SCREENING

OF PROJECT IDEAS

•It is the process

of evaluating the
 project ideas with
a view to select
the best and
•CRITERIA USED IN SCREENING PROJECT
IDEAS:
promising idea after eliminating the unprofitable
ideas
• It is not a detailed evaluation

•
•

It Compatibility with the entrepreneur: it should be

is an attempt to select the more worthwhile ideas suitable and accessible to him. It must offer future
prospects ang higher return on capital employed.
from the list of ideas generated
It should not be beyond his capacity
• Consistency with government regulations and
priorities: the project should not violate
government regulations and control. He should
take into account government policies •
Availability of inputs: the resources and inputs
required for the project must be
reasonably assured.
• Marketing facilities: the size of the existing
market must offer the prospect of adequate
sales volume. He should assess
each and every factors before taking the final
decision
 •
Profitability: it is an important
factor which influence the selection process. The project yielding higher
return must be selected.
•
Cost of the project: a study of the cost structure gives a good idea
regarding different types of costs
•

Level of risks: while selecting the project it becomes essential to assess the
level of risk involved in the project. These risks have to be assessed before
selecting the project.
 •Other factors: it includes payback, expected life, environmental impact etc. •
Mere ideas cannot be called opportunities. Ideas become business opportunities if
they have possibility of success.

• Selection of the project

• It is the most critical decision
• Criteria for selecting a project
• Investment
• Location
• Technical knowledge

• Profitability
• Risk
• Availability of market
• Competition
• Government policy