# Data showcasing a sample application of a decision-theoretic approach for ranking future business pursuits

Published: 19 October 2020| Version 1 | DOI: 10.17632/kf9p2wywkx.1
Contributors:
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## Description

My research was centered around developing a decision-theoretic framework, based on the analytic hierarchy process (AHP), that entrepreneurs can use to rank start-up business ideas. This dataset includes: [1] A Microsoft Excel worksheet (start_up_selection_template.xlsx) can be used to perform the analysis and select the best idea amongst 3 business ideas. [2] 3 worksheets (inside the samples folder) that have been completed by 3 members of a team that is planning on launching a start-up. The 3 team members all have come together to launch a business but are unsure of the idea that they should select. Their brief profiles are given below: - Entrepreneur A: worked in film-production for two years and has decent industry contacts. - Entrepreneur B: loves to cook, has a genuine passion for food, and once operated a burger cart in a busy intersection. - Entrepreneur C: helped B operate the burger cart and has gathered extensive work experience in the HR department of a local conglomerate. The 3 business pursuits that the team has narrowed down are: - Idea 1: A delivery-only ‘cloud’ restaurant that will serve local delicacies. - Idea 2: A small fast-food joint on a busy street corner. - Idea 3: A video production company that will produce content for marketing agencies. Each team member has come up with their own rankings for the 3 business ideas by completing the worksheet.

## Steps to reproduce

To perform the analysis and rank amongst 3 competing businesses, create a copy of the 'start_up_selection_template' and complete it. The instructions are given in the first sheet as well as below: 1. Go to sheet '004_market_subcriteria_comparison' 2. Fill up the pairwise comparisons for the market subcriteria. The lower value will always be '1', and the higher value would be an integer between '1' and '9'. Please refer to '001_saaty_scale' for an explanation regarding the numbers and to '003_list_of_abbreviations' for full versions of the abbreviations used in the tables 3. Go to sheet '005_market_subcriteria_evaluation', row 47, and check the CR. If CR is less than 0.1, continue. Otherwise, repeat from step 1 4. Go to sheet '006_team_&_financial_subcriteria_comparison' 5. Fill up the pairwise comparisons for team subcriteria. The lower value will always be '1', and the higher value would be an integer between '1' and '9'. Please refer to '001_saaty_scale' for an explanation regarding the numbers and to '003_list_of_abbreviations' for full versions of the abbreviations used in the tables 6. Go to sheet '007_team_subcriteria_evalaution', row 28, and check the CR. If CR is less than 0.1, continue. Otherwise, repeat from step 4 7. Go to sheet '006_team_&_financial_subcriteria_comparison' 8. Fill up the pairwise comparisons for financial subcriteria. The lower value will always be '1', and the higher value would be an integer between '1' and '9'. Please refer to '001_saaty_scale' for an explanation regarding the numbers and to '003_list_of_abbreviations' for full versions of the abbreviations used in the tables 9. Go to sheet '008_financial_subcriteria_evalaution', row 28, and check the CR. If CR is less than 0.1, continue. Otherwise, repeat from step 4 10. Go to sheet '010_market_alternatives_evaluation'. A sample rating model has already been created but feel free to change it to suit your needs. Each rating can have 3, 4, or 5 values. You can use any labels, but the values must be taken from the table in sheet '009_ratings_priority_model', row 84 11. After finalizing the ratings model for the market, fill up the second table by assigning a label from the model to each criterion for every business idea 12. Fill up the third table by entering the corresponding value of each label 13. Go to sheet '011_team_alternatives_evaluation' 14. Fill up the four pairwise comparison tables. Ensure that the CR found in column 'V' is less than 0.1; otherwise, repeat this step 15. Go to sheet '012_financial_alternatives_evaluation' 16. Fill up the four pairwise comparison tables. Ensure that the CR found in column 'V' is less than 0.1; otherwise, repeat this step 17. Go to sheet '013_product_alternatives_evaluation' 18. Fill up the pairwise comparison table. Ensure that the CR found in column 'V' is less than 0.1; otherwise, repeat this step 19. Go to sheet '014_final_rankings'. The idea with the highest total priority is the one that you should pursue

BRAC University

## Categories

Decision Analysis, Entrepreneurship, Analytical Hierarchy Process, Decision Theory, Multiple-Criteria Decision Analysis, Project Start-Up Management, Business Analytics