Entrepreneurship Management

Project Identification
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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
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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
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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

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Criteria for selecting a project

Investment size

Location of project

Technology to be used

Equipment

Marketing
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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