Micro-Enterprise Project Viability and Market Research
Micro-Enterprise Project Development
The Business Idea
All micro-enterprise projects are developed around an idea that arises from the arrest of a business opportunity. This idea arises in the mind of a person or group of people, influenced by conditioning factors such as:
- Discovery of an innovative product or service with perceived market demand.
- Purchase of specific know-how.
- Repetition of existing ideas (a reflection effect).
- Availability of a particular technical resource.
- Knowledge of unmet market needs.
- Deficiency in the supply of goods or services.
- Technical knowledge of the market, sector, or individual business.
- High profitability potential of the activity.
Conditions for a Viable Idea
If the idea is applicable, it must meet the following conditions:
- Meeting needs (e.g., changes in income level, cultural shifts, changes in women’s roles, labor market changes).
- Possessing a differentiating factor compared to competitors (e.g., economic, practical, aesthetic, technical, or psychological factors).
The Differentiating Factor
The differentiating factor is what causes individuals to prefer one vendor or product over another. It distinguishes the product or service in the eyes of the consumer. Examples of differentiating factors include:
- Economic factors: Price and affordability.
- Practical factors: Functionality and usability.
- Aesthetic factors: Appearance, packaging, and design.
- Technical factors: Innovation and performance improvements.
- Psychological factors: Branding, fashion, status, and collective preference.
Ensuring Viability
The micro-entrepreneur must conduct studies to ensure the viability of the chosen business idea. The depth of these studies will depend on the originality and complexity of the idea. Don’t hesitate to abandon an idea if it doesn’t show promise of remarkable results.
The Viability Plan
The viability plan is a written report that indicates the potential success of the company. It should:
- Allow for the identification and analysis of the steps needed to develop the business.
- Be based on the results obtained from:
- Market research
- Analysis of funding options
- Projected sales plan
- Analysis of raw material or merchandise acquisition possibilities
Market Research
Market research is an organized effort to gather information about the buyers and sellers in a particular market. Its importance and objective are to ensure project feasibility and inform production and commercialization strategies.
Importance and Objective
Market research helps determine if there are enough potential customers to justify launching a micro-enterprise. It allows for forecasting:
- Quantity demanded
- Production capacity
The objective is to ascertain the quantity of goods or services consumers are willing to purchase to meet their needs.
Characteristics of Effective Market Research
| Characteristic | Description |
|---|---|
| Opportunity | Conducted at the appropriate time. |
| Objective | Presents data accurately and without bias. |
| Precise | Uses sufficient questionnaires and research data to provide clear and unambiguous results. |
| Relevant | Focuses on gathering data that is useful for analysis. |
| Representative | Results are representative of the target market. |
| Clear | Easy to understand. |
| Reliable | Follows rules and procedures to ensure credibility. |
Data Sources
Data for market research can be obtained from:
- Secondary sources: Statistics, news reports, etc.
- Primary sources: Surveys, consultations, etc.
Data Collection Programs
Data collection programs are tools used to gather information directly or indirectly from sources that generate it. Types of data collection programs include:
- Closed: Respondents choose from predetermined options.
- Open: Respondents can answer freely and express their opinions.
- Mixed: Combines closed and open-ended questions.