Sources of Entrepreneurship and SWOT Analysis of Biodegradable Products Sales

This report discusses various sources of entrepreneurship and their pros and cons. It sheds light on the entrepreneurial idea of biodegradable products sales and supports it with market gap analysis. It also discusses the SWOT and PESTLE framework of the business idea.

Unit 27

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Sources of entrepreneurship with pros and cons of every method..............................................1
Entrepreneurial idea.....................................................................................................................3
SWOT analysis of business idea..................................................................................................5
Pestle analysis..............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................9

INTRODUCTION
This report will discuss about various sources of entrepreneurship and by explaining advantages
and disadvantages of each source. It will shed light on entrepreneurial idea and supporting them
with market gap analysis. It will also discuss about the swot and pestle framework of the
business idea.
MAIN BODY
Sources of entrepreneurship with pros and cons of every method.
Past week experience-
when an individual work somewhere then they learn a lot because they can knowledge and
experience from their office. It also helps in developing contact outside the company and within
the company (Doern, Williams and Vorley, 2019). Skills are also developed through the training
which is received from past experience. Now an individual can use the knowledge which they
have gain from past experience to start new business.
Pros-
already having knowledge can help in getting brilliant idea. Entrepreneur can use skills of past
experience to run their own business.
Cons-
there are chances of business failure because entrepreneur have idea of only one field and while
running the business one should have experience of every field.
Friends and family-
entrepreneur can also consult their friends and family for getting new business ideas. Those who
are already doing business can give you nice idea and also share their experience of doing
business. This helps to know about the pros and cons of business more specifically. Through
focus group also entrepreneur can get idea.
Pros-
as they are the family of an individual so will give good advice. Chance to get variety of nice
business ideas.
Cons-
there are possibility that intentionally relatives can give you bad idea because they are jealous of
your success (Bosma, Sanders and Stam, 2018).
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Distribution channel-
distributors are the people who are very close to the customers and they have idea about the taste
and preferences of the customers. There are distributors which deal with the range of products so
they also have idea of various different industry. So that is why they can provide ideas to the
entrepreneur that which product is performing good in the market and which industry is facing
any problem. So through them entrepreneur can get good idea.
Pros-
able to get first hand product review from the retailers of customers. Easy to decide about
business ideas.
Cons-
distributor which have less experience in this field can tend to give wrong review of the products
and experience. It is not always possible that all customer reviews are same.
Current trends-
it is important to know information about current trends. It will help entrepreneur to know that
what are the new opportunities which the recent trend is bringing up (Chowdhury, Audretsch
and Belitski, 2019). It is important for the entrepreneur to keep their eye and ear open so that
they can grab new opportunities.
Pros-
it will give chance to the entrepreneur to know about the current trend so that they can start
business accordingly. If company will produce goods according to customer demand then they
can make more profits.
Cons-
to go with current trend can be risky as to launch new product which other brand have not tried
can be risky because there is possibility that company may not able to produce the product as per
the expectation.
Drucker’s 7 sources for inspiration-
the unexpected-
business world is full of surprising because it changes rapidly. Entrepreneur can be unexpected
success or failure (Fairlie and Fossen, 2018). Innovative ideas can be triggered through
experience. Unexpected situation can bring innovative ideas.
The incongruity-
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when entrepreneur does not able to meet expectation then they find out new perspective.
Through this entrepreneur can generate innovative ideas because it compares what is and what
other is assuming.
Innovation based on process needs-
any weakness in the company which can be in process, workflow, workforce etc can provide
innovation. This option is task focused option. It also helps in improving the already existing
process and redesigning old process.
Changes in industry structure and market structure-
business landscape is evolving so that is why it is important for the organisation to adopt
changes. Changes can affect business but it can generate creative ideas in the mind of
entrepreneur. Change in market structure can bring new innovative opportunities.
Demographics-
demographic changes means change in age, employment, population etc. they are the future
trends and provide innovative opportunities (Nicolaou, Phan and Stephan, 2021).
Changes in mood, perception and meaning-
with the change in technology perception of individual also changes which give generate
innovative ideas.
New knowledge-
addition is there every year in knowledge and modified knowledge helps in getting new ideas.
Entrepreneurial idea
The entrepreneurial idea which is get selected for the current project is the Biodegradable
products sales. The reason for selecting this ideas is saving mother earth. Due to the usage of
plastic and any toxic material pollution is increasing because plastic takes lot of years in
decomposing. And also plastic release toxic gases which is harmful for living organisms
especially plants and animals. This product idea will work because people are getting awareness
and now they have started supporting those business which are coming up with eco friendly
products ideas (Dabić and et.al., 2020). Biodegradable products are easy to dispose and also get
easily compostable which means they easily gets broken down and absorb in earth.
They do not harm the quality and soil as plastic does. Biodegradable products can be easily
recycled and reused. Company will also produce biodegradable plastics which are recycled
easily and are environment friendly too. It will also manufacture biodegradable plates which is
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made from paper. As these materials easily gets decomposed in the environment with the help of
bacteria.
McKinsey 7s framework
structure-
it is the approach in which the firm is organised. There should be proper chain of command and
proper relationships with employees should be there which develop the organisational chart.
Every department of company should properly coordinate so that business idea of
Biodegradable products cab attain success (What is the McKinsey 7S Model., 2020). Flow of
communication should be properly so that no confusion can prevail.
Strategy-
it means the business plan or the way in which the business can run. In order to attain
sustainability and competitive advantage it is important to make action plan. The strategy of
company would be launching the product by focusing on eco friendly product so that more
customer can be attracted.
Systems-
systems involves the infrastructure and technology of the organisation which develop smooth
workflow and flow of decision making (Nazareth and et.al., 2019). Company will use advanced
technology or infrastructure so that they can able to make Biodegradable products fast and in
bulk.
Skills-
skills refers to the abilities and capabilities of the company which can encourage their employees
so that organisational goals can be achieved. Company will going to hire experts workers which
have knowledge about the raw materials which are used for making Biodegradable products and
will also hire such employees which have proper market knowledge and can do easy promotion
of products in the market (Filipović and et.al., 2020).
Style-
it refers to the management style of the managers of the company. Company will using
democratic leadership style and invite ideas and views of their employees in the decision making
process. This will motivate employees and will increase their productivity.
Staff-
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it means the talent management which is performed by the company which can be reward
system, training and development etc. in order to hire employees HR should have properly
evaluated employees so that right candidate can be selected for right position. If company will
hire wrong employee then they can waste money over recruiting and training of employees.
Shared values-
organisation is form by comprising of mission, vision, objectives and values and norms of the
company (Luchese, Engel and Tessaro, 2021). It is important to form so that work in the
company can flow easily and also employees of company will get idea that what they want to
achieve.
SWOT analysis of business idea
Strength-
the big strength of this business idea is the general public which wanted to purchase
biodegradable products. So that will help business in generating higher profits. There are many
suppliers in the market which sell raw material for this business idea. So company can get low
costs raw materials easily. As business idea is to manufacture biodegradable products so for that
company can also take patent rights.
Weaknesses-
this business idea require research and development and that is costly so that is why company
has to incur costs for it. As carrying research is costly thing. In order to provide various options
for the biodegradable products research is must. The cost of purchasing biodegradable products
are higher then plastic products so that can impact sales of the company. That can decrease the
demand of the consumer and when demand will decline than profit margin of company can get
affected (Zhang and Sablani, 2021). If company produce more products then there actual sales
than it will affect cash flow of the organisation.
Opportunities-
the biggest opportunity which this business idea will be get in the future is the demand of
consumers. Nowadays there are various customers which are health conscious and are ready to
pay more for good product. So that is why those customers will cut down on plastic products
over biodegradable product. Demand of biodegradable products will also increase because of the
increase of the prices of crude oil and fossil fuels are also getting scarce. Many countries have
banned the use of plastic so expanding in those countries can help company in increasing sales.
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Costs of raw material for making biodegradable products are less because farmers are producing
sugar cane, bamboo and corn in large quantity. These type of company can also get easy subsidy
or financial help by the government authority because government support such company which
produce such produce which saves the environment. Biodegradable products are the
environment friendly products and they do not harm living beings which are animals and plants.
Threats-
this business idea can be easily get copied by other company because this idea have lot of future
potential and company can make good profit out of this business idea (Wróblewska-Krepsztul
and et.al., 2018). If competition of the business will get increase than it can deduct profit margin
and market share of the organisation. More firms will increase the competition and will make
difficult for the company to attain competitive advantage. Decrease in the prices of crude oil or
extraction of more fossil fuel can push this idea towards future.
Pestle analysis
Political factors-
the use of biodegradable products are spreading because people are boycotting use of plastics.
There are various government authorities which have strictly banned the usage of plastics. With
this change it has shift the traditional demand of plastic towards biodegradable products. General
public are also demanding biodegradable products because they are not harmful for the
environment and this business idea will also get political support.
Economic factors-
this factors involves change in foreign exchange rate, inflation rate, unemployment rate etc. this
business idea of biodegradable products will going to provide employment to many people
which will reduce rate of unemployment from the country (Rujnić-Sokele and Pilipović, 2017).
Biodegradable products will generate more sales and more revenue and that will contribute in
increasing the economic development of the country.
Social factors-
this factor includes lifestyle, beliefs, values etc. there are many countries which have imposed
using biodegradable products because they are environment friendly and customer thinks that it
is important for the sake of preserving the surroundings or mother earth. There are many
consumers which have this belief that biodegradable plastic is also harmful for the environment
but it is not. Biodegradable products sales will also increase awareness among people that plastic
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is harmful for the environment so that is why it should have stopped using. It is important that
public should have get understanding about the various benefits of biodegradable products.
Technological factors-
by using advanced technology only companies are able to produce eco friendly products,
plastics, bioplastic etc. hence it can be said that bioplastic is not the perfect alternate to normal
plastic because there are carious steps which is involved in making bioplastic which is costly. So
that is why company can start manufacturing biodegradable plastic over bioplastic because
biodegradable plastic is cheaper then bioplastic.
Legal factors-
this factor includes rules and regulations which is made by the government. It is important for
the company to carry their business practices as per the law and follow all industrial norms
properly (Hassan and et.al., 2018). The business idea of biodegradable products will get
supported by legal authority because it is for the betterment of the society and environment.
Environmental factors-
this factors involves weather, climate, surroundings etc. normal plastics do not get decompose
easily and also spread pollution in the environment but biodegradable products easily gets
disposed in the environment and hence cause no or little pollution. When biodegradable products
break down then they does not produce carbon dioxide. Hence it can be said that it does not
release any harmful gases. Biodegradable products is made from the natural materials and plastic
is made from chemical based materials that is why it cause pollution in the environment. So that
is why plastic is very harmful because it releases methane in the environment. It is also the
reason of increasing carbon footprints and emerging greenhouse gases (Dilkes-Hoffman and
et.al., 2019). it is said that methane gas is more harmful than carbon dioxide.
CONCLUSION
Through this report it can be concluded that sources of entrepreneurship which is properly
discussed in this report are ideas taken from friends and family, past working experience,
distribution option, current market trends etc. past work experience helps in getting knowledge
and skill which helps in generating good innovative ideas. The entrepreneurial idea which is
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used in this report is biodegradable product sales. This product will help company in generating
more sales and revenue because they are eco friendly products which will not hurt the
environment and living beings. This report has also used McKinsey 7 framework model to
support business innovation. Report has also discussed swot and pestle analysis of new business
idea in detail. This business will going to have good opportunity in the future because now
consumers are attracted towards biodegradable products over plastics.
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REFERENCE
Books and Journals
Bosma, N., Sanders, M. and Stam, E., 2018. Institutions, entrepreneurship, and economic growth
in Europe. Small Business Economics. 51(2), pp.483-499.
Chowdhury, F., Audretsch, D.B. and Belitski, M., 2019. Institutions and entrepreneurship
quality. Entrepreneurship Theory and Practice. 43(1), pp.51-81.
Dabić, M. and et.al., 2020. Immigrant entrepreneurship: A review and research agenda. Journal
of Business Research. 113, pp.25-38.
Dilkes-Hoffman, L.S. and et.al., 2019. The role of biodegradable plastic in solving plastic solid
waste accumulation. In Plastics to energy (pp. 469-505). William Andrew Publishing.
Doern, R., Williams, N. and Vorley, T., 2019. Special issue on entrepreneurship and crises:
business as usual? An introduction and review of the literature. Entrepreneurship &
Regional Development. 31(5-6), pp.400-412.
Fairlie, R.W. and Fossen, F.M., 2018. Opportunity versus necessity entrepreneurship: Two
components of business creation.
Filipović, V. and et.al., 2020. Sprayable biodegradable polymer membrane technology for
cropping systems: Challenges and opportunities.
Hassan, E.A. and et.al., 2018. Biodegradable poly (lactic acid)/poly (butylene succinate) fibers
with high elongation for health care products. Textile Research Journal. 88(15).
pp.1735-1744.
Luchese, C.L., Engel, J.B. and Tessaro, I.C., 2021. Disposable, reusable and biodegradable
hygiene products. In Antimicrobial Textiles from Natural Resources (pp. 421-454).
Woodhead Publishing.
Nazareth, M. and et.al., 2019. Commercial plastics claiming biodegradable status: Is this also
accurate for marine environments?. Journal of hazardous materials. 366, pp.714-722.
Nicolaou, N., Phan, P.H. and Stephan, U., 2021. The biological perspective in entrepreneurship
research.
Rujnić-Sokele, M. and Pilipović, A., 2017. Challenges and opportunities of biodegradable
plastics: A mini review. Waste Management & Research. 35(2). pp.132-140.
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Wróblewska-Krepsztul, J. and et.al., 2018. Recent progress in biodegradable polymers and
nanocomposite-based packaging materials for sustainable environment. International
Journal of Polymer Analysis and Characterization. 23(4). pp.383-395.
Zhang, H. and Sablani, S., 2021. Biodegradable packaging reinforced with plant-based food
waste and by-products. Current Opinion in Food Science.
Online
What is the McKinsey 7S Model., 2020. [Online]. Available through:
<https://corporatefinanceinstitute.com/resources/knowledge/strategy/mckinsey-7s-
model/>
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