Entrepreneurial Opportunities in Finance: A Comprehensive Report

This report, focusing on the entrepreneurial idea of Vargo Finance, provides a comprehensive analysis of identifying and capitalizing on market opportunities within the financial sector, specifically targeting home loans. The report delves into various sources of entrepreneurial ideas, including Drucker's model, and examines the rationale behind offering low-interest home loans to individuals with lower incomes, highlighting the gap in the market. It employs tools such as Porter's Five Forces and gap analysis to evaluate the competitive landscape and assess the viability of the business venture. The report also presents data to support the gap analysis, elaborates on market potential, and utilizes SWOT analysis to provide an objective assessment of the entrepreneurial idea. It explores the competitive and market environments, offering insights into how Vargo Finance can navigate the industry and achieve success, considering factors such as inflation and customer demand. The report concludes with a discussion of the key findings and recommendations for the venture's strategic development.

Identifying
Entrepreneurial
Opportunities

Table of Contents
P3 and p4 ppt...................................................................................................................................1
INTRODUCTION...........................................................................................................................1
LO 1) ...............................................................................................................................................1
P1: Identify and examine various sources of entrepreneurial ideas and innovation .................1
LO 2.................................................................................................................................................3
P2: Discuss the rationale and market gap for particular entrepreneurial idea using relevant tool
and techniques ............................................................................................................................3
LO 3.................................................................................................................................................5
P3: Present data required to support gap analysis in evaluation of particular entrepreneurial
idea..............................................................................................................................................5
P4: Elaborate data appropriately to provide evidence of market potential.................................7
LO 4...............................................................................................................................................12
P5: Use SWOT analysis framework to support objective assessment of entrepreneurial idea.
...................................................................................................................................................12
P6: Competitive and market environments in which idea will be launched to assess potential
viability.....................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Entrepreneur is a person who come up with creative thinking and idea in the market.
They contribute more in the growth and development of the national economy (Beynon and
Pickernell, 2016). New business introduce by entrepreneurs create large job opportunities for the
society people which reduces unemployment to a large extent. This report is based on the new
entrepreneurial idea which is Vagro Finance. It is providing home loan at low interest rate to
those people whose net income is low and are unable to purchase their home. This report
includes, various sources of entrepreneurial idea and innovation. Swot analysis is explained
deeply in order to discover the threats prevailing in the global market. Pestle analysis is
examined in order to frame tactics to overcome the challenges occurred by them. Porter's five
force model is determined to understand the degree of power each stage stage is holding in the
market.
LO 1)
P1: Identify and examine various sources of entrepreneurial ideas and innovation
New venture is launched in the global market by getting inspired from the existing trend
which is abbreviated on the basis of present market scenario. There is no specific time and place
to come up with innovative idea by Entrepreneur. New start- up or venture directly or indirectly
raises the economy of the nation. They contribute a large share in raising the living stand of the
people. Vargo Finance is undertaken to complete the report. It deals in providing financial
services to the customers across the globe. Drucker's model is used for the concept of
introducing this business venture. This model is illustrated as under:
The Unexpected: In the competitive world nothing is stable things changes frequently
which leads a business towards success or failure (Devece and Rueda-Armengot, 2016).
Management scan the loop of other and turn them into their business opportunity. Vargo Finance
is able to gain competitive advantages against rivalry from unexpected situation. This is because
they are extremely powerful to inspire leaders and innovate to get varied perspective to a specific
situation. It indirectly aid organization to take benefits of opportunities prevailing in the
international market which is occurring with unexpected technology changes.

Incongruities: Business idea is successful or not can be determined by types of goods
and services offered by the firm. If the goods and services are satisfying customers expectation
level it flourish rapidly whereas, if lack behind in meeting emerging needs of the customers is
existed from the market. It is essential to scan the market before coming up with creative product
and services so that set goals and objectives can be attained easily. By this firm is able to target
their customers easily in short timer duration. Incongruities can be identified by analysing the
customers feedbacks and complaints. By gathering information from customers regarding their
demand and preferences fore financial services will be beneficial for Vargo Finance. This is
because by this management is able to come up more attractive financial schemes in less
investment (Foo and Murnieks, 2015).
Process Needs: Drucker's model highlight that this sources of innovation should be task
oriented. In order to examine the positive and negative side of the business it is very essential to
study opportunity and innovation closely. Loop holes discovered earlier can be modified easily
and can lead Vargo Finance towards success. On the other hand identified weak area motivate
organisation and its employees to come up with more creative solution.
Industry and market structure change: In the global market business financial stable
can survive for longer time duration but technology up-gradation can knock down an industry
overnight. In the era of modern world technology is changing rapidly so it is important to keep
eye on this changes in order to cope with them. Vargo Finance is benefited by the changing
technology because they are able to connect their customers and are able to understand issues
regarding financial services they face on daily basis.
Demographic: Business is influenced greatly when changes take place in demographic.
It brings fluctuation in customers demand regarding financial services. However, demographic
change in employment, education, age and many more direct impact the business and give birth
to new business opportunity in the open market place. It is beneficial for Vargo Finance because
through this firm introduce their new financial scheme to their targeted customers who are
seeking more monetary benefits in less investments (Hajizadeh and Zali, 2016.).
Change in perception: With the phase of time the demand and perception of customers
for financial services changes accordingly. In today's world because of raising social networking
site trend among people changes are occurring rapidly in short time duration. It is directly
helping Vargo Finance to introduce their attractive financial scheme that is particularly designed

by keeping in mind the demand and preferences of the customers. By this large customer base
can be raised for the services as compare to rivalry prevailing in the market place.
New knowledge: Innovation or creativity can be introduced in the goods and services
when there is sufficient knowledge. Deep information helps in come up with innovative idea in
effective manner. It is important to adopt changes so as to accomplish client expectation level.
By this more loyal customers can be build towards the service. Modern technology is assisting
Vargo Finance to create tough bench mark for competitors as well as are successful to gain
advantages through new business opportunities.
The sources which are illustrated above directly aid the organization to discover new
business opportunities. Additionally, effective financial services in less investment can be
offered to the customers by critically examining demand and preferences for the financial
services in the market.
LO 2
P2: Discuss the rationale and market gap for particular entrepreneurial idea using relevant tool
and techniques
Entrepreneurial Idea: As a budding entrepreneur given the scenario coming up with
innovative idea of providing home loan with less interest rate. This is because in the raising
inflation people are unable to full-fill their financial requirements on time. This entrepreneurial
idea will help people to take home easily with less interest rate (Hansen and Shrader, 2016). By
this people with less disposable income will be capable enough to take their dream home with
Vargo finance. The facility which is provided by organization will help to raise the living
standard of the people in a country. As will as particular nation will be able to reduce the line of
homeless to a large extent. As home loan is available in low interest rate people can easily
purchase their dream home in the open market place. This facility has raised the number of
customer base for the service which is a positive mark for the business. In the ear of inflation
where each and every things are getting expensive day by day getting home loan in less interest
rate is attracting large number of customers towards it.
USP's: A unique selling proposition is refers to as concepts of marketing that define
campaigns which make varied proposition for their customers. By this they can be pushed top
purchase it from the market. Vagro France USP's is their home loan service which is provide to

the customers at low interest rate. It is benefiting to those people whose disposable income is low
and are incapable to buy the house (Jarvis, 2016).
Gap analysis
Porter's Five force model:
Illustration 1: Porter's Five Force Model
Source: Porter's Five Force Model, 2016
Bargaining power of supplier: In this financial industry this factor is high because
everyone is trying to serve more benefits in low investment. As an entrepreneur innovative
schemes related to other financial services like, car insurance, gold loan etc. should be
introduced. In order to survive in the competitive market.
Bargaining power of buyer: External factor are contributing moderate influence on the
business activities so the degree of power is moderate. In the market place entrepreneur is
analysing all other financial institution home loan rate and accordingly will frame their own rate.
In order to attract large of customers who are willing to purchase home.
Threat of new entrants: Complete innovation is require to enter into the industry of
finance. So the degree of threat is low in this case. Vagro Finance is able to capture market ratio
by facilitating home loan to those people whose disposable income is low.

Threat of substitute: There are numerous public and private finical institution who are
serving home loan. Slight changes in the prices of the interest rate customers can easily switch to
other firm. Entrepreneur by keeping in mind the raising inflation rate accordingly strategies
should be prepared to bind the customers with their services over the years (Kohlbacher and
Levsen, 2015).
Rivalry among existing firm: Competition among the present rivalry is very intense.
The degree of power is high because everyone is serving best financial services to their
customers. Strong Tactics are framed to meet their emerging needs on time. Hence, as
entrepreneur should be cautious and keep eye on competitors strategy and accordingly own in
order to accomplish the set standards on time.
LO 3
P3: Present data required to support gap analysis in evaluation of particular entrepreneurial idea.
Gap analysis is adopted by business associates in order to examine the differences and
gap between present and desire condition of the business of the organization. Vargo Finance is
implementing this in their working premises in order to monitor the gap among current situation
and future position.
Basis Current position Desired position Action plan
Goods and services Organisation is
providing various
types of financial
services such as, home
loan, car loan,
mortgage facility and
many more.
The desire position of
Vagro Finance is to
provide home loan to
every section of the
people in low rate
interest rate in the ears
of raising inflation
rate.
To render best home
loan services to those
who has less
disposable income
firm is conducting
research and
development activities
in order to come with
alternate ways to
compete with raising
inflation rate (Krueger,
2017).
Cost Home loan is available The interest rate of the Home loan interest

to the customers at low
interest rate so that
they can easily
purchase their home
despite of having high
inflation rate in the
nation.
home loan is
formulated by
examining all the other
financial institution
home loan interest
rate. so that best home
loan services can
offered to the
customers in short
time duration.
rate will be fluctuating
demanding upon the
customers demand as
well as on their
disposable income.
Innovation Vagro business idea of
providing home loan
at low interest rate to
the customers if the
disposable income is
too low. By this living
standard of the society
people will be
enhanced in short time
duration (Mandel and
Noyes, 2016).
The idea of proving
home loan in less
interest rate is
providing huge growth
opportunity to the
business in the global
market. This is
because in the era of
raising inflation this
type of service is a
sign of relief for the
customers in the
global market.
Management is
studying the
complaints of the
targeted customers
regarding the home
loan service and are
identifying best way to
resolve their quarries
as soon as possible.
Firm is using customer
centric approach in
order to attain better
results.
Objectives Strategies
 The objective of Vagro finance is to
ensure that home loan is given to the
customers at low interest rate. By this
number of customer can be raised for
 Serving home loan to section section of
the people despite of having low
disposable income at low interest rate.
 By introducing other schemes related to

the services which is a positive mark
for the business in the intense
competitive world.
home loan in the market so that
customers can be benefited by them in
long run.
 By adopting low interest rate low
policy for home loan and coming up
with other scheme in car insurance,
mortgage facility and so on. In order to
provide more benefits in less
investment.
P4: Elaborate data appropriately to provide evidence of market potential.
In order to make the business successful in the global market researcher can accumulate
information from two diffident sources which are, primary data collection method and secondary
data collection method. Questionnaire, survey, interview and many more are involved in primary
data collection method. The data collected from this sources are authentic and reliable because
the collected data and information are fresh and are not used by any other researcher in their
report. It provide in-depth knowledge regarding the topic which helps to provide quality data
(Mueller and Shepherd, 2016). This method is time consuming as compare to secondary data
collection method.
Secondary data collection method is is cost effective in nature because data are gathered
from books, articles, journals, newspaper, magazines and so on. Here, the chances of duplication
raises because earlier many other investigator has used this data and information in their
assignment. Accurate findings is not gained by the data assembled from secondary sources.
Additionally, on the basis of primary data secondary data is constructed and is further taken as
base for research. From the two data collection method Vargo Finance is selected primary data
collection method. 50 respondents are chosen so as to assemble information on financial services
through questionnaire. The set questions are stated as under:
QUESTIONNAIRE
Name of the candidate:
Age group:

Permanent address:
Contact Number:
Q1) Are you aware about the term financial services?
a) Yes
b) No
Q2) Which type of financial services are given by Vargo Finance?
a) Credit cards
b) Pension
Q3) Should there be any kind of improvements in financial services given by Vargo
Finance?
a) I think
b) I don't think so
Q4) Do you think existing financial services offered by Vargo Finance will help them to
compete with rivalry prevailing in the market?
A) May be
b) May not be
Q5) Who are the competitors of Vargo Finance?
a) Metro Bank
b) TSB Bank
Theme 1: Aware about the term financial services?
Q1) Are you aware about the term financial services? Frequency
a) Yes 30
b) No 20

a) Yes b) No
0
5
10
15
20
25
30 30
20
Frequency
Interpretation: The above mentioned diagram stated that 30 respondents are aware
about the term financial services out of 50 communicator who are selected for the questionnaire.
However, rest 20 people are not having knowledge about the terminology of financial services in
the open market place (Wood and McKelvie, 2015).
Theme 2: Type of financial services are given by Vargo Finance?
Q2) Which type of financial services are given by Vargo Finance? Frequency
a) Credit cards 25
b) Pension 25

a) Credit cards b) Pension
0
5
10
15
20
25 25 25
Frequency
Interpretation: From the statistical data it provide information that from the sample size
of 50 respondents 25 people are saying the Vargo Finance is providing credit card facility as
financial services to their targeted customers. But the remaining 25 communicator oppose it and
says pension is the financial services given by Vargo Finance.
Theme 3: Improvements in financial services given by Vargo Finance?
Q3) Should there be any kind of improvements in financial services
given by Vargo Finance?
Frequency
a) I think 20
b) I don't think so 30

a) I think b) I don't think so
0
5
10
15
20
25
30
20
30
Frequency
Interpretation: From the figure illustrated above it can be summarized that 20 people
are sharing their opinion that I think there should be any kind of improvements in financial
services given by Vargo Finance in order to be in the leading position among its competitors in
the intense competitive world. From the sample size of 50 respondents only 30 person are
stating that there is no necessity for improvements in financial services given by Vargo Finance
to its potential customers over the years.
Theme 4: Existing financial services offered by Vargo Finance will help them to compete
with rivalry prevailing in the market?
Q4) Do you think existing financial services offered by Vargo Finance
will help them to compete with rivalry prevailing in the market?
Frequency
A) May be 22
b) May not be 28

A) May be b) may not be
0
5
10
15
20
25
30
22
28
Frequency
Interpretation: From the above diagram it is concluded that 22 respondents from the 50
communicator who are taken as sample size are in favour that the existing financial services
offered by Vargo Finance is capable enough to compete with rivalry prevailing in the market. On
the other hand left out 28 person are against it any are saying that in order to remain competitive
for longer time duration it is important to make changes in the existing financial services offered
by Vargo Finance.
Theme 5: competitors of Vargo Finance?
Q5) Who are the competitors of Vargo Finance? Frequency
a) Metro Bank 18
b) TSB Bank 32

a) Metro Bank b) TSB Bank
0
5
10
15
20
25
30
35
18
32
Frequency
Interpretation: From the sample size of 50 communicator only 18 respondents are in
favour because the image is highlighting that Metro Bank is the existing competitor in the open
market place. While, remaining 32 are thinking that TSB bank is the biggest threat to Vargo
Finance because this firm has huge loyal customers in the market.
LO 4
P5: Use SWOT analysis framework to support objective assessment of entrepreneurial idea.
SWOT analysis of Vagro Finance is explained as under:
Strengths Weaknesses
 Firm is providing home loan to those
people whose disposable income is
low. By this customer can easily
purchase their home at low interest rate
in short time period (Mueller and
 As it is new business in the competitive
market place it is difficult to capture
huge marker ratio and customer base.
This is because prices fluctuate
frequently and people fear to invest in

Shepherd, 2016).
 The interest charge is charged after
three month of mortgaging loan to the
customers. In the mean while client is
capable enough can repay the amount
in any form like, quarterly etc. But after
three month the interest rate will be
charged.
new firm.
Opportunity Threats
 The growth opportunity is wider
because home loan is provided to those
people whose disposable income is
low.
 Additionally, loan is available easily in
short time duration with less paper
work.
 Existing business and raising recession
is the biggest threat to the organization.
 Low customer loyalty
P6: Competitive and market environments in which idea will be launched to assess potential
viability.
For introducing a new business organisation it is essential for business to examine
current situations of market which will help them to have detailed overview about the existing
market and techniques (Nieto and González-Álvarez, 2016). For the Vargo Financing, analysis
of external environment can be one by using PESTLE analysis that are as follows:
PESTLE analysis:
It is a strategic framework that helps new ventures in formulating appropriate strategies
and effective planning. As it defined as a method of assessing environment and its impacts on the
performance of organisation. It includes:

Political factor: A businessman operates their entrepreneurial idea in which manner that
possess all the legal compliances and regulations that are imposed by the UK's government that
are based on the taxation policy, trade agreement, employment rate and so forth. The political
factors will be considered as a supportive aspect for financial services or businesses to get high
growth and success by adhering legal laws. While Vargo Financing will effect due to the
political turmoil in the country that are considered as an unsupportive factor for new businesses
related to facilitating home loan financing at a cheaper rate of interest.
Economic factor: The business operation of Vargo Financing should be done in the
economic consideration manner of United Kingdom. All entrepreneurs can grab opportunities of
UK's marketplace by designing effective pricing strategies in order to considers all the aspects of
economic factors such as savings, interest, inflation rate, disposable income etc. These factors
are in favour of Vargo Financing business because the economic level of the country is very
strong that largely supports new businesses or start-ups that are unique in itself.
Social factors: All businessman needs to be focus on social aspects of a country in which
the preference of society is used which are prevailing in the home loan financial services. This
will help in ensure that entrepreneurial idea of Vargo financing is more in demand and satisfy the
customers trends. Whereas, the social factor is against the new business venture because of
customers preference as many of other companies also that facilitates home loan facility
(Nikraftar and Hosseini, 2016).
Technological factor: In the modern world, technologies are rapidly enhanced or
advanced which needs to be considered by an entrepreneur while launching their new busines
that named Vargo financing in UK. It is in favour of the company because their offerings or
services are provided at low interest rate and easily availability instead of charging high rate of
interest on home loan facilities that provides benefits to the company over their competitors.
Legal factor: It is associated with the operating businesses in a legal manner that may
influence on the operations and customer's behaviour. As it can be viewed that legal
considerations helps businessman because it based on economic pricing system that attracts large
number of customers and fulfils the needs of all class of people and provides adequate funds.
Also business peartrees legally by having a license of operating financial business.
Environmental factors: These effect the volume of deposits and loans or liquidity so that
there is the chances of occurring financial risks due to the environmental factors especially

geographical location. As it includes weather condition, climate changes, geographical location
etc. (Suddaby Bruton and Si 2015)
CONCLUSION
From the above report it can be summarized that new venture plays a vital role in the
raising the national economy. New venture come into existence either from the loop holes of
other or changes in the current trend. Drucker's model is used by the organization in order to
understand the two most important thing for business is innovation and marketing. By this
competitive advantages can be gained easily in the open market place. SWOT analysis is
examined in to work on the loop holes for better results. Pestle analysis is measured deeply in
order to overcome the challenges while expanding the business in other nation.

REFERENCES
Books and Journals
Beynon, M. J., Jones, P. and Pickernell, D., 2016. Country-based comparison analysis using
fsQCA investigating entrepreneurial attitudes and activity. Journal of Business
Research. 69(4). pp.1271-1276.
Devece, C., Peris-Ortiz, M. and Rueda-Armengot, C., 2016. Entrepreneurship during economic
crisis: Success factors and paths to failure. Journal of Business Research. 69(11).
pp.5366-5370.
Foo, M. D., Uy, M. A. and Murnieks, C., 2015. Beyond affective valence: Untangling valence
and activation influences on opportunity identification. Entrepreneurship theory and
practice. 39(2). pp.407-431.
Hajizadeh, A. and Zali, M., 2016. Prior knowledge, cognitive characteristics and opportunity
recognition. International Journal of Entrepreneurial Behavior & Research.
Hansen, D. J., Monllor, J. and Shrader, R.C., 2016. Identifying the elements of entrepreneurial
opportunity constructs: Recognizing what scholars are really examining. The
International Journal of Entrepreneurship and Innovation. 17(4). pp.240-255.
Jarvis, L. C., 2016. Identification, intentions and entrepreneurial opportunities: an integrative
process model. international Journal of entrepreneurial Behavior & Research.
Kohlbacher, F., Herstatt, C. and Levsen, N., 2015. Golden opportunities for silver innovation:
how demographic changes give rise to entrepreneurial opportunities to meet the needs of
older people. Technovation. 39. pp.73-82.
Krueger, N. F., 2017. Entrepreneurial intentions are dead: Long live entrepreneurial intentions.
In Revisiting the entrepreneurial mind (pp. 13-34). Springer, Cham.
Mandel, R. and Noyes, E., 2016. Survey of experiential entrepreneurship education offerings
among top undergraduate entrepreneurship programs. Education+ training.
Mueller, B. A. and Shepherd, D. A., 2016. Making the most of failure experiences: Exploring the
relationship between business failure and the identification of business
opportunities. Entrepreneurship Theory and Practice. 40(3). pp.457-487.
Mueller, B.A. and Shepherd, D.A., 2016. Making the most of failure experiences: Exploring the
relationship between business failure and the identification of business
opportunities. Entrepreneurship Theory and Practice, 40(3), pp.457-487.
Nieto, M. and González-Álvarez, N., 2016. Social capital effects on the discovery and
exploitation of entrepreneurial opportunities. International Entrepreneurship and
Management Journal, 12(2), pp.507-530.
Nikraftar, T. and Hosseini, E., 2016. Factors affecting entrepreneurial opportunities recognition
in tourism small and medium sized enterprises. Tourism Review.
Suddaby, R., Bruton, G. D. and Si, S. X., 2015. Entrepreneurship through a qualitative lens:
Insights on the construction and/or discovery of entrepreneurial opportunity. Journal of
Business venturing. 30(1). pp.1-10.
Vinogradov, E. and Jørgensen, E. J . B., 2017. Differences in international opportunity
identification between native and immigrant entrepreneurs. Journal of International
Entrepreneurship. 15(2). pp.207-228.
Wood, M. S. and McKelvie, A., 2015. Opportunity evaluation as future focused cognition:
Identifying conceptual themes and empirical trends. International Journal of
Management Reviews. 17(2). pp.256-277.

Online:
Porter's Five Force Model model. 2016. [Online]. Available through: <https://research-
methodology.net/bmw-porters-five-forces-analysis///>.