Unit 27 – Identifying Entrepreneurial

Opportunities

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Table of Contents
Introduction...........................................................................................................................................3
LO1 Evaluate possible sources for a new & innovation business idea...................................................4
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation...................4
LO2 Explain the choice of a specific entrepreneurial idea for investigation and market gap that it
addresses...............................................................................................................................................6
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant tools
and techniques to support your choice.............................................................................................6
LO3 Use primary and secondary data to identify market potential.......................................................8
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea....................................................................................................................................................8
P4 Interpret data appropriately to provide evidence of market potential......................................10
LO4 Evaluate the entrepreneurial idea in the context of the market and competitors and make an
assessment of potential viability.........................................................................................................11
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a specific
entrepreneurial idea........................................................................................................................11
P6 Evaluate the competitive and market environments in which the idea will be launched to assess
potential viability.............................................................................................................................13
Conclusion...........................................................................................................................................15
References...........................................................................................................................................16

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 Introduction

There are a lot of business sources around us. In this competitive world, people are
turning every opportunity into business. Business is now like the blood circulation of
our planet. In this assignment, my specific entrepreneurial idea is the Event Planning
Firm in the UK market. Innovative ideas and approach are essential to make it
happen. We should focus on market research, especially primary and secondary
data. It is also essential to interpret this data according to the nature of service and
product. A SWOT framework is also mentioned for better decision making. Finally,
we should also pay attention to the market environment for potential viability.

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 LO1 Evaluate possible sources for a new & innovation business idea.

P1 Determine and evaluate different sources of entrepreneurial ideas and

innovation.

Business is expanding in every second and capturing all factors of society. It plays a
significant role in our surroundings to a great extent. But sources of entrepreneurial
ideas may vary from business to business and person to person. Different sources of
entrepreneurial ideas are described below.

Interests and Hobbies: A hobby is an act which we enjoy during our leisure. It gives
us pleasure and we are passionate about it. It can be a source of our business. My
hobby is photography. In my event planning firm, I can act as a consultant of
photographers. Besides I can bring something new, exceptional offer for customers
regarding photography (Casson and Buckley, 2015). On the other hand, Interests are a
great source and inherent part of a business. If I have no interest in the event
planning business, I should not engage myself in an event planning firm.

Customer Survey: Customer survey is a vital source of business. It shows what

customer needs, wants and demands. It can generate new and innovative business
ideas. It helps to find out the viable sector of business. Through customer survey, I
can find out what customers actually demand from an event planning firm. It helps to
shape the business and shows the pathway of the future.

Talents: Individual talents can bring out business. I am undoubtedly best in what I
am talented. It is wiser to find out and utilize our business before starting a business
(Nirjar, 2016). Let I am talented in playing the football game. So, in arranging a football
event, it will be easier for me to organize the event as I know pros and con of it.

Media: Media is a great source of business. The rise of internet-based social media
has created a lot of business opportunities such as social media marketing, e-mail
marketing, online campaign etc. Besides, media sources like TV stations, Radio etc.
can provide a new business opportunity. For my event planning firm, it is mandatory
to open a Facebook page to stay connected with my new as well as potential
customers.

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Market Gap: The market gap is the area of a market which is not occupied. It can be
of different size. But it is a good source to start an entrepreneurial idea. It is easier to
capture a market gap easily but there may remain some factors which create a block
to reach the market gap (Casson and Buckley, 2015).

Innovation refers to new ideas, different imaginations, creative decision etc. It

is a process by which our creative thoughts transform into a useful good or service.
There are several sources of innovation. These are described below.

New Knowledge: Knowledge is not constant. New knowledge comes and captures
the way of innovation. Two decades ago, event management firms were conducted
manually. A few clerks were essential to handle the information. But now, with the
help of computer technology and the internet, the environment of the business has
been changed. Both customers and service providers take and give service with the
help of technology (Nirjar, 2016).

Changes in Perception: A change in perception can be a source of innovation. It

can be related to religions, rituals and other beliefs. Throughout the world, Islam and
atheism are rising rapidly. We can bring an innovative offer considering the demand
of these people.

Process Need: During the process of creating or shaping any product or service, or
their transportation, we can do something which can minimize the prize or improve
the product or service. There is no particular way to be innovative during a process
need (Whiteley, 2017).

Demographics: Demography never remains the same. It is changed every day. This
ever-changing demography is a vital source of innovation (Whiteley, 2017). An event
planning firm can provide a different offer, pricing and other facilities considering the
targeted area, their lifestyle, income, the rate of service taking etc.

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 LO2 Explain the choice of a specific entrepreneurial idea for
investigation and market gap that it addresses.

P2 Explain the rationale and the market gap for a specific entrepreneurial idea
using relevant tools and techniques to support your choice.

My specific entrepreneurial Idea launching an event planning firm in the UK.

Although it has a potential market all over the UK, a good number of competitors are
also existing in this field. I can address a good market gap through this firm. First of
all, I have to identify the customers.

Types of Customers and their needs: There are several types of customers and
their needs. We can divide it into three categories. i. Premium, those who seek a
luxurious arrangement ii. Regular: It is somewhat balancing luxury and cheap. Iii.
Citizen: Those who want to minimize the cost and want to cover an event with the
lowest expenditure.

Geographic Segmentation: Initially it will not be possible to cover the whole UK.
We need to segment which area will be under our service and which will not be
(Kotler, Armstrong and Opresnik, 2018).

Demographic Segmentation: We know that there are several types of people living
in the UK such as black. White, Asian, Indian, Arabs etc. Besides Christians,
Muslims, Jews, Hindus, atheists and other believers also stay together. We will focus
on minority groups and arrange their religious or cultural programmes. It is still a
market gap in this secto (Kotler, Armstrong and Opresnik, 2018)r.

Benefits: We will offer intangible services to our clients which will help them to get
the service within a limited price. Our service charge will be reasonable than the
market price. All types of people will be able to afford it.

The subject which comes after considering the customers is the industry. I have to
consider the whole industry.

Influence and Affects by A New Entrants: New entrants bring both positive and
negative. It may cover any market gap as well as low down the price and growing
competition. It may provide some extra facilities to catch the market. Besides, it lacks
having essential experiences (Wood, 2015).

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Competitive Rivalry: A lot of competitors exist. Suppliers and customers have a lot
of choices if they are not happy dealing with me. But in some segments of the
market, competitive rivalry is very minimum. It is possible to make a healthy profit
from there.

Supplier Power: Supplier hardly needs to consider our tiny event planning firm. But
it can contribute a good amount if we receive attractive orders (Oldcorn, 2016). In the
UK, we generally have a lot of options to switch one supplier to another which will
lead us to a cheaper one.

Buyer Power: A good number of event planning firms exist in the UK. Moreover, we
are focusing on underprivileged people who hardly run after event planners. So, our
service is unique and potential buyers have fewer options to consider (Oldcorn, 2016).

The threat of Substitution: There remains a high risk from the threat of substitution
as we are living in the age of technology where artificial intelligence, as well as the
internet of things, is very much available. A cheap substitution can overtake our
business in the following years (Wood, 2015).

The threat of Entry: This field is very much open in the UK. Moreover, business
license and bank loan are also very available for the initiator. It takes a very little
effort to get an entry in this market.

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 LO3 Use primary and secondary data to identify market potential.

P3 Present data needed to support gap analysis in the evaluation of a specific

entrepreneurial idea.

To present data we need to conduct market research. Both primary and secondary
research techniques will be helpful for the investigating of new business ideas. Our
business idea is launching an event planning firm which will provide pros and con of
the event of our customer.

There are several ways to collect Primary market research data.

Observation: Watching customers is the best way of primary market research. As

people of the UK are more and more busy with their work, they are becoming more
dependent on event planning firms for their any events (Finnegan, 2017).

Postal Survey: It is done through the postal address. Few questions are written in
the letter. It is backdated nowadays. For an event planning firm, it is really expensive
to conduct a postal survey in the initial stage.

Telephone Survey: It is more effective than the postal survey. It allows quicker
feedback than a postal survey. It is helpful for an event planning firm if we consider
specific segmented people.

Online Survey: Online platform is very much popular not only among young people
but also all aged people. It is a vital source of collecting primary research data. We
can use a google doc form for the survey (Dewey and Hinchey, 2018).

Focus Group: Here a group of people of a particular segment is chosen and they
discuss on the product which brings out many crucial data to be considered. It cuts
cost but provides effective reports.

Secondary market research can be conducted in two ways. Qualitative approach

and quantitative approach.

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In the quantitative method, we consider a statistical report collected by the firm
itself or another way. It provides complete information of where our leads coming
from and how long there are been.

In the qualitative method, understanding of reasons, opinions and motivations are

considered rather than statistics. Qualitative research can be done in many ways.

Participant Observation: Here a researcher acts like a customer and collects data.
Researchers can go round the industry and find out what is truly needed for our
event planning firm (McDonald, 2015).

Direct Observation: This observation is made by just watching or experiencing.

Researcher or expert watches what is going around the business and make a report.

Unstructured Interviews: Direct interview takes place between interviewers and

participants. No particular question is asked. Respondents expression is different
from each other (Dewey and Hinchey, 2018).

According to Eventbrite.com, the UK event planning industry is worth 42.3 billion

pounds. 65000 pounds is the average fees or average budget of attendees. Besides,
top 10 event planning firms earn 3.5 billion pounds. London is the destination for
meeting place and business events. More than 1.4 million business events held
every year in the UK with more than 85 million attendees. 83% of event planning
agencies are increasing. 56% of the organization has received funding.

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 P4 Interpret data appropriately to provide evidence of market potential.

In the UK, the event planning market is very high and its worth is 42.3 billion pounds.
65000 pounds is the average fees or average budget of attendees. Besides, top 10
event planning firms earn 3.5 billion pounds. London is the destination for meeting
place and business events. More than 1.4 million business events held every year in
the UK with more than 85 million attendees. 83% of event planning agencies are
increasing. 56% of the organization has received funding.

Now the fact is market gap analysis. Gap compares the actual performance with
potential or desired performance. It can be directed in different perspectives such as
organization, business direction, business process and information technology.
Market gap refers to strategic and tactical decisions based on market facts, not
subjective opinion (Gillin and Schwartzman, 2016). There is a way of gap analysis.

Step 1: Plan. There exist two levels for planning. It may be individual planning or
team company planning. In my business, I will hire experts and build a team. This
team will help in making plans. Although event planning makes 42.3 billion pounds’
business, it is very much competitive with thousands of start-ups.

Step 2: Identify important skills. We have to Identify what skills will be valued and
what skills our employees, as well as management, should be taught.

Step 3: Measure current skills. It is essential to identify and measure current goals
so that we will be able to set future goals or target. To measure skills, we can use i.
Surveys and assessments ii. Interviews with employees iii. Feedback from
performance reviews (Planning, 2017).

Step 4: Act on the data. Primarily there are two ways to fill gaps. These are training
and hiring. Most of the companies train their employees, brush up their skills and
make preparation for their work activities (Gillin and Schwartzman, 2016). The right
training can close the gap to a great extent.

Hiring is also very crucial for any company. We have to pay more attention to the
hiring process to find out best-fitted employees. Structured recruitment and selection
round should be imposed.

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 LO4 Evaluate the entrepreneurial idea in the context of the market and
competitors and make an assessment of potential viability.

P5 Apply a SWOT framework to collate evidence to support an objective

assessment of a specific entrepreneurial idea.

My entrepreneurial idea is launching an event planning firm in the UK market. In the

context of the UK market, the event planning market is very much profitable and its
worth is 42.3 billion pounds. 65,000 pounds is the average fees or average budget of
attendees. Besides, top 10 event planning firms earn 3.5 billion pounds (Palepu et al.,
2018).

SWOT framework is described below.

Strengths of the Event Planning Firms:

1. Booming Industry: Event planning business is one of the booming industry in

the UK. It is continuously growing. Moreover, London is the destination for
business events. More than 1.4 million business events held every year in the
UK with more than 85 million attendees. So, this industry will grow more.
2. Market Gap: Although a lot of business or trading is occurring regarding event
planning, there exist a lot of markets. For new initiator, it is very much helpful
(Palepu et al., 2018).

3. Busiest Work Schedule in the UK: UK working force have busiest work
schedule. They hardly get any time to arrange further event either it is a family
party or social. They need to look for an event planner for arranging events.
4. Experienced team ensure better events: Event planning firms are at home in
organizing events. That’s why they are very much acceptable to the people.

Weaknesses of the Event Planning Firms:

1. Lack of Funds: New businesses are suffering from funds. They hardly can
compete with old firms for want of money. Building an effective and efficient
team gets hampered due to low investment (Harrod, 2016).
2. Little or no brand recognition: Most of the event planning firms have no
brand recognition and struggle a lot. People can hardly rely on this event
planning firms.

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3. Inefficient Management System: Most of the event planning firms have
inefficient management system all over the UK. That’s why it runs slowly, loses
data, can’t handle immense Internet traffic.

Opportunities for the Event Planning Firms:

1. Little Competition: If we operate in a niche market, we can enjoy little

competition. A lot of niche market still can be found in the UK market. If we
can grab a niche market, it will be easier to grow.
2. Favourable Economic Condition: The UK’s economy is very much
favourable for business. This situation can be a great ally for the event
planning firms (Harrod, 2016).
3. Support from Government: UK government is very much helpful to small
and medium businesses. Event Planning firms can easily be a part of it.

Threats for the Event Planning Firms:

1. Strong Competition: Nowadays a lot of people are involving in the event

planning business. It can be a vital factor affecting the success of our target.
2. Bad Weather: Bad weather in the UK can hamper the business a lot. This is
a particularly serious threat when organizing an outdoor event
3. Unprepared Infrastructure: Infrastructure is not duly prepared for most of
the event planning firms. That’s why many firms are eliminated while
negotiating with customers (Palepu et al., 2018).

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 P6 Evaluate the competitive and market environments in which the idea will
be launched to assess potential viability.

Nowadays business is very much competitive all over the UK. Micro, small and
medium businesses contribute 65% of total employment. All aspects of society are
now under business. Event Planning Firms are not different from them. This industry
is valued 18.2 billion pounds annually. Competitive and market environments are
described below.

Social Environment: From the context of the social environment, the event planning
firms receive plenty of advantages. People around us are very much busy with their
job, business or work activities. They have little time to arrange events either it is a
family event or social. So, most of us are bound to take help from the event planner.
Moreover, event planning firms are at home in organizing events. They can arrange
a comparatively low time and perfectly (Kempner, 2015).

Economic Environment: The UK economy is very much sound and perfect for this
business. Moreover, there occurs an opportunity to receive bank loans or small loans
for the business. More than 1.4 million business events held every year in the UK
with more than 85 million attendees. 83% of event planning agencies are increasing.
56% of the organization has received funding.

Regulatory Environment: The UK’s regulatory system is very much strict. Any kind
of fraud is about impossible from business license to business execution. Buying
Power: A good number of event planning firms exist in the UK (Lederman and Klein,
2017). Moreover, we are focusing on underprivileged people who hardly run after
event planners. So, our service is unique and potential buyers have fewer options to
consider.

Substitution: There remains a high risk from the threat of substitution as we are
living in the age of technology where artificial intelligence, as well as the internet of
things, is very much available (Lederman and Klein, 2017). A cheap substitution can
overtake our business in the following years.

New Entry: This field is very much open in the UK. Moreover, business license and
bank loan are also very available for the initiator. It takes a very little effort to get an
entry in this market (Kempner, 2015).

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Technology: Technology plays a significant role in approximately in every business.
It reshapes the business style, approach and even if consumers. Most of the event
planning firms rely a lot on technology (Lederman and Klein, 2017). A to Z management
activities is done through technology. Many event management firms are introducing
artificial intelligence as well as the internet of things for the welfare of the business.

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 Conclusion

Business is everywhere. A lot of business sources and a market gap occurs all
around us. My entrepreneurial idea, launching an event planning firm in the UK
market may seem little but this industry contributes 42.3 billion pounds in the UK
economy. It is essential to create more opportunity for small and medium businesses
to make the UK economy stronger than before. Market research and proper
interpretation should be given more attention. Besides, competitive and market
environments should get proper concern.

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 References

I. Casson, M. and Buckley, P. (2015). Entrepreneurship. Cheltenham (UK): E.

Elgar.
II. Dewey, J. and Hinchey, P. (2018). Democracy and education. Bloomfield: Myers
Education Press.
III. Finnegan, G. (2017). Market research. Centre for Co-operative Studies.
University College Cork.
IV. Gillin, P. and Schwartzman, E. (2016). Social marketing to the business
customer. Hoboken, N.J.: Wiley.
V. Harrod, W. (2016). Reward status and expectation states.
VI. Kempner, T. (2015). The economic environment. [Henley-on-Thames]:
[Administrative Staff College, Henley].
VII. Kotler, P., Armstrong, G. and Opresnik, M. (2018). Principles of marketing.
VIII. Lederman, J. and Klein, R. (2017). Market neutral. Chicago: Irwin Professional
Pub.
IX. McDonald, M. (2015). Market Segmentation. Wiley.
X. Nirjar, A. (2016). Entrepreneurship development. New Delhi: CBS Publisher &
Distributors.
XI. Oldcorn, R. (2016). Management. Basingstoke: Macmillan Business.
XII. Palepu, K., Healy, P., Bernard, V., Wright, S., Bradbury, M. and Lee, P. (2018).
Business analysis & valuation.
XIII. Planning .. (2017). New York City: National Municipal League.
XIV. Whiteley, P. (2017). Motivation. Oxford, U.K.: Capstone Pub.
XV. Wood, M. (2015). The marketing plan handbook. Boston: Pearson.

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Questionnaire

1. How many days you keep in hand before ordering bakery foods (including cakes, bun,
desert, etc.)?

a. less than 24 hours

b. 1 day

c. 2 days

d. More than two days

2. Have you faced emergency delivery-need of bakery products?

a. very often

b. sometimes

c. never

3. Do the current delivery facilities from different bakeries are satisfactory?

a. Yes b. No c. No comment

4. Do you think the bakery-food delivery system should have changes?

a. Yes b. No c. No comment

5. Do food delivery companies deliver foods with sufficient care?

a. Yes b. No c. No comment

6. Do you think bakeries should take steps for delivering their own products?

a. Agree b. Disagree c. Neutral

7. Will it be helpful if a bakery offers pre-ordered products for internal or external events in
less than 24 hours with home delivery facilities?

a. Yes b. No c. No comment

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