Importance Of Evaluation Of Business Opportunity In The Process Of New Venture Creation Example Of Private Entrepreneurial Initiative In Preschool Education

Entrepreneurial process is the process from idea to entrepreneurial venture. It consists of several phases that guide future entrepreneurs through the process of idea validation and defining all the elements needed for starting a business venture. Understanding the entrepreneurial process is important for understanding "the big picture" of entrepreneurial venture, which includes all the elements that are needed to convert an idea to a successful business venture. The most important thing in this process is to evaluate whether an idea is a business opportunity. Business opportunity is the initiator of business venture and it consists of a series of circumstances in the market that enable turning a business idea into a business venture. There are many tools and methods that can be used in the process of evaluation and validation of a business idea. These methods can also help in the process of modification and adaption of the business idea to the environment in which the business venture will develop. Vast majority of entrepreneurs pay too much attention to business idea and they decide to start a business venture without a lot of thinking and researching. Because of that, many business ventures fail at the beginning of their existence. The goal of this paper is to explain the importance of understanding the difference between business idea and business opportunity, to explain different methods of evaluation of business opportunity and to explain the importance of balance of the main elements of business venture (business opportunity, resources and team). Using the example of private initiative in preschool education (starting a Montessori kindergarten,) the goal is to show how a seemingly good business idea does not have to be a good business opportunity.