Report: Identifying Entrepreneurial Opportunities for New Ventures

This report delves into the process of identifying entrepreneurial opportunities, focusing on the creation of a new business venture, specifically a cafe named 'Meet Cafe Restaurant' in London, UK. It begins by exploring various sources for generating innovative business ideas, including online platforms and forums, and examines the influence of social, economic, and technological factors. The report then explains the concept of market gap analysis and its importance for entrepreneurial success, detailing techniques such as market segmentation and the application of Porter's Five Forces model. It also covers the industry life cycle and discusses the difference between invention and innovation, including different types of innovation. The report provides a comprehensive analysis of the market and competitive environment, and the importance of identifying and exploiting opportunities to ensure success in the business world.

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Sources for a new and innovative business idea...............................................................1
TASK 2............................................................................................................................................4
P2 Explanation on entrepreneurial idea for investigation the market gap..............................4
TASK 3............................................................................................................................................6
P3 Data to support gap analysis in the evaluation of a specific entrepreneurial idea............6
TASK 4..........................................................................................................................................10
P5. SWOT analysis to assess the entrepreneurial idea.........................................................10
P6 Evaluation on competitive and market environments to launch ideas............................11
CONCLUSIONS............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Persons who have abilities to create innovative idea in starting a new venture or growing
an existing business is known as entrepreneurs. They take many risks to bring innovation in a
firm. Identifying entrepreneurial opportunities is an important task which is necessary for every
business organisations to ensure success in market (Baggen and et. al., 2015). There are so many
tools that provides their help in identifying opportunities like TOWS matrix, PESTLE analysis
etc. These tools provide aid to entrepreneur in formulating prominent and adequate strategies so
that enterprise could get higher return and gain higher market share in lesser time period.
Variations in dynamic market is responsible for giving head start to the growth and success of
company in industry. Meet Cafe Restaurant is an enterprise which is dealing his operations in
London, UK.
TASK 1
P1 Sources for a new and innovative business idea
A person in corporate world always seeks to generate new business ideas and
opportunities in order to get more customers. In today's economic world, it takes a lot of
procedures and capital to open a new business and purchase products or services. Therefore, to
open a business or expand existing one, entrepreneurs required to learn new and effective
business-building practices. Like to open a cafe in UK marketplace, a person should discover an
impressive idea. From following sources, a person will get new and innovative business idea:-
Entrepreneur: The best source from where a person can gets business-building ideas is
entrepreneur.com. This site categorise ideas by profession and interest in a perfect form. It saves
times in exploring relevant content which perfectly match with skills of user. This website also
has abilities to give choice to users at what cost they want to start their businesses. It will help
them to determine capital needed on that.
Business Opportunities and Ideas: It is a blog available on internet that covers business
ideas and opportunities from which a person can search a categorise the same to explore.
Business Idea Forum: It is also a site which provides impressive ideas for start a
business in corporate world. It aid users to share their opinion by post, discuss and get relevant
ideas. From such sites, they can meet potential partners who also want to open same business in
same field (Davidsson, 2015)
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Spring-wise: This website includes various promising business ventures, ideas and
different concepts from where a person can explore ideas as per requirement. Users can find
extraordinary ideas for further process of generating concepts.
For opening a cafe named by Meet Cafe Restaurant, a person use entrepreneur.com
source and site of business idea forum. It helps in getting an innovative idea in this field about
how to launch, in which area profit can be maximised and what estimated capital requires (Foo,
Uy and Murnieks, 2015).
Sources of innovative opportunities:
Social factor: This factor shows actual condition of marketplace like in beverage sector,
in what manner people like to afford such services. As per concern of people's behaviour like
they like to spend their free time in cafes and restaurants so, employers of Meet Cafe need to
produce a peaceful and enjoyable environment to them.
Economical factor: Financial condition of a country is a necessary factor which needs to
analyse by every person who wants to open new outlet. If economical state of nation is good then
it will be helpful for owner of Meet Cafe to raise fund easily and vice versa.
Technological factor: As technology has developed so far, so introducing new machines
in cafe and restaurant aids in giving nutrients and healthy food or beverages.
Incongruity: This kind of factor aids a company in determining gap between estimated
and actual outcomes after implementation of a strategy in business.
Process need: This factor aids a firm in what manner they need to create innovation in
services or products so that business can be run in adequate way.
Industry & Market Structure Needs: New trends in market affects business of every
sectors. Any change in market structure, gives opportunities and threats both for companies.
Thus, to start-up a business, owners are needed to conduct a proper research which help in
determining purchasing power of people also.
Demographic: As per status of consumers, level of income, their desires and needs etc.,
entrepreneurs need to provide services in different-different range. In cafes, customers are
always looked out to take beverages in affordable price so, providing the same help them in
generating high revenues.
Change in perception, meaning and mood: As preference of people are changing at
rapid rate so, as per perception of them, it is necessary for entrepreneurs to give innovation in
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services. In context with cafes, giving a wide varieties in beverages help Meet Cafe to keep
attention and retention of customers in profitable way.
New Knowledge: For gaining attention of people, it is required by new business
developers to generate creative ideas in order to produce unique products or services.
Unexpected: Before opening a shop in competitive marketplace, it is essential for
entrepreneurs to grab opportunities through which they can attain minds of customers in a large
manner.
Type of Innovation:
In order to create innovation in business, entrepreneurs are needed to understand concept
of innovation. Some kinds of innovation present in marketplace are:- Product: It is related with product differentiation in which employers of a firm needs to
add innovation in existing services or products which are different from commodities of
competitors. Process: It is considered as changes in operational activities which assists entrepreneurs
to launch a business in different manner. Incremental vs. Big Bang Innovation: Incremental innovations includes factors which
create small changes in production and help a firm in improving quality of its products.
While Big Bang is considered as more better in creating development as it identify causes
which creates problems in quality of services.
 Schumpeter’s sources of innovation: It is kind of a business cycle which aid a firm in
giving a chance to increase investment in business.
Difference between Invention and Innovation:
Innovation Invention
This process relates to either produce new
creative products or add value in existing ones
which will help in satisfying needs of
customers. For this manner, it requires a person
to have creative and marketing skills to
generate new idea for modification.
Invention is a procedure of producing new
items or services which will never used before.
So, it requires scientific skills in a person to
create invention.
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TASK 2
P2 Explanation on entrepreneurial idea for investigation the market gap
Being an entrepreneur in a company is one the best occupation. It encourages a person to
view everything as an opportunity for creating the business idea. When users get idea, they have
to challenge it by breaking down and making more better. If fails to get desired outcomes then
throw that idea and start again till get success. For opening a cafe in marketplace where so many
competitors are already present, entrepreneur requires to make effective plans and strategies by
analysing the market gap. A gap in the market shows differences in closing price of a specific
period to opening one of next. It is mostly created between trading sessions and in share market.
To open a cafe in such marketplace where many shops are already present, entrepreneur requires
to find out such gaps. It exists in every terms and ideas of business which can be find out by
discovering:-
Trends and new technologies: Technologies are changing at a rapid rate which provides
many opportunities to organisations and persons to do business in a profitable way. Therefore, an
entrepreneurs need to discover new trends of techniques in order to fill market gap. Keeping an
eye on such innovations, a person can evaluate its impact on business easily.
Create combinations: Technologies often create a gap between market and business,
when such companies have not updated their techniques. But it is not necessary that innovations
always prove beneficial. Therefore, being an entrepreneur, a person needs to combine existing
techniques with new one to come with creative solutions. It helps in doing a business in an
appropriate way (Gielnik and et. al., 2015).
Hidden opportunities in industries: Searching the gaps helps in gathering information,
data and knowledges about state of a company. Knowing norms, conditions and operations of an
industry, an entrepreneur can spot what missing and how it can be improved. It shows important
characteristics of successful entrepreneurs like curiosity and creativity.
These things assist the persons to search market gap first in order to translate the given
opportunities in business idea. According to Hatak And et. al.,( 2015), “ A journey of thousand
miles is always begin with a single step”. Therefore, in order to achieve success in business,
entrepreneurs require to analyse market trends, technologies to acquire and strategies of
competitors. So that they can get desired success easily.
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Market Segmentation: This technique helps a firm in understanding each and every demand or
desires of targeted customers by dividing into small fragmented area. It aids them in providing
services as per need of particular segment in proper manner. Thus, in context with opening a cafe
named by Meet Cafe, market segmentation can be done in following manner:- Behavioural Segmentation: In this process, customers can be divided as per behaviour of
people. In this manner, cafes are needed to provide services as per people who belong to
business and educational area. As they used to come on daily business as compared to
common people. Demographically Segmentation: Under this section, market segmentation is based on
preference of people, their lifestyle as well as purchasing power. So, it requires to
management of a cafe to provide a wide range of products which are available on
different price rates.
 Geographic Segmentation: This process of segmentation is based upon geographical
condition of people. In this era, entrepreneurs who wants to open outlets in cafe sector,
can launch business in urban area. This would help in gaining a large customer base as
compared to rural area.
Tangible & Intangible features and benefits of a product or service
Tangible Intangible
This concept is related with such features of
company that are visible like equipments,
machineries and accommodation which attract
customers to come and enjoy services of Meet
Cafe.
It includes invisible features of a cafe like
strategies, marketing techniques, goodwill,
patents, trademark and more.
Porter five force model: Rivalry:Cafes and small restaurant are seen within a 5-mile radius in a street which
increases number of competitors for a firm. Threat of substitutes: It creates a great impact on firms which deals in cafe and
restaurants. Products like tea, coffee, soda and more are easy to prepare and readily
available so, threats of substitutes is much high.
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 Buyer Power: Since many competitors are present in cafe sector, so power of buyers is
high. As they have many options to get services as per status and income level. Supplier Power: In cafe segment, there is no need much to depend on single supplier
because ingredients use in making coffee, muffins and more are standardised in terms of
purchase. Barriers to Entry: As in cafe market area, there is not much governmental restrictions so,
it is easy for entrepreneurs to start-up their business in this sector easily.
Industry Life-Cycle:
(Source: Industry Life-Cycle Phase,2018)
Life cycle of industries shows following phases:-
 Pioneering phase.
 Accelerate Growth Phase.
 Mature Growth Phase.
 Industry Maturity Phase.
 Decline Phase
TASK 3
P3 Data to support gap analysis in the evaluation of a specific entrepreneurial idea
Gap analysis is usually done when a person seeks to start a new business in the
competitive marketplace. But in existing business, users can applied it to compare actual
performance with potentials one. At organisational level, these analysis aid to achieve strategic
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Illustration 1: Industry Life-Cycle

goals which help in identifying future and current state. In present context, where an
entrepreneur wants to open a cafe-shop in London, he needs to analyse following products:-
Competitors: According to statistical research, there are around more than 5,000 coffee
shop brands and near about 5,500 cafes across in UK. Therefore, to open a new store at such
places, is really a big challenge. But in world, proportional ratio of coffee lovers is much high as
estimated. Entrepreneurs need to build effective price and marketing strategies as well as develop
more new ideas for the same.
Quality: It always overrules on companies. To increase customers and get their retention,
existing firms or new ones try to provide best quality of products and services. People are now
becoming much aware of factors like from where coffee is sources, type of varieties and how it is
roasted and served. They are like to have best quality of coffee because caffeine mix products
help in reducing obesity problems as well as increasing stamina. They are also seeking out to
serve brands like barista (Hmieleski, Carr and Baron, 2015).
Economical conditions: Entrepreneur creates businesses which gives job opportunities to
unemployed workers. This things helps in strengthening market competition and indirectly
increase productivity. Launching a new firm increases economic growth of a region also.
Therefore, a person need to analyse economical conditions of a particular region and people
living around there. If area of population is covered with high standard of living persons then
they would like to visit new cafe and spend their much time over there.
Technologies: Economical growth of a business is highly dependent on technologies
used in the firm. The ability to turn opportunities into new ideas is much affected by techniques.
Launching a cafe in competitive work can easily driven by new techniques and creative
applications of it (Karimi and et. al., 2016).
After analysing factors related to start a new business, gap analysis can be conducted by
establishing specific target objectives by examining company's mission statement, goals and
objectives. In such way, mission statement of Meet Cafe's restaurant is,“ Provide the best quality
of coffee in order to inspire and raise human spirit”. Its main objectives is to gain competition
from one of the leading cafe of UK Starbucks. For this, this cafe believes to create a culture of
warmth and happy where every persons is welcome with harmoniousness. Therefore, using gap
analysis on this cafe, following data has been measured using questionnaire format on some
respondents.
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Basis Company Competitors
Competition in marketplace To avail competition, this new
venture i.e. Meet Cafe
Restaurant, provide its coffee
products with savoury snacks
on affordable prices as
compared to its competitors. It
target ordinary persons more.
Market is full of competitors,
in cafe sector, Starbucks, Costa
Coffee etc. are giving much
competition but their products
are available on high rates. For
ordinary person, to afford such
prices are not easy.
New entrants Population of UK prefers most
coffee products and always
seeks to get best at affordable
price. For such desires, daily
new venture are opening in a
same area in order to gain
customer retention. Therefore,
this venture offers its products
on internet (Suddaby, Bruton
and Si, 2015).
Power of supplier Cost for suppliers for serving
readily available products are
$2000 which is less than other
companies.
Competitor firm's supply
agents charges more
commission that is $2500. It
consist more money and
negatively affects profits also.
Power of customers Most weightage is given on
customers because these are
persons around them all
management activities revolve
so that all consumers should be
satisfied with enterprise's
offerings in order to retain
More preference of rivals firm
is given on profit point and
thus, consumers are not
satisfied with company's
served products.
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clients for longer period of
time.
Threat of substitutes Enterprise is charging $700 as
their subscription fees which is
lower than other ventures.
Subscription fees charged by
business competitors are $1000
so clients do not like these
firms to make purchases.
P4 Interpretation on Data in order to provide evidence of market potential
Data gathered in above part is collected by using primary and secondary sources. Primary
method gives original and reliable data which has been concluded by taking surveys and
interviews of customers and persons associated with venture. Whereas secondary source gathers
existing data by taking information on the internet and existing market research result. Below
are some interpretation of data (Karimi and et. al., 2016).
 More competition is noticed in the selected sector so enterprise need to take acre of their
consumers necessities. This activity is essential for keeping customers with association
for longer period so that clients does not get distracted for other brands and to hit this
purpose venture is providing products at $8000 per item which is less than other firm's
charges.
 Meet Cafe is serving his offerings with several discounts and rate of these discounts will
get high if old customer will come together with one or more new clients. This action is
helpful in growth of firm.
 Meet Cafe keeps strongger bond with suppliers for getting raw materials on regular basis
and their suppliers charge $2000 for raw-goods (Kirzner, 2015).
 Association focuses on consumers because all activities are done to serve customers in
order to get good profits and to hit this purpose, ventures are manufacturing high quality
products and services so that venture could get higher satisfaction from clients towards
company's served items and facilities.
 There is a threat resent in market which is that a consumer can switch to other firms if
he/she gets feedback from other clients who visits other cafe and to get rid out of these
type of conditions, venture can minimise their subscription fees.
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