Market feasibility

Bhutan's size is also a hindrance to its economic progress. Bhutan cannot compete in the world
market on a large-scale production due to the limited size of the local market, dispersed pockets
of industry, and lack of economies of scale, as well as its landlocked situation and high trade
expenses (Sharma, 2021)

Technical Feasibility

In today fast-changing global business environment, the success of CSIs is heavily reliant on
innovation, creativity, and the adoption of new technologies. The department undertook the
following activities to facilitate access to emerging technologies and related resources to
support the development of the CSIs in order to promote greater innovation and technology
adoption (Department of Cottage and Small Industry, 2021).

Financial Feasibility

For many ambitious entrepreneurs, insufficient access to capital remains a big roadblock.
Through financial institutions such as the Bank of Bhutan, Bhutan National Bank, T Bank, and
Druk PNB, the central bank, the Royal Monetary Authority, launched the Minimum Lending Rate
of Interest (MLR) and Priority Sector Lending (PSL). The Loden Foundation, a Civil Society
Organization, has also come up with a collateral-free loan for those who really need financial
assistance to launch their business. Other organizations that help include the Tarayana
Foundation, Sabah Bhutan, and the Bhutan Trust Foundation. International organizations such
as the UNDP, UNIDO, Youth Co: Lab, and the SAARC Development Fund also contribute
funding. DHI recently provided Business Acceleration with equity as part of its support for the
expansion of entrepreneurial enterprises (Gurung & Tenzin, 2021)

Skills availability

The vast majority of CSI entrepreneurs do not have the necessary business skills. This is
primarily due to a lack of resources to invest in capacity development or a lack of awareness of
its significance. This deficit is one of the primary causes of the sector’s low production and slow
growth. As a result, the department, in collaboration with relevant stakeholders, facilitated the
following activities to develop human capital instill an entrepreneurial culture (Department of
Cottage and Small Industry, 2021).
Raw material availability

One of the primary issues that the country’s heavy and medium industries are mostly facing is
obtaining raw materials. For many industries, acquiring raw material is critical to their survival.
The majority of industries are mineral-based, and no other sectors, with the exception of
cement, can be certain in their raw materials. Other materials, with the exception of electricity,
are either mineral-based or imported from India (Ghalley, 2019).