1. Entrepreneurship
Senior High School Applied - Academic
Unit 3: Business Opportunity Seeking, Screening, and Seizing
Lesson 3
Opportunity Screening: Pre-
feasibility and
Feasibility Study
2. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
In what ways can an
entrepreneur solidify the
development, execution,
and growth of any
business idea?
2
3. Learning
Objective
ENGAGE EXPLORE EXPLAIN EXTEND
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 EXPLAIN EXTEND
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 EXPLAIN EXTEND
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 EXPLAIN EXTEND
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 EXPLAIN EXTEND
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 EXPLAIN EXTEND
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 EXPLAIN EXTEND
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 EXPLAIN EXTEND
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 EXPLAIN EXTEND
EVALUAT
Market Potential and Prospects
Market potential pertains to the size of the
market or consumers who will avail of the
product or service.
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Factors in Conducting a Pre-feasibility Study
12. ENGAGE EXPLORE EXPLAIN EXTEND
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
14. ENGAGE EXPLORE EXPLAIN EXTEND
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 EXPLAIN EXTEND
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
17. ENGAGE EXPLORE EXPLAIN EXTEND
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 EXPLAIN EXTEND
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 EXPLAIN EXTEND
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 EXPLAIN EXTEND
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 study can 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 EXPLAIN EXTEND
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?
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23. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Elements of Feasibility Study
1. Technical feasibility
2. Commercial feasibility
3. Resource feasibility
4. Legal feasibility
5. Operational feasibility
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25. ENGAGE EXPLORE EXPLAIN EXTEND
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 EXPLAIN EXTEND
EVALUAT
Activity
List down at least five differences between a
pre-feasibility and feasibility study.
26
27. ENGAGE EXPLORE EXPLAIN EXTEND
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?
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28. ENGAGE EXPLORE EXPLAIN EXTEND
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?
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29. ENGAGE EXPLORE EXPLAIN EXTEND
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 EXPLAIN EXTEND
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
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A pre-feasibility study 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 feasibility study 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.
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
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.
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.
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.
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.
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.
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.
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.
