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Feasibity Study

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Submitted By CherrieBalce
Words 6751
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European Scientific Journal

May edition vol. 8, No.9

ISSN: 1857 – 7881 (Print)

e - ISSN 1857- 7431

MARKET ANALYSIS AND THE FEASIBILITY OF
ESTABLISHING SMALL BUSINESSES

Azzam Azmi Abou-Moghli, PhD
Applied Science University

Ghaith Mustafa Al-Abdallah, PhD
Applied Science University

Abstract
This study aims to explore the nature of relation and effect between market analysis and feasibility of establishing small businesses operating in the services sector in Jordan. Four independent variables were identified to market analysis: location, demand, price and competitors. The study population consisted of (163) cases and the researchers used a close ended
42-item questionnaire, with a (83.43%) reliability coefficient, as per the Chronbach Alfa equation for collecting the primary data of the study. Furthermore, two types of analysis were employed: simple regression analysis and stepwise multiple analysis. The study made a number of conclusions, most important of which is: there is a statistically significant relationship between the location, demand, price and competitors and the feasibility of establishing small businesses.

Keywords: Market Analysis, Feasibility Studies, Service Sector, Small Businesses, Jordan

1.0 Introduction
Market analysis of businesses is deemed as scientific tool to obtain relevant information about the realities of the proposed market. This will benefit the investor in showing the business feasibility to be studied and its preference over alternative investment opportunities, subsequently,
94

European Scientific Journal

May edition vol. 8, No.9

ISSN: 1857 – 7881 (Print)

e - ISSN 1857- 7431

making the suitable decision, either by proceeding further to the next stage of the economical feasibility study, or putting off the idea of the business under study.
Market analysis is an extremely

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