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Unit Overview

  • Course: Entrepreneurship Senior High School Applied - Academic Unit 3: Business Opportunity Seeking, Screening, and Seizing

  • Lesson Focus: Opportunity Screening: The 12Rs

Learning Objectives

  • Propose Solutions: At the end of the lesson, students should be able to propose solutions in the form of products/services that meet identified needs using techniques for screening opportunities.

Opportunity Seeking vs. Screening

  • Key Differences: Understand how opportunity seeking is different from opportunity screening.

  • Relevance in Entrepreneurship: Determine why screening opportunities is crucial in entrepreneurial processes.

Opportunity Screening

  • Definition: A process where entrepreneurs list several opportunities to evaluate before implementing a business idea.

  • Assessment Types:

    • Qualitative Assessments: Involves gathering information and recommendations.

    • Quantitative Assessments: Evaluates the viability of the business idea for attracting investors.

Why Evaluate Opportunities?

  • Key Factors:

    1. Provides remarkable value to customers.

    2. Solves a compelling need or problem in the market.

    3. Identifies a potential cash cow.

    4. Aligns with the entrepreneur’s skills, resources, and risk appetite.

The 12Rs of Opportunity Screening

  1. Relevance: Aligns with vision, mission, and objectives.

  2. Resonance: Matches personal and organizational values.

  3. Reinforcement: Supports existing enterprise strategies.

  4. Revenues: Potential for high financial returns.

  5. Responsiveness: Addresses customer needs and wants.

  6. Reach: Extent of market or demographic scope.

  7. Range: Variety of offerings or markets.

  8. Revolutionary Impact: Potential to create significant change.

  9. Returns: Expected profitability.

  10. Relative Ease of Implementation: Feasibility of execution.

  11. Resources Required: Assessment of necessary inputs.

  12. Risks: Understanding potential challenges and threats.

Example Application of the 12Rs

  • Case Study: An entrepreneur considers exclusive distributorship for homemade cheesecakes in a school cafeteria.

  • Matrix Evaluation: Each of the 12Rs is scored to evaluate viability with accompanying ratings ranging from very high to very low.

Summary of Evaluation Criteria

  • Criteria 1-10: Positive indicators (higher scores indicate better prospects).

  • Criteria 11-12: Negative indicators (lower scores are preferable).

Wrap Up

  • Concept Clarification: Opportunity screening is crucial for narrowing down business ideas into actionable plans. The 12Rs encapsulate the essential factors for making informed decisions in entrepreneurship.