Feasibility Analysis Before Venturing into a Business - Essay Example

For an entrepreneur to succeed in combining innovations to revolutionize the patterns of production, he has to carry out new combinations in production, through a process that requires a workforce. In addition, entrepreneurs require professional management skills, since their obsession becomes a liability in managing the growth of a business.
2. On the other hand, feasibility analysis before venturing into a business is necessary, since the analysis enables an entrepreneur to understand the business process and identify the factors that will facilitate the success s of the business venture.

Therefore, venturing into a business without conducting a feasibility test can lead to an overestimation or underestimation of factors that will facilitate the continuation of the business. For example, an entrepreneur may have an idea of starting a business, which requires the acquisition of a certain machine for production. If the entrepreneur fails to conduct a technical feasibility analysis, a technical problem on the machine can cause the downfall of the business. Therefore, if the entrepreneur had decided to conduct a technical feasibility analysis, he would have had the chance of identifying the availability of technical expertise to correct the problem if it occurs, hence sustaining productivity in the business. Read More