Modern Management: concepts and skills, 14/e

Opportunity Evaluation

In the previous section, we discussed opportunity identification, which is the first step of the entrepreneurship process. In this section, we discuss the second stage of this process: opportunity evaluation. Opportunity evaluation occurs when an entrepreneur decides whether he or she has just a good idea or a viable opportunity that will provide the desired outcomes.23 The evaluation step is “where the rubber meets the road,” and it often presents a challenge. When evaluating opportunities, entrepreneurs must be honest with themselves.24 If they are not, they may purposely ignore or accidentally overlook important factors that will limit the potential success of the opportunity.

Figure A2.2 Determinants of opportunity ...