it is important for individuals to check the feasibility of business. To run a successful
business, it is important for owner of Foodie Flavor to acknowledge different sources which

helps in initiating different innovative ideas to set up a business. As per Drucker there are seven
sources of innovation which are mentioned below:
 Unexpected: This source of innovation emphasize on the fact that new ideas and
concepts take place unexpectedly. As analysing market is the best way to grab
opportunities, it is vital for business owners to analyse market and try new experiments to
develop innovative products. These new experiments may acts as a source of innovative
idea for an individual.
 Incongruity: Sometimes people innovate to resolve incongruities that take place within
market. Ideas to tackle this incongruousness can act as a source of innovation for an
individual.
 Market structure change: Changes in structure of market sometimes results in
innovation. Government regulations and preference of people changes from time to time
due to which existing products become outdated. This also acts as a source of innovation
as people innovate new ideas and concepts to earn revenue and maintain livelihood.
 Necessity: It is considered as a mother of innovation. There are several cases where
people innovate new ideas to satisfy the demand of people & society as no substitute
product is available to cater the needs. Needs always force people to come up with bright
ideas which can appropriately fulfil existing needs. (Gruber MacMillan and Thompson,
2013)
 Demographics: The lifestyle and purchasing behaviour of people can also acts as a
source of innovation. Lifestyle needs are variable and changes from time to time.
Fulfilling them is a vital aspect, this motivate people to adopt new concepts.
 Changing perception: Change in perception of people for the available services and
products give birth to innovation. In today's scenario, every person like to have fast food
but as health awareness is increasing, people are shifting their preference towards healthy
substitutes.
 New knowledge: New and advanced knowledge is a good source of innovation. As
technology is getting advanced and people are becoming more active & knowledgeable,
they try to change existing facilities and services to save time, efforts and money.