Application of Feasibility Study in the Establishment of Small and Medium Scale Enterprises in Southwestern Nigeria

Abstract

The study investigated the prevalence of the use of feasibility study among the Small and Medium Enterprises (SMEs), and examined the application of feasibility study in the establishment of these enterprises. It also analyzed the challenges in the application of feasibility study with a view to increasing productivity. The study was descriptive in nature. . A multi-stage sampling technique was used to select the respondents to the study. Primary data were collected through the use of questionnaire from the respondents. Descriptive statistics were used to analyze the data. The study revealed that majority (65.05%) of the respondents conducted feasibility study at the commencement of their businesses, while 57.85% of the respondents were involved in the preparation of the feasibility study. The study further upholds that there might be challenges in the application of feasibility study such as management/personnel (45.5%), technical (29.57%), marketing (27.42%), finance (57.53%), socio-economic desirability (20.42%) and others (6.99%) it does not prevent its application. The study concluded that not minding the challenges encountered by these entrepreneurs in the process of implementing feasibility study its availability has assisted in taking crucial decisions that will not allow their enterprises to fold up or liquidate.

Keywords: Feasibility Study, SMEs, Entrepreneurs and Growth and Survival