EVALUATION OF THE IMPACT OF TECHNICAL FEASIBILITY STUDY (REPORT) AS A TOOL FOR SUCCESSFUL BUSINESS OPERATION

ABSTRACT

The topic of this great dissertation is Evaluation of the impact of technical feasibility study as a tool for successful business operation in Enugu Urban. The survey and historical research methods were used in the study. A total population of eight hundred and sixty (860) randomly selected respondents out of which a sample size of four hundred (400) was selected using yarmane kurmar’s models. But the effective was three hundred and ninety-one (391) respondents who correctly filled and returned the questionnaires. Questionnaires method were used in gathering data. Also a review of books, newspaper, magazines and periodicals were carried out the “simple percentage analysis” statistical test of proportion used in treating the data and testing the Hypothesis. However twenty research question was developed for the respondents. The study concludes that the level of awareness about the uses of technical feasibility studies report in project analysis and appraisal in Enugu urban is well low. This had contributed immensely to its non utilization among majority of respondents.

There’s therefore need to create awareness of its uses among the populace in order to stem the increased business failure, raise optimal allocation of resources, increase efficiency and effectiveness, reduce risk of business failure and sustenance of losses. Based on the findings , the researcher recommended massive awareness campaign to the relevant authorities or agencies of the government in order to create the requisite knowledge that will aid prospective investors in taking the right decisions., also individuals and organizations should inculcate the habit of patronizing consultants before embarking on any business venture in order to avail them of expert advice.

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Just as the whole world stepped into the 21st centuryand Nigeria dragging her ship without recourse to her teeming poverty strickening populace of over one hundred & forty million (140,000,000) citizen.(2004 National population census). Yet since over three decades now, aer independence from the British coupled with military “Zoombie” incursion into politics, the Nigerian economy has been in a dire stress or doldrums. Consequent upon this, many business ventures have submerged or rather closed shops. Many of those that are still afloat had not made any reasonable impact but are experiencing economic degeneration due to multiplicity of factors, among which is lack of proper Technical feasibility studies/report before embarking in the venture. Prior to this, however, there was such a boom that basically business ventures yielded a satisfactory quantum of demands, such that numerous business and banks were set up without proper planning/research either (short term or long term).

Then when structural adjustment program (SAP) was introduced during the time of Nigerian Head of state General Ibrahim Babangida (IBB) during which most business went out of existence. The continued economic crunch has highlighted the need for technical feasibility studies/report before embarking on any project. According to the Holy Bible (KJV) (Luke 14 vs 28 –31) for which of you desiring to build a tower does not first sit down and count the cost whether he has enough to complete it? Otherwise, he has laid a foundation and is not able to finish, all who see him begin to mock him saying “the man begin to build, and was not able to finish” or what king is going to encounter another king in war, will not sit clown first and take counsel whether he is able with ten thousand to mock him… against him with twenty thousand? Again there is this management adage, which says, “Failing to Plan is Planning to fail” the era of rule in business operations is fast becoming ancient history. In the same vein, the tremendous progress in information communication technology (ICT) and application has made it imperative that one must take stock before embarking on any venture otherwise more prepared contemporaries competitors and rugged business terrain will submerged the venture though their competitive edge and vicissitude in the economy.

The need for sound and proper planning is accentuated even more by the nature of the Nigerian economy, which has continued running headless by into the woods. Okpara Avenue that used to thriveto business activities has become the shadow of the past. Most of these business outfits there have now been converted to churches at an alarming rate. At Emene industrial Estate the story is not very different as it is now, a ghost of its past. It has also become a known fact that else where the rate of business failure is equally appalling. A visit to Agbani road to Gariki road, Achara layout or timber shade at Maryland will also confirm this. This kept one in a ponder state or wonder, whether, proper feasibility studies, its impact are well carried out before these business ventures were embarked upon.

It is against this background that the researcher wants to embark on this research topic titled “An Evaluation of the impact of Technical feasibility study As a Tool for successful Business Operation –A case of selected companies in Enugu urban, Enugu State, Nigeria.

STATEMENT OF THE PROBLEM

It is believed that business entrants, stay and outlives (Kotler 1980) but the rate of business failures in Enugu metropolis is excessively high, irrespective of the fact that “stay in business is very difficult compared to entry” (Louck 1988). The failure of most business is due to lack of proper planning, foresight by the managers and aggressive implementation of business strategies. The mostly affected are the small-scale business, which in most cases is being managed by the owners, who may lack the managerial skill and knowledge. Most failure and outlive of business in Enugu is not only based by mismanagement of the business activities but by carrying out of ineffective feasibility skill report; thereby leading the business into wrong and negative steps. Businessmen and women in most cases, falls to place feasibility study into consideration, before embarking on some of her business operations. In such case, the success of such business being embarked on is not determined. According to Baumback (1992), the whole idea of a feasibility study report compliment and facilities are important functions in business planning and control.