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USEFULNESS OF FEASIBILITY STUDIES IN THE COURSE OF CO OPERATIVE FORMATION AND INVESTMENT DRIVE, AMONG REGISTERED CO OPERATIVE IN ENUGU SOUTH, ENUGU NORTH, ENUGU EAST AND ENUGU CENTRAL LOCAL GOVERNMENT AREAS)

 

TABLE OF CONTENT

CHAPTER ONE

Introduction

1. Background of the study
2. Statement of the problem
3. Objective of the study
4. Research questions
5. Significance of the study
6. Scope and limitation of the study
7. Definition of terms

References

CHAPTER TWO

Review of related literature

1. What is feasibility study / report
2. Need for feasibility study before starting a business
3. Importance of a feasibility report
4. Content of a feasibility report
5. Feasibility report and bank lending sourcing of funds
6. Steps involved in forming a cooperative society

References

Chapter three

Research design and methodology

1. Introduction
2. Research method uses
3. Source of data
4. Population of the study
5. Sample size computation and selection
6. Questionnaire design / collection

References

CHAPTER FOUR

Presentation analysis and interpretation of data

1. Introduction
2. Tabular presentation, descriptive analysis and interpretation of data
3. Test of hypothesis

Reference

CHAPTER FIVE

Summary of findings recommendation and conclusion

1. Summary of finding
2. Recommendation
3. Conclusion

Bibliography

 

 RESEARCHER PROPOSAL

 

FEASIBILITY STUDY AND COOPERATIVE FORMATION/ INVESTMENT DRIVE.

( A study of the usefulness of feasibility studies in the course of co operative formation and investment drive among registered co operative in enugu East, Enugu South, Enugu North and Enugu central)

 

INTRODUCTION

Background of the study

For over a decade now, the Nigeria economy has been in dire strait on doldrums. They continued economy crunch has highlighted the need for feasibility study before embarking any project. The aim of this study is to let cooperation and general public know the important of a feasibility report, in any business venture most especially cooperative business venture.

          The importance of a well prepared feasibility study in the cause cooperative information and investment drive can not be over emphasized. A well prepared feasibility study can be used to obtained loan from banks and thus attract other investments. Cooperative projects backed by good feasibility studies are difficult to wind up easily. The drive for investment can only take place when there is sufficient money or resources. For any project there are the alternative technology, production equipment6, building and other investments. As each decision is concluded the next issue is the problem of selecting the most viable of the various alternatives. It is against this background that the researcher wants to embark upon the research topic titled “feasibility studied and co operative formation investment drive. (A study of the usefulness of feasibility studies in the course of co operative formation and investment drive). 

 

Statement of problem

The importance of feasibility studies in the course of co operative formation and investment drive cannot be overemphasized or ignored. The failure of some co operative business ventures deserve to be questioned: were feasibility studies prepared, how good the feasibility studies were were the provision well implemented, the nature of the staff qualify etc.

 

Significance of the study

This study will highlight on the relevance of feasibility studies and co operative formation investment drive.

          This will be of immense benefit to those wanting to engage in new ventures.

          It will also help in minimizing business failure among co operative, since people will appreciate the need to embark on feasibility studies in the course of co operative formation / investment drive.

 

Scope of the study

Due to the fact the researcher is a student and do not have enough teim and money to research on the whole topic, the researcher selected a few co operative society from which references can be made that is enugu east, Enugu south, enugu north and Enugu central

 

Limitation of the study

The availability of correct and up to date information is not easy even the available ones still encounter wholly unnecessary bottlenecks due to our socio cultural milieu, bureaucracy and subterranean motive.

The researcher also encountered financial and time constraints, exorbitant, unreasonable, too high or great transportation cost, high level of risk of the data base constituted limitation themselves. This contributed to the researcher small sample size.

 

CHAPTER TWO

Past project particles journals on the related topics were researched. Also a review of books, newspaper magazines and periodicals were carried out.

 

CHAPTER THREE

Methodology

This is chapter shows the methods and procedures used for collection and analysis

 

 

Population of the study

The target population covered by this study included 5302 randomly. Selected persons that are members of the cooperative society in Enugu south, Enugu east, Enugu north and Enugu central. The computation of sample size was based on Yarmane model. (1964:240) of which a sample size of 193 was selected.

 

Research material

The research material used is the questionnaire design / collection and the interview methods.

 

Research procedure

If I am asked to carryout this study, I will give a detailed information procedure or process which I used in carrying out the research.

 

 

 

Treatment of data

The simple percentage analysis and test of hypothesis were used in treating the data.

 

 

 

 

 

CHAPTER ONE

 

INTRODUCTION

1. 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

 

1. 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?

RESEACH 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?

 

1. 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.

REFERENCES

 

Baumback C.M (1992)                                         Basic Small Business Management. New Jersey, Prentice Hall Inco.

 

Loucks, K (1988)                                                 Training Entrepreneurs for Small Business Creation; lessons from experience ( I.L.O publication management development series, No. 2c p.588:5)

 

Osuala F.C (1993)                                                Introduction to Research Methodology Onitsha Africa fep publishers ltd, p. 2828.

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