The main objective of opportunity studies prepared in accordance with this manual is to identify and promote investment projects in a particular subsector. Such studies should not be limited to individual projects but should draw up profiles of successful small industrial business, rating their strengths and weakness as well as the prerequisites for and constrains to the establishment and operating of viable enterprises. They should not be a theoretical exercise but should identify and define existing opportunities and conditions for success, providing complete information on markets, entrepreneurial input, locational conditions, the business environment and other factors affecting projects implementation. The studies should investigate the prevalence of conditions for success, provide cost rations and other project-related data, which can be used as input in any resulting feasibilities studies accordingly, opportunity studies should be structure like studies, which are dealt with in part three of the Manual Provide essential information on the subsector as a whole and on factors influencing the performance of projects irrespective of whether the factors are internal or external to the subsector. Provide critical background information as well as specific data for each opportunity selected with emphasis on subsector-typical factor input and project-specific data that deviate significantly from subsector averages. Lower the cost of preparing feasibility studies as the information and data collected and analyzed at the subsector level could be shared by a number of prospective investor and a number of similar individual projects in other words, one subsector opportunity study would serve a number of feasibility studies. The preparation of opportunity study will the cost of specific feasibility study because much of data required for the design and appraisal of the latter would already have been collected and stored in appropriate data banks and could be made available to investors at little or no cost. This would be especially important in the case of feasibility studies for small industrial projects, where cost could discourage potential sponsor from sponsoring such studies. However institution providing advisory service might charge for the preparation of an individual feasibility study and the building up of data bank. Specific investment proposal identified through opportunity studies could be included in national and regional development plan as well are in promotional material issued by public and private institution Figure II show the position of an opportunity study within the flow of project related data and the process of project preparation. Characteristic of the production process
The opportunity study should briefly describe the production process typical for the subsector stressing those processes that have comparative advantage under condition prevailing in that socio-economic environment. The description should cover the entire process including material input, material flows (raw material factory supplies) labor, input, quality control and critical emission (effluents noise.etc) The efficiency of production may be expressed by coefficient such as specific material and energy consumption output per worker material costs per unit produced and specific investment costs in so far as possible to study should also examine the strength and weakness of alternative production programmes and process essential input of material and other factor should be listed. Along with critical quality requirement and the degree to which input are promotional to inputs. Internal infrastructure and services
Small industrial enterprises usually do not have the capacity to establish and maintain the same internal infrastructure service as larger enterprises (e.g. maintenance and repair laboratory and quality control R and D) but have to rely on external service in developing country specialist and...
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