Market Feasibility Study and Business Project Success in Southern Province of Rwanda

ABSTRACT 

It is realized that many business undertakers in Rwanda become bankrupt because they fail to predict some future risks that can happen to their business projects. Some business projects fail because they do not conduct market feasibility study before they implement their business projects. Many times, they didn’t know that they will share market with strong competitors. There are other business peoples who replicate business projects that are working in other country or other place without proper study, then after starting their project they realize that they brought products or services that are out of client’s needs . This research is aimed to study at what extent the MFS influences the success of business projects. The research has been conducted in Southern Province of Rwanda and the sample size was one hundred seventy nine (179) established business enterprises have been selected. Questionnaires and interview were instruments used in collecting primary data which were then presented and analyzed using Statistical package for social science software (SPSS). Remarkably, the research revealed that it is very important for any business undertaker to draw MFS for his/her business project before its implementation in order to facilitate the implementation of the business project and reducing the probability of business projects failure. This facilitates also the business project evaluation and identification of possible market risks that can happen in the future towards their successfulness. It was found out that the objective of market feasibility study is not only to take a decision on whether to accept or reject an investment proposal but also to make recommendations as to how it should be reformulated when risks comes so as to ensure better market viability of your business project. Finally, conclusion and recommendations have been provided to the business undertakers and others to the government of Rwanda in order to improve business activities in Rwanda.

TABLE OF CONTENTS

PRELIMINARIES

Declaration A

Declaration B

Approval sheet iii

Dedication iv

Aknowledgements V

Table of contents vi

List of Tables viii

Acronyms ix

Abstract X

CHAPTER

ONE: THE PROBLEM AND ITS SCOPE 1

Background of the study 1

Statement of the problem 2

Purpose of the study 2

Research objectives 2

Research questions 3

Scope of the study 4

Significance of the study 4

Operational definitions of key terms 5

TWO: REVIEW OF RELATED LITERATURE 7

Concepts, ideas, opinions from Authors/Experts 7

Related studies 19

THREE: METHODOLOGY 21

Research design 20

Research population 21

Research instruments 24

Validity and Reliability of the research instrument 24

Data gathering procedure 25

Data analysis 27

Ethical Consideration 27

Limitation of the study 28

FOUR: PRESENTATION, INTERPRETATION AND DISCUSSION OF FINDINGS 29

Profile of respondents in southern province of Rwanda 29

Market feasibility study’s elements in southern province of Rwanda 31

Level of business project success in southern province of Rwanda 33

Relationship between MFS and business project success 35

FIVE: SUMMARY OF MAJOR FINDINGS, CONCLUSION AND RECOMMENDATIO36

Summary of major findings 36

Conclusion 39

Recommandations 40

Suggestions for futher research 41

REFERENCES 42

APPENDICES

Appendixi: Questionnaire I

Appendix2: Summary of focused interview with officials of RDB VI

Appendix3: A schematic diagram of feasibility study VII

Appendix 4: Research Budget VIII

Appendix 5: Curriculum Vitae IX

Appendix 6: Introduction letter XIII

Appendix 7: Appoitment letter XIV