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Entrepreneurship_PS_Unit3_Lesson3_Final.pptx
- 1. Entrepreneurship Senior High SchoolApplied - Academic Unit 3: Business Opportunity Seeking, Screening, and Seizing Lesson 3 Opportunity Screening: Pre- feasibility and Feasibility Study
- 2. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT In what ways can an entrepreneur solidify the development, execution, and growth of any business idea? 2
- 3. Learning Objective ENGAGE EXPLORE EXPLAINEXTEND EVALUAT At the end of the lesson, you should be able to do the following: Propose solutions in terms of products and services that will meet the need using techniques on screening opportunities. 3 3
- 4. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT 1. Why is it important to come up with an opportunity screening matrix when assessing the viability of a business idea? 2. What for you is the most relevant criterion in the 12Rs of opportunity screening and why? 3. Based on your own understanding, what is meant by the concept of the feasibility study? 4
- 5. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Pre-feasibility Study A pre-feasibility study refers to the analysis of a potential business opportunity at an early stage 5
- 6. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Pre-feasibility Study It is generally conducted to give possible investors the relevant information they need pertaining to the implementation of a business idea. 6
- 7. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Pre-feasibility Study This study is considered as a crucial aspect of opportunity screening, for it is designed to give an overview of the aspects of logistics, required capital, key challenges, and all other details deemed significant in pursuing an entrepreneurial decision. 7
- 8. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT When and Why Do Entrepreneurs Conduct a Pre-feasibility Study? Entrepreneurs conduct this type of study to determine whether a full feasibility study, which is relatively more costly, must be undertaken or not. 8
- 9. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT When and Why Do Entrepreneurs Conduct a Pre-feasibility Study? Entrepreneurs also make a pre-feasibility study to collect various pieces of information before making huge investments into different tasks such as acquiring permits, gathering resources, hiring staff, and purchasing tools and equipment. 9
- 10. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Factors in Conducting a Pre-feasibility Study 1. Market potential and prospects 2. Assessment of technology and operations viability 3. Investment requirement and production costs 4. Financial forecast and determination of financial feasibility 10
- 11. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Market Potential and Prospects Market potential pertains to the size of the market or consumers who will avail of the product or service. 11 Factors in Conducting a Pre-feasibility Study
- 12. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Example: Market Potential and Prospects Situationer: An entrepreneur is planning to put up a photo printing shop in an area surrounded by schools, colleges, and universities. Since photo printing services are usually availed by students and employees, the following data were gathered from 485 respondents to determine if the number of his target market in such an area meets the objectives of his proposed business. 12
- 13. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Example: Market Potential and Prospects 13
- 14. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Example: Market Potential and Prospects Conclusion: The entrepreneur was able to conclude that his proposed business of putting up a photo printing shop in the said area is viable since 38% of the total respondents are students, whereas 51% of them are currently employed. 14
- 15. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Assessment of Technology and Operations Viability In the entrepreneurial aspect, technology assessment or technology evaluation takes into account the various implications of a technology or innovation for a certain business activity, which often involves technology selection. 15 Factors in Conducting a Pre-feasibility Study
- 16. Remember 16 Assessment of technology specificallyaims to pinpoint if a technology, along with its other application areas, can generate a successful business in the future.
- 17. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Investment Requirement and Production Costs In all businesses, it is important for an entrepreneur to assess the amount of money needed to be able to start a business opportunity. 17 Factors in Conducting a Pre-feasibility Study
- 18. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Financial Forecast and Determination of Financial Feasibility In all businesses, it is important for an entrepreneur to assess the amount of money needed to be able to start a business opportunity. 18 Factors in Conducting a Pre-feasibility Study
- 19. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Feasibility Study A feasibility study is an in-depth report that covers many important points, including technical, commercial, legal, and scheduling issues. 19
- 20. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Feasibility Study This study is made by delving into the main aspects of the project, and it is conducted to assist an entrepreneur in determining whether or not a business opportunity must be pursued or not. 20
- 21. Remember 21 A feasibility studycan be defined as a comprehensive analysis of the practicality of the desired business, based on several factors such as the marketplace, industry, competition, technology, and other financial resources.
- 22. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Core Questions in a Feasibility Study ● Are both markets and industries attractive? ● Does the chosen business opportunity offer convincing benefits or advantages compared to other potential ideas? ● Will the team be able to produce the results they seek to deliver to others? 22
- 23. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Elements of Feasibility Study 1. Technical feasibility 2. Commercial feasibility 3. Resource feasibility 4. Legal feasibility 5. Operational feasibility 23
- 24. 24 What other elementscan you include in conducting a feasibility study?
- 25. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Steps in Conducting a Feasibility Study 1. Create a brief preliminary analysis 2. Outline the scope of your project 3. Understand the financial and operational costs 4. Review and analyze the data 25
- 26. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT Activity List down at least five differences between a pre-feasibility and feasibility study. 26
- 27. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT ENGAGE EXPLORE EXPLAIN EXTEND EVALUAT Questions Part A. Answer the following questions based on your understanding of the lesson: 1. How would you define the concept of pre-feasibility study? 2. What is the main difference between a pre-feasibility and feasibility study? 3. What is the relevance of conducting a feasibility study in entrepreneurship? 27
- 28. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT ENGAGE EXPLORE EXPLAIN EXTEND EVALUAT Questions 4. What information would you need to be able to forecast the financials needed by your proposed business? 5. What does preliminary analysis in a feasibility study entail? 28
- 29. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT ENGAGE EXPLORE EXPLAIN EXTEND EVALUAT Questions Part B. 1. How are pre-feasibility and feasibility studies connected to entrepreneurship? 2. Discuss at least three advantages of conducting a feasibility study. 3. What do you think is the reason why some businesses do not conduct their own pre-feasibility and feasibility study? 29
- 30. ENGAGE EXPLORE EXPLAINEXTEND EVALUAT ENGAGE EXPLORE EXPLAIN EXTEND EVALUAT Questions 4. What suggestion will you give in order to successfully conduct a feasibility study? 5. Between pre-feasibility and feasibility study, which for you is more vital in entrepreneurship? Cite the reason for your answer. 30
- 31. Wrap Up 31 A pre-feasibilitystudy is designed to give an overview of the aspects of logistics, required capital, key challenges, and all other details deemed significant in pursuing an entrepreneurial decision.
- 32. Wrap Up 32 A feasibilitystudy is an in-depth report that covers many important points, including technical, commercial, legal, and scheduling matters. Such a study aims to address questions concerning the viability of a business opportunity, how much it will cost, and whether it is able to follow the rules and regulations set by local and national laws.
- 33.
- 34. Bibliography Dollingner, Marc. Entrepreneurship:Strategies and Resources 3rd Edition. New Jersey: Prentice Hall, 2003. Guide to Preparing a Pre-Feasibility Study. Bridgewater Management Consulting Group, 2014. Kotler, Philip & Gordon McDougall. Marketing Essentials. Prentice-Hall Canada Inc., 1985. Nadal, Jordi. Technology Evaluation For Entrepreneurs. United Kingdom: Bookboon, 2018. Peters, Michael & Robert Hisrich. Entrepreneurship 4th Edition. McGraw-Hill Book Co., 1999. 34
Editor's Notes
- #2 GENERAL PARTS of this presentation: Engage- this is meant to capture the students’ attention, link their prior knowledge to the new topic, and set their expectations about the lesson. Explore- this is meant to elicit discussion, and encourage students to explore and derive ideas from questions, scenarios, activities, or discussion. Explain- this is meant for the teacher to use to synthesize students’ ideas from EXPLORE, and to emphasize on the key understandings needed for this lesson. Extend- this is an optional activity meant for guided practice. Evaluate- this is a quick check of students’ understanding of the lesson. Wrap Up- this is a reiteration of the key concepts of the lesson.
- #5 Note to teacher: You may discuss this in class to check prior knowledge and ideas of students about feasibility study by linking the concepts on the previous discussions on opportunity screening.
- #27 Note to teacher: You may ask the class to do this activity, individually, by pair, or by group. Afterwards, you may call some students to share to the class their answers. You may process the answers given by each students so that the class can have a common understanding of the topic.
- #28 Model Answer: A pre-feasibility study refers to the analysis of a potential business opportunity at an early stage. It is generally conducted to give possible investors the relevant information they need pertaining to the implementation of a business idea. Pre-feasibility study is the analysis of a business opportunity at an early stage. On the other hand, a feasibility study is an in-depth analysis of the viability of a proposed business idea. It is deemed more crucial than the pre-feasibility study. A feasibility study is relevant, for it aims to address questions concerning the viability of a business opportunity, how much it will cost, and whether it is able to follow the rules and regulations set by local and national laws.
- #29 Model Answer: It is important to have an income statement, balance sheet, cash flow statement, and funds flow statement to be able to forecast the financials needed by the proposed business of the entrepreneur. A pre-feasibility study generally entails the plan or purpose of the proposed business, the status of its potential market and competition, the viability of the business, and the risks involved in putting up such business.
- #30 Model Answer: Both pre-feasibility and feasibility studies are connected to entrepreneurship in such a way that they are both used in analyzing or evaluating the viability of a business opportunity. These studies serve as guides or roadmaps to help the entrepreneur in determining whether his proposed business must be pursued or not. First, a feasibility study helps the entrepreneur in making decisions with regard to his proposed business. Second, it prevents the entrepreneur from encountering future business dilemmas. Third, a feasibility study helps the entrepreneur in assessing the overall costs needed in putting up his business. The most common reason why some businesses do not conduct their own pre-feasibility and feasibility studies is that they think that conducting these studies are not useful at all. They tend to think that these studies will not give any benefits to their venture at all.
- #31 Model Answer: To successfully conduct a feasibility study, it is suggested that the entrepreneur make it as brief as possible and to only include relevant details and elements that will help him in establishing his business. The answer would depend on the preference and argument of the student.