Unit 27 Identifying

Entrepreneurial
Opportunities
 TABLE OF CONTENTS
Introduction....................................................................................................................................1
Activity 1.........................................................................................................................................1
Determine and evaluate diverse sources of entrepreneurial ideas and innovation........1
Difference between invention and innovation and role of creativity...............................4
Exploring difference between a product or service idea and business idea....................4
Determining rationale and market gap for a specific entrepreneurial idea...................5
Activity 2.........................................................................................................................................6
Covered in PPT.....................................................................................................................6
Activity 3.........................................................................................................................................6
SWOT analysis to assess entrepreneurial idea..................................................................6
P6 Evaluation of competitiveness and market environments...........................................7
CONCLUSION..............................................................................................................................8
REFERENCES...............................................................................................................................9
Introduction
In competitive business environment, analysing and establishment of new business opportunities
is presently analysed as prominent industry through which firm can generated innovative ideas
and creativity. This industry is growing continuously because entrepreneurs like to start new
operations continuously for maximizing profitability in which they usually implement new and
innovative ideas and strategies in external business environment for earning higher profitability
(Nakamori, 2020). This report is based on establishment of unique concept of PET Grooming
Service in UK where demand for this service has been increased continuously after increasing
number of Domestic Pet in Households. As a budding Entrepreneur, this business idea needs to
convey in meeting with Virgin Money, who has started their new branch in Aldgate East and
Virgin money is looking to assist the community by Helping budding Entrepreneurs to establish
their own venture. To obtain funds for starting of new innovative idea of PET Grooming Service
for customers.
In this report, diverse sources of entrepreneurial ideas and innovation have been classified along
with rationale and market Gap for this specific entrepreneurial Idea. Data has been collected
through questionnaire from selected respondents for analysis of Gaps and evaluation. In this
assignment, PET Groom UK will be considered as start-up which is liked by consumers and
might earn huge profits from their good and services. Further, SWOT analysis will be discussed
which help the business enterprise to understand their strength and weaknesses in their ideas.
Activity 1
Determine and evaluate diverse sources of entrepreneurial ideas and innovation.
Entrepreneurs are individuals who pursue entrepreneurial opportunities. These opportunities are
main defined as the circumstance where unique products and services are identified and sold at a
price greater than their cost of production. Entrepreneurs usually aim to implement its new and
unique business ideas for implementation of diverse plan for generating revenue at less amount
of investment. By the application of STEEP factors, it usually creates various employment
opportunities for the people of UK. Entrepreneurs usually take support of range of methods that
help them in organizing the diverse structure of business enterprise (Buta, 2019). In application
of innovative idea of PET Grooming Service, Peter Drucker 7 innovation sources usually play an

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important role in establishment of firm. The Seven essentials factors of that generate
entrepreneurial opportunities are mentioned below:
There are various sources of new business ideas and some of them are mentioned below:
Drucker’s Sources of Innovation
Incongruity: This is a key to establish globally successful business but it is trickier. When the
requirement is incongruent with supply, innovation might be born. For an attempt to resolve
existing incongruities entrepreneur might innovate. For example as the number of Pets in
households increased there are was shortage of Grooming Services, for this the ideas of starting
PET grooming services was identified. PET grooming service is facilities for people who are
busy in their jobs and business never have the time for their pets grooming, PET groomers will
provides various services for the maintenance of different PETS such as Dogs, Cats and Rabbits
etc. Further, it is also concerned about the gap of starting correct services as per the requirement
of customers. It is concerned about of processes of providing different PET grooming services.
Necessity: Requirement of anything in market is considered as mother of invention but it is
also the mother of innovation. Innovation is usually depends upon the Bright and innovative
concepts. The human psychology usually thinks about new ideas which can effectively
accomplish an existing requirement (Mazzarol and Reboud, 2020). In this procedure, Pet
Grooming service will be considered as increasing necessity for the households in present
condition in UK. People in UK usually require their Pets to be Well Groomed and Cleaned every
day. They usually require services of PET grooming daily on monthly; therefore Entrepreneur
has started PET grooming service to fulfil the requirement of customers.
Structure of industry and market: An existing structure of market can also provide rise to
chances for innovation. Industry of PET Grooming Service is very wide and now it has started to
increase beyond the countries where companies are expanding their service across various
countries. Pet Grooming service is widely considered as Entrepreneurial opportunity that will
provide support in achievement of profitability in market.
Demographics: In present context, for achievement of level of income, organization needs do
some innovative transformation in their business operations. However, Entrepreneur decided to
start Pet Grooming service to facilitate professionals and households which are busier and does
not provide time to their Pet and need their Pets to be Well Groomed. Organization will intend
to target individuals will high and middle income group.

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Changes in perception, meaning and mood: Administration of natural essence must obtain
feedback from consumers that help to generate new cosmetics products for the consumers in
order to maximize the level of profitability.
New Knowledge: It is also analysed that new and innovative technologies have been
implemented by other business firms for competing with those organization the administration of
PET groom UK must analyse the circumstances of market for competing with rivals.
Unexpected: Innovators of Pet Grooming service applies it new innovative ideas for creating
new chances for individual of specific place.
STEEP Factors
Social: This factor emphasis upon the ways to demonstrate that the individuals need to be
capable to understand the values of technology. It is administered that before starting of
business, the financial condition of entrepreneurs needs to be effective. After Introduction of
Brexit, there is various transformations in laws and legislation have been taken from which the
population which are not aware and leads to know about diverse provisions (Debruyne and Tack,
2019).
Economic: There is effective and stable condition for investment of huge amount of resources.
It is associated with per annual income and highest GDP rate that determines stable economic
situation of country. It is also considered as correct timing for entrepreneurs to implement this
idea of Pet Grooming Services.
Technological Factor: In present condition, application of various kinds of technology leads to
creation of lots of opportunity for residents of countries. New business has been started with
implementation of technology for increasing customers and providing quality PET Grooming
Services at home. It usually has long range of working process that usually helps to perform
various kinds of working activities in production of cosmetics products.
Environmental: Entrepreneur needs to inculcate with environment factor of that particular place
for establishment of plant (Andersson, 2018).All effective measure will be taken in analysis so
that performing different functions so that while performing different functions of enterprise, all
security measures must be taken in to consideration while performing different functions of
business enterprise it will take appropriate care.
Types of Innovation

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 Unique idea and innovation usually has its essentials place within growth and profitability of
organization. Entrepreneurs are very much focused on generating and implementing new
concepts that arise from incongruities and use this idea as tool to raise their brand name in
market. There are various kinds of innovation which are mentioned below:
Various kinds of Innovation
Products and process innovation: Product innovation involves introduction of new or unique
item in market on the basis of research or increasing demand or any issue in market (Olson and
Lauhoff, 2019). It may also involve some components that make an existing product different
from other sort of product in line. On the other hand, Process innovation is concerned with
implementation of new procedure or service in market to manufacture or providing products.
Incremental VS Big bang: It can be considered as small series development in can be done in
existing products and services of business whereas big Bang innovation involves large series of
innovation which can be done by transformation of existing products and launching those
products in new market (Xu, 2020).
Schumpeter’s Sources of innovation
It is analysed as appropriate theory that plays crucial role in increasing expenditure of business
enterprise on their operations and functions.
Difference between invention and innovation and role of creativity.
Innovation is analysed as implementation of new ideas and thoughts for launching a new
business product or service for the first time. It provides support in adding some values to the
existing products and services of the organization (Richardson, 2019). In this context, PET
Groom UK will be considered as new business idea to fulfil the requirements of people and
households in different parts of country.
Inventions refer to initiation of an idea for new product or process that is created for very first
time. It also provides support in creation of new products and services.
Exploring difference between a product or service idea and business idea
Product idea is considered as effective procedure that supports in introduction of unique and
innovation in existing item or service available in market place which helps in satisfying the
needs and wants of consumers. Business ideas involve a systematic procedure of starting new
business that helps in achievement of high growth and success at market. This is considered as

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vast concept that provides essential direction to entrepreneurs as to create new ideas within
competitive business environment.
Determining rationale and market gap for a specific entrepreneurial idea
Introduction to concept: New Pet grooming service will be started in United Kingdom with the
name of Pet Groom UK with the purpose of serving high quality services to customers. The
entrepreneur is looking for achievement of customer satisfaction by providing mobile Grooming
services at homes as well as Pet medicines delivery services (Gustomo and et.al, 2019). This
service will be available both online and offline service will be available at new premises in
which 5-10 professionals will be appointed for providing quality services to customers. There
is also a scope for business towards development and expansion of business areas in country
ensuring appropriate response from people.
Reasons for establishment of business: The decision of starting new Pet Grooming service
has been taken by entrepreneur due to increasing demand of local households or people who like
to see their Pets Well Groomed and trained. They are interested in getting mobile grooming
services in their hurry time as it requires less time duration. This business will also involve
recruitment of local individuals that will improve the social awareness and conditions. By
providing quality products and attractive services this business will get competitive advantage.
Market Gaps: Entrepreneur has determines and analysed the market Gap between the amount
of services provided and demand of Pet grooming services in London (Cohen, Pool and Neck,
2019). PET Groom UK has utilized different techniques towards collecting information about
the present market Gap. It helps the enterprise to take initiatives in terms of getting higher
consumer value through satisfaction of customers. These important techniques for measurement
of market Gap has provided below:
Percentage Rule: By getting information from primary and secondary sources there has
evaluated the percentage of starting new business operations. It will utilized by employer for
taking reliable decisions about the starting of new business. It allows them to continue with the
concepts and ideas more effectively by analysing the percentage results.
McKinsey 7S framework: In this analysis of market Gap, there has been included the
McKinsey’s model to identify the appropriate outcome. It usually considers the business
structure of business enterprise towards ultimate strategy of business enterprise. The way Pet
Grooming services are operating and requirement of those services in the local areas.

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Survey: The entrepreneurs have carried a survey in different several local areas of countries in
UK to analyse the Gap whereas it also considered as supportive in competitive market research.
This survey has enabled the researcher to gather raw data and it is refers to the authentic business
information (Godwyn and Stoddard, 2017). On the basis of results of this survey,
entrepreneur identified the high demand of Pet Grooming service in London. They have also
gathered some ideas of making service more attractive as well as conducting business by
analysing competitive situations.
Market matching technique: Entrepreneur have observed different available opportunities
which have been used by firms towards increase their brand presence and awareness of service
between target customers (Lavin, 2019). Firms have usually taken the help from market
segmentation, targeting customers and positioning of service whereas the entrepreneurs needs to
carry out market segmentation on the basis of income, knowledge, age and education of people.
They have also target particular groups in society so that they will be able to meet their needs.
By ensuring reliable services, entrepreneur will be able to set their positive view in mind of
consumers that will provide contribution towards organizational welfare.
Activity 2
Covered in PPT
Activity 3
SWOT analysis to assess entrepreneurial idea.
The SWOT analysis method is used to determine present situations of business and conditions
of the market. There is the SWOT analysis of PET Groomers in following direction:
Strength Weaknesses
 Wide range of Services  Limited range of Capital
 Skilled workforce  Less suppliers
 Online payment system and mobile  High Cost of Services
Grooming Van
Opportunities Threats
 Digital systems and method used for  Branded fast food restaurants.
providing services.  Changes in customer’s choice.
 Limited number of competitors  Low pricing strategy by competitors.
 Global business expansion

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P6 Evaluation of competitiveness and market environments
Competitive market: In this, analysis of competitive market is made. By doing this
sustainability of business has been determined. It has provided an understanding of organization
dealing with same business sector (Rice, 2016). Market is analysed as full of cosmetics
products such as natural skin care, green individuals, eternal skincare etc. for having importance
of new products study of competition needs to be made. This will provide support in
formulation of strategies effectively.
Substitute services: There are limited substitute of this services in market which can
influence the customers behaviour. Entrepreneur must implement competitive pricing strategy to
make difference between their services from competitors in market. It usually involves
utilization of high quality products and range of services as per needs of customers (Nyström,
2018).
Target Audience: PET Groomers UK has emphasized upon its target customer such as
rich households and societies. Therefore, services provided by professions are appropriate in
nature.
According to market survey, it can be said that that services offered will get preference of target
customers.
Demand: PET Grooming services are high in demand. Main reason is that they cause no
side effects. Also people have changed their preference due to changing lifestyles. This has
influence the requirement of PET Groom service which is favourable for customers.
Market Environment: While performing market analysis, there are mainly two factors
have been identified such as:
Macro environment: It involves all factors such as social, political, legal, economic and
geographical that indirectly or directly influences the conditions and demand of business.
Generally, PESTLE analysis is usually made for determination of every extrinsic component that
will influence business in one way or the other. Pet groomer’s target consumers are households
and societies which are more likely to get their pet well groomed (Godwyn and Stoddard, 2017).
As per legal provisions, company needs to get approval from the government authorities for
starting these services. Also, organization needs concentrate upon competitive pricing strategy
which make competitive in nature. These usually external factors will usually influence the
buyer’s behaviours.

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 Micro environment: It usually involves all important internal factors which have major
influence on business such as customers, workforce, cultures, employee skills and attitude.
Entrepreneur needs to hire professionals in their business to make service more quality and
reliable.
CONCLUSION
From this report, it is concluded that identification of new business opportunities is essential
for every business in order to run business in appropriate manner. It is considered as important
for PET groomers to create new services for attracting large number of PET Lovers and people
from rich societies who love to see their Pets well-groomed by professionals. PET day care
services will be offered to customer on daily basis. Skilled workforce will helps in expansion of
business operations.

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Nakamori, Y., 2020. Innovation Theory. In Knowledge Construction Methodology (pp. 1-17).
Springer, Singapore.
Buta, S., 2019. Innovation And Skills Generated By The Exploitation Of Knowledge. The USV
Annals of Economics and Public Administration, 19(1 (29)), pp.100-106.
Mazzarol, T. and Reboud, S., 2020. Adoption and Diffusion of Innovation. In Entrepreneurship
and Innovation (pp. 165-189). Springer, Singapore.
Debruyne, M. and Tackx, K., 2019. Customer innovation: Delivering a customer-led strategy for
sustainable growth. Kogan Page Publishers.
Andersson, G., 2018. Identifying Entrepreneurial Opportunities for Black Ownership in
Manufacturing (Doctoral dissertation, University of Cape Town).
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95-118). Springer, Singapore.
Gustomo, A., Ghina, A., Anggadwita, G. and Herliana, S., 2019. Exploring entrepreneurial
competencies in identifying ideas and opportunities, managing resources, and taking
action: Evidence from small catering business owners in Bandung, Indonesia. Journal of
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Cohen, D., Pool, G. and Neck, H., 2019. The IDEATE Method: Identifying High-Potential
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Godwyn, M. and Stoddard, D., 2017. Minority women entrepreneurs: How outsider status can
lead to better business practices. Routledge.
Loeb, J., 2018. Cost pressures at Pets at Home spark practice closures.
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Godwyn, M. and Stoddard, D., 2017. Minority women entrepreneurs: How outsider status can
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Lavin, D., 2019. Employment Opportunities in the Community. Handbook on Community
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Olson, D.L. and Lauhoff, G., 2019. Market basket analysis. In Descriptive Data Mining (pp. 31-
44). Springer, Singapore.

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Richardson, N., 2019. Sustainable Marketing Planning. Routledge.

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