There are many markets being constructed all over the country, and for those which have already been commissioned, traders have refused to occupy them. Instead, many have preferred to continue their original informal structures. Customers also seem to prefer buying from traders who are in these informal markets.
If you want to confirm this point, visit the Juja Modern Market. Here, you will be shocked to find the majority of traders using the older open market stalls and very few occupying the newly built market building.
The Daily Nation reported this phenomenon in an article titled “The Puzzle of costly modern market projects turning into white elephants.”
Comprehensive studies are truly needed to establish the facts which can influence the design and the construction process. Without carrying out proper feasibility studies, we shall continue witnessing more and more white elephants.
Feasibility studies are crucial before building community markets for several reasons:
- Financial Viability: Feasibility studies assess the financial aspects of the project. They help determine whether the market will be economically sustainable. This includes estimating construction costs, operational expenses, revenue projections, and potential funding sources. Without a feasibility study, you might invest in a project that ends up being financially unsustainable, leading to wasted resources.
- Market Demand: Feasibility studies evaluate the demand for the community market. They analyze the target audience, their shopping habits, and preferences. Understanding market demand helps ensure that the market will meet the needs of the community and attract enough customers to thrive.
- Location Analysis: The choice of location is critical for a community market’s success. Feasibility studies assess potential locations, taking into account factors like accessibility, visibility, proximity to target customers, and competition. A well-chosen location can significantly impact the market’s performance.
- Competition Assessment: Feasibility studies also analyze existing competitors in the area. Understanding the competitive landscape helps you identify opportunities and threats, allowing you to develop strategies to differentiate your community market and attract customers.
- Regulatory and Legal Considerations: Building a community market often involves compliance with various regulations, permits, and zoning laws. Feasibility studies help identify potential legal obstacles and requirements. This early assessment allows you to address any regulatory issues and avoid costly delays or legal problems down the road.
- Community Support: Assessing community support is essential. Feasibility studies can gauge the level of community interest and involvement in the project. This information can be valuable for securing funding, garnering support from local stakeholders, and ensuring the market’s long-term success.
- Risk Assessment: Feasibility studies identify potential risks and challenges associated with the project. By understanding these risks upfront, you can develop mitigation strategies and contingency plans to minimize negative impacts on the project’s timeline and budget.
- Funding and Investment Decisions: Feasibility studies provide the necessary data and analysis to make informed decisions about funding and investment. Whether you seek funding from private investors or community donations, a well-prepared feasibility study can increase your chances of securing financial support.
- Resource Allocation: Before committing resources to the project, a feasibility study helps prioritize tasks, allocate resources efficiently, and establish a realistic timeline. This ensures that the market development process is well-managed and stays on track.
- Stakeholder Communication: Feasibility studies serve as a valuable communication tool. They enable you to share your vision with stakeholders, such as community members, government officials, and potential investors, in a clear and data-driven manner. This can help build trust and support for the project.
