Generally; Project Identification is a process of generating a few ideas about the possible projects. The project ideas can be discovered from various internal and external sources. It is apprehensive with the collection, compilation and analysis of economic data for the eventual purpose of locating probable opportunities for investment. Actually, Project identification means identifying some possible projects having a good market.
Steps in Project Identification – For identifying the feasible projects, the prospective entrepreneur has to go through the following steps.
Conceiving project ideas – This is the first vital stage in project identification. Profit making is the chief drive behind every business or enterprise.
Choosing the right line of business – To ensure the success of the business, the potential entrepreneur has to spend substantial time and energy on choosing the right line of activities.
Opportunity seeking – A number of business opportunity may be obtainable; however, seeking the right business opportunity depends upon the entrepreneur’s capabilities, his strengths and weaknesses and also on his preferences.
Decision-making process – This final step in project identification involves making important decisions regarding the project to be undertaken. Project identification cannot be complete without identifying the characteristics of the project.