Entrepreneurship: Sources, Market Analysis and Strategic Tools

This report delves into the multifaceted world of entrepreneurship, beginning with an exploration of Drucker's seven sources for inspiration and their associated pros and cons. It introduces a novel entrepreneurial idea centered around biodegradable packaging, emphasizing its potential to address market needs while aligning with environmental sustainability. The report features a market gap analysis supported by McKinsey's 7s framework, assessing the strategic alignment of implementing biodegradable tools within an organization. Furthermore, a SWOT analysis identifies the strengths, weaknesses, opportunities, and threats associated with the biodegradable packaging business idea, providing a comprehensive internal and external assessment. Finally, a PESTLE analysis evaluates the political, economic, social, technological, legal, and environmental factors influencing the viability and success of biodegradable packaging in the market, offering a holistic view of the business landscape. Desklib provides this assignment and many more solved assignments for students.

Unit 27

Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
1. What are the sources of entrepreneurship and what are the pros and cons of each
method?............................................................................................................................................3
2. Entrepreneurial Idea and Support for market gap analysis................................................5
3. Complete a SWOT analysis for your idea..............................................................................6
4. PESTLE ANALYSIS FOR BIODERADABLE.....................................................................7
CONCLUSION.....................................................................................................................................8
REFERENCES....................................................................................................................................10

INTRODUCTION
Entrepreneurship can be defined as the process of starting new business by devoting the
full efforts and time and having main aim is to generate profit. The entrepreneur is called as
the person who takes the risk of converting the business idea and executes that idea to make
enterprises and generate earnings. It is considered as the creative and innovative response to
the environment. The qualities of entrepreneur are that they are risk taker and have the
capability to think creative. They are highly motivated and persistence towards their work.
The file includes the sources of entrepreneurship and the pros and cons of each method such
as Drucker’s 7 sources for inspiration. The file covers the new innovative business idea. The
file also explains the SWOT analyses and the PESTLE analyses on the basis of new
innovative business idea which will focus on the positive and negative aspects of innovative
idea(Steininger, 2019).
MAIN BODY
1. What are the sources of entrepreneurship and what are the pros and cons of
each method?
An entrepreneurship is the establishment of new business enterprises, management of
business for the business growth and creation of wealth. Entrepreneurship helps in boosting
the economy of the country. It creates the opportunity of employment and reduces the
imports and trade deficit. The major part of entrepreneurship contributes to the GDP of the
country. The idea of entrepreneurship can be generated from different sources such as change

in the environment, discovery of technology and advancement, policies, thrust and programs
of government, interest of the consumers, experience of past and many more.
In looking for the sources of entrepreneurship, Drucker’s seven sources for inspiration are
explained below-
The innovation and hard work are considered as the important aspects for the
innovation of new business idea. Inspiration helps the people in figuring out what to do and
peoples comes with new innovative idea whereas hard work is also important.
The seven sources of Peter Drucker are given as-
 The unexpected- market is measured as the best place for the identification of
opportunity. The market is always studied by a good entrepreneur. It helps in
determining which product is in high demand and which is in less demand and the
reason for its high demand.
 The incongruity- there is a difference between what is and what should be. It is
tricky but it is considered as the key to develop successful business(Steininger, 2019).
 Processing Need- it involves determining the weak aspects of the business enterprises
and solving and redesigning. This is a task-oriented solution, which means the source
of the innovation comes from your existing skills and business methods, not from the
market (Ratten and Usmanij, 2021).
 Industry and market structure change- the business industry and the market
changes continuously. The regulation changes and expanding product line while other
shrink. The first priority of the company to look in this and pay attention.
 Demographics- there are continuous changes occurs in the level of earning,
populations, education and age. The firms pay attention to all these factors in order to
make their business a great success.
 Change in perception- the perception of the people all over the world changes with
respect to time it includes changes in the life style and other. The company must have
to pay attention to the changes in the perception of the peoples which helps the
business enterprises to capitalize.
 New knowledge—due to the rapid changes in the new technology and its
advancement. It can increase the opportunity for the business idea generation. Internet
is accepted ass the most notable things from last couple decade. New knowledge not
only involve the advancement of technology but also helps in determining the best

manner of performing task and helps in enhancing the process. The company must
undertake the new knowledge as it can help the business enterprises to improve their
performance (Hsieh and Wu, 2019).
2. Entrepreneurial Idea and Support for market gap analysis
Entrepreneurial Idea is something unique in market which is created by an entrepreneur by
deep analyzing of markets and they examine those factors while analyzing markets are needs
of customer and demand of markets and then entrepreneur think creatively and make a unique
idea which is not exist in market and this will help entrepreneur to become successful in
market. This will also help market organization to develop and grow their business in market.
This Idea makes a huge difference in market they are able to fulfill the desire and needs of
customers in markets. Entrepreneur has skills and abilities which help them to think very and
different and unique and create idea according to requirements this help entrepreneur to grow
in market. Entrepreneur help to reduce market gap in this situation of market is very critical
that they are unable full the demand of market due to lack of supply, so that entrepreneur
think something new and create unique idea which help to match the demand and supply of
customers in market. Entrepreneurs plays a very important role in market with the help of
them it is possible to create new and innovative products which help business to grow in
market and generate more revenue. The entrepreneurs always make unique products and
change market scenario. Just take an example that how entrepreneur help environment by
usage of biodegradable machines in organization. If an organization manufacture packaging
products then they use a lot natural resources and chemical for their raw material to make
products for that entrepreneur invent biodegradable tools so that organization adopt this
machine and then do manufacture so that they recycle their own product and make new
products from them only and cost of products will also reduce in market. This will not harm
the natural environment because now natural resources are not in use to manufacture the
product. Let study in brief that how biodegradable is used in organization by apply McKinsey
7s frame work are(Audretsch and Moog, 2022.):
 Strategy: If an organization use biodegradable tools which are invented by an
entrepreneur then organization have potential to beat competitors in market
because they can increase their efficiency of production and then can full fill
demand of organization.

 Structure: This very important in organization that everything is well structured
because it will improve the work performance of employees in organization and
employees also know that whom they have to report in organization.
 System: All activities which employees perform to get their assign task
completed by system which is given in organization. The management has to
make sure that system which will provide for completing task must be suitable for
their task.
 Skills: Employees must have skills which help them to perform their task which is
given by an organization and if employees is not have that much o skills then first
organization have to developed the skills of employees so that they perform their
task with responsibility.
 Staff: In organization the staff requirement is must be there as per the
requirements of organization to perform the task. Staff is key for organization
because they are assets of business which help organization to grow and develop
their business in market.
 Shared Values: These are the core values of the organization and reflect its
general work ethic. They were called superordinate goals when the model was
first developed.
 Style: The style which management is adopted for leadership in organization. This
leadership style help organization in many ways like they motivate employees for
their work, guide them how to perform this task, direct them for a common goal of
organization.
3. Complete a SWOT analysis for your idea
SWOT analysis is a framework tool that helps in identifying the strengths, weakness
(both are known as the internal factor of industry) and determine the opportunity and threats
(both are considered as the external factors that influence the business enterprises) of the
enterprises(Neck and Corbett, 2018) (Johnson and Schaltegger, 2020).
The given below is the Swot analyses on the business idea of biodegradable packaging which
helps in identifying the strength, weaknesses, opportunity and threats which arises during the
execution of business idea.

 STRENGTH- the major strength of biodegradable packaging as business idea is that
is derives as eco-friendly in nature. The process of manufacturing of goods does not
involve any chemical used. The fact that can even get rid of such a plastic bag by
eating it gives great strength to this manufactured goods. The one of the major
strength of this process is that it can operate in lower prices and can give high quality
of products. The competition level in this sector is less as compared to other sectors.
 WEAKNESS- the major weakness of the biodegradable packaging is that its cost of
research and development. Another weakness of it is cost of using biodegradable
packaging. The company have to reduce the profit in order to sell the products to the
customers (Lipset, 2018).
 OPPORTUNITY- Effective and efficient marketing strategy should be applied by
the enterprises in order to attract the traders. The market demand of the product is
growing which turns as opportunity. Different types of environmentally friendly
product can be made through this which can helps in increasing the product line of the
company. Due to rise in the prices of oil and depletion of fossils fuels, the
biodegradable packaging can be measured as the solution to the problem.
 THREATS- the main threats of this business idea is the introduction of new good
which is similar to the plastic bags can be considered as the threat for the business.
Due to inflation the prices of raw material increasing day by day. the rise in the price
of raw material can be a threat to this business. Rapid changes in the government
policies of the nation can bring the threat and high completion in the market can
reduce the sale as well as revenue of the company.
4. PESTLE ANALYSIS FOR BIODERADABLE
In organization it is important thy have to do PESTLE analysis of their organization
product so that they became to know that products is suitable for market or not. The products
in not affect any culture and regions of customer in market. Management have to examine
that their product must be under the guidelines of government. This all factors must be proper
analyze by management before choosing any product and this will help to reduce product
failure in market. Let’s study in brief about PESTLE on Biodegradable factors(Julien, 2018):
 Political Factors: The product which is choosing by management of organization
must be suitable with government policy then only it is possible for organization
to sell their products in market. The product which is manufactured must be
biodegradable in nature.

 Economic Factors: The management of organization have also responsibility
develop economic condition of country so that it is very important that
organization product must be good in market and they full fill the market
condition so that it will help to contribute in economic condition.
 Social Factors: The product which is offered to customer in market must not be
affect any culture or regions of customers in market. In this raw material which is
used for manufactured product must easily recycle in market so that it will help
organization to reuse that products and this will not affect any social factors in
market.
 Technology Factors: The machinery which management used for manufacturing
the products must be latest and updated so that it will able to meet the demand and
supply level equal in market. This machine which is used for biodegradable in
packaging must be updated in technology.
 Legal Factors: The products which are manufactured must be legal in market and
products must be according to government guideline which they are prepared for
organization. This will help organization that there products is manufactured then
it must recycle then only it is possible for biodegradable (Alvarez and Barney,
2020. ).
 Environmental Factors: If we use biodegradable tools in organization for
manufacturing products then it must help environment to protect from chemical
and less use of natural resources for manufacturing of products (Landström and
Harirchi, 2018).
CONCLUSION
From the above text, it has been concluded that entrepreneurship is essential for the
economic development of the country. It is a process through which the individual convert
their business idea and execute them to make business enterprises in order to generate profit.
The business idea considered in the report is biodegradable packaging in which products are
manufactured with the eco-friendly process without using any chemical process. The report
concludes that there are several strength and weakness of the business idea and also it
concluded about the several macro factors that can affect the business such as political,
economic, social factors and many more.

REFERENCES
Alvarez, S. and Barney, J.B., 2020. Has the concept of opportunities been fruitful in the field
of entrepreneurship?. Academy of Management Perspectives, 34(3), pp.300-310.
Audretsch, D.B. and Moog, P., 2022. Democracy and entrepreneurship. Entrepreneurship
Theory and Practice, 46(2), pp.368-392.

Hsieh, Y.J. and Wu, Y.J., 2019. Entrepreneurship through the platform strategy in the digital
era: Insights and research opportunities. Computers in Human Behavior, 95, pp.315-
323.
Johnson, M.P. and Schaltegger, S., 2020. Entrepreneurship for sustainable development: A
review and multilevel causal mechanism framework. Entrepreneurship Theory and
Practice, 44(6), pp.1141-1173.
Julien, P.A., 2018. The state of the art in small business and entrepreneurship. Routledge.
Landström, H. and Harirchi, G., 2018. The social structure of entrepreneurship as a scientific
field. Research Policy, 47(3), pp.650-662.
Lipset, S.M., 2018. Values, education, and entrepreneurship. In Promise of development (pp.
39-75). Routledge.
Neck, H.M. and Corbett, A.C., 2018. The scholarship of teaching and learning
entrepreneurship. Entrepreneurship Education and Pedagogy, 1(1), pp.8-41.
Ratten, V. and Usmanij, P., 2021. Entrepreneurship education: Time for a change in research
direction?. The International Journal of Management Education, 19(1), p.100367.
Steininger, D.M., 2019. Linking information systems and entrepreneurship: A review and
agenda for IT‐associated and digital entrepreneurship research. Information Systems
Journal, 29(2), pp.363-407.