Sources of Entrepreneurship and Viability of Biodegradable Products Business Idea

This report discusses sources of entrepreneurship, provision of entrepreneurial idea, SWOT analysis of idea, PESTLE analysis of idea, and viability of biodegradable products business idea. The entrepreneurial idea chosen is the development and sales of biodegradable products. The report includes Drucker's 7 sources for inspiration, McKinsey 7s framework, Burke-Litwin Change model, SWOT analysis, and PESTLE analysis.

UNIT 27

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Sources of entrepreneurship with pros and cons of each method................................................3
Entrepreneurial idea with market gap analysis............................................................................5
SWOT Analysis...........................................................................................................................8
PESTLE analysis and evaluating whether this idea is viable or not............................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurial opportunities are kind of opportunities that can help an entrepreneur to
expand their business or start a new business for achievement of success (von Bloh and et.al.,
2020). There are various kinds of entrepreneurial opportunities that can help an entrepreneur to
expand their business successfully. This report will lay emphasis upon Sources of
entrepreneurship, provision of entrepreneurial idea, SWOT analysis of idea, PESTLE analysis of
idea. Entrepreneurial idea chosen is development and sales of Biodegradable products.
MAIN BODY
Sources of entrepreneurship with pros and cons of each method
There are many different kinds of sources of entrepreneurship that can help in identifying a
business idea. It is said that business ideas are all around us and a simple source can directly help
in identifying an effective business idea that can directly help in growing and generating
revenues (Meng, Li and Rong, 2019). There are many different kinds of sources of
entrepreneurship and each of these sources have their own pros and cons that makes then
effective or ineffective sources of entrepreneurial ideas. These sources can be found within
existing business or industry or by changes outside enterprise or industry.
Drucker’s 7 sources for inspiration
Drucker’s helped in identifying seven main sources of inspiration or entrepreneurial ideas
that can help in identifying and effective business idea that can be used for starting a new
business successfully. As per Drucker there are seven main sources of entrepreneurial ideas that
can help in generation of new business idea, these seven sources are as follows:
 Unexpected Successes and Unexpected Failures: It is one of the most common type of
sources that helps in identification of a new business idea (MAITLO, MEMON and
SHAIKH, 2020). This happens when something unexpected happens or occurs within
business this can be unexpected success or unexpected failure. Unexpected success can
directly help in developing or identifying a new business product or service that can be used
by entrepreneurs for development of a new business. Other than this, many times unexpected
failure occurrence within business can directly lead an entrepreneur in identifying scope of
new products and services that can be focused upon for starting a new business and for
achievement of success.

One of its main advantages is that, entrepreneur already has gained experience of doing
business and thing that they need to keep in mind for achieving success.
One of the main disadvantages of this methods is that, unexpected failure can demotivate
or discourage entrepreneur that might work as a barrier in identification of new entrepreneur
idea.
 Incongruities: As per Drucker if demand of a product and a service is increasing
continuously then it can directly lead an organization to increase in economic performance of
an organization. But lack of profitability despite of increase in demand helps in identifying
incongruity between economic realities (Trabskaia and Mets, 2021). This incongruity occurs
when whole industry helps in identifying scope of a new service or process. This Incongruity
helps in identifying what his being adopted and what should be adopted. Incongruity is also
another source of entrepreneurial opportunity so that this difference in economic reality can
be reduced.
One of its main advantages is that, misperception can help in identification of new way of
doing business of help in identifying new service that can be provided to target market.
One of the main disadvantages of this methods is that, same or similar idea can be
developed or identified by others as well because of which competition of entrepreneurs can
increase.
 Process Needs: it is one of the most common sources of entrepreneurial opportunity as a
process can lead an organization towards success or failure (Gechkova and Kaleeva, 2020). If
process followed by organization is not effective then it can lead an organization towards
failure but an effective and effective process can directly help an organization to move
towards innovation.
One of its main advantages is that, identifying better way of doing business by bringing
improvement within a business process can give rise of a new entrepreneurial idea.
One of the main cons of this source is that, development of new process can result in
bringing changes within existing activity, operation or process completely that can further
become a bit costly
 Changes in Industry and Market Structure: When customers preferences or needs changes
then in such situation, it can give rise to change in industry and market structure. These

changes can give rise to or help in identifying untapped market opportunities that can further
help in developing new product or services as per the changing neds of customers.
One of its main pros is that, development of new product and service as per changing
industry can give dramatic rise to demand and need of newly developed product or service
because of which achievement of accessibly organization can become much easier (Razmi,
Mehrvar and Hassani, 2020).
One of the main cons of this source is that, development of new process can result in
bringing changes within existing activity, operation or process completely that can further
become a bit costly
 Changes in Demographics: change in demographics can also give rise to development of
new product or services or a new entrepreneurial idea.
One of its main advantages is that, it can help in identifying or reaching an untapped
market.
One of the main cons of this source is that, there is no surety that identified new idea will
be successful or not.
 Changes in Meaning and Perception: with time perception of people or target population
changes. This change is another source of entrepreneurial idea (Thomas and et.al., 2021).
One of its main advantages is that, it can help in understanding target audience in more
appropriate manner.
One of the main cons of this source is that, identifying general perception of people a bit
difficult.
 New Knowledge: knowledge of new technology, discovering idea technology or knowledge
can further give rise to development of new entrepreneurial idea.
One of its main advantages is that, it can help in increasing rate of innovation and
chances of achievement of success can also increase.
One of the main cons of this source is that, motivating employees for adopting new
changes and bring changes within their working accordingly.
Entrepreneurial idea with market gap analysis.
Overview of entrepreneurial idea
Entrepreneurial idea is a kind of idea that can be used for gaining financial benefits which
usually centred around selling of products and services. Entrepreneurial idea selected for this

project is of ‘Biodegradable products sales. This idea has been selected because today due to
increasing environmental awareness most of the people are focusing upon opting biodegradable
products that are eco friendly products that are environment friendly, disposable and those
products that are compostable i.e., easily broken down. The main reason because of which this
business idea has been selected is because such kinds of products can directly help in keeping
our earth clean as such kinds of products can be easily recycled and reused in everyday; lives of
people. It can further help in reducing wastage and can further help in reducing growing
landfills.
Biodegradable products business idea will be focusing upon sales of Biodegradable
products such as production of biodegradable plastics that are eco-friendly, durable and are 100
percent recyclable, biodegradable plates that are made up of wood, paper etc. as such kind of
plates can be reused again or can be recycled again and again (Anderson, Hughes and Nguyen,
2019).
Mckinsey 7s framework
This framework helps in identifying seven elements that are required to be focused upon
within an organization. Out of those seven elements: three of them are hard elements and 4 of
them are soft elements.
 Strategy: It focuses upon strategies adopted by organization for gaining competitive
advantage. For this Biodegradable products business product dimension strategy will be
adopted by the organization as they will be providing high quality Biodegradable products
and services to customers.
 Structure: Ways in which organization is structured or organized is explained in this. For this
Biodegradable products business divisional organizational structure will be adopted so that
all the main aspects associated with product introduction can be managed effectively such as
quality, production, marketing etc.
 Systems: in this all the activities that staff members use daily are focused upon for doing
their jobs in an appropriate manner (Anderson, Hughes and Nguyen, 2019). Some of the
main type of systems that will be focused upon by Biodegradable products organization are:
staff members recruitment, team development, transaction processing system, customer
relationship management.

 Shared Values: in this some of the main core values of organization are identified that helps
in reflecting ethics in working of organization. Shared values that will be focused upon by
organization are: customer experience, employee friendly, sales experience, quality of
products and services.
 Style: leadership style that will be adopted by Biodegradable products organization is
innovative, flexible and customer oriented
 Staff: ways in which employees can be motivated will be focused upon by organization so
that highly skilled employees can be retained.
 Skills: continuous training will be provided to employees so that they can focus upon
maintaining high quality of products and services.
Burke-Litwin Change model
This model is based upon assessing organizational and environmental factors that are
required to be focused upon for ensuing successful change (Anderson, Hughes and Nguyen,
2019). This model directly helps in understanding ways in which change arises and ways in
which it flows between different parts of an organization.

External factors: increasing awareness about environment friendly products increases needs and
requirements of development of biodegradable products for customers. It is one of the main
external factor that has given rise to development of biodegradable products and services for
customers.
Strategic factors:
 Mission: to maximize use of renewable materials, increase demand and sales of
biodegradable products and enhance use of biodegradable products and services.
 Leadership: Transformational leadership will be adopted by the leaders (Anderson, Hughes
and Nguyen, 2019).
 Organizational culture: innovative organizational culture will be focused upon by
organization for development of biodegradable products.
Operating factors:
 Structure: divisional structure will be adopted by the organization
 Management practices: managers will be focusing upon innovative vision of the organization
and will focus upon providing training to employees for achievement of the same
 System: Entrepreneur will be adopting reward system for employees so that employees
remain motivated.
Individual factors: all the employees will be rewarded and provided with appraisal so that they
can remain motivated and work upon achieving desired goals and objectives.
Outputs: production of biodegradable products will be done.
SWOT Analysis
Strength-
the major strength is the knowledge and understanding which is gained by the staff about
biodegradable products. This is the great business idea because there are various new businesses
which will open in the future which will get ready sell biodegradable products (Phadermrod,
Crowder and Wills, 2019). As the manufacturer of Biodegradable products taking patent can also
be the biggest strength.
Weaknesses-
business has to incur costs for the research and development so that company can provide
various option for Biodegradable products in the market. The cost of Biodegradable products is
also more when compared with other options like plastic so that also demotivate customers from

purchasing them. If the demand for the product will be less then company has to reduce their
profit margin. If the production of the company is more than there selling then it can affect the
cash flow of the company (Irfan and et.al., 2020).
Opportunities-
there will be heavy demand for the Biodegradable products by the consumers in the future
because consumers are becoming health conscious these days so that is why they will chose for
Biodegradable products instead of plastic. As the oil prices are rising and there is also scarcity of
fossil fuels so this is also the reason of increasing the demand of Biodegradable products. There
are many countries which are promoting use of Biodegradable products and banning plastics
which will give opportunity to the company in generating more revenue. The cost of
manufacturing Biodegradable products will also be less because these days farmers are
producing more bamboo, corn and sugar cane. So through this company can save over raw
materials as well. They can also get subsidy by the government because government support
such business which initiative for saving environment. Biodegradable products are eco friendly
products and they does not harm the environment in any manner.
Threats-
this idea can get opted by other manufacturer also by seeing the potential of this business idea
(Düking, Holmberg and Sperlich, 2018). This can cut the profit margin of the firm and can also
cut their customer base. This will increase competition in the market and it will become difficult
for the company to attain competitive advantage. If the crude oil prices will get decrease then
this business idea can push forward.
PESTLE analysis and evaluating whether this idea is viable or not.
PESTLE Analysis
 Political factors: rise of reducing use of plastic has speeded globally that has increased
awareness for biodegradable products and services. UK government is supporting
organizations that are taking an initiative towards supporting organizations that are moving
towards development of environment friendly products and services development so this can
help in providing a support to new business for sustaining within UK environment
(Anderson, Hughes and Nguyen, 2019).
 Economic factors: In UK demand for biodegradable products is increasing drastically
because of which market value of such kinds of products in increasing. So development of

biodegradable products and services can be directly supported by increasing demand of such
products that can further help in enhancing overall sales of such kind of products.
 Social factors: today most of the customers are moving towards opting sustainable,
environment friendly and biodegradable products and services as today more than 90 percent
people are becoming environment friendly (Anderson, Hughes and Nguyen, 2019).
 Technological factors: Advancement in technology has increased need and requirement for
organizations to adopt advance technology for doing business. Organization will be focusing
upon adopting advance technology for increasing for their presence on digital platforms so
that they can enhance their sales, do marketing of their products and services accordingly.
 Legal factors: government has passed a competition act that restricted or prohibited
restrictive agreements between two organizations. So, this organization not be forming any
kind of restrictive agreement with any other organization that is against law.
 Environmental factors: environmental laws of various countries are increasing in order to
reduce carbon dioxide release in environment (Anderson, Hughes and Nguyen, 2019). So,
usage of non-environment friendly products and services or raw materials for development of
biodegradable products and services.
CONCLUSION
Through this report it can be concluded that report has explained in detail about the
various prices of entrepreneurship along with their advantages and disadvantages. The business
idea which is discussed in this report is Biodegradable products sales. As in today's world
environment is getting polluted due to plastic and many such products. So it is why it is
important to produce eco friendly products so that environment can be saved. This business idea
is selected because it will help in keeping earth clean and green and also it get recycled easily.
This report has also discussed swot analysis and pestle analysis in detail in regards of this
business ideas

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