BASIC EDUCATION DEPARTMENT

ENTREPRENEURSHIP MODULE
SY 2022-2023 I FIRST QUARTER

Date:

I. LEARNING OUTCOMES

At the end of this module, you should be able to:

1. Discuss the meaning of opportunity screening.
2. Identify and discuss the 12 Rs of opportunity screening.
3. Discuss the pre-feasibility study and enumerate the factors to be considered in a pre-
feasibility study.
4. Discuss the feasibility Study

II. TOPICS

A. 12 Rs of Opportunity Screening
B. Pre-Feasibility Study
C. Factors to be Considered in Pre-Feasibility Study
D. Feasibility Study

III. RESOURCES
 Textbook
 Powerpoint Presentation

IV. VALUES/CHARACTER INTEGRATION

“Failure is only the opportunity more intelligently to begin again.”
- Henry Ford
“For Christ did not send me to baptize, but to preach the gospel—not with wisdom and eloquence, lest
the cross of Christ be emptied of its power.”
- 1 Corinthians 1:17

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 V. INTRODUCTION

Opportunities are among the most essential elements of one's existence in life. Everyone
aspires to be the best in a given field or career. However, before counting the dots of excellence,
there must be an opportunity to try out the field. An opportunity is a chance to perform something
that is beneficial to a person or a company. The purpose of this paper is to describe the business
opportunity and how I was able to locate one. It includes the criteria for identifying business
opportunities as well as the strategy for their implementation. This article will also show the needs
and significant concerns that must be examined when identifying a business opportunity.

VI. BODY
 Opportunity Screening- Process by which entrepreneurs evaluate innovative product ideas,
strategies, and marketing trends.
 12 Rs of Opportunity Screening:
1. Relevance – The opportunity must be aligned to the vision, mission, and objective of
the entrepreneur.
2. Resonance – Opportunities must match the values and desired virtues of the
entrepreneur.
3. Reinforcement of Entrepreneurial Interest – The opportunity must be aligned to
the entrepreneur’s personal interest, talent, and skills.
4. Revenues – The opportunity must be able to generate revenue for the business.
5. Responsiveness – The opportunity must be able to fill the needs and wants of the
market.
6. Reach – The opportunity must have a good chance of expanding area-wise to other
locations.
7. Range – The opportunity must be able to expand the market; thus, tapping many
market segments in the industry.
8. Revolutionary Impact – The opportunity will most likely be a game-changer that
will revolutionize the industry.
9. Returns – The opportunity must be able to yield a high return on investment.
10. Relative Ease of Implementation – The opportunity must be relatively easy to
implement based on the skill of the entrepreneur.
11. Resource Required – The opportunity most likely requires fewer resources.
12. Risks – The opportunity must carry fewer risks than the others.
 Three Ways to Screen Opportunities:
1. 5-Point Test – The process of screening opportunities that involves 5 factors that
an entrepreneur must answer.

5-Point What it is?

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 Customer Is the market real?

Timing Is it big enough?

Finance Can it be profitable?

Product Can we differentiate?

Competitiveness Can we win?

2. Industry Analysis – The process of screening opportunities that involves the

analysis of other businesses in the industry.
 Five Forces on Industry Analysis:
1. Rivalry of Competition
2. Threat of New Entrants
3. Threat of Substitutes
4. Bargaining Power of Suppliers
5. Bargaining Power of Suppliers
3. Opportunity Screening Matrix - Tool that aims to assist entrepreneurs to
concretize the evidence that the chosen opportunity (or opportunities) is well worth
pursuing.

Notes:
1. Score = Weight x Rating
2. Criteria numbers 1 to 10 are positive indicators; meaning, the more of them, the better.

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 3. Criteria number 11 and 12 are negative indicators; meaning, the fewer of them, the better.
Hence, the rating system is reversed for the negative indicators.
4. Weight will range from 1 to 4 depending on the weight or importance of the criteria.

 Market Research - The process of gathering, analyzing, and interpreting information about a
market, about a product or service to be offered for sale in that market, and about the past,
present, and potential customers for the product or service.
 Pre-Feasibility Study - It is a rough screening aiming at identifying the most promising
idea(s) and discarding the unattractive options. 
 Factors to be Considered in a Pre-Feasibility Study:
I. Market Potential and Prospects – The entrepreneur must be able to identify the
market potential base on the estimated number of possible customers who might avail
of the product or service. Process of Identifying Market Potential:
1. Segmenting the Market – These refer to the process of dividing the
market in determining the target segment based on the set of
demographics such as gender, age, place of residence, income class, etc.
2. Assessing Competition – The process in order to determining the
available supply in the given area.
3. Estimating Market Share and Sales – The process that enables the
entrepreneur to determine the available demand on the market for his
product by:
a. Subtract the supply from the demand in order to get the GAP.
b. Determine the number of customers your business can
accommodate per year to get the market share for the first year.
c. Divide the Market Share to GAP to get the Market Share
Percentage for the first year.
d. Use the Market Share Percentage for the next projection in order
to determine the Market Share.
II. Technology Assessment and Operations Viability – This refers to the factor that
the enterprise must be able to go through the intricacies of detailing the operations
that would require by the business. Four Target Customer Expectations Affecting
the Scale and Complexity of the Business:
1. Quantities Demanded – This would determine the needed capacity of
operation.

2. Quality Specifications Demanded – This would dictate the; quality of

inputs or raw materials, quality assurance process, quality outputs or
products, and quality outcomes for the customers.
3. Delivery Expectations – Knowing how much, how frequent, and when
to deliver to customers.
4. Price Expectations – The price of the product or service would be
evaluated by the customer according to the value they receive.
III. Investment Requirements and Production/Serving Cost – This refers to the cost to
be inquired by the business.
1. Pre-Operating Cost - Costs related to the preparation of the business.
2. Production/Service Facilities Investment – Refers to the long-term
investment for the actual business establishment such as land,

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 buildings, machinery, equipment, computers, software, furniture,
vehicles, etc.
3. Working Capital Investment – This includes the investment needed
to operationalize the business.
IV. Financial Forecasts and Determination of Financial Feasibility
IV.1 Financial Forecasts – These refer to the pre-determined financial
statements of the business in the next few years.
1. Income Statement or Statement of Financial Performance –
Detailed summary of the business’s profit for the year of operation.
2. Balance Sheet or Statement of Financial Position – Detailed
summary of the business’s assets, liabilities, and equity from the start
of operation.
3. Cash Flow Statement – Detailed summary of the business’s cash
transaction for the year. Includes financial, investing and operation
activities of the business.
4. Funds Flow Statement – Detailed summary of the inflow and outflow
of the business’s funds.
IV.2 Determination of Financial Feasibility – The degree to which a business is
financially possible and attractive.
1. Payback Period – How long will it take for the business to acquire
back the expenses in establishing the business.

2. Return on Sales – Refers to the value of profit being earned by the

business for each peso sold.

3. Net Present Value - The difference between the present value of cash
inflows and the present value of cash outflows over a period of time.
4. Return on Asset or Investment - Performance measure used to
evaluate the efficiency or profitability of an investment
 Feasibility Study - An analysis that considers all of a project's relevant factors—including
economic, technical, legal, and scheduling considerations—to ascertain the likelihood of
completing the project successfully.

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 VII. SUMMARY/CONCLUSION

People are faced with decisions all of their lives. Education, lifestyle, friendships, and
professional path are just a few of the options available. Many people believe that money is the most
essential aspect of life; nevertheless, all that is required to be really fulfilled is a passion for what one
does. Following one's own aspirations and following a calling that is meaningful to them is an
important lesson to learn. Some people can pursue their ambitions by working for a well-established
organization, whilst others must forge their own path by starting their own business.

VIII. ASSESSMENT

Recitation

IX. REFERENCES
A. Textbook
Entrepreneurship: Starting an Enterprise. Having an Innovation Mindset by Joey
Concepcion and Ramon Lopez pages 117-133
Entrepreneurship by Eduardo A. Morato, Jr., DPA
Pages 43 - 58.
B. Video Presentation

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