Entrepreneurial Opportunities: Biodegradable Packaging Analysis Report

This report examines entrepreneurial opportunities, specifically analyzing the context of Virgin Money and a proposed business idea centered around biodegradable packaging. The report begins with an introduction that highlights the role of entrepreneurs in generating new business ideas and their importance in economic development. It then delves into the main body, which includes an evaluation of different sources of entrepreneurial ideas and innovation, including STEEP analysis and Drucker's 7 sources of innovation, focusing on their advantages and disadvantages. The report also explores the rationale and market gap for the biodegradable packaging idea, using tools and techniques like the STP model. Furthermore, it presents data to support a gap analysis and interprets this data to provide evidence of the market potential. A SWOT analysis is applied to support the specific entrepreneurial idea, and the competitive and market environment for launching the idea is evaluated. The report concludes with a summary of findings and a list of references.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY ..................................................................................................................................4
TASK 1 ...........................................................................................................................................4
P1 Critically analysed and evaluate different sources of entrepreneurial ideas & innovation. ..4
TASK 2 ...........................................................................................................................................8
P2 Explain the rationale and market gap for entrepreneurial idea with the help of tools and
techniques. ..................................................................................................................................8
TASK 3............................................................................................................................................9
P3 Present data needed to support gap analysis. ........................................................................9
P4 Interpret data for providing evidence of market potential. .................................................11
TASK 4..........................................................................................................................................13
P5 Apply SWOT for support specific entrepreneurial idea......................................................13
P6 Evaluate competitive and market environment where idea will be launched. ....................14
CONCLUSION .............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Entrepreneur refer to a person who generate new ideas for a business and bring all risk
and reward related to its investment. Mostly entrepreneur is known for its innovation in goods
and services. They are very important for growth of an organisation as they helps in economic
development of a country. Entrepreneurial activities create various new opportunities for their
business. Entrepreneurs provide new product and service to market which assist in achieving
competitive advantage in new market. Entrepreneurial opportunities refers to a situation which
helps entrepreneurs to take effective action and earn profit. This report is based on Virgin Money
company. Virgin money company was founded by Richard Branson in 1995, headquarter is in
Edinburgh, United Kingdom. It is an banking and financial services brand operating company
which provides finance to entrepreneurial idea. It has more than 74 stores and 5 lounges and
various subsidies such as Virgin money, Virgin money giving limited and so on. In this report
selected company provide finance to a entrepreneur who come with a idea of Biodegradable
packaging. This report includes different sources of entrepreneurial ideas and innovation,
Drucker's 7 source of innovation, benefits and drawbacks of various sources. Other than this
various techniques which fills the market gap for entrepreneurial idea and effectively apply
SWOT for supporting objective of specific entrepreneurial idea. In last this report includes
various competitive and market environments in which entrepreneurial idea is launched for
achieving potential viability.
MAIN BODY
TASK 1
P1 Critically analysed and evaluate different sources of entrepreneurial ideas & innovation.
Entrepreneurial ideas means creating a new ideas and new product development with the
help of research and development (Alvarez and Barney, 2020). Entrepreneurial ideas are not only
focus on creating new ideas but also helps in improving existing idea. In context of selected firm,
their main focus is on innovation which can helps them in higher growth and become a market
leader. There are various sources of innovation which helps entrepreneur to innovate something
new and change in existing products. In context of selected firm, various sources of

entrepreneurial idea and innovation are analysed with the help of (STEEP) external
environmental factors and Drucker's 7 model of innovation. Both sources of ideas are mention
below:
External environmental sources- It refers to all available outside factors which effects
operations of business (Barba-Sánchez and et. al. 2019). For growth of an organisation its
important to effectively analysed these factors. Various external environmental sources which
provide various entrepreneurial ideas are mention below:
Social environmental factors- This environment includes various important factors such as
values, beliefs, attitudes, wants and desires of consumers. All these factors rapidly change taste
and preferences of customers which offers more ideas for entrepreneurs to innovate and develop
a new product and services for market. According to current situation people are selecting those
products which does not includes polythene and plastic packaging. Biodegradable packing idea
helps business in increase their sales and earn higher profit.
 Advantage- In context of Virgin Money, social environmental factors play an important
role in generating ideas for entrepreneurs. Every day there are new vision and standard
of gender, religion, attitude and behaviour, which influence customers expectations.
Higher expectations of customers provide various entrepreneurial ideas, which helps in
growth and development of selected company (Cai and et. al. 2018).
 Disadvantage- In terms of social environmental factors it also reduce growth
opportunities for business. In context of selected firm, people have a mentality that
borrowing funds form banking institute create a burden on their life. People first prefers
their personal money as compare to borrowing from bank.
Technological environment- It refers to an external environment factor which provides various
entrepreneurial ideas to business (Clark and Ramachandran, 2019). Now a days technology is
rapidly change and bring new opportunities for business. For long term success of an
organisation its important for company to effectively adopt new technology in market. In context
of selected firm technology is the best source from where they can achieve their entrepreneurial
idea.
 Advantage- In context of selected firm, rapidly change in technology bring more
entrepreneurial ideas, which helps in the development of company. By introducing new

technology they can achieves competitive advantage in market. Which will enhance
company profit and growth.
 Disadvantage- In context of selected business, new technology helps in enhancing profit
for company but also it increase numbers of competitors for company. Technology
provides various entrepreneurial ideas but also increase cost of innovating new
technology.
Economical environment- Now a day economic environment of a business is rapidly change.
After growth and dominance, economy of United Kingdom is challenged by other developing
countries economy. Entrepreneurs play an important role in development of economy by
providing employment, taxes to government and so on. Economic development bring new ideas
for entrepreneurs which helps them in innovating new product and services. In context of
selected company, economic development means increase in standard of living, which offer
various opportunities for business to enhance their profit by providing better financial services
(Di and Turner, 2018).
 Advantage- Economic environment provide various sources of informations which helps
selected firm to innovate something new. Which will helps is growth and development of
company.
 Disadvantage- In context of selected firm, economy of a country face both the situations
of inflation and deflations which are very harmful for growth of business. In context of
selected business, at the time time of recession rate of interest is low which cause a big
loss for company.
Environmental Factor- It refers to different variables which are related to an environment of a
country such as Weather, climate, pressures from NGO'S and so on (Ghanizadeh and et. al.
2020). All these factors influenced needs and wants of customers. After properly analysing
different factors of environment an entrepreneur can develop new ideas easily.
 Advantage- Environmental factors is an important source of information which provide
various entrepreneurial ideas. Changing environment bring new opportunities for selected
company and enhance their profitability by innovating new ideas.
 Disadvantage- In context of selected firm, it can be analysed that environment is
dynamic in nature and its become difficult for company to easily analysed environment.

Sometimes environment not only provide innovative ideas but also it create barriers for
company.
Political environment- Rapidly change in government and policies have a greater impact on
investment and purchasing power of customers. Their is a huge risk for those companies which
are established in a country with political instability. While in context of company, stability in
political parties create new challenges and opportunities for business. Which provides various
entrepreneurial ideas for business (Hsu and Wang, 2019).
 Advantage- Political environment has an important impact on the business. It covers a
large area and fields which helps company in expand their business and bring new ideas
for innovation.
 Disadvantage- One of the biggest disadvantage of political environment is that, it is not
stable and changes quickly. One factor which provide ideas to entrepreneurs while
change in political party remove that idea for company.
From above various sources of entrepreneurial ideas it can be evaluated that for success
and development of selected firm they require to timely check all external factors. All these
factors create various opportunities and ideas of innovation for company. For reducing barriers
related to social, economical, political, environmental, technological factors selected company
require to adopt effective strategies of innovation. For obtaining more ideas related to
entrepreneurship selected company adopt new online technology. Which diversified their market
are and bring more opportunities for growth.
Drucker's 7 source of systematic innovation-
Innovation refers to improve and replace a product and process with the help of using
new technology or developed a creative idea which helps in growth of company (Kah and et. al.
2020). Drucker's 7 source of innovation is given by Peter F Drucker. It defines innovation as a
task of investing human and material resources with new ideas and greater wealth producing
capacity. This theory says that large organisation require to timely innovate new ideas for their
success in market. According to Peter there are seven sources of innovation which are discuss
below:
 Unexpected- According to this source of innovation it can be say that innovation
innovation can happened unexpectedly. For example, Fire is also not consider as
innovation because it was just a coincidence. In context of company, they develop

different ideas but sometimes it happens that other innovation is created from that idea.
For example- selected company wants to provide Debit card services for their customers
but they also innovate credit card facilities which increase revenue for company.
 Incongruity- This source define innovation as a need which is incongruent with supply.
For example- In context of selected firm, as a increase in standard of living of people
create a demand for more finance. For solving this incongruity between standard of living
and need of finance Virgin Money launch their credit card facility with low interest.
 Market structure- In context of selected firm, its market structure provides various
chance of innovation. For example- selected company also provides online services to
their customer which increase their market structure and bring new options for
innovation.
 Necessity- In context of selected firm, necessity of money bring more ideas for company
to innovate. Customers requirement is rapidly change and company achieve higher profit
by satisfying their requirement.
 Demographics- This source of innovation is based on lifestyle of people. In context of
selected company, with the increase in demand of people requirement of finance is also
increase which brings new opportunities for company (Katz, and Green, 2018).
 Changing perception- Taste and preferences of people give birth to innovation. Which
will provide different option to selected company for innovating new services.
 New Knowledge- Now a days with the increase in knowledge bring more opportunities
for innovation.
TASK 2
P2 Explain the rationale and market gap for entrepreneurial idea with the help of tools and
techniques.
Market gap refers to a practice of business which helps in entrepreneur to identify available
opportunities by understanding requirement of people which are still not achieved.
Rationale of the business idea- Company can generate idea after analysing preferences
and requirement of customers. In context of entrepreneur its necessary for them to first analysed
market conditions related to their idea and then implement their idea in market. They need to
analysed marketing and promotion activities, location, financial capacity, resources and so on. Its

important for an entrepreneur to analysis market for identifying market gap. Various factors of
this analysing are mention below:
Technological opportunities: According to current market situation technology play an
important role in the success of new idea in market. Advanced technology play an important role
in change the behaviour of customers towards their new products. In context of entrepreneurs
new technology helps them in reducing cost of production at the time of manufacturing
biodegradable packaging.
STP Model: STP stands for segmentation, targeting and positioning related to a particular
product and service at marketplace. In context of entrepreneurs biodegradable packaging idea
STP model is discuss below:
 Segmentation- It refers to an marketing activity which helps in selecting a market area
for launching a product or services ( Katz, and Green, 2018). Segmentation is based of
different factors such as age, income, gender, education, family and so on. In relevance of
selected idea company selected their market segment on the basis of their location and
size.
 Targeting- It refers to a group of people which are targeted by a company to provide
their products and services. Entrepreneur select their target audience after critically
analysed market situation. If company wants to achieves higher profit and entrepreneur
needs to analysed taste and preferences of their target customers.
 Positioning- It refers to a marketing tool which means to create a brand image of
company products in minds of customers for better sales of their product. For success of
entrepreneurial idea its important to create a positive brand image related to
biodegradable packaging products.
TASK 3
P3 Present data needed to support gap analysis.
Market research refers to a process of analysing, interpretation the available information
related to market and product of an company. For success of an business its important to do
market research effectively. In relevance of entrepreneur its very important to do market research
for analysing the acceptance of their product in market. Market research in relevance of
entrepreneurial idea is mention below:

Secondary research- It refers to a type of research methodology which is based on
secondary data (Turner and Gianiodis, 2018). It means that data or information which is already
exists in market. Entrepreneur can get these data with the help of newspaper, magazine, past
data, books, internet and so on. Research based on secondary data require less cost and time of
entrepreneur as compare to primary sources.
Primary research- It refers to a type of research methodology in which researcher use
fresh and first hand information for their market research (Lombardi and et. al. 2020). It helps
entrepreneur to identify needs and wants of their customers. Various sources of primary research
are personal interview, survey, questionnaire and so on. Primary data is personal collected by
researcher which increase its accuracy as compare to secondary source. Primary research related
to entrepreneurial idea is mention below:
Questionnaire
Name of person:
Age:
Sexuality/Gender:
Permanent address:
Q1 Do you know the meaning of Biodegradable packaging?
Yes
No
Q2 Will you choose biodegradable packaging?
Yes
No
Q3 Select a point which will reduce cost of Biodegradable packaging?
Adopting cost-effective raw material and machinery
Adopting a efficient process of production
Q4 Is biodegradable packaging help companies in increasing sales of product?
Yes
No
Q5 What is the period of sustainability of biodegradable packaging?
Short-term

Long-term
P4 Interpret data for providing evidence of market potential.
Q1 Do you know the meaning of Biodegradable packaging? Frequency
Yes 15
No 5
Q2 Will you choose biodegradable packaging? Frequency
Yes 17
No 3
Q3 Select a point which will reduce cost of Biodegradable
packaging?
Frequency
Adopting cost-effective raw material and machinery 12
Adopting a efficient process of production 8
Q4 Is biodegradable packaging help companies in increasing sales of
product?
Frequency
Yes 16
No 4
Q5 What is the period of sustainability of biodegradable packaging? Frequency
Short-term 14
Long-term 6
THEME 1:
Q1 Do you know the meaning of Biodegradable packaging? Frequency
a)Yes 15
b)No 5

INTERPRETATION: From above graph it is analysed that out of 20 respondents, 15
respondents say yes which means Biodegradable packaging idea is effective. While 5
respondents say no that's mean they have no knowledge about biodegradable packaging. From
this it is analysed that entrepreneur needs to aware people about the benefits of biodegradable
packaging so that his idea will be success in market.
THEME 2:
Q2 Will you choose biodegradable packaging? Frequency
Yes 17
No 3
INTREPRETATION: From above graph it can be analysed that out of 20 people 17
respondents say yes and 3 respondents say no. Which means entrepreneur biodegradable
packaging idea is successful in market. Response of people show that people are more concerned
towards their health which increase more opportunities for entrepreneur.
Yes No
0
2
4
6
8
10
12
14
16
18 17
3
Column B

THEME 3:
Q3 Select a point which will reduce cost of Biodegradable
packaging?
Frequency
Adopting cost-effective raw material and machinery 12
Adopting a efficient process of production 8
INTERPRETATION: From above graph it is analysed that out of 20 respondents, 12 people
choose cost effective raw material and machinery for reducing cost of biodegradable packaging.
While 8 people select the option of effective process of production for reducing cost of
packaging. So in context of entrepreneur it is analysed that entrepreneur needs to use cost
effective raw material and new machinery which will reduce their cost of production and
increase revenue.
THEME 4:
Q4 Is biodegradable packaging help companies in increasing sales of
product?
Frequency
a)Adopting cost-effective raw material and machinery
b)Adopting a efficient process of production
0
2
4
6
8
10
12
14
12
8
Column B