What is Entrepreneurship Development?

Entrepreneurship development is the process of enhancing the entrepreneurial knowledge and

skills via structured training programmes. It deals with the study of entrepreneurial behaviour,
dynamics of business, and its development and expansion. The objectives of entrepreneurship
development programme are to increase the knowledge and skill of existing entrepreneurs and
encouraging others to become one. Ultimately, it helps in increasing the number of such
individuals in an economy.

Entrepreneur development focuses on training individuals who are interested in commencing

their venture or expand their existing one. Furthermore, it concentrates more on encouraging
innovation and evaluating the growth potential of an enterprise. This development process helps
new firms to perform better and achieve their goals and expand their businesses. As a result of it,
the economy of a nation also improves. Moreover, it enables entrepreneurs to develop and
manage their business better along with the financial insecurities associated with it.  

An increase in the rate of development of entrepreneurship ventures alleviates the problem of

unemployment in an economy. Additionally, it decreases the issue of stagnation and increases
competition in the market. A process like this aims to develop the competence of an entrepreneur
and his/her venture. Therefore, it enhances entrepreneurial objectives and encourages more
people to become an entrepreneur.

Objectives of Entrepreneurial Development Programme (EDP) :

Following are the main objectives of EDPs :

1. To make people learn compliance with law.

2. To develop and fortify entrepreneurial quality, i.e., motivation or need for achievement.
3. To develop small and medium scale enterprises in order to generate employment and
widen the scope of industrial ownership.
4. To industrialize rural and backward sections of the society.
5. To understand the merits and demerits of becoming an entrepreneur.
6. To investigate the environmental set-up relating to small industries and small businesses.
7. To design project for manufacturing a product.
8. To increase the supply of entrepreneurs for quick industrial development.
9. To prepare individuals to accept the uncertainty involved in running a business.
10. To develop managerial skills among small entrepreneurs for improving the performance
of small-scale industries.
11. To offer profitable employment opportunities to educated young men and women.
12. To expand the sources of entrepreneurship.

Entrepreneurship Development Process

Every entrepreneurship development process comprises several steps. Here are the vital steps of
building an effective development programme to help individuals –
 1. Business Idea
It is the starting processes of entrepreneurship. Once, an individual has generated the idea for a
business, he/she will subsequently need to evaluate and identify its business opportunities.
Hence, he/she has to learn more about the business and its consumers.
However, it is not an easy task. To find relevant information, an entrepreneur has to talk to
his/her employees, the marketing team, product designing team, etc. Apart from these, consumer
surveys often unearth various new pieces of information. They can help individuals to learn more
about their business ideas.

2. Thorough Evaluation
Before moving forward, entrepreneurs need to evaluate a business idea or opportunity
thoroughly. An entrepreneur can do it by himself/herself by considering the following points –
 Whether an opportunity or idea is worth investing or not.
 What are the requirements for this product?
 Is it feasible or not based on its cost?
 What are the competitive advantages?
 Associated risks
 Whether it coincides with the company’s goal or not
Additionally, an entrepreneur must evaluate his/her skills and if he/she can manage such it.

3. Business Plan 
After identifying the opportunity and gathering information about it, an entrepreneur needs to
create a comprehensive business plan to make most of this opportunity. It is one of the
vital stages of entrepreneurship development process. Such a plan acts as the base of a venture as
well as the benchmark. It shows whether the business in on track or not.
Creating a business plan requires time and effort, and an entrepreneur must be dedicated to it.
The significant pieces of a business plan, i.e. its vision, goal, objectives, capital and the product
itself must be figured out in this process.

4. Finding Resources
Once the entire business plan is ready, the next step of entrepreneurship development and
management is to locate sources of finance and human resources. Here entrepreneurs find
investors for his/her venture. Moreover, recruits individuals as per their skill and abilities to carry
out different business activities. 

5. Framing out the Management Structure

It is a crucial concept of entrepreneurship development. After raising funds and hiring the
required employees, this is the next process on the list. An entrepreneur must frame out the
hierarchy in the organisation. Thus, it becomes easier to resolve any problem through this chain
of command.

6. Plan the Future

Once a business is up and running smoothly, an entrepreneur has to consider its future. In this
final point of entrepreneur development programme notes, businesspersons decide the next step
of the business. Based on actual data generated by the company and pitting it against the
projected one gives a clear idea of how the business is performing. If everything is positive and
on track, then an entrepreneur decides to invest in expansion.

In a nutshell, an entrepreneurship development process is about assisting individuals in

improving their skill via training. Thus, it aids such individuals to make better decisions in their
existing ventures or encourages them to start a new one. Moreover, it is an important topic for
commerce students. Additionally, students who want to know more on other topics of this
subject can visit the official website of Vedantu. 

What is Idea Generation?

Idea generation is the creative process or procedure that a company uses in order to figure out
solutions to any number of difficult challenges. It involves coming up with many ideas in a
group discussion, selecting the best idea or ideas, working to create a plan to implement the idea,
and then actually taking that idea and putting it into practice. The idea can be tangible,
something you can touch or see, or intangible, something symbolic or cultural.

Business idea generation is a search for opportunities for new avenues of growth in business.
As per peter Drucker the opportunities are of three types:
1. Additive Opportunities: Here better and intense utilization of existing resources is
called for from the decision makers. This also means changes in production and
marketing strategies.
2. Complementary Opportunities: Bring new ideas in existing products or bring in value
addition or changes desired in the market. Here character of business is likely to change
the risk in business increases.
3. Breakthrough Opportunities: New product, new areas, new technologies bring in
fundamental ideas. Breakthrough changes structure, strategies and business character.
The element of risk is the highest and is combined with highest gains in case of success.

Business opportunity
Definition
A business opportunity is a packaged business investment that allows the buyer to begin a
business.
Meaning
A business opportunity, in the simplest terms, is a packaged business investment that allows the
buyer to begin a business. A business opportunity is an arrangement where a third party (the
seller) offers to sell you products, equipment, supplies or services to enable you to start your own
business.
Business opportunity involves sale or lease of any product, services ,equipment etc that will
enable the purchaser licensing to begin a business.

Identification of business opportunities / Scanning the environment for opportunities

1. Identifying Market inefficient: When an individual looking at the market one must consider
what inefficient are present in the market, one should have an idea on who to correct this
inefficiency? So therefore an individual must have knowledge about how to create an
opportunity with the help of market inefficiencies.
2. Remove Key hassles: One should take a look at some of the key hassles customers face when
buying or using product or services. An individual need not necessary to have a new product or
services. one can be innovative and improve a productive, a service or business process.
3. Consumer Behavior: Consumer behavior will explain the tastes and preferences of the
consumer and throw light on the demand situation. One may or may not have business idea or
business process to serve a market. An individual can take advantages of market inefficiencies to
exploits opportunities.
4. Pick a growing sector or industry: Which considering new business. It improve to look at
whether an idea is in a growing sector or industry. For example A lot of start ups in sector in
India very well because there was huge demand in the industry.
5. Product differentiation: Creating superior product or services alternative is improvement for
using in the market place. The product introduced by an individual should be from the existing
product.
6. The study on financial support: The study on financial support will examine the quantum of
money required sources of obtaining finance subsidies an incentives available , cost of finance
and the break even period. At the start up stage cash flow consideration are just improvement as
any other business function. No business man can run a business without cash flow
consideration.
7.It is a seasonal Business: When picking a new business consideration whether it it’s a
seasonal or the year around. If decides on the seasonal business he need to consider how to
operate during off the season will help to get through the off season.
8. Conduct a survey/ research: Conduct a survey / research and collect information on the
existing condition of the propsed product/ service to be manufactured / rendered

Evaluation of alternatives
Establishing a small business unit involves and requires the preliminary study of several factors
associated with it. The study of these factors will help the evaluation of different alternatives
available to continue or drop the proposed business. For each of the proposed business it is
always necessary to prepare two to three plans considering the existing resource and
competencies of entrepreneur. Of these proposed plans a viable plan has to selected or all plans
can be rejected, if it is not viable on any score in long-term

Sources of Idea Generation
A good idea can come from anywhere and at any time. An idea generation source refers to the
people or places from where the idea was inspired. It can be affected by both external, as well as
internal sources. The R&D department or the analytics employees are a part of the internal
sources.
On the other hand, external sources combine to form suppliers, focus groups, educational
institutions, distribution channels, customers, government, and competitors.
Entrepreneurs throughout the world use the following sources to tap to identify good ideas:
1. Customers
Prospective customers know best what they want and the habits/tastes that will be popular
shortly.
New product or service ideas may come from customers’ reactions to the present product and the
expected product idea.
Contacts with prospective consumers can also reveal the features that should be built into a
product or service.
The attention to the customers can take the form of informally monitoring potential ideas and
needs or formally arranging surveys among prospective customers.
Care needs to be taken to ensure that the idea or need represents a large enough market to
support a new venture.
2. Existing organization
Competing products and services of existing organizations and evaluation thereof is a successful
source of new ideas.
Frequently, this analysis uncovers ways to improve on these offerings, resulting in a new product
that has more market appeal.
The analysis of profitability and break-even level of various industries or organizations indicate
promising investment opportunities which are profitable and relatively risk-free.
An examination of the capacity utilization of various industries provides information about the
potential for further investment.
3. Distribution channels
Member of the distribution channels; intermediaries, transient customer preference, and possible
expectations may be a good business idea.
Not only do channel members frequently have suggestions for completely new products, but they
can also help in marketing the entrepreneur’s newly developed products.
4. Government
The government can be a source of new product ideas in many ways.
First, the files of the Patent Office contain numerous new product possibilities. They can suggest
other more marketable new product ideas.
Secondly, new product ideas can respond to government regulations, industrial policy,
investment guidelines, annual plan, Five-year plan, etc.
Thirdly, several government agencies nowadays assist entrepreneurs in discovering evaluating
business ideas.
Fourthly, government publications on trade and industry can also help set new venture
ideas.
5. Financial institutions and Development Agencies
These organizations also provide ready projects and offer suggestions to potential entrepreneurs
who help identify promising projects.
Community Development Financial Institutions Fund, Small Business
Administration, Office of Advocacy, United States Chamber of Commerce, Economic
Development Administration, Small Business and Entrepreneurship Council, House
Committee on Small Business, and many other bodies in the USA are working to improve
entrepreneurship and small businesses.
6. Research and Development
The entrepreneur’s own “research and development” is the largest source of new ideas. It may be
a more formal endeavor connected with one’s current employment or an informal laboratory in
the private premises.
Formal institutional research and development are often better equipped, enabling the
entrepreneur to conceptualize and develop successful new product ideas.
But many amazing product ideas have come from informal research endeavors at the private
level.
7. Trade Shows, Fairs aid Exhibitions
These sources display new products and innovations in processes and services.
An innovative entrepreneur can get product ideas to adapt or modify and produce with
indigenous materials and technology.
8. Focus Groups
Focus groups are good sources of product ideas.
A moderator leads a group of people through an open, in-depth discussion rather than simply
asking questions to solicit participant response; for a new product area, the moderator focuses the
group’s discussion in either a directive or a nondirective manner.
The group of 8 to 14 participants is stimulated by comments from other group members to
conceptualize and develop a new product idea to fulfill market needs.
This is an excellent method for initially screening ideas and concepts too.
9. Brainstorming
The brainstorming method for generating new product ideas is based on the fact that people can
be stimulated to greater creativity by meeting with others and participating in organized group
experiences.
This method would be effective if the effort focuses on a specific product or market area. The
following four rules should be followed when using this method:
1. No criticism is allowed by anyone in the group – no negative comments.
2. Freewheeling is encouraged- the wilder the idea, the better.
3. Quantity of ideas is desired- the greater the number of ideas, the greater the likelihood of
useful ideas emerging.
 4. Combinations and improvements of ideas are encouraged – ideas of others can still
produce another new idea.
The brainstorming session should be fun, with no one dominating or instituting the discussion.
10. Collective Notebook Method
In the collective notebook method, a small notebook that easily it’s in a pocket, containing a
statement of the problem, blank pages, and any pertinent background data, is distributed.
Participants consider the problem and its possible solutions, recording ideas at least once but
preferably three times a day.
At the end of the month, a list of the best ideas is developed, along with any suggestions.
11. Heuristics Method
Heuristics relies on the entrepreneur’s ability to discover through a progression of thoughts,
insights, and learning.
The technique is probably used more than imagined because entrepreneurs frequently must settle
for an estimated outcome of a decision rather than a certainty.
One specific heuristic approach is called the heuristic ideation technique (HTT).
The technique involves locating all relevant concerts – that could be associated with a given
product area and generating a set of all possible combinations of ideas.
Value analysis Method: The value analysis technique develops methods for maximizing value to
the entrepreneur and the new venture. It is a method for developing a new idea by evaluating the
worth of aspects of ideas.
Under this technique, regularly scheduled times are established to develop, evaluate, and refine
ideas.
12. Checklist Method
A new idea is developed through a lot of related issues or suggestions.
The entrepreneur can use the list of questions or statements to guide the direction of developing
entirely new ideas or concentrating on specific “idea” areas. The checklist may take any form
and be of any length.
One general checklist is :
 Put to other uses? New ways to use as is? Other uses if modified?
 Adapt? What else is like this? What other ideas does this ‘ suggest? Does the past offer
parallel? What could I copy? Whom could I emulate?
 Modify? New twist? Change meaning, sour, motion, odor, form, shape? Other changes?
 Magnify? What lo add? More time? Greater frequency? Stronger? Larger? Thicker?
Extra value? Plus ingredient? Duplicate? Multiply? Exaggerate?
 Minify? What substitute? Smaller? Condensed? Miniature? Lower? Shorter? Lighter?
Omit? Streamline? Split up? Understated?
 Substitute? Who else instead? What else instead? Another ingredient? Other material?
Another process? Other power? Other places? Other approaches? Other tones of voice?
 Rearrange? Interchange components? Other Pattern? Other layouts’.’ Other sequences?
Transpose cause and effect? Change pact? Change schedule?
 Reverse? Transpose positive and negative? How about opposites? Turn it backward?
Turn it upside-down? Reverse roles? Change shoes? Turntables? Turn other cheeks?
 Combine? How about a bend, an alloy, an assortment, an ensemble? Combine units?
Combine purposes? Combine /appeals? Combine ideas?
13. Synectics Method
Synectic is a creative process that forced individuals to solve problems through four analogy
mechanisms: ‘ personal, direct, symbolic, and fantasy. A group works through a two-step
process.
The first step is to make the strange familiar.
Through generalizations or models, this involves consciously reversing the order of things and
putting the problem into a readily acceptable or familiar perspective, thereby eliminating the
strangeness.
Once the strangeness is eliminated, participants engage in the second step, making the familiar
strange through personal, direct, or—symbolic analogy, which ideally results in a unique
solution being developed.
14. Dream Approach
The big dream approach to coming up with a new idea requires that the entrepreneur dreams
about the problem and. Its solution- thinking big.
Every possibility should be recorded and investigated without regard to all the negatives
involved or the resources required.
In other words, ideas should be conceptualized without any constraints until an idea is developed
into a workable form.
15. Market Gap Analysis
Market gap analysis is a powerful method used to uncover areas in the market in which the needs
and wants far exceed the supply.
This method has a hopper or gathering effect of converting everyday information into bunches of
lucrative product and service gaps that few have thought of before.
16. Life-style analysis Method
Entrepreneurs can use lifestyle analysis effusively for product-service ideas. Lifestyle is a
person’s pattern of living expressed in his or her psychographics It involves measuring
consumers’ major activities (work, hobbies, shopping, sports, social events), interests (food,
fashion, family, recreation), and opinions (about themselves, social issues, business, products).
The lifestyle analysis will help entrepreneurs understand new needs and want under the changed
conditions. It will also reflect the changing consumer values that may be a good source of
product-service ideas.

Idea generation steps
The idea generation is not compiled in a single approach; instead, it is continuous innovation and
improvement. Companies have recognized the importance of idea generation and are supporting
their employees for the same.
This procedure usually begins with a proper understanding of the job that you are going to
execute. The aim is to generate questions that will act as fuel to your motivation. Secondly,
propose suitable solutions for them. In the end, choose the most effective alternative, followed
by its proper implementation.
Thomas Alva Edison developed a systematic method of idea generation that includes a series of
effective steps. This made the idea generation process more convenient to apply and get the
desired results out of them. This proved to be a game-changer in the market practices.
Thomas Edison put forward the following steps:
1. Enabling: The search for the right field of innovation
2. Defining: Develop search queries and specify search paths
3. Inspiring: Search for thoughts and stimuli from other areas
 4. Selecting: Generate and evaluate ideas
5. Optimizing: From the initial idea to the mature concept
6. Nurturing: Enrich ideas with various implementation strategies
Several online tools similar to Innolytics® Innovation are used to enhance the systematic idea
generation process. Various solo stages are defined so that the ideas are properly channelized.
The ideas can change an ongoing trend and create a better strategy to generate innovative
concepts for everyone.

Idea Generation Techniques
According to Thomas Alva Edison, he suggested some of the steps for ideas generation, which
were, firstly, enabling the search in the right field. Secondly, defining in which each query is
looked upon.
Thirdly, inspiration includes searching for thoughts. Fourthly, select the generated ideas. Fifth,
optimizing the idea and providing it the direction. Six, nurturing the ideas with the
implementation of strategies. While some more idea generation steps can be:

1. The 5W+H Method

An ideal generated idea is the one which must answer, Who, What, Where, Why, When and
How., which is the method of 5W and H. These were the parameters, on which, if the ideas are
generated, might result in a great solution which on implementation might prove to be the best
one.
2. Social Listing
A problem arises when more of the competitors are into the same product line as yours. So, to
reduce the communication gap, this social listing is done. It can be done by-polls on social media
sites such as Reddit, Twitter, etc.
The customers’ reactions are taken, and through this reaction, ideas are being formatted so that
the customers feel attracted towards the product and our product turns out to collect huge
revenues.
3. Brainstorming
It is prevalent as well as a popular tactic followed by every business. All the suggestions from
the overall group of people are considered; may it be right, may it be wrong. All that matters here
is the idea.
A very quick session on brainstorming and filtering the final idea is done before the execution
step.
4. Role-Playing
Working in the same office or with the same colleges, some people might feel bored. As a result
of this, all the business persons need to do is switch places, then trying to ask for ideas will help.
Trying to embrace their view does not guarantee immediate results but would act to be the best
one in the long run. Because it acts as a motivation for colleges and sometimes might lead to
great results. This might turn out to give incredibly new and unique ideas that can be generated.
5. Mind Mapping
Mind mapping can turn out to be another successful method in generating ideas. It can be done
by diagrammatically representing the task of the concept.
A non-linear graphical layout can represent it. Or it can be said that brain-mapping is a
screenplay in which one central character that has a leading role is placed between the map,
while the elements that link to it must be centered around the movie.
6. Think In Reverse
This being a very popular method or idea-generating step will help in the long run. But how can
this one be possible? Sometimes, if we know what is not to be done, we can get to know where
the mistake has taken place if we try thinking this way.
If we aim to think about every possible mistake to reach the desired goal, thinking in advance
will help. In the end, making the idea an all-rounder hit.
7.  Idea Capture
Some people might have the same opinion, and their ideas might clash, about any problem in the
same manner at the same time. Hence, to avoid the same situation, Idea Drop software can be
used, such as similar ideas strike off.
8. Questioning Assumptions
In the industry, many times, the work is confined to get all the things done. Hence, this might
lead to untapped opportunities and questions, leading to a barrier to generating ideas.
Thus to avoid the same situation, a creative challenge must be designed, from this collection of
feedback and assumptions might be done. Now looking for that idea or assumption that can be
utilized for the present problem must be chosen.
9. Collaboration
As the name suggests, two or more people work together to achieve a particular goal. This
method is again the most popular one. Many people join their hands for a particular project or so;
this is done because a team always has more ideas and innovations than one business person.
10. The Story Boarding Method
It is a method in which the ideas or the concepts are placed to look like that of a cartoon strip.
Then a story is being developed from it. Ideas are being taken from every colleague, and then a
sticky note is then being passed on aboard.
This makes a story. In this manner, the ideas interact, and a connection is established in them.
11. Sketching as a Group
As we know, if something is drawn as a picture or sketch, our sensors of the brain start acting,
and the sketch which has been visualized by the eyes remains in the memory for a longer time as
compared to the discussions being made.
Thus if a rough sketch of ideas is made on the whiteboard or so, it could be easier for others to
understand, and if they have innovative ideas, they can come up with them.
12. Forced relationship
in this technique or step, all the ideas are combined, leading to the production or invention of a
completely new idea.
13. Visualization and visual prompts
It is the visualization of the issues that are being first overlooked, and in the subconscious mind,
the ideas are functioning for the problem that is being occurred.
It is the illumination in which the person thinks of the problems related to the ideas and pen them
down on paper. This visualizes the actual problem, the real solution is then looked upon, and the
ideas are crafted in that particular style.
14. Use online Tools
Ideas can too be identified across the multidimensional internet. Ideas are available here in great
abundance. One of these platforms can be Evernote, which provides solutions that are well-
formatted and helpful. And this allows one to write thoughts instantly.
15. Scamper
scamper stands for the acronym in which each letter stands for action verbs. Let us check:
S- Substitute
C- Combine
A- Adapt
M- Modify
P- Put to another use
E- Eliminate
R- Reserve
16. Synectics
With this research technique’s help, it can now be possible to describe and teach the process and
churn out more innovative ideas.
17. Daydreaming
It can help in triggering the most innovative ideas. In this technique, a scenario is created to
establish an emotional connection between the goal and the task.
It is a thought process in which creativity and resources are combined so that a new and
innovative solution to the present problem can be figured out effectively.
18. Accidental Genius
It is a very new and innovative technique, which focuses on triggering the participant’s best
ideas, which will help improve the business’s position.

Screening of business Ideas

The screening stage has two major purposes. The first is to eliminate ideas that are clearly
unworthy of further consideration and the second is to select from among the remainder those
with enough promise to warrant exploratory work by technical research. The object is to
eliminate unsound concepts prior to devoting resources to them.
Idea screening is the process of reviewing the available ideas in terms of their feasibility and
viability to know the profitability of ideas available.

Screening Ideas and Making Preliminary Investigations

Having a strong stream of ideas is a good starting point. The more the ideas that can be generated
the lower the cost per idea produced. Beyond this, the effectiveness of a company in spotting
good and bad ideas comes into play. The earlier it can discard ideas that have no real potential,
the better. For this reason there is value in having a screening process for each idea that
establishes it very quickly as good or bad. There are some criteria that are fundamental and that
can be applied first:
1. Company ability to make the offering,
2. Fit with company production capabilities or technical expertise,
3. Fit with company objectives and image,
4. Market sales and profit potential, and
 5. Fit with current offerings and distribution channels.
This initial screening will remove the weakest ideas from further scrutiny in the most efficient
way. The remaining ideas can then be subjected to further screening. This incorporates
ypreliminary investigations of how customers will react to the offering and how competitors will
respond.

Feasibility of Business Idea

After choosing a business idea, test the idea to gain a sense of its feasibility .Some business
owners pick an idea and immediately move forward, but it is much better to pause and spend
some time scrutinizing the idea.
The proper sequence in thinking through the merits of a business idea and launching a business is
as follows:
1. Identifying a business idea,
2. Screening and testing the idea to determine its initial feasibility,
3. Writing a business plan,
4. Launching the business.
Complete this process to avoid falling into the” everything about my idea is wonderful” trap. All
business ideas have strong and weak points, and everybody should be aware of both before
proceeding. In addition, studies have shown that prospective business owners tend to
overestimate their chances for success. As a result, one needs to gain an objective assessment of
its potential. There are four areas to be considered in testing the initial feasibility of a business
idea:

1) Product/ Service feasibility: Determine if the proposed product or service is desirable

and services a need in the description of the product or service and its benefits,
i. A description of the product or service and its benefits,
ii. The intended target market,
iii. description of how the product or service will be sold,
iv. A brief description of the company’s initial management team.
After developing the statement, one should show it to ten to fifteen people who can provide
informed feedback. Attach a short survey to the statement that asks the participants to:
i. Tell you the things they like about the product or service idea,
ii. Provide suggestions for making it better,
iii. Tell you whether they think the product or service idea is feasible , and
iv. Share additional comments or suggestions, tally, read, and evaluate all responses.
Instead of developing a formal concept statement, some prospective business owners simply talk
about their idea with people and gather informal feedback. Either approach is valid as long as the
feedback you obtain gives you a good sense of the feasibility and desirability of your product or
service idea and any areas in which it might need to be tweaked or strengthened.

2) Industry/ Niche Market feasibility: The second area to explore is the industry of which your
business will be part of and the niche market you plan to go after. The most attractive industries
for new business have the following characteristics:
i. Are large and growing rather than small and shrinking,
ii. Are early rather than late in their lifecycles,
 iii. Are important to their customers(by selling products or services that people “must have”
rather than “ would like to have”),
iv. Feature environmental trends moving in favor of the industry,
v. Have high rather than low operating margins.
You should also assess the attractiveness of the specific niche market that has planned to target.
An ideal market for a start-up is one that is large enough for the proposed business but small
enough to avoid attracting larger competitors.
Finding good information on your industry and niche market takes a little work. The best place
to start is to tap into the resources available at a university or large public library. Industry trade
journals and magazines also provide information. Talking to business owners who are part of the
industry that you have planned to enter is another option.

3. Organizational Feasibility: The third area to explore is whether the proposed business

has sufficient managerial know-how and expertise to be launched and successfully
managed. This task requires the people starting the business to be honest and candid in
their –assessments. The two most important factors are the passion that the individuals
have for the business and the extent to which the people involved understand the industry
in which the business will complete.
There are other people – related factors that have been linked with linked with start-up success:
i. Relevant industry experience or prior business start-up experience,
ii. Experience and expertise in cash flow management,
iii. Access to mentors or people who can provide start-up advice,
iv. Level to creativity,
v. Undergraduate or graduate degree.
While you do not have to score high on each of these factors to be a successful business owner,
looking over this list. Combined with how passionate you are about the business and how well
you understand the industry in which the business will compete, should give you a general sense
of how prepared you are to start the proposed business.
You need to have a sense of how much it will cost to launch the proposed business. Prepare a
preliminary budget that lists the operating expenses and capital purchases required to get the
business up and running. After you arrive at a total figure, provide an explanation of where the
money will come from. If you expect the money to come from a bank loan, from an investor or
from friends and family.s