A feasibility study is a fundamental document for starting and implementing a new or existing business enterprise. It is an important aid in project formulation and implementation. The study helps the promoters and other investors to generate, crystallise and focus their ideas, to set objectives and monitor performance against them. The feasibility study is used as a proposal to outside potential investors such as development, merchant and commercial banks, venture capital companies, bilateral and multilateral lending institutions and others for external funding either in form of loan, lease or equity participation. It is therefore important that the document must be persuasive enough to convince potential investors of the need for funding. Some researchers also refer to a feasibility study as a proposal, a business plan, a prospectus or a game plan.
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