Question

Explain five factors that an entrepreneur would consider when evaluating a business idea

Answer 1

1. Profit to be earned in order to cover all operational expenses
2. Technology to be used in producing the product
3. Availability of market/ demand which should be adequate
4. Government policy/legal requirement which should be favorable
5. Channel of distribution to ensure the product is available in the market
6. Competition should be fair
7. Capital should be adequate to start
8. Input/supplies which should be minimal
9. Payback period which should be reasonable in relation to amounts invested