ABSTRACT
This
research work tries to investigate the relevance of feasibility study in the
establishment of small scale industries in Nigeria. This study is squarely at
the breed baking factory industry at Akuzor Idemili North LGA in Anambra State.
The main objective of this research work were to determine the level of
feasibility study as regards to its business viability, and also to determine
the sources of finding the cost associated with it. Information and data used
in this study were mainly obtained from the one hundred and ten (110)
questionnaire distributed. The questionnaire was administered to selected staff
of the company under study. The 110 questionnaire issued out, 92 were returned.
Consequently, the researcher uses both the simple percentage (%) and adoption
of tabular form in analysis or data. From the result and findings, the
researcher concluded that the relevance of feasibility study is an
indispensable tool to achieve the goals of small scale industries in Nigeria.
Finally, the research made some useful recommendations, which if implemented
will enhance and improve the efficiency of small scale industries as well as
reduce the problem of small scale in Nigeria.
TABLE OF CONTENTS
Title
Page - - - - - - - - - i
Approval - - - - - - - - - ii
Certification - - - - - - - - iii
Dedication - - - - - - - - - iv
Acknowledgement - - - - - - - v
Table
of Contents - - - - - - - vi
Abstract - - - - - - - - - ix
List
of Tables - - - - - - - -
List
of Figures - - - - - - - -
CHAPTER ONE: INTRODUCTION
1.1
Background to the Study - - - - - 1
1.2
Statement of the Problem - - - - - 2
1.3
Objective of the Study - - - - - - 3
1.4
Research Questions - - - - - - 4
1.5
Statement of the Hypothesis (es) - - - - 5
1.6
Scope of the Study - - - - - - 6
1.7
Significant of the Study - - - - - - 6
1.8
Limitation of the Study - - - - - - 7
1.9
Operational Definition of Terms - - - - 7
CHAPTER TWO: LITERATURE REVIEW
2.1 Concept of Feasibility Study - - - - - 9
2.2 The meaning of feasibility study - - - - 10
2.3 The relevance of feasibility study - - - - 11
2.4 Ways of identifying business opportunities- - - 12
2.5 Sources of business ideas - - - - - 12
2.6 Features of feasibility study - - - - - 15
2.7 Kinds of Information for a feasibility study- - - 19
2.8 General Framework for Industrial Development
in Nigeria - - - - - - - - 21
2.9 Special
problems on industrial development and feasibility - 23
2.10 Definition
of small scale industries - - - -
CHAPTER THREE: RESEARCH METHOD
3.1 Introduction - - - - - - - 33
3.2 Research Design - - - - - - - 33
3.3 Area of Study - - - - - - - 34
3.4 Population of the Study - - - - - 34
3.5 Sample and Sampling Technique - - - - 35
3.6 Instrumentation for data collection - - - - 36
3.7 Method of Data Collection - - - - - 37
3.8 Method of Data Analysis - - - - -
CHAPTER
FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDING
4.1 Introduction - - - - - - - 38
4.2 Data Presentation - - - - - - - 39
4.3 Data Analysis and Interpretation - - - - 43
4.4 Data Analysis and Hypothesis (es) Testing - -
4.5 Discussion of Findings - - - - - -
CHAPTER
FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction - - - - - - - 47
5.2 Summary of Findings - - - - - - 47
5.3 Conclusion - - - - - - - - 48
5.4 Recommendation - - - - - - -
5.5 Limitation of the Study - - - - - -
5.6 Suggestion for further research- - - - - 49
References - - - - - - - - 51
Appendices - - - - - - - - 52
CHAPTER ONE: INTRODUCTION
1.1 BACKGROUND TO THE STUDY
If someone wants to go into business,
one of the relevance tasks one must learn to perform is how to plan. Without
proper planning; the business is bound to run into serious troubles and may
fail if corrective steps are not taken on time. The whole issue of feasibility
study revolves around this relevance function in business management and that
is planning, while the extent of planning will vary according to the nature and
size of the business and the function remain critical. Undoubtedly, there are
people who plan by habit and therefore naturally look before they leap. There
are others who must make conscious effort to plan irrespective of whether you
plan by habit or by conscious efforts. The relevance point is that you must
plan your business if you want it to be successful.
The starting point in establishing a
business is the discovery of a business opportunity, and the major task of this
project work is to show that you can perform the relevance task in any small
scale business firm and make money for yourself and for the good of the society
at large.
The relevance is attached to the
establishment of small scale industries (of which bread baking factory is one)
by the federal government of Nigeria is show by the fact that small scale
industries have been established. Funds and pilot development centers here have
setup in various cities all over the federation.
Moreover government have commissioned
various consultancy firms like agricultural development programmers for
extension services, that is teaching farmers the improved technology in farming
statement of the problem.
The relevance of feasibility study is
the establishment of small scale industries in Nigeria has been overemphasised.
It is the interest of most of our small scale industries outside the country.
Perhaps, the extent of this study is to
investigate how the application or non-application of feasibility studies
affects the performance of small scale industries in Nigeria.
And also to know if feasibility studies
is appropriate for the smooth operation of an organization.
1.2 STATEMENT OF THE PROBLEM
Embarking on a feasibility study in
establishing a small scale industries is not an easy task. It is quiet
demanding.
Every industrialist wishes to be the
best in his or her business line but frustration from domestic responsibilities
and the location of the industry hinder their chance for opportunity of being
the best. Among the factors facing the relevance of this research work have been
speculated across five areas.
1) Technology
and system feasibility; which is based on design of system that will be
required. If there is a technical expertise to handle the required system.
There is lack of experts.
2) Legal
feasibility: the proposed system may conflicts with legal requirement.
3) Operational
feasibility; which is a measure of how well the proposed system solves the
problems. Is not working highly.
4) Economic
feasibility: the positive economic benefit to the small scale industry is not
at its highest.
5) Schedule
feasibility.
1.3 OBJECTIVES OF THE STUDY
The relevance of feasibility study in establishing a small
scale industries is used to determined the probable success of a new business.
However there are three feasibility study in order for the study to be of
value.
(1)
To learn more about your
prospective clients needs.
(2)
To clearly define the
product or service that you wish to offer to these client. In other words, find
a need and fill it.
(3)
To determine how much
revenue this product from the industry generate. Revenue and expense
information is then incorporated in a cash flow projection, which gives a
measure of the feasibility of the revenue.
1.4 RESEARCH QUESTIONS
In this research work, efforts are made to find answers to
the following questions, empirical proofs.
(1)
Does feasibility study
improve the profitability for the company?
(2)
Do you think it is
necessary to carryout feasibility study before establishing an industry?
(3)
Do you think feasibility
study is appropriate for the smooth operation of the company?
(4)
Does feasibility study have
any impact on the performance of workers?
(5)
Does feasibility study
affect the location/area of the
industry?
1.5 STATEMENT OF THE HYPOTHESIS(ES)
The following hypothesis were formulated for the purpose of
the research.
HYPOTHESIS 1
Ho:
feasibility study does not improve the profitability of the company.
Hi:
feasibility study improves the profitability of the company.
HYPOTHESIS 2
Ho:
it is not necessary to carryout feasibility study before establishing an
industry.
Hi:
it is necessary to carryout feasibility study before establishing an industry.
HYPOTHESIS 3
Ho:
feasibility study is not appropriate for the smooth operation of the company.
Hi:
feasibility study is appropriate for the smooth operation of the company.
HYPOTHESIS 4
Ho:
feasibility study does not have any impact on the performance of workers.
Hi:
feasibility study has impact on the performance of workers.
HYPOTHESIS 5
Ho:
feasibility study does not affect the location/area of the industry.
Hi:
feasibility study affects the location/area of the industry.
1.6 SCOPE OF THE STUDY
The relevance of feasibility studies of small scale
industries in Nigeria is limited to the industries in Idemilli North L.G.A. in
Anambra State due to the financial constraints. Also it is only those critical
challenges that will be explored.
1.7 SIGNIFICANCE OF THE STUDY
The main aim of this research work is to identify and analyse
the importance of feasibility study in the establishment of small scale
industries in Nigeria. And essence of this study cannot be overemphasized
because it will develop a true knowledge base for researchers in the area of
feasibility study preparation.
Perhaps, for future investors in the bread factory/industry
will get to know the cause of failure and risk involved in a project of this
nature, furthermore, ,for further research this project will serve as a
reference material in any field of feasibility and profitability of any field
of any business venture related to the factory industry.
1.8 LIMITATION OF THE STUDY
In the course of carrying out this research work the
following limitations were encountered by the researcher.
i.
Insufficient material for
the research to really expand the literature review.
ii.
Reluctance on the part of
the respondents to supply information from their company.
iii.
Insufficient fund for the
researcher to go to the internet for more search.
Despite the above limitations the researcher tried as much as
possible to do reasonable measures of justices on the study.
1.9 OPERATIONAL DEFINITION OF TERMS
In order to avoid confusion and ambiguity in relation to the
concepts and terms in this study the following terms are operationally defined.
- Feasibility
study: is an investigation which ascertains the possibility and viability of an
undertaking with respect to certain key indicators including technological,
commercial, economic, social management and possibility consideration.
- Public
enterprises: these are firms/enterprise owned managed, financed and controlled
by government.
- Small
scale industry: this is an industry/business which is owned and controlled by
one or few person with direct owners influence in decision making and having a
relatively small share of the market and relatively low capital requirement.
- Production:
this is where raw materials are change to finished product for human
consumption.
- Public
expenditure: this is the current and capital expenditure of central government
and local authority including debt interest and lending.
- Gross
domestic product: this is the aggregate value of total input of goods and
services produced by factors input within the domestic economy of a country in
a given time/period usually in a year.
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