Unit 27: Identifying Entrepreneurial
Opportunities
Unit code Y/508/0540
Unit level 5
Credit value 15
Introduction
The role of the
entrepreneur is to weigh up opportunities, threats and personal capacity to
translate an opportunity into a business idea. This unit provides students with
an understanding of where new venture ideas come from and gives them the
opportunity to investigate and evaluate a new venture idea.
Students will
explore concepts of innovation and creativity and develop creative abilities.
They will learn about and use methods and frameworks to help develop and assess
venture ideas, including defining product/service benefits, identifying target
customers and understanding the industry and competitors from the perspective
of a new entrant. They will learn about market research and apply primary and
secondary research techniques to investigate a personal entrepreneurial idea
and make an assessment of whether it is likely to be a commercially viable
business or social enterprise proposition.
Learning
Outcomes and Assessment
|
Pass
|
Merit
|
Distinction
|
|
LO1 Evaluate possible sources for a new and
|
|
|
innovative business idea
|
|
|
P1 Determine
and
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M1 Provide a detailed
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D1 Critically evaluate the
|
|
evaluate
different sources
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evaluation of
Drucker’s 7
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benefits and drawbacks
|
|
of
entrepreneurial ideas
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sources of
systematic
|
of different approaches
|
|
and
innovation providing
|
innovation
providing
|
and sources that can lead
|
|
specific
examples.
|
specific
examples.
|
to the identification of
|
|
|
|
entrepreneurial ideas
|
|
LO2 Explain the choice of a specific
entrepreneurial
|
|
|
idea for investigation and the market gap that it
|
|
|
addresses
|
|
|
P2 Explain
the rationale
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M2 Provide justification
of
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D2 Critically evaluate a
|
|
and the
market gap for a
|
how a
specific
|
specific entrepreneurial
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|
specific
entrepreneurial
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entrepreneurial
idea fills a
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idea based on
|
|
idea using
relevant tools
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market gap
using
|
appropriate
|
|
and techniques
to
|
different
techniques for
|
interpretation and
|
|
support your
choice.
|
gap and
competitive
|
investigation of the
|
|
|
analysis.
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competitive market place.
|
|
LO3 Use primary and secondary data to identify
market potential
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|
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P3 Present
data needed to support gap analysis in the evaluation of a specific
entrepreneurial idea.
P4 Interpret
data appropriately to provide evidence of market potential.
|
M3 Justify
specific sources and methods of data collection chosen and how data relates
to identifying market potential.
|
D3 Analyse appropriate specific sources and methods
of data to provide justified business objectives and identify market
potential.
|
|
Pass
|
Merit
|
Distinction
|
|
LO4 Evaluate the entrepreneurial idea in the
context of the market and competitors and make an assessment of potential
viability
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D4 Formulate valid conclusions and justified
recommendations on how a specific entrepreneurial idea can be developed, managed
and sustained within the competitive market place.
|
|
P5 Apply a
SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea.
P6 Evaluate
the competitive market place in which the idea will be launched to assess
potential viability.
|
M4 Critically
evaluate a specific entrepreneurial idea in the context of the marketplace
and competition.
|
Learning
Outcomes
By the end of
this unit a student will be able to:
- Evaluate
possible sources for a new and innovative business idea.
- Explain the
choice of a specific entrepreneurial idea for investigation and the market gap
that it addresses.
- Use primary and
secondary data to identify market potential.
- Evaluate the
entrepreneurial idea in the context of the market and competitors and make an
assessment of potential viability.
Essential
Content
LO1 Evaluate
possible sources for a new and innovative business idea
Sources of
business ideas
- External/macro-environmental
sources of change that create opportunities (Drucker’s 7 sources of innovation,
STEEP factors).
- The role of the
‘entrepreneur’ in weighing up opportunities, threats and personal capacity to
translate the opportunity into a business idea.
- Personal
situational factors and knowledge.
Types of
innovation:
- The scope of
innovation, particularly in relation to small firms.
- The different
types of innovation: product and process innovation; incremental vs big bang;
Schumpeter’s sources of innovation.
- The difference
between invention and innovation and the role of creativity. Exploring the
difference between a product or service idea and a business idea.
- Innovation and
location and the role of ‘clusters’ in fostering innovation amongst small
firms.
Exploring
creativity:
- Understand and
practice using creativity techniques to generate ideas.
LO2 Explain the
choice of a specific entrepreneurial idea for investigation and the market gap
that it addresses
Identifying
customers:
- Understand the
need to identify specific customer types for targeting new ideas. Behavioural,
demographic and geographic segmentation.
- Tangible and intangible
features and benefits of a product or service.
Understanding
the industry environment:
- How the
industry environment affects the likely success of a new entrant.
- Explore
Porter’s Five Forces model to analyse the attractiveness of an industry from
the perspective of a new entrant.
- Approaches to
competitor analysis relevant to entrepreneurs and small firms. Industry
life-cycle.
LO3 Use primary
and secondary data to identify market potential
Market
research:
- Primary and
secondary research techniques for the investigating of new business ideas.
Identify, plan
and undertake market research required.
- The use of new
technologies for audience research and analysis: use of big data to assess
market trends, internet forums and social media to test market responses and
evaluation.
Gap analysis:
- Gap analysis to
explain the gap in the market and the target customer group.
LO4 Evaluate
the entrepreneurial idea in the context of the market and competitors and make
an assessment of potential viability
Methods of
Evaluation:
- Evaluation of
ideas using SWOT based on evidence from macro-environment, market and
competitor analysis.
- Objective
assessment of the idea to judge whether it is likely to be viable as a business
or social enterprise proposition.
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