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FEASIBILITY STUDIES AND COPERATIVE FORMATION INVESTMENT DRIVE STUDY OF THE USEFULNESS OF FEASIBILITY STUDIES IN THE COURSE OF CO OPERATIVE FORMATION AND INVESTMENT DRIVE, AMONG REGISTERED CO OPERATIVE IN ENUGU SOUTH, ENUGU
CHAPTER ONE
Introduction
Background of the study
Statement of the problem
Objective of the study
Research questions
Significance of the study
Scope and limitation of the study
Definition of terms
References
CHAPTER TWO
Review of related literature
What is feasibility study / report
Need for feasibility study before starting a business
Importance of a feasibility report
Content of a feasibility report
Feasibility report and bank lending sourcing of funds
Steps involved in forming a cooperative society
References
Chapter three
Research design and methodology
Introduction
Research method uses
Source of data
Population of the study
Sample size computation and selection
Questionnaire design / collection
References
CHAPTER FOUR
Presentation analysis and interpretation of data
Introduction
Tabular presentation, descriptive analysis and interpretation of data
Test of hypothesis
Reference
CHAPTER FIVE
Summary of findings recommendation and conclusion
Summary of finding
Recommendation
Conclusion
Bibliography
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
For over a decade now, the Nigerian economy has been in dire strait or doldrums. The continued economic crunch has highlighted the need for feasibility studies before embarking on any project.
Feasibility studies involved closer examination of cost and benefit of a project with a view to ascertain whether it is feasible, viable and profitable to undertake such a venture.
The aim of this study is to let co operator and the general public know the importance of a feasibility report, in any business venture most especially cooperative business venture. The drive for investment can only take place when there is sufficient money or resources. The importance of a well prepared feasibility studies in the course of cooperative formation and investment drive cannot be overemphasized.
A well prepared feasibility studies can be used to obtain loan form banks and thus attract other investment, co operative project backed by good feasibility studies are difficult to wind up easily planning business is an absolute must says Banmbank (1992: 31). Having the right goods at the right place at the right time and prices is the accepted objective.
He also believes that control is indispensable. The whole idea of a feasibility study or report compliments and facilitates these two all important functions in the business planning and control. Thus a feasibility study shows whether a propose business opportunity will succeed or rail after a careful consideration of alternative against the firms objective. Different view energy why people from or join a cooperative society or cooperative. Cooperative afford for socio – economically disadvantaged people an alternative way of doing business. It follows naturally that the intention or motive for establishing a sole trade, partnership or joint stock company are similar but not same for establishing a cooperative society.
According to Omuoha (1999:28) profit motive in the motivating factor for private entrepreneurs while service to member in the motivating force for cooperative the necessity for making a choice between investment alternative arises frequently in business decision (Ude 1990:64). Accordingly, it is necessary to appraise your project. To determine whether it is worth going into the business or not. For any project, these are alternative technologies, production equipment, building and other investment. As each decision is concluded the next issue is the problem of selecting the most viable of the various alternatives.
1.2 STATEMENT OF THE PROBLEM
The spate of business failure in Enugu state is on the increase. According to Louck (1989:5) “to start a business is very easy but to stay in business is very difficult. Most businesses have failed due to lack of proper planning foresight by their promoters. This is most in the case of small scale business which are characterized by owner and personnel. The importance of feasibility studies in the course of cooperative formation and investment drive cannot be overemphasized or ignored. The failure of some co operative business venture deserve to be questioned: were feasibility studies prepared, how good were the feasibility studies, were the provisions well implemented, the nature of the staff quality etc.
Their day to day operation usually are in the hands of the owners who may not posses the requisite know how.
It is against this background that the wants to embark upon the research topic titled “feasibility studies and co operative formation / investment drive. (A study of the usefulness of feasibility studies in the course of co operative formation and investment drive)
1.3 OBJECTIVE OF THE STUDY
The major objective of this study is to x – ray the usefulness of feasibility studies in the course of co operative formation and investment drive. The specific objective includes:
To identity the causes of business failure among co operatives
To identify the extent of the use of feasibility studies as a tool for investment selection among the co operatives
Identifying the content of a feasibility study
To identity uses and of feasibility report
To ascertain the relationship between feasibility studies and business performance among co operatives
To exmine factors which might hinder the attainment of the postulation of feasibility study
To ascertain the motives for joining or forming a cooperative society
To relate feasibility studies and co operative formation / investment drive
To identify moribund cooperative societies within the last decade in enugu state and the factors responsible
To identify the enterprising co operative business ventures and factor responsible
To identify the quality staff of cooperative
RESEARCH QUESTIONS
This question inspired the research to carry out the study. They must be correctly answered in the course of this work. They are as follows:
Are people aware of the use of feasibility studies in project analysis?
Do people know that the use of feasibility studies is necessary for successful operation of a business?
Do people know that the use of feasibility studies can reduced the risk of sustaining lose in business?
RESEARCH HYPOTHESIS
A statistical hypothesis is a statement or assumption about an unknown population parameter Nwabuokei (1986:241).
The posited hypothesis for this study is as follows:
The use of feasibility study leads to a successful cooperative formation investment drive
The use of feasibility study can minimize the risk ob business failure among cooperative
The use of feasibility studies helps in optimal allocation of scarce resources
Feasibility report facilitates the chances of obtaining credit form lending institution.
Is there any relationship between feasibility study and business performance among the co operative.
What is the role of feasibility study in evaluating a business project
What is the attitude of people towards carrying out a feasibility report before embarking on a business ventures
What are the constraint militating against carrying out a feasibility study before engaging in a venture
Did those who carried out feasibility studies engage the service of consultant I experts or did they do it themselves
What is the relationship between feasibility studies and the profit of your society
What is the relationship between moribund co operative and feasibility studies?
SIGNIFICANCE OF THE STUDY
This study will highlight on the relevance of feasibility studies and cooperative formation/ investment drives.
This will be immense benefit to these wanting to engage in new venture.
It will also helping minimizing business failure among cooperatives, since people will appreciate the need to embark on feasibility studies in the course of cooperative formation/ investment drive.
Again apart from contributing to the existing literature on this topic, it will be of immense benefit to those who might like to undertake further studies on this topic or related issues.
It is also hope that the adoption and implementation of the finding and recommendations of this study will in no doubt help significantly in boosting our economy through business success engendered by the use of feasibility studies among cooperatives.
1.6 SCOPE AND LIMITATIONS OF THE STUDY
LIMITATIONS: The study centers on feasibility study and cooperative formation/ investment Drive. Mainly the importance of feasibility report, motives for forming or joining a cooperative society/ investment Drive and feasibility studies.
Sampled members of cooperative societies, management, and officials responsible for government departments charged with cooperative affairs were administered with questions.
The researcher in the course of this work seriously encountered financial and time constraints. Exorbitant, unreasonable, high and great transportation cost, apathy, limited cooperative books, journals, and other publications. Higher level of risk of traveling by road and the geographical spread of the data base constituted limitations in themselves.
1.7 DEFINITION OF TERM
Feasibility Study
A closer examination of the costs and benefit of a project to ascertain whether it is feasible, viable and profitable to undertake as a venture.
Feasibility Report
A written documented plan or a blueprint of operation of a business project.
Investment
Commitment of fund in the purchase of assets intended to yield future returns.
Project
Plan to invest money in the purchase of assets or a combination of assets intended for installation to yield return in the business concern.
Cooperative Formation
This has to do with ways by which cooperative society can be formed. That is step involved in forming a viable cooperative society.
Cooperative Society
It is association of persons who have voluntary joined together to achieve a common end through the formation of a democratically contributed enterprise, making equitable contribution of the capital required and accepting a fair share of the risk and benefit of the undertaking in which members actively participate.
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