Entrepreneurship and its significance

Discuss About The Competitive Advantage Marketing Creating.

Entrepreneurship is a practice that shows the willingness and capacity of an individual to develop and manage a business undertaking along with its risks so that it can marketing a significant profit. An example of entrepreneurship is to start a new business that is innovative and unique from existing business (Drucker, 2014). To produce profits, an entrepreneur combines labor, land, capital and natural resources. In today’s competitive business world, entrepreneurial spirit is featured by risk taking and innovation. There are some innovative businesses which can be an important part of country’s ability and they can change the life of people and environment in global environment.

Considering this fact, this report is focused on introducing a for-profit business of waste management that will be collecting, recycling/composting the market waste from municipality waste processing plant and factory emissions to use as a consumer good. The business will be named as “Safe Environment” which will aim to improve the life of people, environment and natural resources. This report describes the business model canvas for this new and innovative business idea that will be established in Australia. At the end, it conducts the feasibility analysis of Safe Environment’s business.

Australia is one of the richest nations all over the world still this country is losing the recycling race and it is ranked on 17^th among OECD countries. In the country, waste generation has increased considerably by 25% between 2006-2006 and 2016-17. Australian population is generating more waste at 2.2 tonnes of waste per person per year. Wastage is the most quickly increasing economic and environmental as per the report of ABS (Department of the Environment and Energy, 2016). The wastage in the country includes metal, industrial waste, food, paper, plastic etc. In this way, it is the best and innovative business idea to introduce in Australia so that it can assist country’s government and society.

Figure 1: Waste Generation of different OECD nations

(Source: Department of the Environment and Energy, 2016)

Safe Environment will be established to minimize different types of wastage in Australia. The organization will be set up in New South Wales as the rate of wastage is more than other states in country. This organization will work as a social enterprise that will work for the environment and society and it will generate significant profits by charging a reasonable price. This fees will be paid by the municipalities and related factories (Australian Bureau of Statistics, 2018). This new business will give municipalities a cost effective and feasible alternative to landfilling wastage. This organization will create an effective value proposition that will develop a positive perception in the mind of society people. In order to provide these services, Safe Environment will adopt effective tactics and strategies that will help the company to minimize the wastage and make changed in the life of people and environment.

Introduction to Safe Environment

Business Model Canvas is a startup and strategic management template that is used to develop new and document existing business models. It helps the new business to produce more revenues and profits in the particular industry (Boyd, et al, 2017). Business model canvas of a business includes different activities and processes by which a new startup develops and captures the value by establishing an operational communication among different ingredients of new business venture. Business Model canvas for Safe Environment is drawn in the below table:

Key Partners ·         Municipalities in New South Wales ·         Manufacturing firms in the areas ·         Green Markets ·         Organic Farms ·         Government ·         Domestic firms and institutions ·         Recycling units	Key Activities ·         Creating awareness towards waste minimization ·         Promoting environmental education ·         Creating better relationships with customers and firms ·         Collection of waste ·         Channelizing recycling waste materials to recycling units ·         Safeguarding the life of people and natural resources of Australian environment (Garlapati, 2016)	Value Proposition ·         Offering regular collection of wastage ·         Recycling the wastage to consumer goods ·         Reduce the waste management costs ·         Enhance customer by acquiring the customers who care about the environment via awareness and branding. ·         Use of innovative and modern technology in collection and recycling process ·         Adoption of best environmental practices and strategies.	Customer Relationships ·         Long term relationship with customers ·         Waste counselling to people and manufacturing firms. ·         Measurement of percentage waste minimization and cost reduction. ·         Ensuring the people to improve their lives ·         Ensuring the people for improving the lives of people	Customer Segments ·         Population in New South Wales ·         Manufacturing firms and factories ·         Environment concerned people ·         Government ·         Farmers
Key Resources ·    Good network with manufacturing firms and municipalities   ·   Hard working team ·   Financing ·   Hardworking volunteers ·   Waste collection trucks and bicycles ·   Support from municipality ·   Land to segregate the waste material	Channels ·         Waste Collectors ·         Branding and awareness campaigns   ·         Web-based recyclable waste collection platform like website and mobile app. ·         Events to aware the people and firms.
Cost Structure ·         Salaries to its staff and volunteers ·         Cost  of logistics to collect the waste materials ·         Costs of promotion and awareness campaigns ·         Spending on communication with manufacturing firms and others ·         Development and maintenance of app and website.	Revenue Streams ·      Monthly fees of waste collection from municipalities and factories ·      Profits and income from recyclable waste ·      Selling of recycled products    ·      Funds from government ·         Revenue generation from customer segment (Lehmann, and Joseph, 2015)

In business model canvas, it is one of the most significant blocks that are used to develop its customer base. For Safe Environment, the company is targeting the mass population of New South Wales, manufacturing firms and related factories, Government, environment concerned people, municipalities etc.  The organization is collecting the garbage and wastage from municipality waste processing plant (DaSilva and Trkman, 2014). By this business idea, the firm is targeting to make the Australia population and businesses free from wastage and population.

The value proposition of the company will be famous in the nation because it will be operating the business to resolve the social issue of waste minimization. The value proposition of Safe Environment is focused on providing the collect of wastage, recycling the waste into consumer goods and offering the waste management services on affordable prices. To attain its objectives and mission, the company will develop effective strategies and environment practices. It will encourage the people to involve in minimizing the wastage and protecting the environment.

For this business, it is essential to develop effective relationships with the targeted customers. Safe Environment will make the people sure that its unique and innovative business will make their life good and easier. It will provide waste management counseling to the people and manufacturing firms so that they can manage their factory emission (Ngoc & Schbitzer, 2009). Additionally, it will conduct campaigns to make personal contact with the targeted customers.

By using different channels, Safe Environment will communicate with the customers and offer its services. There will be some people who will go to collect the wastage and garbage from municipality processing and factories. It will conduct different awareness and branding awareness campaigns (Brunner & Rechberger, 2015). In addition to this, it will create a website and application to provide the recyclable waste collection services.

Key activities of Safe Environment include developing awareness towards waste minimization and promoting environmental protection in Australia. This business aims to collect the waste and recycle them in consumer goods. The company is introducing this business in Australia so that it can protect the life of people and environment. It will be able to generate the revenues by providing these services and attaining its objectives (West, Ford & Ibrahim, 2015).

Waste Generation Problem in Australia

The primary resources of Safe Environment are its volunteers and waste collectors who play an important role in this business. Moreover, other resources are such as funds, support from municipality, land to segregate the waste material, waste collection trucks and bicycles etc. The company will be developing good network with the government and municipalities.

Key partners of Safe Environment are municipalities in New South Wales, green markets, organic farms, government, manufacturing firms in the area, recycling units and domestic firms and institutions. These are the key partners of Safe Environment with whom the company will develop partnerships for providing its services in Australia (Kirzner, 2015). It will assist to minimize the issue of waste emission.

Through revenue streams, the company will be able to generate the revenues and profits. At Safe Environment, the revenue will be generated by collecting the monthly fees of the waste collection, income and profits from recyclable wastage, selling or recycled products and revenue from targeted customers. The revenue stream is wide for this business so it will be profitable for Safe Environment to establish this business in Australian state.

Cost structure of Safe Environment includes salaries and compensation to the employees, costs of logistics, cost of advertising and expenses on communication with manufacturing firms and others. In addition to this, this organization will spend an amount on development and maintenance of app and website (Thi, Kumar & Lin, 2015).

Feasibility analysis is a vital tool which is used by business to evaluate the risks and benefits that is linked with new business introduction (Ye, 2015). There are different types of feasibility analysis for Safe Environment which is stated below:

Market feasibility is the process to analyze and determine the market conditions in the country. In the case of new business venture, it plays a vital role to its growth. Under this analysis, Safe Environment will evaluate the conditions and trends in the market and environment (Martinez-Sanchez, Kromann and Astrup, 2015). As mentioned above, the percentage of wastage is higher among OCED nations so this business is profitable to establish in Australian market. The firm will be offering its waste collection services considering the increased wastage in rural areas. It will consider whether there are some other companies which are offering the similar services in New South Wales State.

Technical feasibility analysis is the analysis that is conducted on the basis of an outline that includes different needs of waste management system in the country. It will evaluate that company has the technical capabilities to complete the activities on time. Same Environment will develop a system by which it will offer its waste collecting services to the targeted customers (Kinnaman, 2017). It will use updated technologies to collect the wastages and to recycle it in consumer goods. In addition to this, logistic services will be used effectively. It will analyze different technical needs of business like website, mobile application, waste collection techniques, data sources etc.

Business Model Canvas of Safe Environment

Human resource feasibility has an important role as it is a primary resource for the business of Safe Environment. Safe Environment is planning to offer waste collection and management services to Australian population. The company will hire the staff and volunteers who are concerned towards social mission and society. Under this human feasibility analysis, the organization will ensure that its human resources management are making efforts to make the environment safe and pollution free. For this, the company will recruit the less educated individuals in Australia and develop employment opportunities for them. It will provide better salaries to its employees so that they can retain them (Caliendo, et al, 2015). Thus, analyzing the human feasibility will assess the competencies and skills of management.

Financial feasibility of a new business can be assessed looking at different information of company like profitability, fund generation, project costs and investment made by the company in starting phase. Safe Environment needs to focus on different costs and expenses which will occur in introduction phase. It will set a start-up budget by including different costs and expenses. It will consult pricing policies with the partners and suppliers (Martinez-Sanchez, Kromann and Astrup, 2015). The firm will use different technologies and techniques which will assist the organization to provide the services effectively. The start-up budget for Safe Environment is given below:

Start-up Requirements
Expenses	Amount
Capital Asset Purchase Employees’ salaries Promotion Website Development Rent Total Start-up Expenses	$100000 $15000 $1500 $1200 $1600 $119,300
Start-up Assets
Cash Long term Assets Current Assets	$70000 $0 $0
Total Start-up Requirements	$211,300

 

Conclusion

From the above analysis, it can be concluded that an entrepreneur needs to be very innovative and creative while introducing a new business. He/she needs to consider all the related factors and aspects. These factors assist the company to establish business successfully. The above report consists of all the important aspects and components in the form of business model canvas which are very important for the growth and success of business. By this business, Safe Environment will be able to minimize the wastage in Australia and its states. At the end, feasibility analysis of the company is conducted in context of different resources.

References

Australian Bureau of Statistics, 2018, Total Waste Generated, Available from https://www.abs.gov.au/ausstats/[email protected]/Lookup/by%20Subject/1370.0~2010~Chapter~Total%20waste%20(6.6.2). [Accessed on 27 May 2018].

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Department of the Environment and Energy, 2016, Australian National Waste Report 2016, Available from https://www.environment.gov.au/system/files/resources/d075c9bc-45b3-4ac0-a8f2-6494c7d1fa0d/files/national-waste-report-2016.pdf. [Accessed on 27 May 2018].

Garlapati, V.K., 2016. E-waste in India and developed countries: Management, recycling, business and biotechnological initiatives. Renewable and Sustainable Energy Reviews, 54, pp.874-881.

Kinnaman, T.C., 2017. The economics of residential solid waste management. UK: Routledge.

Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.

Lehmann, J. and Joseph, S., 2015. Biochar for environmental management: science, technology and implementation. UK: Routledge.

Martinez-Sanchez, V., Kromann, M.A. and Astrup, T.F., 2015. Life cycle costing of waste management systems: Overview, calculation principles and case studies. Waste management, 36, pp.343-355.

Ngoc, U.N. & Schbitzer, H., 2009, Sustainable solutions for solid waste management in Southeast Asian countries, Science Direct Journal.

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West, D. C., Ford, J., & Ibrahim, E., 2015, Strategic marketing: creating competitive advantage. Oxford University Press, USA.

Ye, C., 2015. Feasibility analysis of e-textbook and e-reader adoption at a business school: Perspective from information systems students. Academy of Educational Leadership Journal, 19(3), p.345.