Answer to Question #224185 in Management for Atif

Question

Why feasibility analysis is important before starting starting a new business venture?state the role of feasibility analysis with in entrepreneur success.

Answer 1

• The feasibility study acts as an investigative tool that assess the potential, viability or the productivity of the business. It ensures that all the determinations are made before venturing into the business and this helps the business to avoid later short comings.

Some of the feasibility roles in entrepreneurship include

• The entrepreneur gets the required analysis of the entire outcome of the venture.
• Feasibility analysis increase chances of the business being successful as there are numerous parameters to evaluate.
• It ensures a smooth running of the business and creates a way for other effective operations.
• It also helps the organization to focus on both the short and long term goals.
• Finally, it acts as a source of information for future investors in the organization.