Identifying Entrepreneurial Opportunities

This report explores the identification of entrepreneurial opportunities, focusing on the Cuba organic face wash market. It evaluates various sources of entrepreneurial ideas, analyzes market gaps, and applies frameworks like SWOT and McKinsey 7s to support the business concept. The report emphasizes the importance of understanding customer needs and competitive environments to successfully launch and sustain a new venture.

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES
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Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Determine and evaluate different sources of entrepreneurial ideas.......................................3
M1 provide a detailed evaluation of Drucker's 7 sources...........................................................4
D1 Drawbacks different approaches and sources that leads to identification of entrepreneurial
ides..............................................................................................................................................5
P2 Explaining the rationale and the market gap for a specific entrepreneurial ides by using
relevant techniques and tools......................................................................................................6
M2 provide justification of how a specific how entrepreneurial idea fills market gap...............7
D2 Critically evaluate specific entrepreneurial idea based on appropriate interpretation and
investigation of the competitive market place............................................................................8
P3 present data needed to support gap analysis in a specific entrepreneurial idea.....................8
P4 Interpret data appropriately to provide evidence to market potential....................................9
P5 Apply a SWOT framework to collate evidence to support an objective assessment...........10
P6 Evaluate the competitive and market environments............................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
According to studies entrepreneurs they identify various business opportunities of
creating and delivering number of values for stakeholders in addition to perspective ventures.
The resources which are well perceived and recognized they cannot become viable business
without the process of development. Opportunities can be defined as form of ideas, number of
individual groups see opportunities but entrepreneurs are those who acts upon opportunities.
Business idea – This is a business concept which is resulted into profits if it is turned into a
substantial service or product.
Opportunity-The term opportunity is defined as the potential in order to create something new
which involves change in technology,politics,knowledge, economy and demographic conditions.
There are sources of business opportunities and ideas mostly there are two types of sources
mentioned below;
Primary sources- These sources are refers to informations which are collected directly from
interviews, observations, and experiments, or gathering information from first -hand data these
are known as primary sources.
Secondary sources- These sources collects data which have been already available and
compiled.
In this report would be explaining identifying entrepreneurial opportunities and new idea would
be taken in the context of Cuba organic face-wash.
MAIN BODY
P1 Determine and evaluate different sources of entrepreneurial ideas
There are many sources of new ideas for entrepreneur they are mentioned below;
Customers – Service ideas, new ideas and new products this all might comes from customers
response to the expected product idea or the present product. Because prospective customers they
know better about their needs or wants and in addition which tastes and habits are surely going to
be popular shortly(Kotlar, Sieger and et. al., 2019) . In the context of Cuba organic face wash
customers know better about their wants and needs or which kind of tastes or habits further going
to be popular and along with this being in contact with prospective consumers further some
features are revealed which is probably built into service or a product. Care needs should be
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taken in order to assure about needs and ideas which mostly represents number of large markets
thus to support a new venture.
Distribution channel -The place of distribution is defined as providing available products to the
customers. There are some specific members which belongs to the distribution channel they are
transient preferences of customers and middlemen and in addition if there are possible
expectations this may leads to a good business idea. In the context of Cuba face-wash members
of distribution channel they not only frequently have suggestions about the new products, they
also could helps in marketing sector for the entrepreneur to develop newly products.
Existing organisations -If services and products are completed of existing organization in a
proper way then this could be evaluated as effective source of new ideas. In the relevance of
Cuba face wash the analysis has been done on the based of break even level and profitable of
different organisations and industries they mainly specify promising investment on number of
opportunities which are absolutely relatively risk-free as well as profitable. The examination
which have been done for the utilization of capacity of several industries they provides effective
and beneficial information about the potential for the purpose of further investment.
Government – The government this could be a good source for new products in many different
ways. Most of the fundamental , firstly all the files which are related to patent office they may
contain possibilities of new product, they also could suggest other different marketable ideas for
the new products. Secondly, every new product could come in response with government rules
and regulations such as investment guidelines, industrial policy, five year plan, annual plan etc,
and the third step is, there are numerous government agencies which are presently assisting
entrepreneur to discover as well as evaluate business ideas. In the context of Cuba face-wash, the
final step is government publications on industry and trade this could be quite helpful in setting
new venture ideas (Estrin, and et. al., 2020) .
Research and development -The own research and development of the entrepreneur itself is the
largest source for developing new ideas. This might be quite formal whilst endeavour have been
connected with current employment or in addition this might be more informal laboratory in the
private areas.
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M1 provide a detailed evaluation of Drucker's 7 sources
Peter Drucker has given seven sources of systematic innovation this means monitoring
seven sources for the purpose of innovative opportunity. The seven sources are mentioned
below;
1. The unexpected – this means unexpected success, outside event and failure. This is the
first source for example if there is a particular service or a product which is in greater or
lesser demand rather than anticipated. If unexpected success have been exploited what
does this mean or which efforts should be converted to an opportunities, this means time
should be set in order to discuss unexpected failure and success.
2. Second source is the incongruity – There is on example which is mentioned in Drucker's
trademark book. During the 1980's Midwest securities they did not assume that group of
people invested in order to play the markets as well as to get rich. Therefore group of
small business peoples and successful professionals they had range of modest spending
habits which were approached for further investment opportunities in order to preserve
their wealth not to trade. Eventually there was a success in this process, finally money
markets funds were nearly invented for this kind of inventors. The firm of big securities
they thought that inventors wanted to trade but they didn't.
3. The third source is process need - This is one of the task focused instead of situation
focused.
4. Fourth source is market and industry structure change – If any industry grows in a
significantly manner faster than the population or economy this means changes are
certain and structural problems would surely occurs(Boohene, 2018).
5. Fifth source is demographics – This can be defined as changes occurring in age structure,
in population, income and educational status. These could be discovered in census
findings whether on online or public library.
6. Change in perception such as meaning or mood – This statement defines there is one
trend which is known as down ageing, the medical industries and cosmetics they have
been changed their way which often regards age.
7. Seventh source is new knowledge – The term new knowledge have been applied in both
scientific as well as non-scientific.
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D1 Drawbacks different approaches and sources that leads to identification of entrepreneurial
ides.
There are many factors which has been utilized for evaluating business opportunities and
ideas.
Relationship – Maintaining existing relationship with prospective customers, investors, partners
etc., this could reduce costs, save lot of time, and reduces many risks.
Access to customers- If there is no enough interviews of customer development in a suitable
period of time, then there might be possibilities of taking longer period and much harder to get
started.
Passion – Establishing a company is very hard and time consuming. If any individual resolving
such kind of problems this means person is a more passionate in order to serve customers as well
believe in getting success and enjoy spending time with quality of life, this is defined as passion.
P2 Explaining the rationale and the market gap for a specific entrepreneurial ides by using
relevant techniques and tools
Introduction of the new idea- There is one cosmetic shop has opened in new Orleans ,
Louisiana, which mostly provides organic Cuba face-wash in order to serve customers in a
proper manner. In this shop organic face wash has been introduced in order to meet the needs
and demands of the customers. These face wash is easily available, customers they can directly
purchase number of face washes and they are also available on online sites too. During the initial
products all the products would be produced further in order to meet the local demands
afterwards the business would be gradually expanding to the different places or areas. This face-
wash will be very effective in the high temperature places in the new york(Dias, and et. al.,
2019).
The rationale behind establishing the company
There are various motivations and encouragements behind opening this cosmetic shop. This can
be a good source of income and helps in becoming independent. Opening own cosmetic shop
also helps group of peoples to earn their livelihood. In the context of organic Cuba face- wash
the number of customers would be treated in a different manner from the previous traditional
systems which are going to be very unique and with a good strategy in order to have a
competitive advantage.
Market gap analysis
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The entrepreneurs they must be ensure about finding the proper market gap therefore to add
values in order to implement and develop their new ideas. If in any case gap in the market is not
identified in a proper manner thus the business will surely not run well. In the relevance of Cuba
face wash entrepreneur should use different tools for the purpose of identifying the gap in the
market.
McKinsey 7s framework
By utilising the framework of Mckinsey, there might be possibilities that entrepreneur might find
a market gap further to add values by developing and implementing new form of ideas. After
achieving marketing gap then group of entrepreneur would try to find whether individuals are
implementing their ideas in order to fulfil the gap or not. After examining all these seven
elements this can be found that there is a proper gap in the market which could be fulfilled by
implementing proper steps. The market team has been determined that results are quite positive
this statement means gap is exist and also this is managed properly.
The percentage rule – This rule is mainly used by the beginners further in order to analyse the
market gap. There is required informations for this specific tool is both primary and secondary
data. Furthermore by using these both data and the tools this will provide an idea whether
entrepreneurs they should take further steps with the business concept or not. Although this is a
traditional rule and this is quite easy to use or in addition to analyse the market gap.
Surveys – By performing surveys entrepreneurs they could get easily answers of all their
questions or queries. They could take several steps because by following surveys many
informations are generated as a primary information. Such kind of survey devotes both
competitive advantages and important insight of the customers condition. After the process of
analysing the survey it has been seen that there is greater demand of organic face wash in the
market, and there is no adverse effects are seen.
M2 provide justification of how a specific how entrepreneurial idea fills market gap
There are number of companies which wants to identify the gap in the market. The term
gap in the market this is a particular area. If an individual analyse a specific market, this is
clearly seen that this is very difficult to determine the remarkable business.
How gap is found in an established market – started with the strengths.
 Make a list of important strengths
 List down the things which can be done by depending on these strengths.
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Find a niche in the existing market where problems are unsolved
There is need of finding niche in which market is already existed and barely problems are
unsolved which are related to the own strengths (Tabares, Chandra, and et. al.,2021).
D2 Critically evaluate specific entrepreneurial idea based on appropriate interpretation and
investigation of the competitive market place
Every entrepreneur have great ideas for the bid business .These are the steps to evaluate the idea
before starting a business mentioned below;
 write a business plan
 Assess market demand
 Do a research on direct or indirect competitors
 Feedback is essential for the idea.
P3 present data needed to support gap analysis in a specific entrepreneurial idea
For the support of gap analysis using primary data- The primary data, this is one of the
effective and strongest source of all authentic information, in this process all the informations are
collected directly from the potential customers. In order to conduct a primary data collection it
becomes very essential to evaluate customers response by performing activities of survey. If
entrepreneurs gets best and positive outcomes from the primary data this means than further
steps will be taken(Hanohov, and et. al., 2018). To conduct this report there are some
informations collected from the prospective customers and the market. The result of following
survey have been mentioned below;
 Do you prefer face wash as a good item?
Response created Number of individuals surveyed
Yes 500
No 10
Occasionally 50
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Percentage of peoples who likes Cuba face wash explained in below pie chart.
The above pie chart explains about that wide range of peoples they consider face wash as good
product. Among all the customers or participants 500 peoples considered Cuba face was as good
product and out of that 50 individuals uses occasionally and 10 peoples they do not use. The
number of individuals who are using face wash occasionally if market put efforts properly than
they could be easily directed to regular customers. For example giving discounts on purchasing
face wash or else giving coupons and membership card while purchasing more products of face
wash thus this would be easy for the customers to purchase face wash on regular basis. 10
individual things that face wash is not meant to be used.
How often you use face wash in a week?
Response created Number of respondents
Once 70
Twice 150
Thrice 100
9
Yes
No
Occasionally

When it was asked to the group of peoples about the purchasing of face wash . It has been found
that 70 peoples respondents was that who purchased face wash for themselves and their family at
once. The group of 150 peoples they responded that they use face wash twice. Only 100 peoples
they use face wash thrice.
Do you think that service provided by the cosmetic shop for face wash is it sufficient?
Response generated Number of individual surveyed
Highly satisfied 90
Satisfied 70
unsatisfied 120
Highly unsatisfied 20
From the above analysis shows that 70 respondents which was satisfied by the service which
was highly provided by the cosmetic shops. There was 120 respondents which was unsatisfied by
the service conditions. From the customer response it was found that service quality is poor not
much effective which could easily drags the customers attention. If services are provided
properly than there will be possibilities that wide range of peoples would purchase number of
face washes , because purchasing prefers to better service (Barbulescu, and et. al., 2021). The
above analysis shows that if there is gap in the market condition this means it should be fulfilled
in a proper manner.
10
70
150
100
Once
Twice
Thrice

P4 Interpret data appropriately to provide evidence to market potential
Interpreting data – In the above section primary informations are already collected now
further would be trying to interpret data by utilising statistical tool such as mode, mean, and
standard deviation(Wales, Monsen and et. al., 2020).
Do you prefer face wash as a good product?
Response generated Number of people surveyed
Yes 300
No 50
Occasionally 20
Calculating mean –Mean = 300 +50+20
=123
Here mean value is 370, but from mean any decisions cannot be concluded by the outcomes may
occurs both positive or negative .
Calculating mode – this has been identified that mostly repetitive outcomes are yes, thus this
could be said maximum people consider organic face wash Cuba.
Calculating median – For the calculating median , date should be arranged properly. Therefore
after organizing the complete data, it is found that series 300,,50, 20 and there median value is
50.
How often you buy face wash in a week?
Response generated Number of respondents
Once 70
Twice 120
Thrice 100
More 105
Calculating Mean; Mean = 70+120+100+105/4
=98.75
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P5 Apply a SWOT framework to collate evidence to support an objective assessment
SWOT this includes weaknesses, opportunities, strength, and threats , this is a useful
technique which have been used for analysis along with this, this identifies internal and external
factors which mostly affects the company in a significant manner. Like every business cosmetic
shop providing Cuba organic face wash this also consider its own internal strength and
weakness as well as external threats and opportunities(Constantinides, and Slavova, 2020). The
SWOT analysis of organic Cuba face wash has explained below along with a graph.
Strengths- The important strength of Cuba organic face wash is that employees of this business
are very laborious and some of them are well experienced because before they have worked in
the same business. If group of employees have good experience than all the functions of an
organization runs in a good manner(Adegbile, Wagner, and et. al., 2020). The employees they
serve their customers in better way compared to other competitors. Thus this process gives a
competitive environment over other competitors. The second strength of this business is that
face wash is pure organic and it is beneficial for the skin and this shows effective results on oily
skins and along with this it is chemical free and good for keeping skin healthy. The cosmetic
shop contacts their customers through cellphones and list down the demanding order which
further would increase the brand recognition rapidly.
Weaknesses – There are many weaknesses in this business which are mainly considered prior to
make any implementation. Once if the management find out the weaknesses area properly, then
there is need of implementing specific actions in order to remove all the weaknesses easily.
There is one weakness of this business is that they usually do not have sufficient capital for the
purpose of installing the quality materials which are very important to run any business in a
perfect manner. To continue competition with other firms, every business should use or install
world-wise technologies to run their business properly. The another weakness is, if the demands
of Cuba face wash reduces or falls this statement means then business will not have ability to
compensate the losses.
Opportunities- Every entrepreneurs they should search for many new opportunities on the regular
basis because this would be improving their returns on the capital employed. Opportunities never
waits, they do not comes all the time when there are many competitors around and continuously
they keep on searching right opportunities. The number of opportunities could be increased in
the cosmetic shop of face wash during brand recognition in the local market. Then further this
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