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THE IMPACT OF FEASIBILITY STUDY IN ENHANCING GROWTH AND DEVELOPMENT OF BUSINESS ORGANIZATIONS IN NIGERIA


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THE IMPACT OF FEASIBILITY STUDY IN ENHANCING GROWTH AND DEVELOPMENT OF BUSINESS ORGANIZATIONS IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1   Background of the Study
        Feasibility study is an investigation carried out to access the economic viability of any proposed business. Every business establishment has a possibility of success or failure. Therefore, it is the responsibility of a prospective entrepreneur to know very well about the business. An intended business success or failure could be determined by the amount of information that he has before engaging in a particular venture. This therefore brings to the mind the issue of feasibility study (Cashman and Rosenblatt, 2006). Feasibility study is an assessment of a project or business opportunity to determine whether or not it is worthy of undertaking. It helps the investor to sharpen his judgment and not replace it. All businessmen are advised to know all that they are capable of knowing about the enterprise, the product or service that they want to provide and the only way of doing this is by carrying out a well prepared feasibility studies. This should be done by the businessman (Mohammed, 2014).

        Carrying out any technical study involves planning. Planning reduces the degree of risk in operation or organization by providing information concerning the circumstances and facts that influence success or failure of a proposed course of action. Planning is deciding in advance what to do, when to do it and who to do it. It is also a set of managerial activities designed to prepare the enterprise for the future and ensure that decisions regarding the use of people and resources help achieve the objectives of the enterprise; planning helps to reduce uncertainty within an organization.

        The need for feasibility study is that for projects to be feasible yesterday at a given location does not mean that they would be so today for the same or different location given the erratic changes that occur now and then in the economy and that all projects are unique in their own ways (Kruger, 2008).

        A good feasibility study seeks information to cover all aspects of the enterprise including the product, the market, manpower requirements, capital requirements, legal requirements, credit practices in the trade, service of fund, tenders requirement and technical requirements. It is also important when carrying out a feasibility study to find out how profitable the business opportunity is at present.

        Most businesses in Nigeria are small and medium scale Enterprises (SMES), they engage less than 100 employees provide goods and services for the citizens and industries. Small business ought to be the catalyst for Industrialization, poverty reduction and a vital engine of growth in the country.

1.2   Statement of the Problem

Feasibility study is an investigation into the potential outcome of the project, but not all entrepreneurs do feasibility studies before going into business. Problems such as difficulty and complication which the process faces in assessing viable and reliable information concerning prospective business are encountered.

        This study intends to examine the impact of feasibility studies in enhancing the growth and development of business organization to attain efficiency in business. The study will also try to find out why feasibility studies have showed its relevance and importance in starting up business organization.

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