Identifying Entrepreneurial Opportunities

This project focuses on translating an opportunity into a business idea, determining sources of entrepreneurial ideas and innovation, evaluating market gap, and assessing market potential. The selected idea for this project is a restaurant in the food industry.

Unit 27. Identifying Entrepreneurial
Opportunities

CONTENTS
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.........1
TASK 2............................................................................................................................................3
P2 Rationale and the market gap for a specific entrepreneurial idea with relevant tool and
techniques...............................................................................................................................3
TASK 3............................................................................................................................................4
P3 Present data needed to support gap analysis in the evaluation of specific idea................4
P4 Interpret data appropriately to provide evidence of market potential...............................6
TASK 4............................................................................................................................................7
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea...................................................................................................7
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability.........................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In a business environment there are vast number of opportunities get reflected. Thus, for
an innovator it is really essential to determine all related aspects and translate or convert such
idea into opportunity better. An entrepreneur is such individual whom convert their business idea
properly and gain all related opportunities of define market world properly. This project is based
on translating an opportunity into business idea properly so that supportive sustainability could
be promoted. This project will going to include about different sources of entrepreneurial ideas
and innovation with appropriate determination of market gap. This aspect will get supported by
through appropriate data interpretation so that market potential get describe in define manner. It
will also going to organise SWOT framework so that appropriate assessment of objective idea
could get done in better and define manner so that idea get implemented with potential viability.
Thus, the selected idea for this project will be a restaurant as food industry determining as one of
a most profit generating industry in the world.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
There are different sources which can gives an entrepreneurial thoughts in light of the fact
that there is dependably a need that expected to roll out a few improvements. In scholarly dialect,
these thoughts that has just begun a business requires some development and that advancement
can be uncovered by the client's overview and meetings. While in genuine the thoughts is of a
business is produced determine through perception and the possibility that can has some efficient
incentive to the general population and business visionary. These wellsprings of thoughts can be
as depicted as take after -
Users – As in each business the client is a prime individual who ought to be fulfilled from the
item because if the end client is fulfilled than then they will likewise raise the deals. That is the
reason they are most productive wellspring of thoughts with regards to open Dekike and
Medison the clients are the need for this. Since there was many individuals who are looking for
some changed sort of flavours that is the reason the bistro is putting forth sustenance from past
the limits (Dimov, 2011).
Rivalries – Competition is additionally a factor which expands deals on the grounds that there
are such a significant number of existing eateries which are putting forth the comparative kinds
1

of restaurant however Dekike and Medison will dispatch with some stifle things that can
drastically drive the deals.
Looking upon on each and every attribute properly – While one is going to open an eatery they
ought to watch others what they have done before in light of the fact that the slip-ups they had
made, that can be maintain a strategic distance from to happen and put a business in
entanglements. Display prerequisites and future desires help to grow a business (Ekpe, Mat and
Razak, 2010). Dekike and Medison have to look upon on each and every attribute of present,
past and future properly so that they could compete at define world better as well as strategies
could become possible to craft in determined source of consideration.
Macro environment factors:
Following are certain number of macro aspects which made vast impact on business and its
working which need to assess and determine in a definite frame of course.-
Legal framework – Legal factor is the most vital criteria to be taken after. Since getting a permit
for Gourmand and Globetrotter is pivotal before beginning the administration if permit isn't
affirmed by the UK Government then the business will be illicit and the business visionary is
additionally at risk to pay the punishment. So it is basic to take after the lawful structure for the
business.
Social elements – Social components are those which establishes a connection on the general
public and business both. Since individuals are lives in a general public so there a few religions
and they has a few decides that they must be taken after. Along these lines, business ought to
have a few morals that does not damage client feeling. For instance, in eatery the items crude
material ought to accord to their conviction and there must not be any sort of item which can hurt
anybody. Another parts of social factor is informal, if a business has a decent picture then that
will pull in more customers (Foo, 2011).
Technological component – Technology is some assistance for business because it makes such
huge numbers of things open inside a touch. Putting a business on web brings various clients
and furthermore makes a generosity.
Various sources of innovation are there. They are:
Unexpected: It includes that manager have to continuously study the market.
2

Incongruity: In this differences are there so that company can easily determine them and can give
their solution.
Process need: In this company can identify the weak points. Thus they can take steps to improve
them.
Industry and market structure change: In this company can determine the changes in the
industry and market.
Demographics: In this company can easily find various changes in population and income
level.
Changes in perception: In this the company has to identify the changes in behaviour of people.
New knowledge: In this company can easily identify the changes and can make
improvement in methods and techniques.
Economic factors: In this company is affected by economic factors. If there is deflation
then business can sell goods to all users at lesser rate of interest.
Environmental factors: In this company can sell various goods to all users. Thus firm has
to create effective plans and policies so that it can protect environment.
Types of innovation
Process: In this company can easily determine the process and they can execute new
processes. Thus they can improve services.
Product: In this a new and distinct product is introduced so that they can easily maintain
good image in country. Hence they can easily maintain positive image in country.
Incremental innovation: In this innovation it make use of existing techniques and thus it
can make use of effective techniques. Thus it delivers good quality of services.
Differences
Innovation Invention
 In this method company can easily
modify existing products.
 They include various skills such as
technical and marketing skills.
 In this process company can easily
create new products and services.
 It include scientific skills which can
easily used in creating products.
3

TASK 2
P2 Rationale and the market gap for a specific entrepreneurial idea with relevant tool and
techniques
At the point when a business will enter in the market around then there is a need to settle a
market hole with a specific end goal to expand client's purchasing nature. There are some
particular apparatuses which are required to lead statistical surveying that can present a business
viably. There is a need to distinguish the hole from where a business person can exploit with
abilities and assets. To take leverage of these whole one ought to investigate itself to new and
fascinating individuals with encounters and thoughts. One inquiries emerges while discovering
the holes is, the place to search for holes, so there are a few pinpoints where a man can get the
holes, that can be seen regarding -
• Trends and new innovation – There are loads of patterns and innovation in light of that new
open doors are flying up in the market, one should watch out for the progressions and broke
down that what sort of effect the business would face (Heinonen, Hytti and Stenholm, 2011).
• Make the a world topical - If one can watch the encompassing then they will see that there is a
heaps of imagination, everybody is upgrading the open doors with their whimsical work. Since
creative energy opens an entryway of intriguing patterns. Dekike and Medison is where
everything occurs before anyplace else, in light of the fact that it will go to be a pioneer not a
supporter. It will outfit the accessibility of the nourishments and drinks with imaginative
formulas that nobody has (Quan, 2012).
Before propelling another nourishment item one ought to examine the market necessity
which alludes to distinguish the client's needs. There are distinctive requests of clients and with
respect to nourishment they unquestionably has some flexibility and to know their taste it
directed a showcasing research on division premise that are as per the following -
Demographic Segmentation – Demographic division isolates advertise based on statistic factors
like age, sexual orientation, military status, salary religion, race, occupation, nationality, and so
on the grounds that there are different individuals whose nourishment propensities are relies on
their religions. Likewise individuals dependably spend as indicated by their salary and
occupation so the Dekike and Medison must have the moderate and arranged menu as per the
targeting clients.
4

Geographic segmentation – Geographic division learns about the populace which is living in the
specific geographic region in light of the fact that the general population who are living around
there has particular necessities as per the atmosphere. In eatery global sustenance is serving for
the general population, there might be various types of individuals are remaining in that region
(Renko, Shrader and Simon, 2012).
Behavioural segmentation - In conduct division the exploration is subject to the acquiring idea
of populace, ways of life, demeanours, contemplations, inclinations, decision and basic
leadership. Since if the general population are having a sumptuous way of life then they
would not stressed over the cash the main thing matters for them is the brand and quality.
They individuals who comes in white collar class are having a few inclinations so they
might be can't manage the cost of the extravagance things however they can spend a little
measure of their salary on nourishment. The individuals who are sustenance darling are
matters a considerable measure for eatery business since they needed to eat the novel sort of
flavours that humour them.
Benefits of product: Restaurant is launched and hence it can offer variety of services. Thus many
people are attracted towards this restaurant.
Porter's five forces model: It include
Bargaining power of buyer: It is high. Thus firm has to create strategies to beat the
competitors.
Bargaining power of suppliers: It is also high. Thus they have to create strategies bet the
rivals.
Threat of substitutes: In this company have threat that they have many substitutes.
Threat of new entrants: It is high. Thus they have created many policies so that firm can
easily create various plans so that it can beat new entrant.
Industry rivals: In this there are many competitors that exist in market. Thus they can
easily beat many rivals.
Industry life cycle: There are various stages which are described below:
Introduction: In this company introduces new product. Thus it has to spend many
expenses.
Growth: In this stage they have to create policies so that they can increase the market
share.
5

Maturity: In this firm can create various products so that they can generate more
revenues.
Decline: Firm tries to reduce prices so that they can directly leads to enhance the
customer satisfaction.
TASK 3
P3 Present data needed to support gap analysis in the evaluation of specific idea
Whole investigation is subjective and quantitative examination of an organization or
person's present execution implies the genuine present state with the potential execution which is
the objective state. Its centre rule is to perceive the necessity and discover the arrangements. It
tends to two focuses that are:
• Performance
• Potential
Each and every aspect of investigation is a 360 degree examination that performs vital or
operational levels in internal and outward condition and one can run with business bearing into
different procedures or divisions. In the wake of experiencing the main period of investigation
execution versus potential one can have the capacity to see the outcomes are surpassing the
expectations (Short and et. al., 2010).
Directing a whole examination:
The hole investigation is led to be huge brand however in the event that such huge numbers
of things are attempted to be handle at one time then the asset will get stretched(Tang, Kacmar
and Busenitz, 2012). So it would be better if an individual considers anybody of these host
factors like:
• Sales number
• Customer fulfilment
• Retention rates
• Shipping times
• Marketing returns
• Manufacturing costs
• International extension
Identify State:
6

Once a business visionary chose the regions of concentrate then the initial step is to
distinguish both where is the execution and what is the desires in future. For a case:
• Sales channels as core interest
• Peculiar outlets as the channel
• Current month to month deals as execution
• Industry normal potential
Describe the difference:
After the recognizable proof of the holes the following stage is to portray the hole for
better understanding the explanation for their occurrence (Vaghely and Julien, 2010). On the off
chance that a business is in front of target then it is a decent time for the business to dissect the
precisely done to achieve the objective. In the event that there are approaches to use similar
standards in different zones of an eatery. It is basic to experiencing from this progression on the
grounds that a well performing business can likewise be streamlined. To depict a hole there is an
example that ought to be taken after, for example,
• Gap – where the hole find.
• Gap portrayal - Record all of data that are adding to hole. These holes can be quantitative or
subjective.
• Why – The purpose behind holes why they came in presence.
Deal with potential barriers:
The last stage is conceptualizing to know all the conceivable answers for the hole and the
purposes for it (Wang, Ellinger and Jim, 2013). These arrangements must be particular and
ought to directly affect the issue which has dissected in the past stages. As the business
visionary is making a thorough answers for the whole portrayal summery, they are empower
to think in more extensive setting and position the pragmatic execution. While speculate the
plausible arrangements one should remember that the execution can be expensive as far as
time, cash and HR (Wood and McKinley, 2010).
Development plan: There is a development plan which is described below:
Executive summary: In this a development plan is created. They have started a restaurant
so that all plans and policies are created. They have to create effective strategies so that it can
maintain good image in market.
Description of business: In new restaurant they can offer variety of food, snacks to all
users. Different variety of food is offered so that they can attract many users.
Market research: In this the restaurant can evaluate the target market and they can also
evaluate their needs and wants so that they can offer food according to their choice.
7

Financial plan: They can borrow money from the friends and relatives so that they can
easily manage all resources in firm.
Market plan: In this clear objectives are set. Their main aim is to enhance satisfaction
level of all users. SWOT analysis is performed.
Marketing mix: In this company can easily evaluate the 7 P's so that they can easily
promote their business. This is crucial so that all users get attracted.
Primary research: In this company perform research which is not perform earlier.
Company collects fresh data.
Secondary research: In this company collects data which is already been collected.
Techniques:
Internet and social media tools are used sop that company can easily collect data. It is
beneficial for company so that it can collect relevant data.
Questionnaire is also used so that they can collect relevant information from all users.
P4 Interpret data appropriately to provide evidence of market potential
Marketing research is basic to manage in advertise from long span on the grounds that a
businessman appreciate the life span and for what reason not they puts such a great amount of
vitality in it. The statistical surveying pinpoints the objective market, purchaser issues and
reasonable contenders. Promoting research taxicab be done from different stages amid the pre –
dispatch and post – dispatch. Since if an individual is having a decent information about the
commercial center then they can start a bewildering business in focused environment (Block and
Wagner, 2010). There are a few systems of promoting exploration, for example, -
• Primary statistical surveying – Primary research is finished by the business or an organization
itself which is gathers the data going to enhance its item, administrations and capacities.
Essential research is directed in the field through gathering the inputs, polls, overviews or
meetings of client about items and administrations. It can assemble the information from
quantitative and subjective research too. This survey enables and support in defining things
better so that an idea could operate in better and definite frame of manner. Although, it work as
one of a major source through which presenting and gaining better response from target
individuals could become possible. At the time of market study for Dekike and Medison they
8

could go with this technique or tool so that they could gain better response of their clients in
respect of taste, preference and kind of food variety.
• Secondary statistical surveying - Secondary statistical surveying is very inverse of essential
research since it doesn't gathers information from quantitative strategy rather it depends on the
nature of effectively assembled data. It considers the same number of various sources like
government information, office information, daily papers, magazines, web, and so on. The
optional research less takes less time and low cost (Dimov, 2011). This is next source of survey
or data collection tool where business could gain response directly from previous news articles
etc. This define about recent and current trends prevailing at desire market world so that better
and efficient outcome could be response. Dekike and Medison managers could utilise secondary
source of information better and in effective frame so that they could understand trends and
aspects in better definite manner of course so that competitive edge could be gain.
To grasp the statistical surveying there is a new advancements can likewise be embraced
like gatherings and online networking stages to know the request of clients what they are
searching for and what might be there response for the new items. The Dekike and Medison
eatery should explore the market to know the potential clients and their decision then they can
discover the key focuses where they can contribute more. For instance, there might be the
general population who just likes French or Spanish pleasures yet in future they might resemble
other worldwide eats from different nations like claim to fame of UAE or India or Middle East
Countries. There might be a probability exists for the effective investigations.
TASK 4
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea
SWOT examination is a helpful device for conceptualizing and key arranging. It is utilized
to dissect the quality, shortcomings, openings, and dangers inside the outer condition of a
business. It takes the upside of new business openings, patterns, innovation and upper hand to
accomplish its destinations. For representation, Dekike and Medison eatery are another
contestant in the market and in this manner, it has such a significant number of expansive times
where it remains through distinguishing the current shortcomings of friendliness industry (Ekpe,
Mat and Razak, 2010).
Strength
9

• Dekike and Medison eatery is another passage in the nourishment and refreshments so
individuals are effortlessly pulled in towards it.
• It has numerous options in the sustenance so individuals can get whatever they need from over
the limit.
• This eatery will be arranged at a place where individuals can without much of a stretch reach
since area ought to be open to everybody and that is the most unmistakable perspective to expand
the sales (Foo, 2011).
• The plan to get the more client is that there would be diverse criteria for each client with the
goal that each buyer can appreciate the devour as per their salary.
• The savour supper design is moderate for its client with a few coupons and vouchers.
Weakness
• Dekike and Medison are putting forth another sort of cooking in the market including particular
nourishment design from different national culture, however, there are just French individuals in
the nation.
• It will be open soon however powerless promoting or absence of affecting systems can drop its
opening desires.
Opportunities
• The business person needed to enter the market with a blast since it has when it makes a
noteworthy effect on clients mind.
• A gigantic scope of global sustenance.
• It influences a place for each sort of purchaser to fragment.
Threats
• Dekike and Medison is another section and there is as of now an immense pool of eateries.
• Fear of losing speculation and time.
• Creating a brand picture in another market is exceptionally troublesome within the sight of
monsters.
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability
When one is leading an inside and out examination about the opposition and market
condition with respect to a business in that circumstance it is permitted to peep into the
contender's quality and shortcomings which can help a representative to dissect and assess the
10

systems that will be executed (Heinonen, Hytti and Stenholm, 2011). Since it will enhance the
state in upper hand. Whenever Dekike and Medison are searching for the opposition in the
market then it investigations the desires what its adversaries are serving to their customers and
what it hopes to be. This will give an information from where it can book a place in the market.
After that one should direct an exploration to realize that about the opponents and their
administration techniques and fulfilment level of clients. As an agent knows the data then they
ought to set up the promoting systems through commercial, deals pamphlets, daily paper, and so
forth. For an excellent opening so the general population can think about the eatery.
At the point when the business has been opened one ought to break down its yearly report
with a specific end goal to assess the its potential deals and real deals based on earlier year to get
the data about the business advance.
With respect to advertise condition there are such factor which are utilized to assess the
suitability of the business thought like market measure, directed clients , inclining direction. It is
difficult to check the market size and request yet having a sense about potential market size and
interest for putting time and cash in a wander is great. It is anything but difficult to watch the
general population who are discussing Dekike and Medison eatery by following the SEO and
online networking sites (Quan, 2012).
It is dependably a decent practice to think about contenders in light of the fact that each business
is beginning to expand the business more. One should think about contenders previously
getting a begin since that will give a less shock to see here and there chart of the firm. It is
additionally basic to discover data in regards to their potential clients and are they ready to
buy the items.
Competitive market: It is described below:
Substitute goods: In this company can evaluate substitute goods so that they can create
many plans and policies.
Demand: Restaurant have to monitor the needs and wants of all people so that they can
easily maintain unique position in market.
Target audience: Company has to evaluate the target people so that they can create
unique policies. This helps restaurant to easily satisfy their wants and needs.
Restaurant has to monitor the environment. It includes:
Macro: In this company can evaluate the political, social, technological, legal,
environment an economic factors. Then restaurant can create effective plans and policies so that
it can easily adopt these factors and can earn more revenues.
Micro environment: In this restaurant can easily fulfill all needs and wants of all people.
Thus as a result they have to create the plans and policies so that it can fulfill needs and
11

requirements of all customers, suppliers and the employees. Thus as a result they can easily
satisfy all requirements of all stakeholders.
P6
Competitive market
· Substitute goods
· Demand
· Target audience
Market environment
· Macro environment
· Micro environment
CONCLUSION
It get concluded from the project that entrepreneurial idea implementation is not an easy
thing and requires more and more absolute consideration for managing such attribute. Thus, out
of many there are only certain individuals have potential to convert their idea into a grabbing
opportunity which further facilitate in performing things better and effective. It requires better
skill to work as well as dedication so that things went well in define and determine frame of
reference. There are various ideas and innovation get evaluated out of which only one have
potential to become viable in nature and compete with others. Such idea need to assess properly
with market gap analysis so that beneficial and effective working drawn could get done in order
to assess better thing in frame. The gap analysis used to perform with appropriate gap analysis
data and its interpretation so that better understanding and assessment could get perform for
better supporting outcome. Thus, for assessing competitiveness of an idea there is a need to
perform SWOT analysis so that better and definite working attribute could get done in better and
signified manner. All these things need to get done in suitable and effective manner of frame.
12

REFERENCES
Books and Journals
Block, J.H. and Wagner, M., 2010. Necessity and opportunity entrepreneurs in Germany:
Characteristics and earnings differentials.
Dimov, D., 2011. Grappling with the unbearable elusiveness of entrepreneurial opportunities.
Entrepreneurship Theory and Practice. 35(1). pp.57-81.
Ekpe, I., Mat, N.B. and Razak, R.C., 2010. The Effect of Microfinance Factors on Women
Entrepreneurs' Performance in Nigeria: A Conceptual Framework. International Journal of
Business and social science. 1(2).
Foo, M.D., 2011. Emotions and entrepreneurial opportunity evaluation. Entrepreneurship Theory
and Practice. 35(2). pp.375-393.
Heinonen, J., Hytti, U. and Stenholm, P., 2011. The role of creativity in opportunity search and
business idea creation. Education+ Training. 53(8/9). pp.659-672.
Quan, X., 2012. Prior experience, social network, and levels of entrepreneurial
intentions. Management Research Review. 35(10). pp.945-957.
Renko, M., Shrader, R.C. and Simon, M., 2012. Perception of entrepreneurial opportunity: a
general framework. Management Decision. 50(7). pp.1233-1251.
Short, J.C and et. al., 2010. The concept of “opportunity” in entrepreneurship research: Past
accomplishments and future challenges. Journal of Management. 36(1). pp.40-65.
Tang, J., Kacmar, K.M.M. and Busenitz, L., 2012. Entrepreneurial alertness in the pursuit of new
opportunities. Journal of Business Venturing. 27(1). pp.77-94.
Vaghely, I.P. and Julien, P.A., 2010. Are opportunities recognized or constructed?: An
information perspective on entrepreneurial opportunity identification. Journal of Business
Venturing. 25(1). pp.73-86.
Wang, Y.L., Ellinger, A.D. and Jim Wu, Y.C., 2013. Entrepreneurial opportunity recognition: an
empirical study of R&D personnel. Management Decision. 51(2). pp.248-266.
Wood, M.S. and McKinley, W., 2010. The production of entrepreneurial opportunity: a
constructivist perspective. Strategic Entrepreneurship Journal. 4(1). pp.66-84.
Online
Gap Analysis: A Template for Connecting Potential with Performance. 2017. (online). Available
through: <https://www.shopify.com/enterprise/gap-analysis>.
13