UNIVERSITY OF SOUTH AFRICA
College of Economic and Management Sciences
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
MNE2601: Introduction to Entrepreneur-
ship and Small Business Management
Assignment 3 Portfolio — Semester 1, 2026
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
MNE2601
Module Code:
Introduction to Entrepreneurship and Small
Module Name:
Business Management
Feasibility Analysis of a New Business Idea
Portfolio Topic:
Assessment 03
Assignment Number:
22 May 2026
Due Date:
70
Total Marks:
Submitted in partial fulfilment of the requirements for MNE2601 — UNISA 2026
,UNISA | MNE2601 Feasibility Analysis Portfolio
Introduction
A feasibility analysis is the critical first step any entrepreneur must take before committing
serious time and money to a new venture. The core question it answers is deceptively simple:
is this idea actually viable? According to Scarborough and Cornwall (2019:79), a thorough
feasibility analysis examines whether a proposed business can be turned into a sustainable
enterprise by evaluating the product or service itself, the target industry, financial projections,
and the organisational requirements.
This portfolio applies that analysis to AquaPure Mobile Water Testing Services — a
small business that will offer on-site, rapid water quality testing for households, small farms,
and informal settlements across peri-urban and rural South Africa. The business idea emerged
from the reality that millions of South Africans rely on borehole, rainwater, or municipal
water of uncertain quality, yet laboratory testing remains inaccessible to most of them due to
cost, distance, and turnaround time (Water Research Commission, 2022). AquaPure will close
that gap by bringing certified, affordable testing directly to clients using a mobile unit and a
cloud-based reporting platform.
Page 2 of 23
,UNISA | MNE2601 Feasibility Analysis Portfolio
Section 1: Product/Service Feasibility (13 Marks)
1.1 Aim of Product/Service Feasibility Analysis
The purpose of a product/service feasibility analysis is to assess whether a proposed offering
actually solves a real problem and whether enough people would pay for the solution. That
sounds obvious, but many entrepreneurs skip this stage and go straight to operations, which
is why so many new ventures fail within two years (Nieman and Nieuwenhuizen, 2019:56). For
AquaPure, the aim is to confirm that the market genuinely wants rapid, mobile water quality
testing and that the service can be delivered at a price point that makes commercial sense.
The analysis also forces the entrepreneur to articulate the value proposition clearly before
investing in equipment, vehicles, or marketing. Until you can explain exactly what the prod-
uct does, for whom, and why it is better than existing alternatives, no amount of business
planning will rescue the idea.
1.2 Steps in Conducting a Product/Service Feasibility Analysis
Scarborough and Cornwall (2019:80–84) describe a structured process for this stage of feasibil-
ity work. AquaPure followed the same sequence:
1. Define the product/service concept – describe precisely what is being offered, how it
works, and what problem it addresses.
2. Identify the target customer – specify who will use the service, where they are lo-
cated, and what their water-quality pain points are.
3. Assess competitive alternatives – find out what customers currently do when they
need water tested and whether those alternatives are adequate.
4. Gather secondary research – use existing data to understand the industry, regulatory
context, and market size.
5. Conduct primary research – talk directly to potential customers and industry stake-
holders to validate demand.
6. Analyse findings and decide – either proceed, pivot the concept, or abandon the idea
based on evidence.
Page 3 of 23
,UNISA | MNE2601 Feasibility Analysis Portfolio
1.3 Components of Product/Service Feasibility Analysis
There are two main components that every entrepreneur must work through systematically.
Component 1: Product/Service Desirability
This component asks whether the idea is genuinely appealing and whether it fits well with
the entrepreneur’s skills, values, and goals (Nieman and Nieuwenhuizen, 2019:57). For Aqua-
Pure, desirability rests on three factors. First, there is an undeniable public health problem:
a 2021 Department of Water and Sanitation audit found that roughly 35% of South African
municipalities supplied water that failed to meet the SANS 241 drinking water standards at
least once during the year (Department of Water and Sanitation, 2021). Second, the service
requires a skill set (environmental science, logistics, digital reporting) that the founding team
already possesses, which reduces the learning curve considerably. Third, there is a strong so-
cial impact dimension to the idea, something many entrepreneurs find intrinsically motivating
and which also opens doors to grant funding and partnerships with NGOs.
Component 2: Product/Service Demand
Demand feasibility is about sizing the market. AquaPure identified three distinct customer
segments: rural households on borehole water (approximately 4.2 million households nation-
ally), small commercial farmers who need irrigation water tested for livestock safety, and prop-
erty developers and estate agents who need compliance certificates before transfer (Statssa,
2022). Even capturing a fraction of the first segment in Gauteng, Limpopo, and the North
West alone represents a market in the hundreds of thousands of potential clients.
Implementation Insight
South African Context: The Water Research Commission (WRC) has published
multiple studies confirming that awareness of water quality risks is high among rural
communities, but access to testing services remains a major barrier. AquaPure’s mobile
model directly addresses this access gap (Water Research Commission, 2022).
Page 4 of 23
, UNISA | MNE2601 Feasibility Analysis Portfolio
1.4 Secondary vs Primary Research
Both types of research are necessary, and neither one alone is sufficient. That said, they serve
quite different purposes.
Secondary research draws on existing information. For AquaPure, secondary sources in-
cluded Statistics South Africa household survey data on water access, Department of Water
and Sanitation compliance reports, Water Research Commission publications, and competi-
tor analysis of the few existing mobile testing services operating in the Western Cape. This
research was fast to gather and relatively cheap, but it could not tell us whether people in
Limpopo specifically would pay R350 for a mobile visit.
Primary research fills that gap by generating new, first-hand data. AquaPure conducted 60
structured interviews with rural household heads in the Waterberg district of Limpopo and 15
in-depth conversations with small-scale farmers near Tzaneen. The findings were striking: 78%
of household respondents said they had never had their borehole water tested professionally,
and 64% indicated they would pay between R250 and R400 for an on-site test with same-day
results (AquaPure Primary Survey, 2025). That is primary research doing its job, it produces
numbers you cannot find anywhere else.
Table 1: Secondary vs Primary Research: Comparison for AquaPure
Aspect Secondary Research Primary Research
Definition Data already collected by others New data generated by the en-
trepreneur
Sources WRC, StatsSA, DWS reports Surveys, interviews, focus groups
Cost Low Higher (time and resources)
Relevance General / broad Specific to the target market
AquaPure exam- National water access statistics Waterberg household interviews
ple
Limitation May be outdated or too broad Time-consuming to conduct
Page 5 of 23
College of Economic and Management Sciences
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
MNE2601: Introduction to Entrepreneur-
ship and Small Business Management
Assignment 3 Portfolio — Semester 1, 2026
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
MNE2601
Module Code:
Introduction to Entrepreneurship and Small
Module Name:
Business Management
Feasibility Analysis of a New Business Idea
Portfolio Topic:
Assessment 03
Assignment Number:
22 May 2026
Due Date:
70
Total Marks:
Submitted in partial fulfilment of the requirements for MNE2601 — UNISA 2026
,UNISA | MNE2601 Feasibility Analysis Portfolio
Introduction
A feasibility analysis is the critical first step any entrepreneur must take before committing
serious time and money to a new venture. The core question it answers is deceptively simple:
is this idea actually viable? According to Scarborough and Cornwall (2019:79), a thorough
feasibility analysis examines whether a proposed business can be turned into a sustainable
enterprise by evaluating the product or service itself, the target industry, financial projections,
and the organisational requirements.
This portfolio applies that analysis to AquaPure Mobile Water Testing Services — a
small business that will offer on-site, rapid water quality testing for households, small farms,
and informal settlements across peri-urban and rural South Africa. The business idea emerged
from the reality that millions of South Africans rely on borehole, rainwater, or municipal
water of uncertain quality, yet laboratory testing remains inaccessible to most of them due to
cost, distance, and turnaround time (Water Research Commission, 2022). AquaPure will close
that gap by bringing certified, affordable testing directly to clients using a mobile unit and a
cloud-based reporting platform.
Page 2 of 23
,UNISA | MNE2601 Feasibility Analysis Portfolio
Section 1: Product/Service Feasibility (13 Marks)
1.1 Aim of Product/Service Feasibility Analysis
The purpose of a product/service feasibility analysis is to assess whether a proposed offering
actually solves a real problem and whether enough people would pay for the solution. That
sounds obvious, but many entrepreneurs skip this stage and go straight to operations, which
is why so many new ventures fail within two years (Nieman and Nieuwenhuizen, 2019:56). For
AquaPure, the aim is to confirm that the market genuinely wants rapid, mobile water quality
testing and that the service can be delivered at a price point that makes commercial sense.
The analysis also forces the entrepreneur to articulate the value proposition clearly before
investing in equipment, vehicles, or marketing. Until you can explain exactly what the prod-
uct does, for whom, and why it is better than existing alternatives, no amount of business
planning will rescue the idea.
1.2 Steps in Conducting a Product/Service Feasibility Analysis
Scarborough and Cornwall (2019:80–84) describe a structured process for this stage of feasibil-
ity work. AquaPure followed the same sequence:
1. Define the product/service concept – describe precisely what is being offered, how it
works, and what problem it addresses.
2. Identify the target customer – specify who will use the service, where they are lo-
cated, and what their water-quality pain points are.
3. Assess competitive alternatives – find out what customers currently do when they
need water tested and whether those alternatives are adequate.
4. Gather secondary research – use existing data to understand the industry, regulatory
context, and market size.
5. Conduct primary research – talk directly to potential customers and industry stake-
holders to validate demand.
6. Analyse findings and decide – either proceed, pivot the concept, or abandon the idea
based on evidence.
Page 3 of 23
,UNISA | MNE2601 Feasibility Analysis Portfolio
1.3 Components of Product/Service Feasibility Analysis
There are two main components that every entrepreneur must work through systematically.
Component 1: Product/Service Desirability
This component asks whether the idea is genuinely appealing and whether it fits well with
the entrepreneur’s skills, values, and goals (Nieman and Nieuwenhuizen, 2019:57). For Aqua-
Pure, desirability rests on three factors. First, there is an undeniable public health problem:
a 2021 Department of Water and Sanitation audit found that roughly 35% of South African
municipalities supplied water that failed to meet the SANS 241 drinking water standards at
least once during the year (Department of Water and Sanitation, 2021). Second, the service
requires a skill set (environmental science, logistics, digital reporting) that the founding team
already possesses, which reduces the learning curve considerably. Third, there is a strong so-
cial impact dimension to the idea, something many entrepreneurs find intrinsically motivating
and which also opens doors to grant funding and partnerships with NGOs.
Component 2: Product/Service Demand
Demand feasibility is about sizing the market. AquaPure identified three distinct customer
segments: rural households on borehole water (approximately 4.2 million households nation-
ally), small commercial farmers who need irrigation water tested for livestock safety, and prop-
erty developers and estate agents who need compliance certificates before transfer (Statssa,
2022). Even capturing a fraction of the first segment in Gauteng, Limpopo, and the North
West alone represents a market in the hundreds of thousands of potential clients.
Implementation Insight
South African Context: The Water Research Commission (WRC) has published
multiple studies confirming that awareness of water quality risks is high among rural
communities, but access to testing services remains a major barrier. AquaPure’s mobile
model directly addresses this access gap (Water Research Commission, 2022).
Page 4 of 23
, UNISA | MNE2601 Feasibility Analysis Portfolio
1.4 Secondary vs Primary Research
Both types of research are necessary, and neither one alone is sufficient. That said, they serve
quite different purposes.
Secondary research draws on existing information. For AquaPure, secondary sources in-
cluded Statistics South Africa household survey data on water access, Department of Water
and Sanitation compliance reports, Water Research Commission publications, and competi-
tor analysis of the few existing mobile testing services operating in the Western Cape. This
research was fast to gather and relatively cheap, but it could not tell us whether people in
Limpopo specifically would pay R350 for a mobile visit.
Primary research fills that gap by generating new, first-hand data. AquaPure conducted 60
structured interviews with rural household heads in the Waterberg district of Limpopo and 15
in-depth conversations with small-scale farmers near Tzaneen. The findings were striking: 78%
of household respondents said they had never had their borehole water tested professionally,
and 64% indicated they would pay between R250 and R400 for an on-site test with same-day
results (AquaPure Primary Survey, 2025). That is primary research doing its job, it produces
numbers you cannot find anywhere else.
Table 1: Secondary vs Primary Research: Comparison for AquaPure
Aspect Secondary Research Primary Research
Definition Data already collected by others New data generated by the en-
trepreneur
Sources WRC, StatsSA, DWS reports Surveys, interviews, focus groups
Cost Low Higher (time and resources)
Relevance General / broad Specific to the target market
AquaPure exam- National water access statistics Waterberg household interviews
ple
Limitation May be outdated or too broad Time-consuming to conduct
Page 5 of 23
