Identifying Entrepreneurial Opportunities: Unit 27 Report Analysis

This report, submitted as part of Unit 27, focuses on identifying entrepreneurial opportunities. It begins by exploring various sources of entrepreneurial ideas, including Drucker's 7 Sources of Systematic Innovation, with specific examples. The report then presents an entrepreneurial idea for a financial services company, Bibby Arrow, emphasizing its unique selling proposition (USP) of instant payments and analyzes the market gap using Porter's Five Forces. Primary research in the form of a questionnaire and secondary research of similar products are conducted to support the idea. The report critically analyzes the research, highlighting the market gap and competitive advantages. Finally, it uses SWOT and PESTLE analyses to evaluate the business idea's strengths, weaknesses, opportunities, threats, and the broader market environment, providing a comprehensive assessment of its potential for success.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Determination and evaluation of different sources that relates to entrepreneurial ideas.............3
Task 2...............................................................................................................................................6
The rationale and market gap for specific entrepreneurial ideas by using relevant tools ...........6
Task 3 (Covered in PPT)..................................................................................................................8
Present data that needs to support gap analysis in evaluation of specific entrepreneurial idea..8
interpretation of data appropriately that provides evidence of market potential........................8
Task 4...............................................................................................................................................8
SWOT framework that is used to collate evidence for supporting objective assessment .........8
The competitive and market environments in which ideas has been launched .........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship means to innovate new ideas and thoughts in order to run an enterprise
effectively. In business environment, it is important to develop different thoughts and implement
them within organisation for the purpose of increasing profitability as well as productivity. If an
organisation is running commercial enterprise then it needs to bring different thought and
technology which can help to improve enterprises effectively (Al Mamun and Ekpe, 2016).
Present report is based upon identification of entrepreneurial opportunity and for this purpose an
idea of Bibby Arrow is developed. It is a financial services company that is going to provide
new financial services that is disruptive services like instant payment by Apple pay that helps
customer to get fast and easy payment in less time duration. It is a new company which is having
a goal of establishing the business successfully. It is currently operating business in United
Kingdom for the purpose of providing financial services at less time. This report covers possible
resources for new business idea, specific entrepreneurial idea uses in investigation and market
gap, primary and secondary resources to identifying entrepreneurial idea. Moreover, potential
viability in context to market gap and competitors is also covered in this report that help to run a
business effectively.
Task 1
Determination and evaluation of different sources that relates to entrepreneurial ideas
In business environment there are many resources which are used to introduce new
product and services effectively. Formation of new enterprise help to increase economic growth
of country as well as organisation. For instance, Bibby Arrow has decided to use innovative
service in their organisation by understanding people's demand that is instant payment will help
customers to get funds or loan faster than another organisation. (Devece, Peris-Ortiz and Rueda-
Armengot, 2016). The idea of making instant payment will be beneficial for customers as well
as organisation as customer will get money in less time and increases organisational
performance. This organisation is using “Drucker’s 7 Sources which inspired to innovate new
products or services by using new ideas and technology. The seven sources which are as
discussed:
Incongruities: This is first step which is used by an entrepreneur by using its skills and
ideas to establish a business. Incongruities means to think differently from its competitors and

society which can help to improve the organisational productivity. For example, Steve Jobs who
thought differently and has created I phone by using new idea and skill set. In context to Bibby
Arrow, budding entrepreneur helps organisation by giving ideas of instant payment which will
help to improve organisation productivity through adding new customers (About Drucker's 7
sources, 2019).
The Unexpected: This means what a person expect or need to get ready for challenging
and successful firm. Unexpected covers failure, success, like, surprised and ECT which need to
face by corporation. In this a person which expects to introduce something new then at mean it
must be ready for anything (González, Husted and Aigner, 2017). For example, the Bibby Arrow
has decided to provide faster payment to required person as they want which will help to increase
customer base. There is need to get ready for accepting challenging situation that can help in
success and failure of business.
Process need: This sources of Ducker states an idea which is called as process need. This
is similar to incongruities where a person needs to think differently than others. This sources
helps to find and glitch something in firm and society that entrepreneurs need to innovative way
which can help to fix it. For instance, Bibby Arrow noticed that people are not able to get loan
and funds in less time due to server down and many formalities that creates disturbance in
operations. Therefore, budding entrepreneur suggested this new idea that will help to run an
organisation effectively in competitive environment (Guerrero, Urbano and Fayolle, 2016).
Changes in market and business structure: This is forth sources which is related to
unexpected that states an owner should expect the unexpected in business industry. Businesses
can be out from competitive market in case of not accepting the changes which is related to
market and industry. For example, Bibby Arrow needs to think about its competitors and
changing market that states organisation should bring changes that can attracts customers. As
Bibby Arrow provides training sessions to employees that helps to improve the understanding
about pitching and negotiation process. This can help to set a new branch by using new
technology effectively by getting support from such organisation.
Demographical changes: This refers as changes in population which affects the
productivity and profitability. This involves changes in age, taste, ideas, perspective, income
level and business culture which affect business organisation. This sources helps to bring new
ideas according to needs of people and assist them to get satisfaction. For instance, Bibby Arrow

has analysed that employees are having lack of assistance and financial support which can affect
the organisation. Therefore, Bibby Arrow understand the problem of community and provide
them training sessions which help to make fast payments.
Changes in perception: This sources are related with a way where people perceive
different from others. In competitive environment, there is different thinking of people that can
be good and bad. For instance, the manager of Bibby Arrow identifies the market gap by
understanding thoughts or perception of community and suggest them effectively which helps to
change their negative perception.
New knowledge: This refers as new knowledge in the form of scientific and non-
scientific. In business world, there are many new discoveries which is adopted by business
concern in order establish and run its innovative business. For example, the Bibby Arrow
provide training and evaluation programme to customers which helps to bring new knowledge
and technology in order to run and increase business performance. This process helps customers
to get instant payment at the time of requirement and fill their needs effectively.
Therefore, by using all resources a business can be grow effectively which helps Bibby
Arrow take discipline and commitment. By using this, budding entrepreneur take initiative
through ideas and knowledge which help to run an innovative business effectively.
Approaches that leads to identification of entrepreneurial ideas
Seek ideas from new customer group: Many companies should have good ideas which
helps to expand their business.
Strength: This approach can be used by Bibby Arrow to get ideas from new customer
group by taking feedbacks and knowing needs of customers that helps to get new ideas in their
business to make instant payment that will attracts customers more.
Weakness: This is time consuming and typical approach because every customer has
different perception (Ilonen Heinonen Stenholm, 2018).
Benchmark identification method: This approach is used to manage the ideation
process by examining its effectiveness that gives chances of improvements.
Strength: By using this, Bibby Arrow get ideas of bringing new services of instant
payment by comparing with other financial services that states enhancement of competitive
advantages.

Weakness: This is time taken and expensive approach where organisation need to spend
high amount to conduct research and compare with others.
Task 2
The rationale and market gap for specific entrepreneurial ideas by using relevant tools
Business idea is associated with resources and technology that used to implement it
effectively for completing goals. A corporation need to analysis the needs of people than make a
clear judgement which can help to improve business and its productivity. For instance, Bibby
Arrow is financial services brand which offers different types of services to customers and assist
communities to establish their own business and increase the organisational effectiveness. The
USP means unique selling price which helps to increase organisational productivity by attracting
customers. The USP of Bibby Arrow is providing loans in less time and assisting to people to fill
their requirements effectively. Market gap refers as unmet needs of consumers and group of
potential who are not yet purchased goods and services. Gaps in market has created opportunities
for business organisation to expand their customer base by providing an innovative and creative
products (Mandel and Noyes, 2016). This create an opportunity for businesses to maintain a
competitive business. The rationale of Market gap is defined as:
Technological advancement: Currently, organisations are adopting new technologies in
order to increase the customer base and supply chain which impacts on business organisation. If
organisation is not using technology properly them gap arises between organisation and
customers that may affects the sale indirectly.
Changing in demand of customers: The market gap arises in market due to changing
needs and wants of people which creates desire of new and attractive products and services. A
company should focus on changing needs and wants of people then should provide products and
services accordingly which helps to improve the sale.
Bibby Arrow is using porter's five forces that supports its business by using new ideas and
thoughts such as:
Bargaining power of suppliers: In UK there are many suppliers who are supplying their
products and services to organisation in order to run their business. In context to Bibby Arrow,
there are many suppliers such as trustees, BOD etc. in UK who are providing funding to the
company to execute its operations. Suppliers has high control over prices that makes bargaining

power of supplier a strong force. This is a threat for Bibby Arrow to get funds at high prices for
the purpose of execute its operations.
Bargaining power of buyers: In UK, there are many buyers where Bibby Arrow is
operating its business by providing number of products and services. The quality of products is
important for customers that helps to make frequent purchase at low price and making buyers
more sensitive. Herein, the bargaining power of buyers is high which is a threat for Bibby Arrow
to sale its instant payment services in less time. This is new organisation so it may be difficult for
organisation to create a trust between customers and sale they’re its new services that creates
challenges for company.
Competitive rivalry: Competition is another aspect which affects the sale and
profitability of a business. In context to Bibby Arrow, it has many competitor such as Metro
bank, Centre state bank, Ubank, TSB Bank, MBNA and Community bank who are selling
similar products and services. This can be threat for Bibby Arrow to face the competition and
make efforts to improve the productivity due to having new business and lack of customer trust.
To overcome the threat selected organisation, need to conduct market research and bring
innovative and creative products which can help to improve the productiveness by facing
competition level.
Threat of new entrants: This means entrance of new business which can affect the
business organisation. In business environment, there is high threat of new entrants because to
establish a new business there is need to make high investment and many legal approvals which
is difficult for other financial services. This creates an opportunity for Bibby Arrow to
establishes its new services by using new technology and sources in order to take competitive
economic advantages by comparing (Martin and Wilson, 2016).
Threat of substitutes: In corporation environment, substitution of production in context
to Bibby Arrow is very few which helps to operate a business successfully. In business
environment there are less substitution of Bibby Arrow's products which give advantages of
increasing sales and earnings. This organisation is offering better quality of products at less
prices which attracts customers and increase popularity resulting, higher sale and profitability
(Senkaku, 2018).
Therefore, by using this forces it identifies the opportunities and make efforts to
overcome the threats which helps to improve the organisational profits. Moreover, to reduce the

market gap. Bibby Arrow need to innovate new ideas, uses new technology and provide new
services according to changing needs which can help to improve business effectively. This
organisation is providing innovating and differentiated services such as instant payment that will
help to maintain the brand loyalty and increases sale of organisation. This also benefits to
competitive advantages in business market. Bibby Arrow is a company that provides financial
services to other organisation by understanding their demand. Moreover, it supports small
businesses to grow and turn in large businesses. The product of such organisation are loan,
payment, debit, credit cards and other financial product that can people to run their business.
This organisation is planning to provide a new services that is instant payment by using new
technology that will help people to make payment on the spot or in less time. It is beneficial for
people that will help to take competitive advantages effectively.
Task 3 (Covered in PPT)
Present data that needs to support gap analysis in evaluation of specific entrepreneurial idea

interpretation of data appropriately that provides evidence of market potential