Techno-Economic Feasibility Study Methods in Startup Financing

Abstract

Startups play an important role in creating job opportunities and promoting economic stability, growth, and development. However, it is noted that most startups collapse within the first decade of operation, and those that continue to survive will remain small. The major cause of large-scale failure is primarily the difficulty in predicting the internal and external risk factors that influence the startups’ potential success. The techno-economic feasibility study in startup financing is an effective method to safeguard against such risks preventing startup failures and the wastage of valuable investment resources. This study aims to explore the significance and the essence of the techno-economic feasibility study in stepping up the growth and advancement prospects of startups. The study findings promote useful insights into the value of techno-economic feasibility methods in startups by scholars, professionals, entrepreneurs, investors, banks, and financial institutions and provide some policy recommendations.