Analysis of Entrepreneurship Sources: Biodegradable Packaging Business

This report discusses various sources of entrepreneurship, examining the pros and cons of each. It drafts an entrepreneurial idea centered on biodegradable packaging, applying McKinsey's 7S model for gap analysis and conducting a SWOT analysis to identify potential factors influencing the business. The report concludes with a PESTLE analysis, evaluating the external environment to understand the opportunities and challenges for the biodegradable packaging business idea, highlighting its viability in the current market scenario.

UNIT 27 ASSESSMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
SOURCES OF ENTREPRENEURSHIP.........................................................................................3
ENTREPRENEURIAL IDEA.........................................................................................................5
SWOT ANALYSIS.........................................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
The report will be discussing a wide range of the sources of entrepreneurship and the
pros, cons of each of those methods will also be discusses. An entrepreneurial idea will be
drafted on which Mickensy's 7S (Igielski, 2021) model would be applied in order to carry out gap
analysis. The SWOT analysis for the business will also be deeply observed in which all those
potential factors which may be proven prominent for the business will be scrutinized. At the end
of the report PESTLE analysis for the business idea would be presented in which positives and
negatives of each factor analyse so can understand the external environment for the business
idea.
SOURCES OF ENTREPRENEURSHIP
Entrepreneurship is the task in which a persona or a group of people take initiative in
order to go for business venture for the purpose of generating profits and serving the customers.
Entrepreneurship can not be started without any source. There are such factors or sources which
derives the idea of entrepreneurship in a person and make it to go for ventures. The sources are
as follows-
Experience- This is the source where the experience of a person leads him to carry out
entrepreneurship. Here a person can take advantage of work experience and interest to generate
such ideas which turns out him profit or any aimed goal.
Pros-
 Having idea helps in better assessment.
 Can take care of the potential troubles.
 It helps in replicating acquired knowledge.
 Less possibility of bearing loss in the initial phase of the entrepreneurship which is so
common phenomenon. Would give more confidence.
Cons-
 Over confidence may cause damages.
 May be experience restrict to take risk.
 Experience may hinder the way of thinking outside box.

Media- Magazines, TV, Newspaper and micro blogging sites are also opening ways for such
potential venturer they derive their business ideas out of it (Nunisa, Mishra and Saikia, 2019)
Pros-
 May thing with a wide range of relevant information.
 Can also go for wider exploration of business idea.
 It helps in extending such business in the most needy market. Can eradicate the issues take place due to use of traditional entrepreneurial ideas.
Cons-
 Social media may mislead the venturer.
 May suggest excessive risky business alternatives.
 May offers ideas with less feasibility.
Brainstorming- It is a creative technique in which a person who wants to start a business
ponders over the issues or problems in the market before customers so can frame his business
ideas.
Pros-
 This offers more relative or significant idea.
 Due to utter self involvement the possibility of extraneous misleading will be less. Problem solving ideas are having high feasibility.
Cons-
 If the thinking style is not appropriate then will create shortcomings.
 May out of confidence invest more than worth.
 While solving problem the method was wrong then everything will go wrong.
Unexpected events- Such opportunities comes from unexpected sources and gives new business
ideas. This idea comes suddenly in the mind by any incidence. This often consists failures which
drives new ideas (TOSHEVA, 2021)
Pros-
 Offers great opportunity some times.
 Less competition since the idea is rare.

 Less impact of self biasses.
Cons-
 Since the idea comes from sudden occurrence so less believable.
 May misled the venturer due to improper contemplation.
 Heavily affected by external factors.
As Drucker suggested seven ideas which drives a person to initiate a business are as-
Unexpected, incongruities, process needs, industry and market structure, demographics, changes
in perception, new knowledge. The seven inspirations of Drucker suggest wider scope of
innovative entrepreneurial ideas to a person.
ENTREPRENEURIAL IDEA
Nowadays people are more conscious about environment even the global organizations
and various governments are also upholding notion of green and clean environment in these
circumstance the idea of biodegradable packaging will be offering a good scope for
entrepreneurship. With this regard the 7S of Mickensy (Grytten, 2021) is applied to frame and
articulate the business idea in more clear way.
Strategy-
Objectives- The company will be producing biodegradable packaging products like- garbage
bags, carry bag or other types of bags on cheaper prices with higher quality.
Way to achieve it- For achieving the objective strong R&D and with proper commitment the
business will work (Ghio, 2019)
For this purpose the company will be producing such bags which may be used for multiple
purpose initially the production would be little as per decided needs latte on will go for
expansion.
System-
Finance system- In the initial years the equity will be the only source.

HR system- There will be well arranged HR system to manage the people.
Communication system- for this purpose the organization will be following linear
communication structure.
Style-
The people in the company will be interacting to each other with proper channel.
The power of taking decision will be distributed in a defined order.
The management would be drafted in a mixed form and delegation of power will also be
distributed among the people.
Staff-
The company will be hiring skilled employees with working experience in same type of
organization.
The employees would be given proper training of the working efficiency and provide them
opportunities of learning and education.
Employees with higher efficiency will be awarded.
Skills-
Hard skills like having knowledge of software, computer etc. would be needed.
Higher communication skills are expected since the employees will be having need to go for
external interactions.
Shared values-

Provide a great place to work.
Will be upholding environmental values among the employees.
Perform business with proper responsibility.
Structure- (Koziol, 2022)
Head office will provide the main directions.
Area wise zones would be divided.
Business will be operated by various branches in different-different markets.
SWOT ANALYSIS
Strengths-
The entrepreneurial idea is new in itself and not much practised by so many other so will be able
to attract a huge number of customers, Since the changing social nature toward environment may
give the company a great public response (O’Brien, 2020)
The company has drafted the management structure which is well-articulated and also offers a
wide range of flexibility. The structure of the organization will also help in the management of
the business and also controlling various activities.
Other organization like- BioPak UK who is also producing the same type of products and
following a well-formed management structure so can manage such complex activities. The
work segregation by BioPak has been a big reason behind its success so this idea would be
working for our business idea.
Weaknesses-

At this time when majority of the companies are using plastic packaging so the products of our
organization will not be given immediate preference by such organization.
The cost of such biodegradable packaging is higher than plastic so would not be able to afford it
to sell on equal or less price (Büyüközkan, Mukul and Kongar, 2021)
The organization is green in the market and not having many of clients to sell out such products
since storage is nowadays so expansive and unnecessarily kick off demand of more budgetary
allocation.
As above mentioned the business will be carried out using just equity in early years which the
most costly finance source so it would be impacting the financial stability, Because the
competitors lie BioPak is using a well managed portfolio of funds.
Opportunities-
After pandemics the market is prone to use hygienic things specially food items or retail items.
So it will ultimately derive demand of such biodegradable packaging and it may be proved a
great thing for the business to meet the demand and grab a good market share.
In this business line the competitors are not much aggressive or even nobody is now controlling
the market so it can be an ideal situation of making entry and attracting people toward our
products.
The rules and regulations of various governments are going against use of plastic which may
open a vast window for biodegradable packaging products so the business may take advantage of
this circumstance.
Threats-

Competitors like Biopak who are getting operated for so long and are having good knowledge of
the market and also able to provide the products on cheaper cost may place tough competition for
the business.
The current scenario of the market is not much good for making entry since after the hit of
pandemics the market is very fluctuate and also unstable which may create further threat before
the business.
For such production there would be demand of row material and Supply Chain is not as efficient
as it has been earlier so may be a risky thing for the organization (Vlados, 2019)
PESTLE analysis-
Factors
Political The government is encouraging such new businesses since the market is
facing high inflation and people are getting unemployed so it may be a good
time to have support of government and getting started (Michaud, 2021)
On the other side the policies of the government specially fiscal policies are
not much good for new starts up since their imposition of high tax rates may
be proven as a big threat for such a new business.
Economical The economy of the nation is showing some positive trends like the labour
market is expanding so availability of good labour may be easy for the
business.
On the other hands' instability of the economy is still a big threat since at
once indulging in the business if it takes sharp turn in adverse direction then
business may suffer much.
Social The social aspects are now in favour of such organization because the mood
of the society is getting inclined toward such products which are
environmentally healthy. After hit of pandemics people are more conscious

for their health so at even higher cost they are ready to grab better and
healthy services (Simões, 2020)
But social response may go in different directions as well. Such products
may be pricey so it may demoralize people, and they may show their
negative views toward such products.
Technological The technological advancements are somehow opening new doors of
opportunities for such business. Technological up gradation is helping such
businesses to notch up success since such biodegradable warping will be
made on cheaper cost in the use of up date technology is taken into
consideration.
But other competitors who are having expanded and diverse market they can
afford advanced technology, so they may come with horrendous competitive
products. Their new technology is helping them to produce the products on
cheaper cost with greater quality.
Legal The legal aspects are eased to certain extent for new starts up so can help in
the introduction of the business. The laws of the nation are assisting such
organizations who are producing environment friendly products so legally it
would be a better alternative to start the business.
But on the other side legal requirements in the nation for the businesses is
also getting higher. With the progress of time new entities are suffering from
over paper work or government formalities which may be critical for the
organization.
Environmental Such products will be better for the environment since this product is not just
serving the customers but also adding value to the entire environment so it
can be a good product to introduce (Adamyk, 2019.)

If just see the negative side so the company would not be able to follow the
environmental norms to the fullest extent because of lack of sufficed funds
so may face difficulty.
CONCLUSION
From the report above it can be concluded that the idea of business which is
biodegradable packaging is very much viable in the present scenario. In the report various
entrepreneurship sources has been seen and their pros and cons have been articulated.
Entrepreneurial idea is drafted and to know it deeply mickency's 7S framework also applied, then
SWOT analysis for the business idea has been seen in order to assess various internal and
external factors and their potential impacts on the business. At the end of the report PESTLE
analysis was carried out considering both positive and negative dimensions.

REFERENCES
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TOSHEVA, E., 2021. ANALYSES OF THE GENDER INEQUALITY IN THE
MACEDONIAN LABOUR MARKET AND RECOMMENDATIONS FOR WOMEN
ENTREPRENEURSHIP DEVELOPMENT. IJSSHR-International Journal of Social
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Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
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2