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ENTREPRENEURSHIP

CLASS- XI

Lesson Note-8

CH-3: TOPIC – ENTREPRENEURSHIP JOURNEY

SUB-TOPIC: - IMPORTANCE OF BUSINESS IDEA AND FEASIBILITY STUDY

Importance of evaluating ideas

1. To decide what is important

Idea evaluation is important because it forces the entrepreneur
to decide what is important to the entrepreneurial venture, which

the entrepreneur is pursuing. Potential ideas should be evaluated

against what is important to him/her.

2. To Identify Strengths and Weaknesses of the Idea

Another reason that idea evaluation is important is that all ideas
are not created equal some ideas that an entrepreneur comes up

with will have better chances of success than others.

By evaluating the strengths and weakness of each idea, the

entrepreneur is forced to identify and assess the strong and weak

points because in looking at the strengths and weaknesses of each

alternative one is getting information to help one to make a
better decision.

3. To make the best use of limited resources

The next reason why idea evaluation is important has to do with

the reality of limited resources at disposal. Most entrepreneurs

have limited amount of money, time, people or other resources
that will be needed to pursue their entrepreneurial ideas by