Report on Identifying and Evaluating Entrepreneurial Opportunities

This report provides a comprehensive analysis of entrepreneurial opportunities, beginning with an introduction to the role of entrepreneurs and the identification of innovative ideas. Task 1 explores various sources of entrepreneurial ideas and innovation, including the unexpected, incongruity, process needs, and market changes. Task 2 delves into explaining the rationale behind specific entrepreneurial ideas and identifying market gaps, emphasizing the importance of understanding customer needs and market segmentation. The report further examines tangible and intangible product benefits and the impact of the industry environment on new entrants. Task 3 focuses on data collection methods (primary and secondary) for gap analysis, the development of a business plan, and the application of Porter's Five Forces model for competitive analysis. The report concludes by emphasizing the importance of strategic planning and data-driven decision-making in capitalizing on entrepreneurial opportunities.

Identifying Entrepreneurial Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determining and evaluating the different sources of entrepreneurial idea and innovation. .1
M1 Evaluation of Drucker's 7 sources of systematic innovation...........................................2
TASK 2............................................................................................................................................3
P2 Explaining the rationale and the market gap for specific entrepreneurial ideas ..............3
M2 Providing justification of the way specific entrepreneurial idea fills a market gap using
several techniques for competitive analysis...........................................................................4
TASK 3............................................................................................................................................5
P 3 Presenting the data needed to support gap analysis in evaluation of specific
entrepreneurial idea................................................................................................................5
P4 Interpreting data to provide the evidence of market potential..........................................8
P5 Applying SWOT framework to gather evidence for supporting an objective assessment of
specific entrepreneurial idea ................................................................................................9
P6 Evaluating the competitive and market environment in which ideas will be launched . 10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
An entrepreneur is a person who is responsible for managing as well as controlling the
business activities. It is the quality of business perform that they have the high risk bearing
capacity and innovative skills who allows them to generate new ideas for increasing profitability
and sales. Function of entrepreneur is to explore as well as capture various business
opportunities. Entrepreneurial opportunities is defined as the situation which new products,
services, policies , procedures can be launched and sold at the higher price to customers.
Business owners have the knowledge about the application of strategies in order to gain high
return or additional field. Entrepreneurs are also aware about the various barriers which might
occur in managing business in successful manner. Characteristics of an entrepreneur is that they
are more interested in finding new ideas to bring change at workplace and expand business
operation.
The purpose of the project is to identify the several sources of entrepreneurial ideas and
innovation. It also emphasizes on developing the understanding about different types of
innovation.
TASK 1
P1 Determining and evaluating the different sources of entrepreneurial idea and innovation
The business ideas can be related to development of new products or services, invention
or solution to some specific problem. Entrepreneurial opportunities can provide entrepreneur an
opportunity to bring drastic and positive change in business and improve method of working.
These opportunities can be achieved by individual if he has desire to become effective
entrepreneur.
There are several sources from where the innovative ideas can be generated by
entrepreneur these are:
The unexpected-The market place is the number one area to look for opportunities,It is required
by marketing manager in an organisation to conduct research at regular interval of time. As this
strategy will help them in generating of new ideas for product development.
The Incongruity-This is a key to developing wildly successful businesses but it’s tricky. F
Procedure need-Process need involves identifying your company’s process weak spots and
correcting or redesigning them. It is considered to be as a major source of innovation.
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Changer in market or industry structure-When a antecedently organized industry becomes
open there is historical priority for companies that enter early to be very flourishing. There are
continuous fluctuations in markets and amendments in regulation .It is required by nh
organisation to keep itself update about the such changes.
Demographics- It includes changes in income levels ,populations, age etc. Integrating
demographic information with segmentation and targeting is a powerful method of accurately
meeting a target market’s .
Changes in Perception, Meaning, and Mood- over time people and their needs are changing.
The way they view life changes, where they take their meaning from, and the way they feel
about things also is modified over time and smart companies must pay attention to this in order
to capitalize.
(Zahr and et.al, 2014)
Types of Innovation
Process innovation-This sort of innovation have focus on the innovation of processes by which
product is being created It involves exploitation of innovation method for making changes in
method and techniques utilise for producing good
Position innovation-This form of innovation procedure assist business entity in repositioning
their existing products. It also provides to an organisation a chance to re launch its product in the
market.
Product innovation-This type of innovation is utilized by such company that desires to improve
and modify their existing products.
M1 Evaluation of Drucker's 7 sources of systematic innovation
According to the model proposed by the Ducker's , systematic innovation can be defined
as monitoring seven sources for innovative opportunity., the fist four sources of innovation are
presented within an organisation (Stuetzer, et.al, 2017) The seven sources of innovations are:
Unexpected- here term unexpected is related to uncertain risk or situation.
Incongruity-This is considered to be as gap deviation between actual and real fact.
Innovation based on need of procedures
change in structure of industry or market is another main internal sources of entrepreneurial idea
and innovation.
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External sources of innovations are:Demographics,Changes in customer perception etc.
TASK 2
P2 Explaining the rationale and the market gap for specific entrepreneurial ideas
Identifying and developing the understanding about the need of the customers is
considered to be as an important activity which helps business entity in increasing suitability,
profitability and sales. It is very much important for entrepreneur to recognise the needs as well
as demands of the client in terms of running business successfully in highly competitive
business environment. Identifying the need of client assist management team in recognising the
target, in formulation of plans related to development of new product etc. It also supports
manager in making selecting the target for selling the goods or services. By recognising the neds
of the market, marketing team in an organisation can easily group its customer in small market
segmentation. The market segmentation can be done on the basis of the following factors these
are:
Behaviour segmentation-This divisional strategy is based on buying behaviour of customers
and analysis of decision-making process by consumer in the market.
Demographic market segment-This of segmentation is done by considering the family size,
age, gender etc.
Psycho graphic market segment-This sort of market segmentation is done on the basis of
customer interest and considering their life style.
Geographic segmentation: This kind of market segmentation is done according to the
geographical place (Hatten, 2015)
Features as well as benefits of tangible as well as intangible product or services
There are two types of products these are tangible and intangible. Both types of goods
have high potential to satisfied the needs of the customers. Tangible products are those goods
which can be feel, smell and touched. Intangible goods are those which can not be seen. But
intangible goods can be feel.
Advantages or benefits of tangible items
An organisation which have high value in tangible assets can always be liquidated and
turned into cash. In banking industry or other sectors which involves high risk, tangible assets
are used by commercial enterprise for reassuring investors. By selling the tangible assets firm
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can fulfil the requirement of financial resources and an organisation can easily deal with difficult
situation.
Benefits of intangible Assets
These types of business assets an enterprise in creating their own identity,
Analysing the way industry environment impact success of new entrant
The ease of entry of a new company in an industry is mainly based on two important
factors these are reaction of exciting companies and barriers to market entry. Industrial analysis
is important as, it helps an organisation in identifying their position in the market. It also assists
business entity in developing the understanding about the market situation and getting
information about the competitors. Industrial analysis assist an enterprise in gaining the
competitive advantage in the market. This activity also helps manager in developing the strategic
plan. Industry analysis allows small business owners to address the threats as well as
opportunities which can have direct or significant impact on business. It enables manager to
concentrate on allocating or arranging resources and also on developing unique capabilities that
could lead to a competitive advantage (Kirzner, 2015)
M2 Providing justification of the way specific entrepreneurial idea fills a market gap using
several techniques for competitive analysis
Porters five forces model is considered to be as an effective tool which can be used for analysing
the likely success of new company in an industry. This technique also helps business owner in
analysing the effectiveness of an industry in which firm, is operating.
According to this model there are mainly five forces which can have great effect on the business
of new company these are:
Ease of entry- This factor include the methods of entry which can be adopted by new company
for entering into market. It also includes the information about the barriers which might occur
when entering into a particular sector. The ease of entry into an industry is essential because it
determines the probability that a new firm will face competitors. New organisation before
entertaining into an industry required to increase competitive strength in order to sustain in
highly competitive environment.
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Power of suppliers-The bargaining buyer of suppliers is based on the demand of the goods and
availability of other sources of obtaining raw material. In context of small companies bargaining
power of suppliers can be high, as suppliers are more interested in entering into a contract with
big organisation. Supplier has high potential to affect the relationship between a small business
and its customers by influencing the quality or price of the final commodity.
Power of buyers-In some industries like in retail industry buyers can exert pressure on small
businesses by demanding lower prices , premium quality of products , additional facilities or
services. As in some industries switching cost for buyer may be low, they can easily get switch
to competitor for buying the specific good or services. These factors have significant as well as
direct effect on the production or operational activity. It also has major impact on the demand for
company product in the market.
Availability of substitutes-There are high chances of substitute goods. As there might be big
giants companies might be present in an industry. As big organisation have sufficient resources ,
so they can introduce substitutes product in the market which might have adverse impact on the
sales as well as profitability of new firm.
Competitors-The plans adopted by the competitors in order to attract more number of customers
have important effect on business decision, plan, policies and strategies of new company
(Fayolle and Gailly, 2015)
TASK 3
P 3 Presenting the data needed to support gap analysis in evaluation of specific entrepreneurial
idea.
There are basically two sources which can be used for gathering the data or information
for analysing the effectiveness of ideas these are primary and secondary sources. Primary data or
information can be collected internally that is from employees , management team and other
stakeholders. Information can be gathered from the customers, as they are the people who can
provide appropriate response and reaction related to the ideas of entrepreneur. The primary
information can be collected using several methods these are personal interview, questionnaires ,
market survey or research etc. Secondary data can be collected by observing the other
companies operating in the industry, by analysing the research conducted by other researcher ,
using internet , use of social media sites for recognising the responses from the customers, etc.
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Development of plan
It is very necessary for business owner to formulate appropriate plan as this will help
entrepreneur in managing businesses in successful manner. Effective development plan is based
on entrepreneurial theme. These themes assist business owner is establishing principles and
guidelines for running business. Development includes establishment of Smart objectives which
could be set by the business owner according to their development theme.
Business development plan includes following procedures-
Executive summary-The business idea is to create and introducing business clients. This idea is
similar to human resource consultancy business. Human resource Consulting organization
require one or more experts that could provide professional advice to client. The objective of
establishing this business is to offer easy access to industry specific consultant on different or
specific subject matter. It is very much difficult to set up new operating business as such as
retailing business require huge capital investment as well as resources.
Description about business- This business ideas have been implemented as there is high scope
of growth and low risk. Another reason for selecting this business is it requires less capital
investment. In this business, business owner will get a chance to target candidates those who
require jobs and other party is organization or companies that are needed to hire fresh talent.
Market Research- Developing as well as big companies will be target due to several reasons
such organization are in need of human resource services as they are growing rapidly. Such big
companies do not have time to conduct lengthy procedure of hiring employees. Human resource
consultancy enterprise has high chances to earn profits and gain market share (Mason and
Brown, 2014)
Secondary research : In the present investigation data has been collected mainly two research
techniques or method such as primary and secondary data. Scholar has utilized technology such
as social media sites as well as internet for collecting the secondary data.
Marketing plan
This activity includes the determination of several activities which will be organised in
order to accomplish marketing objectives. Marketing plan also involves identifying as well as
arranging the resources which are required for conducting the promotional activities in
systematic manner. Objective of marketing plan is to help business entity in accomplishment of
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market targets. An effective marketing plan is that which consists of all the 7 elements of
marketing mix.
People- An organisation will require the human resource for executing the various business
activities. Marketing team in an enterprise is planning to target Job seekers as well as emerging
and big companies.
Place-Business entity has planned to create its own website, As this will help business entity in
communicating directly with clients and providing them services. It will also enable an
organisation to provide people ease to access the information about the several services provided
by an organisation.
Price-Management as well as marketing team in an enterprise has planned to kept the price of
services low at initial stage of business. As this pricing strategy will assist an organisation in
attracting more number of customers.
Promotion- marketing team in a firm has planned to use internet as well as social media sites for
promoting services. As this strategy will help business entity in reaching to the customer. It will
also provide firm an opportunity to directly communicate with client and provide them services.
Physical evidence- Company has developed the attractive infrastructure and has effective
technologies which has allowed enterprise to deliver quick and quality services to their client.
Services-Objective of an organisation is to provide effective solution related to job and career
planning.
Other elements in Market plan are:
Resources- These are important in order to provide services to customer and run business in
smooth ways. Several resources which will be required in this business are human resource,
technology, finance, team of experts, etc. In addition to this the Human resource software s a
very basic requirement by an organisation providing the services to the human resource solution
and managing the employees of other companies.
Operational plan: manager in an enterprise has responsibility to create operational plan and
ensures that all the business activities are conducted accordingly. Role of manager is to clearly
define the function as well as responsibility of each employee and provide the details or
information about the action to be taken. Employees in an enterprise have concentration on
identifying the problem faced by candidates or clients and analyzing suitable as well as
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innovative solutions. Business entity also have focus on providing wide range of services to
customer at reasonable price.
Financial plan:It includes the strategies or tactics planned by management team in an
organisation to attract more number of investors. Objective of financial plan is to identify the
appropriate technique of achieving break even sales or increase profitability. Financial plan
created by manager in an enterprise emphasizes gaining investors attention by providing them
several investment opportunities, presenting the benefit of investment and offering the creative
ideas (Yildiz and Karakas, 2012)
P4 Interpreting data to provide the evidence of market potential.
The research method utilized for estimating as well as predicting the growth of human
resource capital management market in terms of segment which involves deployment type, size
of company, demographic factors etc. Information collected from the primary and secondary
sources contain the detail about the major variables which have direct as well as significant
influence on the human capital management market. Press release, information from investors,
certified publications as well as articles are the major source from where the secondary data or
information about market has been gathered. According the data gathered from the secondary
sources that is books and Journals. In addition to this, it has been found by analyzing the
information gathered from the internet that global human resource management market size is
approx. 14. 5 billion in 2017 and which will expected to increase up to 22.50 approximately
22.49 bill a billion till 2022.It has been determined that there is high scope of growth. Further the
advancement in technology and its implication is human resource procedure will help in
increasing market growth rate. The emergence of the several human resource management
solution companies has enabled professionals to perform traditional Human resource activities in
a limited time span (Davidsson, and Gordon, 2012) These management systems and software has
subsequently allowed an entrepreneur of companies those who provides human resource
solutions to concentrate on attracting the right pool of candidates, retaining human capital,
orientating business strategies with individual goals, and managing human resources in a manner
that results in growth of company. It has been identified from the market survey that human
capital management is growing at very rapid rate and many of the companies are seeking
supports from the human resource professional agency in order to standardize procedure for core
Human Resources activities, talent and workforce management. The reason for the growth of
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market is managing the widespread workforce located at different regions has become the
difficult task for emerging as well as big companies. The consumer products and retail vertical is
expected to show an important growth rate in context of adoption of human capital management
based solutions and services. There are many competitors in the industry some rivalries are
oracle company, Workday limited, paycom software, Employ wise organisations etc. are
operating in same industry.
By analysing the present market trends , it is required by an entrepreneur to implement
orb employ advance technology at workplace. As per the market research approx. 64 percent
companies in recruitment industry are using digital technology. It is required by business owner
to employ this technology within an enterprise. As this will help in firm in gaining competitive
advantage in the market (Cunningham, Sinclair and Schulte, 2014)
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Illustration 1: Market of recruitment industry
Sources: (The Top 11 HR Technology Statistics for 2016)

P5 Applying SWOT framework to gather evidence for supporting an objective assessment of
specific entrepreneurial idea
Strength: High business growth.
Profitability
successful candidate relationships will improve
an entrepreneur prospects of landing a job in
recruitment.
Effective training and development
programme.
Efficient administration.
Using advance technology and software will be
used for delivering services.
Entrepreneur experience in particular field.
Weaknesses : Operating al small scale.
Limited resources
High pressure of competition which might
have negative effect on business performance.
High cost of promotion and expenses which
are required to be incurred on providing the
training to employees might have adverse
effect on financial performance of company.
Opportunity: To expand the business.
To expand product line.
Target emerging as well as big organisation.
Business entity can also target job seekers.
Target big as well as small enterprise by
generating the pressure to minimise cost.
Threat:: Demographic and cultural diversity.
Increase in competition.
Changes in the economic factors and
amendment in regulation or norm related to
human resource practice have great as well as
significant impact on business .It also increases
the chances of legal issues.
Few barriers to entry for big data analytics
products.
Advancement in technology.
P6 Evaluating the competitive and market environment in which ideas will be launched
The market of human resource outsourcing industry is defined by a high level of
fragmentation. When interviews has been conducted by few companies which has been selected
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