* Meaning of project * Project identification * Project selection

1. PREPARATION OF PROJECT

5.  Meaning of Project
 ‘Specifically Evolved Work Plan’ devised to
achieve specific objective within a specified
period of time
 It is a scheme,design,a proposal of something
intended to achieve
 Each project differs in size,nature,objective &
complexity

6. Definition of Project A/C to General economists &
Bankers
 The World Bank
 Harrison
 Newman,Summer & Warren
 Little & Mirless
 Gillinger
 Vasanth Desai

7. Classification of “PROJECT”
 Quantifiable & non-quantifiable
Projects
 Sectoral Projects
 Techno-Economic projects

8.  Projects for which a right quantitative assessment of
benefits can be made are termed as quantifiable projects
Ex: power generation,mineral,development,industrial
development etc.,
 Projects for which quantitative assessment cannot be
made are termed as non-quantifiable projects
Ex: health,education,defence etc.,

9. 2. Sectoral Projects
o Automobile sector
o Agricultural sectoral
o Power sector
o Health sector
o Education sector
o Transport sector
o Manufacturing sector
o Food processing sector
o Mining sector
o Irrigation sector
o Miscellaneous sector etc.,

10. 3. Techno-Economic Projects
Factor
intensity
oriented
Cause
Oriented
Magnitude
Oriented
 capital intensive
 Labour intensive
 Demand
 Raw material
 Large scale
 Small scale
 Medium scale

11. PROJECT IDENTIFICATION
 A ‘project’ having a good market is generally selected
by an entrepreneur
 Project identification is concerned with collection of
economic data, compiling & analyzing it
 A/C to peter F.Drucker : 3 types of opportunities :
Additive, complimentary & break through
 Hence identifying project is a crucial step in any
business

12. Ways of identifying a ‘PROJECT’
 Observation
 Trade & professional magazines
 bulletins of Research Institutions
 Government sources

13.  Opportunity Scanning & Identification
 Knowledge of potential customer need
 Watching emerging trends in demands for certain
products
 Knowledge about the Government policy
 Ideas generated by concerned people
 Scope for producing substitute product
 Visiting trade fairs,exhibitions of new products
 Observation of market & similar products
 competitor’s products
 Ideas given by friends & relatives based on their
intuition & observation

14. 3. PROJECT SELECTION
 ‘Project selection’ starts from where project
identification ends
 Existing economic conditions,the govt policies,target
markets,profit,availibility of raw materials & skills ect,.
 SWOT & SCOT Analysis { analysis of strength,
weakness or constraints, opportunities & threats } with
respect to product
 Studies: market share,profit,life of product, export
possibilities etc,.
 Finally the threats like competition, import of similar
product into market, government policies, technological
obsolescence etc,.

15. Points to be considered in selection of a project
 Technology
 Equipment
 Investment size
 Location
 Marketing

16. 1. Technology
The technology required to develop the project
should be available within or preferably available
indigenously. It makes life easier to start with.
2. Equipment
The availability of equipment should be studied.
The Entrepreneur should select the best
equipment available for the project

17. 3. Investment size
The study of investment required is to be made
rationally & accurately. Wrong estimation may lead
to shortage of funds in the middle of ‘project’.
4. Location
Suitable location of project is very important. The
entrepreneur should locate the project where
resources & raw materials are available. setting up
the project at notified area by Government.

18. 5. Marketing
Marketing plays an important
role. The prepared product
should be marketable. One
should estimate the
correct/reliable & market
share for his product

19.  Conclusion
So, in this session you have learnt about
 What is a project
 Meaning of a project & its definition
 Classification of project
 Project identification & strategies
 Sources of project ideas
 Project selection
 Analysis of project

20.  http://www.rejinpaul.com
 www.citystudentsgroup.blogspot.com
Principles of Management - P. C. Tripathi, P. N. Reddy; Tata
McGraw Hill 4th Edition.
 Dynamics of Entrepreneurial Development & Management –
Vasant Desai Himalaya Publishing House.
 Entrepreneurship Development - Small Business Enterprises
Poornima M Charantimath .
 Management Fundamentals - Concepts, Application, Skill
Development Robert Lusier – Thomson.
 Entrepreneurship Development - S S Khanka - S Chand & Co.
 Management - Stephen Robbins - Pearson Education /PHI -
17th Edition.

21. Any Questions?