ABSTRACT
The project is focused on feasibility studies: its effect on achieving small scale business objective in Benin, Nigeria. The importance of a well prepared feasibility study in the cause small scale business information and investment drive cannot be over emphasized. A well prepared feasibility study can be used to obtained loan from banks and thus attract other investments. Small scale business projects backed by good feasibility studies are difficult to wind up easily. The drive for investment can only take place when there is sufficient money or resources. For any project there are the alternative technology, production equipment, building and other investments. This study takes a look at small scale business formation and investment drive among registered small scale business in Benin). The computation of sample size was based on Tao Yamani Technique of which a sample size of 193 was selected. The simple percentage analysis and test of hypothesis were used in treating the data. And recommendations and conclusion were drawn from the findings of the data analyzed.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
For over a decade now, the Nigerian economy has been in dire strait or doldrums. The continued economic crunch has highlighted the need for feasibility studies before embarking on any project.
Feasibility studies involved closer examination of cost and benefit of a project with a view to ascertain whether it is feasible, viable and profitable to undertake such a venture.
The aim of this study is to let business operator and the general public know the importance of a feasibility report, in any business venture most especially small scale business venture. The drive for investment can only take place when there is sufficient money or resources. The importance of a well prepared feasibility studies is a requirement for starting a new small scale business. A well prepared feasibility studies can be used to obtain loan from banks and thus attract other investment. A co-operative business backed by good feasibility studies are difficult to wind up easily says Banmbank (2012). Having the right goods at the right place at the right time and prices is the accepted objective. He also believes that control is indispensable. The whole idea of a feasibility study is compliments and facilitates two important functions which is business planning and control. Thus a feasibility study shows whether a propose business opportunity will succeed or fail after a careful consideration of alternative against the firm’s objective. Different views on why people are motivated to form or join a small scale business society. Small scale business societies create an alternative way of doing business for the socio-economically disadvantaged people. It is clear naturally that the intention or motive for establishing a sole trade, partnership or joint stock company are similar but not same for starting up a new small scale business in Nigeria.
According to Omuoha (2013) profit motive is the motivating factor for private entrepreneurs while service to member is the motivating force for small scale business, the necessity for making a choice between investment alternative arises frequently in business decision (Ude 2012). Accordingly, it is necessary to appraise your project to determine whether it is worth going into the business or not. For any project, there are alternative technologies, production equipment, building and other investment. As each decision is concluded the next issue is the problem of selecting the most viable of the various alternatives.
1.2 STATEMENT OF THE PROBLEM
The spate of business failure in Benin state is on the increase. According to Louck (2011) “to start a business is very easy but to stay in business is very difficult. Most businesses have failed due to lack of proper planning foresight by their promoters. This is most in the case of small scale business which are characterized by owner and personnel. The importance of feasibility studies in the course of starting up a new small scale business cannot be ignored. The failure of some small scale business venture deserve to be questioned: were feasibility studies prepared? How good were the feasibility studies? Were the provisions well implemented? What is the nature of the staff quality?
The day to day operation of the small scale business is usually in the hands of the people who may not possess the requisite skills and technicality.
It is against this background that the wants to embark upon the research topic titled “feasibility studies: a requirement for starting a new small scale business in Nigeria.
1.3 OBJECTIVE OF THE STUDY
The major objective of this study is to x-ray the usefulness of feasibility studies in Mr Biggs, Nigeria.
The specific objective includes:
1. To find out whether small scale business executives carryout a well feasibility studies before starting a new small scale business.
2. To identity the extent to which Mr Biggs carry out feasibility studies before starting up.
3. To identify the importance of feasibility studies to any start up.
4. To ascertain the relationship between feasibility studies and business performance in Mr Biggs.
1.4 RESEARCH QUESTIONS
1. Do small scale business executives carryout a well feasibility studies before starting a new small scale business?
3. To what extent is feasibility studies used as a tool for investment selection in Mr Biggs?
4. What is the relationship between feasibility studies and business performance in Mr Biggs?
5. what are the importance of feasibility studies to start ups?
1.5 RESEARCH HYPOTHESIS
Ho1: Small scale businesses do not ensure adequate financing prior to commencement.
Ho1: Small scale businesses do not ensure adequate financing prior to commencement.
Ho: Small scale business’ do not embark on market determination prior to their commencement.
1.6 SIGNIFICANCE OF THE STUDY
This study will highlight on the relevance of feasibility studies in starting up a new small scale business in Nigeria.
This will be immense benefit to these wanting to engage in new venture.
It will also help in minimizing business failure in Mr Biggs, since people will appreciate the need to embark on feasibility studies in the course of small scale business formation/ investment drive.
Again apart from contributing to the existing literature on this topic, it will be of immense benefit to those who might like to undertake further studies on this topic or related issues.
It is also hope that the adoption and implementation of the finding and recommendations of this study will in no doubt help significantly in boosting our economy through business success engendered by the use of feasibility studies in Mr Biggs.
1.7 SCOPE AND LIMITATIONS OF THE STUDY
This study is centered on feasibility studies; a requirement for starting a new small scale business in Nigeria. It also, covers the requirement for carrying out a sound feasibility studies for high business performance. This work also delve into the causes of business failure in Mr Biggs and how these failure can be prevented and controlled.
The researcher in the course of this work seriously encountered financial and time constraints. Exorbitant, unreasonable, high and great transportation cost, apathy, limited small scale business books, journals, and other publications. Higher level of risk of traveling by road and the geographical spread of the data base constituted limitations in themselves.
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===================================================================Item Type: Project Material | Size: 53 pages | Chapters: 1-5
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