Learning Object 1

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’ infostering innovation amongst small firms.

Exploring creativity:

• Understand and practice using creativity techniques to generate ideas.

Unit 27:  Set Assignment / Scenario

As a graduate you are seeking to set up your own start-up business. You have had several ideas but only one can be viable. In preparing a pitch to present to financial investors you will provide the background to your sources of inspiration and the market research you have undertaken to support taking the idea forward.

Evaluate possible sources for a new and innovative business idea

P1.        Determine and evaluate different sources of entrepreneurial ideas and innovation.

M1.       Provide a detailed evaluation of Drucker’s 7 sources of systematic innovation providing specific examples.

D1.        Critically evaluate the benefits and drawbacks of different approaches and sources that can lead to the identification of entrepreneurial ideas

Learning Object 2

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

Unit 27:  Set Assignment / Scenario

As a graduate you are seeking to set up your own start-up business. You have had several ideas but only one can be viable. In preparing a pitch to present to financial investors you will provide the background to your sources of inspiration and the market research you have undertaken to support taking the idea forward.

Explain the choice of a specific entrepreneurial idea for investigation and the 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.

M2.       Provide justification of how a specific entrepreneurial idea fills a market gap using different techniques for gap and competitive analysis.

D2.       Critically evaluate a specific entrepreneurial idea based on appropriate interpretation and investigation of the competitive market place

Learning Object 3

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 assessmarket trends, internet forums and social media to test market responses and evaluation.

Gap analysis: Template

• Gap analysis to explain the gap in the market and the target customer group.

Unit 27:  Set Assignment / Scenario

As a graduate you are seeking to set up your own start-up business. You have had several ideas but only one can be viable. In preparing a pitch to present to financial investors you will provide the background to your sources of inspiration and the market research you have undertaken to support taking the idea forward.

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.

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.

Learning Object 4

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.

Unit 27:  Set Assignment / Scenario

As a graduate you are seeking to set up your own start-up business. You have had several ideas but only one can be viable. In preparing a pitch to present to financial investors you will provide the background to your sources of inspiration and the market research you have undertaken to support taking the idea forward.

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.

P6.        Evaluate the competitive and market environments 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.

D4.       Formulate valid conclusions and justified recommendations on how a specific entrepreneurial idea can be developed, managed and sustained within the competitive market place.