The potency of feasibility analysis on business survival in Cross River State Southern Senatorial District, Nigeria

Abstract

This study seeks to evaluate the relevance of feasibility analysis on business survival in Cross River State Southern Senatorial district. The survey research design was adopted for this study. A population of 82 entrepreneur/owners of sachet water manufacturing companies spread across the seven local government areas of Cross River State Southern Senatorial district was used. The variables used for this study were economic analysis, staff/ personnel as well as demand and market analysis. The study found that economic analysis of feasibility enhances business survival and is statistically significant. Also, Staff/ personnel analysis of feasibility enhances business survival and is statistically significant. And as well, market and demand analysis improves business survival and is statistically significant. It was recommended that business entrepreneurs in Cross River State Southern Senatorial district should effectively carry out an economic analysis of feasibility to maximize the available resources within its disposal, hence avoiding liquidation and as well proper workforce planning should be taken into account before the takeoff of any business operation for appropriate manpower hiring.

The need for financial knowledge acquisition tools and technology by small business entrepreneurs

“…The regression result is not supported by the hypothesis. In previous studies, feasibility study knowledge affected small business performance (Okon & Morgan, 2018). However, in this study, the findings were not consistent with previous research.…”

“…Small business entrepreneurs faced with the challenge of insufficient financial knowledge are likely to find it difficult to raise adequate capital for sustaining the business, effective record keeping and accounting, specific business planning, efficient cash management (Hyder & Lussier, 2016), cost measurement (Oyadomari et al, 2017), and a proper feasibility study (Okon & Morgan, 2018).…”

“…According to previous studies, to avoid business failure, entrepreneurs should have knowledge for financing in order to raise adequate capital, record keeping and accounting management, cash management, business planning (Hyder & Lussier, 2016), effective cost calculation (Oyadomari et al, 2017), and a specific feasibility study (Okon & Morgan, 2018) as follows.…”

“…According to Okon & Morgan (2018), the feasibility study affects small business performance and business survival. However, many small business entrepreneurs have limited knowledge of feasibility study due to their lack of a business education (Hodges & Kent, 2006) and limited experience in business management, subsequently leading to business failure ( (Beverland & Lockshin, 2001;Marriott & Marriott, 2000).…”

“…Small business entrepreneurs play multiple roles in the management of their businesses (Fuller-Love, 2006) and responses to business performance (Durst & Edvardsson, 2012). Although these entrepreneurs need information and knowledge to support their decision-making and problem a feasibility study (Okon & Morgan, 2018) that lead to need for KA tools for small business entrepreneurs in particular of a restaurant business.…”