Understanding Concepts, Importance, Prevalence, and Impact of Feasibility Study Analysis on SME’s in Nigeria

This study examines the concepts, importance, prevalence, and impact of Feasibility Study Analysis (FSA) on Small and Medium Enterprises (SMEs) in Nigeria. FSA is a crucial tool for businesses to evaluate the viability of a project or investment, yet its adoption among Nigerian SMEs remains unclear. Using a mixed-methods approach, this research investigates the relationship between FSA and SME performance in Nigeria. The study employs Granger causality tests, unit root tests, cointegration tests, and Autoregressive Distributed Lag (ARDL) models to analyze data from 32 SMEs in Nigeria. The results show that FSA has a significant positive impact on SME performance in Nigeria. SMEs that conduct FSA are likely to perform better than those that do not. The study also reveals that the prevalence of FSA among SMEs in Nigeria is significantly low, and there is a significant difference in the performance of SMEs that conduct FSA and those that do not. The findings suggest that SME owners/managers should prioritize conducting FSA to improve their business performance. Policymakers should provide support for SMEs to promote the adoption of FSA, such as funding and tax breaks. The study contributes to the literature on FSA and SME performance, providing insights for stakeholders to promote the adoption of FSA among SMEs in Nigeria.