Page 1 - Lesson Note 11

ENTREPRENEURSHIP

CLASS- XI

LESSON-11

CH-3: TOPIC – ENTREPRENEURSHIP JOURNEY

SUB-TOPIC: - FEASIBILITY STUDY

1. A feasibility study is part of the initial design stage of any project/plan. It is

conducted in order to objectively uncover the strengths and weaknesses of
a proposed project or an existing business. It can help to identify and assess
the opportunities and threats present in the natural environment, the

resources required for the project, and the prospects for success. It is
conducted in order to find answers to the following questions:

 Does the company possess the required resources and technology?
 Will the company receive a sufficiently high return on its investment?

2. Need of Feasibility Plan:

 Improves project teams’ focus
 Identifies new opportunities
 Provides valuable information for a “go/no-go” decision
 Narrows the business alternatives
 Identifies a valid reason to undertake the project

 Enhances the success rate by evaluating multiple parameters
 Aids decision-making on the project
 Identifies reasons not to proceed

3. Steps in a Feasibility Study

Conducting a feasibility study involves the following steps:

(i) Conduct preliminary analyses.
(ii) Prepare a projected income statement. What are the possible revenues
that the project can generate?