In previous two parts we already know projects definition, project situation, project classifications.Describing Project classifications we can easily differentiate projects categorizations which one is extremely to complete this procedure.
Now some questions arises, how the entrepreneurs do finally select a project ?the fact remains that inspite of increasing literature on entrepreneurship development, comparatively little is known about how an entrepreneur identifies and selects a project .Hence, it is somewhat difficult to state in any categorical manner as to how an intending entrepreneur should proceed to select his/her project .As a matter of fact, project selection is not a nebulous idea .it is a well outlined game plan . There is a definite procedure of selecting a project .Basically, project selection consists of two main steps:
If anyone asked one intending entrepreneur what project he/she will select, the obvious answer would be “project having a good market” . But the question is how without knowing the product could one determine the market? Whose market will find out without knowing the item .Idea generation about a few projects provides a way out of above tangle.
Project selection process starts with the generation of a product idea. In order to select the most promising project . the entrepreneur needs to generate a few ideas about the possible projects he/she undertake. The project ideas can be discovered from various internal and external sources. These may include-
Knowledge of potential customer needs
Watching emerging trends in demands for certain products
Scope for producing , substitute product
Success stories of known entrepreneurs or friends or relatives
Meeting with the government agencies Ideas given by the knowledgeable persons
A new product introduced by the competitor.
All of these sources putting together may give a few ideas about the possible projects to be examined as the final project .This is also described as “opportunity Scanning and identification.”
project selection starts from where project identification ends .after having some project ideas, these are analysed in the light of existing economic conditions the government policy and so on. A tool generally used for this purpose is, what is called in the managerial jargon ,SWOT analysis.
Written By jannatul ferdous Anonna