Idea or Prime Opportunity? A Framework for Evaluating Business Ideas for New and Small Ventures

Entrepreneurs and entrepreneurship educators recognize that only a small percentage of venture ideas actually represent viable business opportunities. This paper addresses the important issue of opportunity recognition using a framework designed with a mnemonic structure for easy recall and based on the extant literature on opportunity recognition. The framework prompts users to examine Product/service, Resource, Individual, Market, and Economic start-up issues. Thus, the PRIME analysis is a heuristic designed for initial opportunity evaluation of a business concept prior to preparing a full-blown business plan. We discuss and apply this framework, demonstrating its effectiveness in the classroom and in practice.