Feasibility Study As A Tool For Entrepreneurial Success

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Feasibility study as a tool for entrepreneurial success have been widely studies and discussed various scholars in the world over.
Matson (2002) states that feasibility study as a tool for entrepreneurial success is but one part, although an integral one in the development process of a business project. Whether this project is the creation of a new one or the expansion of an existing one into a new venture, the project cycle is similar. Matson reaffirmed that feasibility project planning process shows how a successful business will operate under an explicitly stated set of assumptions. These assumptions include:
a. The technology used (the facilities, types of equipment, manufacturing process etc) and
b. The financial aspect of the project (capital need, volume, cost of goods, wages, etc).
According to Rose (2001) stated that it takes time to succeed because success is merely the natural reward of taking time to do anything well. Rose reaffirmed that feasibility study helps us determine where we are and also how we will know when we have arrived.
Okereke (2003) believes that every rational decision to make a new investment is preceded by an investigation of the economic feasibility of the project, whether or not this is carried out in a formal manner the larger the project, the greater the investment. The more formalized will be the investigation. Okereke reaffirmed that the investor would want to assure himself that the market exists or can be developed, that the local service vital to the project can be assured, that the overall costs for plant equipment, labour and raw materials inputs will be of a certain order. Most importantly he will seek assurance that income will exceed cost by a merging sufficient to reinforce the inclination to undertake the project.
Business development sources in Maine (2002) state that feasibility study as a determinant of entrepreneurial success has three objectives to be met in order for the study to be of value;
i. To learn more about your prospective clients needs.
ii. To clearly define the product or services that you wish to offer these clients (in other word find a need and fill it).
iii. Determine how much revenue this product or service will generate feasibility study is indeed a tool for business success, a useful tool and valid for many kinds of project.
Evaluation of a new venture, both from ones to establish business in the most common application. Feasibility studies can help groups/firms determine whether to expand existing services, build or remodel facilities change method of operation and new product, or even merge with another business. A feasibility study can assist decision makers whenever they need to decide among alternative development opportunities.
This analytical tool operate under an explicitly stated assumptions, of the technology used (the facilities, types of equipment, manufacturing process etc) and the financial aspects of the project capital needs, volume, cost of goods, wages etc. The feasibility study represents the first time in a project development process that the pieces are put together to create a technically and economically feasibility concept. The study also in these basic assumptions, a feasibility study serves as an analytical tool to present the basic assumptions of a project idea, shows how result vary when these assumption change and provides guidance as to critical elements of a product. It provides project specific information to assist in making decisions. Feasibility studies contain standard technical and financial components. The exact appearance of each study varies, depending on the industry studied and critical factors for that project, the method chosen to conduct the feasibility study and study budget. Developing a new business venture is difficult. Taking a project from the imitation of the idea through the operational stage is a complex and time consuming effort. Most ideas do not develop into business operations. If these ideas make it into the operational stage, the majority of them or then fail within the first six months because most entrepreneurs do not carry out feasibility studies of their projects perhaps the most crucial problem one will face after expressing an interest in starting a new business or capitalizing on an apparent opportunity in an already existing business will be determining the feasibility of ones idea. Some argues that it is expensive to carry out a feasibility study, while others feel that it is not necessary.

1.2 STATEMENT OF THE PROBLEMS
There are many small scale industries in Owerri Metropolis, but many of these industries are not viable. The entrepreneur enters into business so convinced of their merits that they fail to evaluate their potentials thoroughly. These small scale investors do not appreciate the need for a thorough feasibility study prior to set up. This has lead to the collapse of many small scale industries in Owerri Metropolis. Therefore, the research was to give an empirical data on feasibility study of their business.

1.3 PURPOSE OF THE STUDY
The purpose of the study was to ascertain to what extent small scale business in Owerri Metropolis undertook feasibility studies prior to set-up. Specially, it attempted to:
1. Ascertain whether small scale business in Owerri embarked on market determination prior to commencement.
2. To ascertain whether small scale business in Owerri Metropolis ensure the availability of raw materials prior to commencement.
3. To ascertain whether small scale business in Owerri Metropolis considered existing competitors prior to commencement.
4. To ascertain to what extent small scale business in Owerri Metropolis ensure adequate financing prior to commencement.
5. To ascertain whether small scale business in Owerri Metropolis considered the location chosen for their business in terms of transportation facilities prior to commencement.
6. To ascertain whether small scale business in Owerri metropolis ensured the availability of public utilities vital to the project prior to commencement.

1.4 RESEARCH QUESTIONS
The following research questions were postulated to guide the study.
1. How feasibility studies facilitate business operations?
2. What are the costs involved in feasibility study?
3. How does feasibility study reveals business environment?
4. What is the relationship between feasibility study and capital requirement of business?
5. What factors militates against the use of feasibility studies by entrepreneurs?

1.5 STATEMENT OF HYPOTHESIS
Ho1: Feasibility studies do not facilitate business operations.
HA1: Feasibility studies facilitate business operations.
Ho2: The cost of feasibility studies does not affect business success.
HA2: The cost of feasibility studies does not affect small business success.

1.6 SIGNIFICANCE OF THE STUDY
The outcome of the research will be identifying the beneficiaries and how they will benefit the management of private sector organization in term of streamlining, its feasibility as a tool for entrepreneurial success. Up coming researcher conducting research in similar topic will benefit from this research as it will help them improve on their research work.
It will also help private sector organization achieve better customer satisfaction and hence increase sales volume. Ti will also help increase sales volume. Ti will also help other company to do some research o their product.

1.7 SCOPE OF THE STUDY
The study on feasibility study as a tool for entrepreneurial success will faces on some selected private terms.
But due to the limiting time, the research only converted a short area such as Emernald, NWASCO, Agad pure water company and Arenze computer accessories in selected private terms in Owerri, Imo State.

1.8 LIMITATIONS OF THE STUDY
In carrying out this research, the researcher was faced with these problems;
First time was not on her side for the date of submission was so close.
Secondly financing of this project was also a problem and finally some of the respondents were reluctant to give information.

1.9 DEFINITION OF TERMS
To avoid any technical ambiguities, used in this study are explained as follows:
Feasibility Study: According to Onuoha Kelechi (2012:41) feasibility study is a formal study of prospective business which provides wisdom on the demand of the project and the expectations in terms of expenses and income requirement.
Feasibility study can also be defined as a closer examination of the costs and benefits of a project to ascertain whether the project to embark upon is feasible, viable and profitable to undertake as a venture.
Feasibility on the other hand can be defined as something that is possible and likely to be achieved.
Entrepreneur: Entrepreneur is a person who starts and organizes a commercial enterprise, especially one that involves financial risk.
Entrepreneurial Success: This can be seen as an achievement or the natural reward and entrepreneur has in venturing in business.

1.10 BRIEF HISTORY OF THE CASE
History of Chois Weavon and Attachments Nigeria Ltd., Owerri, Imo State.
Chois weavons and attachments is a manufacturing firm that engages in the manufacturing of weavons, hair attachments and human hair. The company is located at Orji-Orlu Road, Owerri, Imo State, the firm started operation in Owerri in 1985 following the increasing need for weavons and human hairs, the firms Chois Weavon has been growing from strength to strength both in assets and profitability.
Chois is a private limited liability company that is owned by a family. The company was established in 1985 as a result of the carefully and thorough feasibility study of the business before its establishment, study sensibility the financial viability and the technical feasibility among others.
Feasibility study report is recommended for entrepreneurs and small scale business projection/operation. Chois Weavon started from grass to grace and is one of the big firms that manufacture weavon and attachment. The company as 2015 has more than 600 staff strength in the establishment. It has used its marketing strategies and its public relation strategies to create awareness of its products and several greater patronages.