It is the process of examining technical, economic, financial and commercial aspects of a
project. It is the process and steps through which an opportunity becomes a project in which the
entrepreneur is willing to invest his time, money and other resources. This study is undertaken to
find out whether the proposed project would be feasible or not.
NEED FOR PROJECT FORMULATION
The following are the major problems:
1) Knowledge About Government Regulations: The entrepreneur must have a thorough
knowledge about Government regulations, policies, licensing procedures etc.,
2) Absence of External Economies: A project has to depend upon other industries for the supply
of raw material, power, spares etc,
3) Non-Availability of Technically Qualified Personnel.
4) Resource Mobilization.
5) Selection of Appropriate Technology: Modern technologies developed in the advanced
countries may not be suitable for adopting in the developing countries.
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