Identifying Entrepreneurial Opportunities

This document discusses the concept of identifying entrepreneurial opportunities and evaluating different sources of ideas and innovation. It covers the rationale for adding to market gap and interpreting data for market potential. The document also includes a questionnaire to gather data on market preferences.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation providing
specific examples........................................................................................................................1
TASK 2............................................................................................................................................3
P2. Explanation about rationale addition to market gap for particular entrepreneurial idea
with relevant tool and techniques................................................................................................3
TASK 3............................................................................................................................................5
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea..............................................................................................................................................5
P4 Interpret data appropriately to provide evidence of market potential....................................6
TASK 4..........................................................................................................................................10
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea.....................................................................................................10
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability............................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................14

INTRODUCTION
Entrepreneurs are the individuals who manages their business, with very resources and
opportunities. Entrepreneurial opportunities are basically, the situations, chances and possibilities
entrepreneurs have a chance to make more profits by increasing its productivity and reducing
cost. Every entrepreneur has this desire and motive to move forward in their business, grow and
become successful, for which they look for new doors to open for them to be most effective and
increase their profit share (Hansen, Monllor and Shrader, 2016). Entrepreneurial opportunities
help individuals or entrepreneurs to grab these new possibilities and become more efficient.
Money is the most important resource for entrepreneurs to expand their business. This report is
based on a case of an entrepreneur who is developing a new business idea for growth and success
and in order to earn higher profits. Virgin money is a financial service provider who invest in
such new business ideas. The company is willing to invest and provider money once they get
good understanding of the idea and their profitability. In this report the idea which is developed
is of biodegradable packaging. The assignment covers, SWOT and PESTLE analysis of
marketplace and the new product. And, a research questionnaire of market.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation providing
specific examples
In modern era, every entrepreneur is in the search of grasping better opportunities for
their business as it helps in analysing and evaluating innovative ideas with the purpose of gaining
more profitability. For this, government of UK helps youth in order to represent their ideas and
attain their targets in an effective manner. Regarding to this, new entrepreneurs are looking to the
opportunities in order to ge6t innovative ideas that will be executed while earning more benefits
(Wood and McKelvie, 2015). In addition to this, the government of UK help n umber of people
in order to introduce their new and fresh products to their respective customers. As a result, it is
helpful for them in order to attain goals and objectives and it has been included the higher level
of authority of nation to offer assistance in order to provide finance as it helps in inspiring the
talent of young aspirations to introduce new products and services. Here, Virgin Money is taken
which offer financial services to entrepreneurs and also helps them in executing their innovative
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ideas into reality. As in order to determine opportunities, Drucker's 7 sources of systematic
innovation is used that is discussed as under: The unexpected: It is considered that business world is full for unexpected things which
include various failures and success also for an organisation that can be the reason or
source of inspiration for innovation (Thursby and Berbari, 2016). For this, unexpected
situations are quite powerful for business as it helps in inspiring leaders and innovators to
develop new and fresh ideas. As here, biodegradable packaging is considered which is
quite unexpected for customers as it is useful in developing environmental conditions and
reputation of company. Incongruities: Here, many companies fall into a trap as it describes the development of
products without conducting appropriate research in order to determine the targeted
customers. It describe the disagreement regarding what is supposes to be and assumed
and for this, company might face downfall while inspiring innovation for company. As
by considering biodegradable ideas, hey need to take reviews of customers, feedback and
complaints as it is the best way to analyse uncertainty. Process need: This factor is quite task oriented and focused instead of situation. For this,
sources of opportunity for innovation is comes after looking closely at the processes for
an organisation and also clearly determine the weaknesses or the ways to take
improvement (Kohlbacher, Herstatt and Levsen, 2015). For this, company conduct take
surveys of their customers which is useful in determining and analysing the capability of
company in order to develop team in more effective and efficient manner. Industry and market structure change: This step describe the market structure and its
stability for years as with it the technology development and industries are almost
disrupted. For this, leaders need to continuously determine the changes and treat changes
in an effective manner and also determine the threats and opportunities in relation to the
development of product which is biodegradable packaging. Demographics: Here, organisations determine that they are affected in one way or
another way of change of demographics. As here, the changes impacts the marketers in
order to determine the need of products while purchasing the quantity of goods (Mat,
Maat and Mohd, 2015). For this, specific areas is targeted in order to implement change
and develop product that is age, education, employment and so on that can impact the
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direction of business and also open ways for company to manage its products in an
effective manner. Changes in perception: By considering the significant changes, people need to perceive
the world in better manner. For this, perception is considered that can bring changes over
time and because of the involvement of technology and use of social networks, many
changes can be happen at the faster manner (Suddaby, Bruton and Si, 2015). For this,
people can bring change in their perception regarding the specific product. For this,
changes are considered for business view point in order to innovate and develop new
products that helps in aligning with new viewpoint of customers.
 New knowledge: Specific knowledge is considered of the development of innovation as
here technological breakthroughs becomes the source of innovation that cannot be
overlooked by business. For this, companies should refuse to opt changes by encouraging
with their own discoveries. Moreover, new and fresh knowledge is applied at every
suspect of company in order to improve the supply chain of hiring of best employees.
TASK 2
P2. Explanation about rationale addition to market gap for particular entrepreneurial idea with
relevant tool and techniques
Market gap is defined about all hidden opportunities that can be examine by the
marketers in order to achieve specific information in regard of competitive advantages and
objectives. This gap is identified in particular field where demand of this product in a lot manner.
In simple manner, when effectively analysis the requirement of customer which are not fulfilling
on time so market gap is arising (Nikraftar and Hosseini, 2016). Biodegradable packaging is
using by most of stores to keep environment safe and customer aware for this. For this product
manufacturing government also helps and ask to store to supply food in these packaging. The
administration can find out a market gap with the help of various tools and techniques that are
defined below:
Segmentation: It is a procedure in which categorised market in various segments
according to that an entrepreneur target market. Biodegradable packaging has classified its
customer into several section that are defined below:
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 Geographical: According to this segment focus on the customer target and create
limitation in geographical are that helps to attract customers. This factor mainly based on
the country, region and place which are demanding various products as well as services. Demographical: At this stage of market gap the segmentation can classify into different
aspects like education level, age, gender, lifestyle, family and many others. Thus, an
entrepreneur can produce good as per the market trends and satisfy them on time (Hang,
Garnsey and Ruan, 2015).
 Behavioural: There are defining about the buying patterns of customer, occasions, brand
loyalty and many more. Before create a new product require to focus on these aspects that
impact on the product creation. Biodegradable packaging analysis the requirement of this
product after that manufacture product in order to achieve higher profitability.
By Biodegradable packaging use geographical segment for Biodegradable packaging
which is supporting to nation and other places to packaging things in effective manner. It helps
to maintain environment effectively. So entrepreneur mainly target to all retail stores and shop
keeper of this product.
Porters five forces: To analysis the competitive advantages in market in regard of
particular product apply this method. This tool helps to collect information and identifying
opportunities in order to apply in business and get specific goals (Al Mamun and Ekpe, 2016).
There are applying this model for Biodegradable packaging to reduce market gap effectively
such as: Bargaining power of suppliers: It means there are few suppliers for this product so
bargaining power is high for the Biodegradable packaging. Suppliers have power to
charge high amounts for these types of raw material. Bargaining power of buyer: It means price structure set by the buyer according to quality
of product (Jaskiewicz, Combs and Rau, 2015). In context of Biodegradable packaging
buyers is less so they are offering good quality of packaging. Competitive rivalry: This is stated as competitor industry can develop competition for
already working organisation. Such as, Biodegradable packaging face many competitors
who already supply pancaking things to other companies.
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 Threat of new entrants: When a business entity tap into other market so it impact on
existing market profits. Such as, Biodegradable packaging supports by government so it
impact on other type of packaging which are existing in market.
 Threat of substitutes: The substitution of Biodegradable packaging is Pollybag which is
mostly utilised by customer and stores for packaging (Boling, Pieper and Covin, 2016).
Hence, to sale out this packages in market require to set up effective price that supports to
retain customer for longer period of time.
TASK 3
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial idea
Market research is defined as a procedure of gathering, collecting, interpretation and
analysing the data or information about the market regarding the product of the company. A
company needs to have good understanding of market in which it is operating, the reason behind
it is to have a successful business in marketplace amongst all competitors (Nieto and González-
Álvarez, 2016). Every kind of business owners, small or big, start-up's or entrepreneurs etc.
should have thorough knowledge of their area of work for knowing about the new opportunities
and abilities of business to expand more and be profitable. There two broad ways by which
market research can be conducted effectively which can help entrepreneur to determined their
position and feasibility before involving into any new operation. The methods of market research
for new biodegradable packing are explained below in next section:
Data collection or market research can be done by two ways and categorised in to broad
manner Primary and Secondary.
 Primary- This research method is refers to market research when all data is collected for
the first time by the investigator themselves. The information or data which is being
collected doesn't exist and encountered by the investigator for the first time. This is why
it is known as primary research (Spigel, 2017). It can be collected by conducting face to
face interviews or by developing a questionnaire. For gaining knowledge about the
feasibility of biodegradable packing entrepreneur is preparing a questionnaire. This
questionnaire is developed below having four questions to gain knowledge about the
marketplace.
 Secondary- This form of research is conducted from existing resources, it basically
means that the data or information already exist in market. The researchers just sort and
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purify the information present and just collect those which are relevant to their topic. This
research data can be collected from the internet and social media platforms and print
media.
Questionnaire
Name:
Gender:
Age:
Address:
Q1 Where do you use plastic products the most?
Home
Outdoor
Q2 Are you comfortable with biodegradable packing in exchange of plastic packing?
Yes
No
Q3 What method can reduce the cost of biodegradable goods according to you?
By choosing cost-effective raw material
By making modifications in the processes
Q4 Can biodegradable packaging help business scenario and environment?
Yes
No
P4 Interpret data appropriately to provide evidence of market potential
Q1 Where do you use plastic products the most? Frequency
Home 16
Outdoor 4
Q2 Are you comfortable with biodegradable packing in exchange of plastic
packing?
Frequency
Yes 17
6

No 3
Q3 What method can reduce the cost of biodegradable goods according to
you?
Frequency
By choosing cost-effective raw material 13
By making modifications in the processes 7
Q4 Can biodegradable packaging help business scenario and environment? Frequency
Yes 14
No 6
THEME 1 :
Q1Where do you use plastic products the most? Frequency
Home 16
Outdoor 4
16
4
Yes
No
INTERPRETATION: Biodegradable products are increasingly demanded by the individuals
and in order to gain feasibility about the new business ideas a questionnaire is developed.
According to the data collected 16 people out of 20 uses more plastic products at home and 4
make use of plastic goods outdoors. This shows that with increasing awareness and demand still
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most of the population is using non-biodegradable goods. This is a warning that the feasibility of
this business is low as people still wishes and prefer plastic goods.
THEME 2:
Q2 Are you comfortable with biodegradable packing in exchange of plastic
packing?
Frequency
Yes 17
No 3
17
3
Yes
No
INTERPRETATION: Once knowledge is gained about the usage of plastic goods now analysis
id conducted about the comfort zone of individuals about the biodegradable packings. Form the
research of 20 candidates 17 demanded biodegradable packing and 3 individuals were not in
favour of this idea. This is an potential opportunity for the entrepreneur and shows that they have
goods chances to be successful and earn profits.
THEME 3:
Q3 What method can reduce the cost of biodegradable goods according to
you?
Frequency
By choosing cost-effective raw material 13
By making modifications in the processes 7
8

13
7
By choosing cost-effective raw
material
By making modifications in the
processes
INTERPRETATION: In order to gain knowledge about the public and their understanding
about biodegradable products. A suggestion is asked for reducing the cost of producing
biodegradable goods and 13 people opinion is that entrepreneur should choose cost-effective
methods of production. On the other hand, 7 candidates said that the processes should be
modified. This states that people have good knowledge about such goods and expects the to be
available at lower price which is affordable by all classes of society.
THEME 4:
Q4 Can biodegradable packaging help business scenario and environment? Frequency
Yes 14
No 6
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14
6
Yes
No
INTERPRETATION: As the environment is being affected by increasing business and
exploitation of natural resources. The opinion is taken from public about the usefulness of
biodegradable goods for environment and business. In which 14 candidates said that it is
effective and positive for business and environment to have biodegradable products. On the other
hand 6 people said that it is ineffective. This implements that biodegradable goods are demanded
but in lower and affordable prices.
TASK 4
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea
SWOT Analysis: This approach is opted by entrepreneur or the business owner to determine the
strengths and weaknesses for their new business idea that is helpful in order to provide
Biodegradable packaging to organisations. For this, discussed SWOT analysis is discussed as
under: Strengths: While implementing new ideas into market, an entrepreneur need to determine
that ways to reach to huge number of customers in order to provide them satisfaction
regarding their needs (Guo, Su and Ahlstrom, 2016). For this, in modern time most of the
organisations put emphasis on their products which does not harm the environment and
its related conditions as due to this, they reduces the use of polythene bags from their
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packaging as for this, entrepreneurs need to attract large number of organisations that can
increase their sales. In respect of this, entrepreneurs can patent their biodegradable
packaging as because of this they does not need to pay fee for licensing that can decline
their cost and increase the level of profitability. Weaknesses: Each fresh product is concerned with prominent weaknesses which arises
while entering into new market. For this, entrepreneurs are not capable enough to
determine the weaknesses as it is the main reason behind the failure of product in market.
As entrepreneur need to organise market research to determine their acceptance level of
biodegradable packaging at marketplace which is useful in increasing the cost of
entrepreneurs and slow down the profitability. Opportunities: In modern world, the choice of customers can change their perspective as
they can shift on the environment friendly products in order to neglect using those
products that harm environment (Krueger, 2017). For this, prices of oils are getting high
and due to this, need of biodegradable packaging increases the opportunity for
entrepreneurs to gain effective position in market. As this would tends to increase the
chances of acceptance of biodegradable packaging by company in marketplace.
 Threats: Big companies prefer manufacturing of biodegradable packaging at their own in
order to slow down the cost. As it will negatively impact the idea of entrepreneur and
sales which can decrease their productivity. Moreover, as if the oil prices may gets
decrease then the use of product in future can become the big threat for an entrepreneur.
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability
PESTLE analysis is useful in determining and analysing the external factors and
components which impacts the working conditions of company as it leads to impact flow of
company and its various factors are discussed as under:
 Political: This factor consider the level of government and their intervention in economy.
Moreover, it consider the factors like environmental law, policies regarding tax, political
stability and many more. For this, political stability of UK is quite good that is
advantageous for bourgeois in order to deal with it and also gain their position in UK.
 Economical: This factor consider various factors like inflation rates, interest, exchange
and many more. For this, economic factor influences the business activities on the
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decisions that are taken in relation to execute the new ideas in market. For example,
exchange rate impact the overall cost of importing goods in order to get things high
automatically which negatively impacts the profitability (Roundy, 2017). For this, most
of the entrepreneurs offer their offerings at economic rates as it will attract more
companies in order to increase their sales and profitability.
 Social: It is considered as the important element that is useful in developing opportunity
for entrepreneurs in order to bring their products in societies in effective manner. For this,
acceptance of biodegradable packaging is increase day to day as most of the people
choose those products which does not contain polythene. In relation with this,
entrepreneurs offer low cost biodegradable packaging to companies that helps them to
reach large number of customers.
 Technological: In modern world, technological factor is considered as one of the most
prominent factor which impacts the buying behaviour of customers. As here, people
prefer the usage of those products that the quite good and creative in market area. For
this, manufacturing of biodegradable packaging is useful in advancing the technology to
decrease the cost of entrepreneurs and increases the profitability (Jenkins and McKelvie,
2016). Here, they can opt digital technology to promote new ideas which are helpful for
entrepreneurs to make the presence high in market area that leads to increase the stability
of creative ideas for longer period of time at marketplace.
 Environmental: This is the most recent factor is which came into light due to increasing
global destruction to natural environment. This factor has positive impact on entrepreneur
and the new idea of biodegradable packing. This business ideas will be having positive
impact on the environment and a feasible business expansion opportunity.
CONCLUSION
As per the above discussion it has been concluded that entrepreneurial opportunities are
identified by a person after analysis the market that helps to understand the requirement of
customer. According to that manufacturing new products that helps to remove gap effectively
along with apply Drucker's 7 sources that provide all detailed information. Moreover, it is
applied innovation in market through Biodegradable packaging that can support by the
government to support environmental activities. With the help of PESTLE analysis analysis of
all external factor that impact on the business in positive as well as negative manner. An
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organisation can get all relevant information in regard of their business according to that take
further action to get long tome success and running business effectively.
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