Entrepreneurship Management

Project Identification

Entrepreneurship Management

Project Identification : Collection, compilation and analysis of

data to locate potential opportunities for starting business and development of such opportunities

Opportunity is a business concept, which if turned into a

tangible product or service, by the enterprise, will result into profit. It is all about creating values

The search of a good idea:

Generate your own idea Develop someone elses idea

Entrepreneurship Management

Opportunities are identified through innovation/search of business ideas. Types of innovation: Additive Innovation Fully exploiting already existing resources, such as product lines extensions Complementary Innovation Offers something new and introduces few changes in the structure of the business Breakthrough Innovation (Radical Innovation) Changes the fundamentals of the business, creating a new industry and new avenues for extensive wealth creation

Entrepreneurship Management

Importance of project identification

It has long term consequences (make or break) Involves commitment which can not be easily reversed Ideas are put into action Projects are catalytic agents for economic development Involves creative use of resources- manpower, capital, raw

materials etc.

Generates value addition and build-up national capital Brings socio-cultural development Leads to development of infra-structure and environment

Entrepreneurship Management

Criteria for selecting a project

Investment size Location of project Technology to be used Equipment Marketing

Entrepreneurship Management

Constraints in project formulation

Lack of a viable / feasible project idea Lack of realistic/ achievable objectives Lack of necessary resources / infrastructure to convert idea

into reality

Policies of government / Legal restrictions Lengthy and cumbersome procedures to get finance, start

business