CBSE BoardEnglish MediumSTD 11 CommerceEntrepreneurshipEntrepreneurship Journey4 Marks
Question
Describe the importance of evaluating ideas.
✓
Answer
Idea evaluation is an important step in researching the venture's feasibility because of the following reasons:
Helps in deciding what is important: Idea evaluation forces the entrepreneur to decide what is important to the successful venture, which the entrepreneur is undertaking.
Helps to identify strengths and weaknesses of the idea: By evaluating the strengths and weakness of each idea, the entrepreneur identifies and assesses the strong and weak points. By this one gets information which helps to make a better decision.
Helps to make the best use of limited resources: It provides an idea about limited resources at disposal. Mostly entrepreneurs have limited resources in the form of money, time, people, etc. They can make sure that their choices make the best use of the available limited resources.
Helps to minimize risks while maximizing return: Every entrepreneur like to have the least uncertainty or risk while getting the return from entrepreneurial decisions and actions. An entrepreneur puts in the effort to evaluate potential of the venture undertaken for maximizing the possible returns.
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