Pre-feasibility studies are well researched yet generic due diligence reports that facilitate potential entrepreneurs in project identification for investment
The main objective of the pre-feasibility studies prepared by SMEDA is to provide information about investment opportunities to the small & medium enterprises (SME‟s). A typical pre-feasibility study provides:
1. Comprehensive information for investment opportunity in a business.
2. Specific information regarding different business areas like, marketing, technical, industrial information etc. for the existing entrepreneurs to improve their exiting setup.
3. Project investment information and financial projections to support viability of the business.
It is defined as a typically has a distinct mission that it is designed to achieve and a clear termination point, the achievement of the mission.
Project selection process starts with the generation of a product idea. The project ideas can be discovered from various internal and external sources. They may be
1. Knowledge of potential customer needs
2. Watching emerging trends in demand for certain products
3. Scope for producing substitute product
4. Going through certain professional magazines catering to specific interest like electronics, computers etc.,
5. Success stories of known entrepreneurs or friends or relatives.
6. A new product introduced by the competitor.