SME's Product Investment Priority and Selection Based on Local Competencies

Feasibility analysis is one of the major competitive decisions for small and medium enterprises (SME). Increasing capabilities in investment identification, justification and ranking is the basis for SME's business performance improvement. The main problem of SME's is a limitation in product competitiveness, budget, facilities, technology and human resources. Some of this constraints cause a decline in business performance of SME's. In this case, an integrated feasibility analysis has to be carried out to develop a comparative investment project based on local core competencies. The assessment is carried out on the investment risk level, product and competitive advantage, market attractiveness, technological capability and investment profitability. The result show that an investment project with a high success potential based on local core competencies has been identify.