AMERICAN COLLEGE OF TECHNOLOGY

DEPARTMENT OF BUSINESS STUDIES

MASTER OF BUSINESS ADMINISTRATION PROGRAM

Feasibility Study on Automated Educational Document Verification Business Service

A Project Proposal Submitted to the Department of Business Studies of American College of

Technology
as a Partial Fulfillment of the requirement of the Award of Master of Business Administration
By
Betelhem Alemu

Advisor
Dr. Hailemichael

June 2023

Addis Ababa, Ethiopia

Appendix 3: Declaration

I Betelhem Alemu hereby declare that a project work entitled ‘Automated Educational Document
Verification Service’ submitted to The Department of Business studies of American College of
Technology in partial fulfillment of the requirements for the award of the Master Business
Administration is a record of original work done by me during 2023 academic year under the
supervision and guidance of Dr. Hailemichael. and it has not formed the basis for the award of
any Degree/Diploma/Associate ship/Fellowship or other similar title of any candidate of any
university.

Place: Addis Ababa

Date: 9/12/2023

__________________________________
Signature of the Candidate

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Appendix 4: Certificate
This is to certify that the project work entitled ‘Automated Educational Document Verification Service
submitted to the Department of Business Administration, MBA Program in partial fulfillment of the
requirements for the award of the Master of Business Administration is a record of original project work
done by Betelhem Alemu during the period 2022/2023 academic year under my supervision and guidance
and the thesis has not formed the basis for the award of any Degree/Diploma/Associate ship/Fellowship or
other similar title of any candidate of any University and it complies with the regulation and accepted
standards of the College.

Name of Advisor: ________________________

Signature: ___________________
Date: __________________

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Appendix 5: Approval Sheet
AMERICAN COLLEGE OF TECHNOLOGY
DEPARTMENT OF BUSINESS STUDIES
MASTER OF BUSINESS ADMINISTRATION PROGRAM
TITLE OF PROJECT

BY: Betelhem Alemu

Id Number: RMBA/298/21A

Approved by:

Advisor

-------------------------- -------------------------- -----------------

Name Signature Date

Internal Examiner

-------------------------- -------------------------- -----------------

Name Signature Date

External Examiner

-------------------------- --------------------------
-----------------
Name Signature Date

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Appendix 6: Acknowledgment

First and foremost, I want to give my thanks to Almighty God for giving me the chance to enjoy the fruits of
my Endeavour.

Second, I thank my esteemed advisor Dr. Hailemichael for his incessant guidance, perspicacious thoughts,
constructive criticism, and his /her great efforts to clarify things clearly and easily throughout my thesis
writing period.

Third, my profound thanks go to the department head for her support and facilities extended throughout this
research work.

Fourth, I thank dean of the college for the co-operation, support, and needs rendered throughout my study
period.

Moreover, I wish to express my gratitude to my friends, relatives, colleagues, and students for all the
support and help that need to be extended to me for the completion of this study.

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Table of Conten

1. Introduction.........................................................................................1
1.1 Background of the project......................................................................1
1.2 Objective of the Project...........................................................................2
1.3 Statement and justification of the Problem.............................................2
1.4 Scope of the Project................................................................................4
2. Project Concept........................................................................................5
2.1 Opportunity study..................................................................................5
2.2 The project Concept and Profile..............................................................5
2.3 Preliminary study...................................................................................7
3. Project Methods and Procedure............................................................8
3.1 Project Design........................................................................................8
3.2 Types of data..........................................................................................8
3.3 Sources of data......................................................................................8
3.4 Data collection methods and tools..........................................................9
3.5 Data analysis methods and tools............................................................9
3.6 Population of the study..........................................................................9
3.7 sampling Design...................................................................................10
3.8 Sample size..........................................................................................10
3.9 Sampling Method.................................................................................10
3.10 Data analysis methods and tools........................................................10
3.11 Limitation of the Project......................................................................11
4. Project Preparation.......................................................................................................................... 12
4.1 Markets and Demand Analysis.............................................................12
4.1.1 Market demand analysis...............................................................................................12
4.1.3 Demand-Supply gap................................................................................................19

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 4.2 Location and Site Assessment...............................................................19
4.3 Technology Selection............................................................................20
4.4 Technology Selection............................................................................21
4.5 Office Equipment’s...............................................................................21
4.5 Furniture and Fixtures.........................................................................21
4.6 Organizational and Human Resource....................................................22
4.7 Social and Environmental Analysis.......................................................24
4.8 Economic Analysis.............................................................................26
4.8.1 Project stakeholders......................................................................................................26
4.9 Financial Analysis..............................................................................29
4.9.1 Initial investment cost...................................................................................................29
4.9.2 Operational cost............................................................................................................29
4.9.3 Marketing cost..............................................................................................................30
4.9.4 Projection of cash flow............................................................................................30
4.9.3 Financial evaluation........................................................................33
4.9.3.1 Net present value (NPV)............................................................................................33
4.9.3.2 Internal rate of return (IRR)............................................................34
4.10 Legal analysis.....................................................................................36
5. Conclusion and Recommendations.........................................................37
5.1 Summary........................................................................................................ 37
5.2 Conclusions.......................................................................................37
5.3 Recommendations..............................................................................37
References..................................................................................................38

Acronyms

OCR: Optical character recognition

AI: Artificial Intelligence

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 Chapter One

1. Introduction
Ethiopia is currently implementing a strategy to advance digital transformation. The goal of
Digital Ethiopia 2025 is to digitalize services and promote e-commerce. In today's digital age,
ensuring only trustworthy people have access to digital spaces is mandatory. As a result,
document verification services that prevent fraud and maintain security will become a crucial
aspect of many industries in the near future.

1.1 Background of the project

As the world transitions from traditional paper-based documents to digital ones, it has become
necessary to establish methods of verifying the authenticity and integrity of such documents.
The transition to digitization will result in a rise in the use of digital document that increases the
demand for a technology that can guarantee both the authenticity and integrity of these
documents.
Document forgery detection is important as techniques to generate forgeries are becoming
widely available and easy to use even for untrained persons (Kaiserslautern, 2013). Due to the
rising incidence of fraud and identity theft, safe methods for confirming the authenticity of
documents are now required across the globe.
Document verification is the process of confirming the authenticity and validity of a document.
It involves verifying the information contained in a document to ensure that it is accurate,
reliable, and legally binding. A process of checking the validity and accuracy of educational
documents, is known as document verification.
Many organizations, including educational institutions, employers, recruiting firms, immigration
authorities, and others, can use this verification service to make sure that the documents that
applicants submit are legitimate and authentic.
The importance of document verification arises from the need to prevent fraud, ensure accurate
information, and maintain the integrity of various processes that rely on official documents. The
educational document verification service offers a simple and secure platform for individuals,

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educational institutions, companies, and regulatory agencies to confirm the validity of supplied
papers such degrees, diplomas, certificates, and transcripts. Such verification is significant not
only for personal identification but also for ensuring fair and open procedures in the workplace,
in immigration and other areas where the evaluation of educational qualifications is essential.

1.2 Objective of the Project

• General objective
The objective of the proposed study is to verify the feasibility and viability of
document verification service that solely verifies educational documents.
• Specific objectives
Below are the specific objectives that will be researched throughout this study.
A. To determine the viability of the proposed project in terms of financial and market
demand.
B. To assess the social and economic viability.
C. To determine the technical feasibility of the project.
D. To assess the feasibility of the project in terms of environmental aspect.
E. To assess administrative and managerial viability.

1.3 Statement and justification of the Problem

In Ethiopia, there is a severe problem with document fraud, and numerous incidents are recorded
every year. The consequences of document forgery can be severing from financial loss to legal
problems. In digital age, document are being increasingly created, stored and shared
electronically, which make them vulnerable to cyber threats such as tampering and fraud.
The expansion of higher education in Ethiopia has, where employment opportunities are
available, brought demands for better qualifications. In addition to the variety of opportunities it
has created. Positions that previously needed nothing more than basic literacy now require
improved qualifications that sometimes demand that people go back to school to attain them.
The sense of consternation created due to the growing demand for additional qualifications has
led to a situation in which those who cannot manage the catch-up are tempted to seek short-cut
mechanisms for obtaining degrees to ensure the continuity of their earnings and job status.
The most dominant counterfeit documents were found to be degrees obtained from recently
established private colleges and those bearing the names of public universities (Tewodros,

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2017).

One of the main reasons for document forgery in Ethiopia is the lack of centralized system for
verification. This makes it easier for fraudsters to create fake documents that are difficult to
detect. Therefore, this has created an environment where fake documents may be easily made
and used without being noticed.
According to Zegabi.com Ethiopia spotted more than 200,000 fake degree certificates, the
majority of which are offered to the government officials. The agency also claimed that it had
located a university college that had been offering out up to 15,000 fake master's degrees
annually while other institutions continued to award false degrees long after the institution had
been shut down.
Document fraud can have serious consequences for individuals, businesses and the government.
Businesses that hire or admit people based on fake documents risk wasting resources on
unqualified applicants. Genuine job searchers may miss out on opportunities to those with
falsified credentials, leading to underemployment or unemployment. Document fraud can lead to
Economical losses due to improper resource allocation, decreased productivity, and decreased
labour market competitiveness, document. The investigations and legal actions taken on fraud
cases may result in lost tax revenue and increased expenses for the government.
Additionally, the use of manual document verification procedures increases the risk of human
mistake, which could result in erroneous verification results, the lack of strong security
protections leaves them open to document manipulation, forgeries, and unauthorized access. As
a result, organizations are exposed to dangers like identity theft, fraud, and data breaches.
Moreover, manual document verification procedures take a long time and require a lot of labor,
which can cause delays to complete the verification process.
Identity theft cost users $52 billion in 2021 alone, which is an alarmingly high number for global
law enforcement agencies. The criminals mostly steal the identities of users from various online
platforms and make fake documents using their names, which are then used for various illegal
activities and applying for fraudulent immigration cases. Hence, it is quite crucial to implement
a robust document verification system for remote services, which never let’s fraudsters onboard
company systems using fake identities(Marley, 2022).

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A simple verification of credentials at the point of entry or during promotion could save a lot of
trouble and damage that is not easy to manage at a later date (Wondwosen, 2017 ). Digital
document verification services can offer a quick and effective approach to verify the educational
documents, ensuring that only people with the proper authorization have access to immigration,
further education, professional licensing and enables employers to mitigate wrong hiring as well.
This service verifies the legitimacy of documents and guards against fraud using advanced
technologies such as Machine Learning Algorithms, OCR and document ID.

1.4 Scope of the Project

The project focuses on determining the viability of a document verification service that is
proposed to be established in Addis Ababa city, with the intention of starting and operating such
a business next year. The service covers educational documents, including degrees, diplomas,
issued by educational institutions and relevant authorities. The scope includes verification for all
levels of education, from primary and secondary education to higher education.
The service verifies documents issued by various types of institutions, such as schools, colleges,
universities, and serves a diverse user base, including individuals seeking employment,
educational institutions verifying incoming students, employers vetting job applicants,
recruitment agencies, immigration authorities, and more.

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 Chapter Two

2. Project Concept

2.1 Opportunity study

This Opportunity Study covers a first investigation of the project idea and the identification of
opportunities. In today’s digital age, when identity theft and fraud are pervasive, document
verification services are becoming more and more crucial. The service offers a safe and reliable
approach to confirming the legitimacy of documents, guaranteeing that they haven’t been altered
or fabricated.

As Ethiopia implements a digitalization policy, the need for document verification services is
expected to grow as more companies and people will do their business online. This study aim is
to ensure there is market potential to take advantage of and provide this service to organizations
across various industries due to the demand for secure and effective document verification
solutions. Several businesses, including employers, legal, embassies, and the government, are
considered to benefit from this service. Moreover, the document verification system can be
integrated with other business systems and platforms to create synergies and increase its possible
uses.

2.2 The project Concept and Profile

Ethiopia's strategy to digitalize the nation is well in progress, with significant improvements
made in providing e-government services, building digital infrastructure, and investing in human
resources. Hence, as this strategy enables more companies and people to do their business online,
document verification services will become crucial. Document verification services have a
significant positive impact on a country by preventing fraud and identity theft, streamlining
processes and reducing administrative costs, enhancing security measures, and promoting
transparency and accountability.

This study aims to verify the feasibility of document verification services that enable a reliable
and efficient way of verifying documents to prevent fraud and identity theft.
Document verification services can assist in ensuring that only legitimate people are given access
to particular privileges or services by ensuring the legitimacy of the documents. In a number of
industries, including healthcare, education, and employment, document verification services can
promote accountability and openness by ensuring that individuals possess the required
qualifications or certifications. Therefore, these services can help to remove fraudulent activities
and promote fairness and equality.

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The goal of the proposed solution is to provide users with a simple online platform via which
they may electronically submit their educational documents. With this function, there is no
longer a need to provide actual documents, which reduces paperwork and enhances convenience.
The solution automates the verification process using cutting-edge technology including Optical
Character Recognition (OCR), Machine algorithms and document ID, ensuring quicker
processing times, accuracy, and a decreased reliance on manual labour. As notifications are
issued at different stages, it can allow users to receive real-time updates regarding the status of
their document verification. This keeps consumers updated about the progress.

The solution also makes use advanced technology to provide safe, impenetrable digital records of
certified papers. This guarantees the immutability and integrity of the verification process. As a
result, this technique produces safe, impenetrable digital records of authenticated documents.

The various stakeholders that can benefit from this project are as follows

A. Organizations (employers, recruitment agencies, immigration authorities)

 Enhances document verification accuracy by utilizing advanced technology that can

reduce errors and provides reliable results.

 Prevents organization from fraud, manipulation, and unauthorized access to critical

information.

 Enables users to utilize their resource effectively as it reduces time, money and
resources required compared to the manual verification process.

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 B. Submitters of the documents

 Documents can be submitted electronically at any time and from anywhere.

 Decreases the waiting time as the solution is capable of providing faster and reliable
results.

 Quick and painless process of document verification improves customer satisfaction.

C. Regulatory organizations

 To be compliant, individuals or companies must adhere to the regulatory

organizations strict guidelines. By confirming that the required documents are valid,
document verification assists in ensuring that these requirements are met.

 By eliminating the need for manual document checks, document verification speeds
up the process. This allows regulatory bodies to concentrate on other crucial activities
because it saves their time and resources.

2.3 Preliminary study

Fraudsters use various technologies to make fake document considered as if they’re real
documents. Therefore, various company’s organizations are forced to verify documents manually
or by contacting educational institutions to verify the validity of documents, which is costly in
terms of time and resource required.

As this is a major gap, I believe document verification service is crucial to reduce the pain point
of various institutions and employers to easily verify the authenticity of educational documents
in a real-time.

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 Chapter Three

3. Project Methods and Procedure

3.1 Project Design

The objective of this study is to describe the current situation or problem of document
verification process in Ethiopia. Creswell (1994 cited in Andavar, 2018) stated that the
descriptive method of research enables to gather information about the present existing condition
and that quantitative researches tend to express respondent views and meanings are constructed
by human beings as they engage with the world they are interpreting.
A descriptive method is more concerned with “what” rather than “how or why” something has
happened. Therefore, due to the nature of the current study, descriptive type of research design
with a quantitative approach was used. This study uses descriptive methods as it’s a fact finding
investigation which aimed at describing current situation, existing problem documents
verification in Ethiopia and it’s easier to analyze the collected data. The qualitative approach can
also assist in revealing the underlying motives, opinions, and attitudes of users, organizations,
and employers. It can enable the researcher to identify the factors influencing people's choices
between using and not using verification services. Moreover, this approach enables to understand
the unique experiences of people who have faced difficulties with the existing document
verification process, which can offer a human perspective.

3.2 Types of data

For the proper achievement of the objectives of the study used primary data obtained from the
response of respondent and secondary source of data is used to determine viability of the
document verification service.

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3.3 Sources of data
The data utilized in the study was gathered from both primary and secondary sources. The
primary data is used because they are original data’s consisting of greater detail and are more
accurate. A questionnaire is an effective and rapid approach to gather a lot of data from various
people. As a result, questionnaire is used to gather the necessary primary data in order to learn
more about the target market and customers.
In addition, a number of secondary data sources, including journal papers, various postgraduate
studies, document forgery reports, and websites, primarily Google, is used to pinpoint the issue
at hand and ensure the viability of the document verification service.

3.4 Data collection methods and tools

The primary data was collected through the use of questionnaires and observations. To make
sure the target clients are efficiently reached, a distribution survey design had been implemented.
The questionnaire was disseminated by email, social, and other communication channels (such as
Telegram).
A general market assessment survey is used as a data collection method, and Close-ended
questions was sent to a given audience to achieve the objectives of the study. Closed ended
questions used because it enables to obtain an understanding of thoughts, feelings, and
experiences of other peoples.
Additionally, a number of documents will be examined in order to identify the government's
rules and regulations for this particular business sector as well as for financial analysis.

3.5 Data analysis methods and tools

The qualitative data which will be gathered via questionnaire will be analyzed (logically,
systematically and thematically). Then it will be summarized and presented by interpreting the
information via excel.

3.6 Population of the study

Population refers to the entire group of people, events, or things of interest that the researcher
wishes to investigate (Creswell, 2003). The population in this research is Job Seekers and
Employees, Educational Institutions, Employers and recruiting agencies, regulatory bodies,
Immigration Authorities, Educational Quality Assurance Agencies.

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3.7 sampling Design

Types of sampling design used in the study is simple random sampling; the researcher randomly
selects a subset of participants from the population. Each member of the population had an equal
chance of being selected. The survey was distributed and then collected from as large a
percentage as possible of this random subset.

3.8 Sample size

According to Hair et al (1998), for a research focused on attitudes a sample size 200-400 is
acceptable. Therefore, as the research aim is to understand the broader demand for educational
document verification service across various demographic group and industries, 200 sample size
had been taken to gain insight into the larger trends and patterns related to demand and
preferences.

3.9 Sampling Method

The researcher applied Simple random sampling method. To convince the respondents to fill out
the survey the promoter used different approaches such as by making the subject line interesting,
by greeting the recipients, by informing recipients of the surveys length, and by thanking them

3.10 Data analysis methods and tools

Descriptive statistics (frequency and percentage) has been used to analyze the data collected
through self-administered questionnaire. Data obtained through document and desk review were
analyzed logically, systematically and thematically. Excel was used as data analytical tool to
summarize the data. Total of 200 distributed in Addis Ababa, only 156 were completed and
collected. As the result the response rate was 60% percent.

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3.11 Limitation of the Project
The Higher Education Relevance and Quality Agency (HERQA) is a government agency in
Ethiopia responsible for ensuring the quality and relevance of higher education institutions
and programs. As HERCA has database of all university certifications, the plan is to integrate
with this agency in order to verify the authenticity of documents. However, detailed
information such as grade per each semester might not be accessed through HERQA unless
integration is done with each university colleges.

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 Chapter Four

4. Project Preparation

4.1 Markets and Demand Analysis

Market analysis is a crucial step for businesses and organizations aiming to introduce new
products, enter new markets, or make informed strategic decisions. It’s a thorough evaluation
of a certain market or industry to comprehend its dynamics, trends, opportunities, and
difficulties. It entails the collection, interpretation, and evaluation of data related to the
market's size, potential customer base, competitors, and external variables that could influence
its growth. This market analysis offers answers to important questions like whether there will
be customers for the proposed project, how quickly and at what cost will it be accepted by the
market, and how the project might be planned or promoted to make it more competitive in its
market.
Selected Market Segment: As a startup business, our strategy is to focus more on our clients
who are living in Addis Ababa, Ethiopia. To successfully introduce and promote the
educational document verification service in this location, we will be establishing an effective
marketing mix that aligns the product, price, promotion, and placement strategies as per the
new market need. The approach we are going to use are as follows:
 Unique selling proposition (USP): real-time updates, a user-friendly interface,
 Customization: Offer different level of service or customization can be made as
per the client need.
 Digital Marketing: via social media the service will be promoted.
 Online presence: via a user friendly website.

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4.1.1 Market demand analysis
In this part both survey outputs and secondary data will be examined and plainly presented in
order analyze the current consumers market demand for the educational document verification
service.

4.1.1.1 Consumers demand analysis

Consumer demand drivers are directly linked with the consumer’s demand including income,
preferences, spending amount, willingness to pay for such service, how much to pay they want to
spend etc. The sample survey has been conducted on 200 residents of Addis Ababa city in order
to understand the primary demand of the verification service project under consideration
concisely. The survey result for each important variable is summarized below.

1. What’s your age?

Figure 4.1 pie chart 1

What’s your age
15-29 30

30-45 61

46-60 60

Above 60 5

2. What’s your educational level?

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 Respondent Answer
Read and write 0

10/12 complete and below 14

Certificate 26

College diploma/TVET 36

First degree 55

Master’s degree and above 25

3. How often do you verify educational documents?

Respondent Answers
Daily 20
Monthly 40
Yearly 38

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 Weekly 58

4. How do you currently verify educational documents?

Respondent’s Answer
Manually 156
In-house system 0
Automated 0

5. What challenges or difficulties have you encountered with the manual

verification process?

Respondent’s Answer

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 Time consuming 54
Costly 50
Human Error 52

6. Would you find automated Educational document verification service useful?

Respondent’s Answer
Yes 134
No 2
Maybe 20

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 7. What is your preferred method for document submission?

Respondent’s Answer
Online 100
In person 12
Via email 42

8. How much would you be willing to pay for a one-time document verification
service?

Respondent’s Answer
100ETB and below 32
101 and 250 birr 30
251 and 350 birr 48
Above 350birr 46

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Depreciation of office equipment
Materials QTY Unit price Estimated useful life Annual
Depreciation
Cash register Machine 1 10,000 5 2000
Computer 13 53000 5 10600
Front desk telephone 1 2500 5 500
Total 13,100
Depreciation of Furniture and Fixtures
Materials QTY Unit Estimated useful life Annual Depreciation
Price
Guest chair 2 6000 5 1200
Office chair 13 6000 5 1200
Office table 3 8000 5 1600
Printer, scanner 1 18000 5 3600
Managerial chair 1 30,000 5 6000
Total 13,600
Description Qty Unit Estimated Useful Annual Depreciation
Price(ETB) life
Server 1 347,908 5 69,581.6
Network infrastructure 1 37,637 5 7,527.4
User Interface Design 1 8000 3 2,667
software
Switch 2 105,000 5 21000
Total 100,776
Depreciation of operating equipment’s

Working Capital

Estimated time Amount

Rent 3months*30,000 90,000

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 Salary 3months*192,000 576,000

Office Supplies 3months*4950 14,850

4.1.3 Demand-Supply gap

Automated document verification service can streamline operations, improve security, and
increase productivity. In Ethiopia, there is a demand for such service as companies and
government agencies seek to digitize their operations and minimize reliance on manual
document verification procedures.
The expanding use of digital technology in Ethiopia will soon result in a greater demand for
automated document verification services. The demand for effective and reliable document
verification solutions will increase as businesses will shift from paper-based systems to digital
platforms.
Manual document verification techniques are frequently time-consuming, error-prone, and
fraudulent. Automated document verification services improve processing times, accuracy, and
fraud detection capabilities. These benefits have increased demand for such services in Ethiopia.
Moreover, Ethiopian educational institutions faces challenges to validate academic degrees and
certifications. Document verification services that are automated can help to streamline this
procedure by securely validating educational records, decreasing administrative responsibilities,
and increasing efficiency. However, there is now a significant gap between the demand for
automated document verification services and the supply available in Ethiopia. Businesses are
forced to verify educational documents manually as there are no private companies engaged in
providing such services as the market is still developing with regards to digitalization.

4.2 Location and Site Assessment

There are various things to take into account while trying to establish a successful business. The
location of the office is a crucial factor because it can significantly affect both the experience of
the clients and the business. The proposed projects (educational document verification business)
will be located in Addis Ababa, Arat Kilo, Kirkos subcity.
Arat Kilo, or the heart of the city, is considered as the center of Addis Ababa. Because several
major roads intersect at this location, it is easily accessible from different parts of the city. It's
also the ideal location due to its proximity to the target market (educational institutions,
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employers, and other key stake holders). Moreover, it's also known for its educational and
employment activities. Arat kilo is also the best choice for commercial activities because it has
suitable parking options.

The rent will be 3months deposit which cost 30,000.00 ETB on a monthly basis with a contract
for minimum of 1 year and renewable.

4.3 Technology Selection

 Machine Learning Algorithms: for fraud detection and anomaly identification,
helping to identify potentially fraudulent documents
 Web and Mobile Development: a user-friendly interface for users to submit and
track document verifications.
 Database Management: To store and manage user profiles, document records, and
verification status.
 API Integration: Vital for seamless interaction with educational institutions' systems,
employer platforms, and other third-party services.
 Data Security Measures: Encryption protocols and secure data transmission are
essential to protect sensitive user information.
 User Authentication and Authorization: Ensures secure and authorized access to the
system.
 Real-Time Updates: Use technologies for real-time updates on document verification
status, enhancing user experience.

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  Document Optical Character Recognition (OCR): technology to convert scanned or
photographed documents into digital text, making them searchable and enhancing
the verification process.

4.4 Technology Selection

Operating equipment’s Qty Unit Estimated Useful Total

Price(ETB) life
Hardware Server 1 347,908 5 347,908
& Network infrastructure(Router, 1 37,637 5 37,637
Software Firewall)
Switch 2 105,000 5 210,000

User Interface Design 1 8000 5 8000

software
Others Wifi router 1 2500 2500
Total 606,045
4.5 Office Equipment’s
Materials QTY Unit price Estimated useful life Total cost
Cash register Machine 1 10,000 5 10,000
Computer 13 53000 5 689,000
Front desk telephone 1 2500 5 2500
Total 696,500

4.5 Furniture and Fixtures

Materials QTY Unit Price Estima Total cost
ted useful life
Guest chair 2 6000 5 12000
Office chair 13 6000 5 72000
Office table 3 8000 5 24000
Printer, scanner 1 18000 5 18,000
Managerial chair 1 30,000 5 30,0000
Total 155,000

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4.6 Organizational and Human Resource
A company's organizational structure describes how it is set up and how its many parts and
functions are connected. It offers a structure for outlining the relationships, positions, and
responsibilities that are part of the organization. How information is shared, decisions are made,
and work is coordinated across various people and departments is determined by the
organizational structure.
Organization structure is useful to ensure that there is a clear channel of communication and
coordination in the company. It establishes the channels of reporting, the decision-making
process, and the reporting lines. This aids in efficient cooperation and communication inside a
business. Additionally, it aids in defining roles and duties and allocating resources like human
capital, making sure that funds are given to the appropriate teams or individuals based on their
qualifications. A clear hierarchy is also provided through organizational structure.

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No Position Qty Hrs/week
1 General Manager 1 25000
2 Operations Manager 1 18000
3. IT manager 1 18000
4. PMO 1 18000
5. Sales and Marketing head 1 12000
6. Customer support 2 12000
7. Developers 3 15000
8. Project Managers 2 12000
9. Sales and Marketing 2 8000
10 HR Manager 1 8000
11 Quality Assurance 2 8000
12 Database Administrator 1 12000
13 Accountant 1 8000
14 Legal consultant 1 18000

Basic Income Pension Pension Net Pay

Sr. Position
Salary Tax 11% 7%
1 General Manager 25000 7250 2750 1750 16000

2 Operations 18000 4800 1980 1260 11940

Manager
3 IT manager 18000 4800 1980 1260 11940

4 PMO 18000 4800 1980 1260 11940

5 Salesand 12000 2700 1320 840 8460

Marketing head
6 Customer support 12000 2700 1320 840 8460

7 Developers 15000 3750 1650 1050 10200

8 Project Managers 12000 2700 1320 840 8460

9 Sales and 8000 1445 880 560 5995

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 Marketing
10 HR Manager 8000 1445 880 560 5995

11 Quality Assurance 8000 1445 880 560 5995

12 Database 12000 2700 1320 840 8460

Administrator
13 Accountant 8000 1445 880 560 5995

14 Legal consultant 18000 4800 1980 1260 11940

Tota 192,000
l

Amount

Office Rent*3months 90,000 ETB

4.7 Social and Environmental Analysis

 Employment opportunities and Fairness
The process of authenticating and validating academic credentials, including degrees, diplomas,
and certificates, is known as educational document verification. This process is important for a
number of socioeconomic factors, such as employment, immigration, the quality of the
educational system, and overall societal growth.
Making sure people have the credentials they say they do is one of the main goals of
authenticating educational records. This is crucial in the work environment because employers
need reliable information to make wise hiring decisions.
Employers can evaluate a person's abilities and knowledge to determine whether they are
qualified for the employment position by checking educational documents. This solution aids in
preserving fairness in the work market by preventing fraudulent claims.
Therefore, educational document verification service encouraging confidence and reliability in
the labor market. Employers are more likely to choose to hire qualified candidates when they feel
confident in the validity of the educational credentials.

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Additionally, the service can reduce the chance of skill mismatches and job requirements, which
leads to a more efficient use of human capital. Therefore, by encouraging productivity and
innovation, this solution promotes economic growth.

 Favorable Environmental Impact

The environment gains significantly from document verification because less paper is used. The
process of making paper requires the removal of trees, which leads to habitat loss and
deforestation. In addition, a lot of water, energy, and chemicals are used in the production of
paper. However, this service can contribute to resource conservation and pollution reduction by
lowering paper use.
Additionally, this service plays a major role in reducing trash production as well. Physical papers
are frequently discarded after they become outdated or useles. As a result, plenty of rubbish ends
up in garbage. However, this solution can lessen the amount of waste produced by keeping
documents electronically.
 Reduce forgery and enhance compliance
Educational document verification service can drastically lower the number of forged
educational documents as it uses advanced technologies to detect them. This supports the
government's objective of assuring correct credentials by maintaining the validity of the
educational documents and the workforce. Verified educational data can be availed to the
government officials responsible to do statistical analysis to make well-informed decision and to
design the required policy that can strengthens regulatory compliance. Because accurate data
makes it easier to create effective policies that fit the actual educational environment.

4.8 Economic Analysis

4.8.1 Project stakeholders

 Users
The increasing incidence of fraudulent activities with educational documents makes
the usage of educational document verification service crucial. The primary users of
this service are individuals (Student, job seekers and employees). Users can use this
service to verify their educational documents for various purposes. Such as when

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 applying for higher education, for career progression, or just making sure their records
are accurate.
 Educational Institutions:
The other stakeholder of this project are educational institutions (schools, colleges,
universities). In order to verify the educational qualifications of potential students or
applicants for academic programs, educational institutions can use our document
verification service to ensure the validity of documents provided.
 Employers and Recruitment Agencies:
Employers and recruitment agencies are one of the main users of educational
document verification service. As part of the recruiting process, employers frequently
ask applicants to provide documentation of their educational documents. By using our
service Employers may make sure the data supplied by candidates is correct and
trustworthy.
 The Government:
The government will engage in this project by creating guideline and requirements for
the document verification service. They will be taking a part to develop laws and
regulation that specify the criteria for approving educational documents, establish, the
rules for the operation of such services, and develop standards for safeguarding data
security and privacy. Generally, the government will set standards to ensure the
service aligns with regulations.
 Data Protection Authorities:
The Information Network Agency(INSA) is one of the government bodies
responsible for overseeing data protection in Ethiopia. As they are in charge of
ensuring user data is handled securely and in compliance with data protection laws
they are the stakeholders of the proposed project.
4.8.1 Project beneficiaries’ identification
 The Government
Additionally, government organizations frequently invest a substantial amount of
money in examining educational credentials for a variety of reasons. By streamlining
these process, this service can help government departments save time and effort.

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 Educational document verification service can also help ensuring educational
institutions comply with government regulations, are operating as per the government
regulation and requirements.
Moreover, this service can significantly speed up the process of placing people in the
workforce and promote economic growth. As a result, there will be increased
economic activity, job creation, and consumer spending, the government receives
larger tax revenues. Additionally, it reduces compliance monitoring costs.
 Individuals
Individuals such as students, employees and job seekers can gain from having a
reliable method for verifying their academic credentials because it improves their
employability and opens up more educational opportunities for them.
 Employers and Recruitment agencies
When employing new staff, employers and recruitment agencies can also benefit from
educational document verification services. Employers can be certain that they are
hiring applicants with genuine qualifications by verifying the educational documents
that job applicants claim to possess. This is especially crucial for jobs that call for a
particular set of credentials or degrees.
They can use the result of the verification result to make well informed hiring
selections and avoid other people who could have lied about their qualification.
Therefore, they can make informed decision and avoid any fraudulent activities
during the employment process with the use of educational document verification
service. Employers can efficiently allocate human resources and save a significant
amount of money as this service eliminate the need for extensive background checks
and manual verification procedures during the hiring process.
 Educational Institutions
The main beneficiaries of document verification services are educational institutions.
During the admissions process, the institutions may use these services to confirm the
validity of the academic credentials provided by applicants.
Institutions can confirm that applicants have the appropriate qualifications and that
their degrees or certificates came from reliable sources by verifying the educational
records to make sure they are valid. This service can reduce the possibility of

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 fraudulent applications and guarantees that only qualified people are accepted into
their programmes. As a result, the institution's reputation and quality are preserved
which encourages more candidates to enroll there and increases the institution's
income and profitability.
This service can enable the educational institution to reallocate administrative
resources to other valuable tasks instead of manual verification processes which could
potentially lower operational costs. Furthermore, this solution can prevent the
educational institution from serious legal consequences.
 Immigration Authorities and Embassies
Immigration authorities are essential in controlling the flow of individuals across
borders. This service can enable the immigration authorities to promptly and
accurately examine the educational qualifications of visa applicants. This assures that
those entering the country have genuine qualifications
This service offers quick responses by automating the verification process, which
saves all the stakeholders time. Therefore, the educational document verification
service results in an advantageous outcome for a number of stakeholders, improving
operational effectiveness, lowering expenses, and promoting economic growth.
Strategic Alliance
We will be partnering with organizations that align with our mission and vision to
provide much-needed services. Through our partnerships with these organizations,
we’ll be able to deliver successful services to our clients and contribute to the
economy of the country. Below are the list of the strategic partners.
Ethiopian innovation and technology minister & INSA: we will have
relationships with this companies for innovating up to date technologies that will ease
our services to our clients and enhance the security of the sensitive data.
Local workers- by hiring them in our company we consider them as alliance rather
than an employee.

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 4.9 Financial Analysis

4.9.1 Initial investment cost

The total investment cost is estimated to be birr 2,143,535ETB. Out of the total investment Out
of the total investment 1,463,545and 6000will be fixed and pre-operating cost respectively while
the remaining balance of 671,000 would be working capital. The project investment cost
breakdown is provided below.
S.N Description Total Cost
o
1. Pre-Operating Cost(Schedule 6000
2. Operating Equipment’s 606,045

3. Furniture and Fixtures 155,000

4. Office Equipment’s 696,500
Total 1,463,545
5. Initial Working Capital 680,000
Total investment cost 2,143,545

4.9.2 Operational cost

Operational costs are the ongoing costs a business incurs in its day to day operations.
For the Educational document verification service, Operational costs can include
various costs that enables the service to run seamlessly.
Office supplies QTY Unit cost Total cost
Pen 50 15 750
Folder 5 150 750
Paper 2 1400 2800
Calculator 1 250 250
Stapler 2 200 400
4950

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 4.9.3 Marketing cost
Our modern approach for ensuring the authenticity of educational credentials is called
educational document verification service. Our service provides a seamless and reliable solution
whether they are an employer, educational institution. The company will be making marketing
activities via social media only. Such as Instagram, Telegram, facebook. Therefore, there are no
costs associated with Marketing.

4.9.4 Projection of cash flow

The forecasted Sales for 5years is stated as follow. Cost per verification request is 250ETB and
the expectation is to obtain 24000 verification request annually.
Forecasted Sales
Y1 6,000,000
Y2 7,728,000
Y3 9,953,664
Y4 12,820,319.2
Y5 16,312,571.1

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 Income statement
Y1 Y2 Y3 Y4 Y5

Revenue 6,000,000 7,728,000 9,953,664 12,820,319.2 16,312,571.1

Refund - - - - -

Discount - - - - -

Net Revenue 6,000,000 7,728,000 9,953,664 12,820,319.2 1,631,2571.1

Operating Expense

Consultant 216,000 216,000 216,000 216,000 216,000

Rent 360,000 360,000 360,000 360,000 360,000

Other Operating expense 6000 6000 6000 6000 6000

Supply expense 4950 4950 4950 4950 4950

Total Depreciation expense 127,476 127,476 127,476 127,476 127,476

Total Operating Expense 714,426 714,426 714,426 714,426 714,426

Operating Income 5,285,574 7,013,574 9,239,238 12,105,893.20 15,598,145.1

NI before tax 5,285,574 7,013,574 9,239,238 12,105,893.20 15,598,145.1

Tax(35%) 1,849,950. 2,454,750.9 3,233,733. 4,237,062.62 5,459,350.78

9 3

Net income 3,435,624 4,558,823.1 6,005,504. 7,868,830.58 10,138,794.32

7

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 Cashflow statement
Y1 Y2 Y3 Y4 Y5

Net Income 3,435,624 4,558,823.1 6,005,504.7 7,868,830.58 10,138,794.32

Depreciation of office 13,100 13,100 13,100 13,100 13,100

equipment’s

Depreciation of 13,600 13,600 13,600 13,600 13,600

Furniture and Fixtures

Depreciation of 100,776 100,776 100,776 100,776 100,776

operating equipment’s

Net Cash Operating 3,563,100 4,686,299.1 6,132,980.7 7,996,306.58 10,266,270.32

Activities

Investing Activities

Purchase of office 696,500 696,500 696,500 696,500 696,500

equipment’s

Purchase of operating 696,045 696,045 696,045 696,045 696,045

equipment’s

Purchase of furniture and 155,000 155,000 155,000 155,000 155,000

fixture

Pre-Operating cost 6000 6000 6000 6000 6000

Investing activities 1,553,545 1,553,545 1,553,545 1,553,545 1,553,545

Free current cash flow 2,009,555 3,132,754.1 4,579,435.7 6,442,761.58 8,712,725.32

Net Cash flow 2,009,555 3,132,754.1 4,579,435.7 6,442,761.58 8,712,725.32

Beginning cash balance 6,120,000 8,129,555 11,262,309.1 15,841,744.8 22,284,506.4

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 Ending Cash Balance 8,129,555 11,262,309.1 15,841,744.8 22,284,506.4 30,997,231.7

4.9.3 Financial evaluation

4.9.3.1 Net present value (NPV)

NPV is the total present (discounted) value of a time series of cash flows. NPV aggregates cash
flows that occur during different periods of time during the life of a project into common
measuring unit i.e. present value. It is a standard method for using the time value of money to
assess long-term projects. NPV is an indicator of how much value an investment or project adds
to the capital invested. in principle a project is accepted if the NPV in equal or greater than zero;
otherwise, reject. If the project is positive, the entity will earn a return equal to or greater than its
cost of capital.
Years Cash flow Df at 28.8 % Present Value

0 (2,143,545) 1 (2,143,545)

1 3,563,100 0.776 2,764,965.6

2 4,686,299.1 0.603 2,825,838.4

3 6,132,980.7 0.468 2,870,234.9

4 7,996,306.58 0.363 2,902,659.3

5 10,266,270.32 0.282 2,895,088.2

Total 32,644,956.7 14,258,786.4

NPV 12,115,241.4

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 4.9.3.2 Internal rate of return (IRR)
The internal rate of return (IRR) is an indicator of the efficiency or quality of an investment. A
project is a good investment proposition if its IRR is greater than the rate of return that could be
earned by alternate investments or putting the money in a bank account. If the projects IRR is
greater than the cost of capital, then accept the project; if not, reject.

4.9.3.1 Benefit-cost ratio (BCR)

A benefit-cost ratio is an indicator, used in cost – benefit analysis, that attempts to summarize the
overall value of money of a project. A BCR is the ratio of the benefit of a project, expressed in
monetary terms, relative to its costs, also expressed in monetary terms. All benefits and costs
also expressed in discounted present values. A BCR can be a profitability index in for- profit
contexts. A BCR takes into account the amount of monetary gain realized by performing a
project versus the amount it costs to execute the project. The higher the BCR better the
investment. The general rule of thumb is that if the benefit is higher than the cost the project is
good investment.
Benefit cost ratio = present value of cash inflows/Net investment

BCR= PV/ I

BCR= 14,258,786.4/2,143,545

BCR= 6.651

Payback period 1 year

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4.9.3.2 Payback period (PBP)
The payback period, also called pay-off period is defined as the period required recovering the
original investment outlay through the accumulated net cash flows earned by the project. If
payback period is less than or equal to the maximum allowed payback period by the
management, accept; otherwise, reject. Thus, the more quickly the cost of an investment can be
recovered, the more desirable is the investment.

4.9.3.3 Accounting rate of return (ARR)

The accounting rate of return method takes the average accounting profit that the investment will
generate and expresses it as a percentage of the average investment in the project as measured in
accounting terms. To decide whether the return is acceptable, we must compare the percentage
with the minimum required by the business. If the firm has target ARR less than the percentage
achieved, then this investment is acceptable, otherwise not.
Total cash flow before tax =49,242,424.3

Avg cashflow = 49,242,424.3/5 = 9,848,484.86 depreciation = 637,380

Accounting rate of return= Avg accounting profit / initial investment =

9,848,484.86- 637,380 /2,143,545

ARR= 429.71

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4.9.3.4 Break-Even Analysis (BEA)
It is an analysis to determine the point at which revenue received equals the costs associated with
receiving the revenue. Break-even analysis calculates what is known as a margin of safety, the
amount that revenues exceed the break-even point. Once the break-even point has been reached,
the net operating income will increase by the amount of the unit contribution margin for each
additional unit sold.

4.10 Legal analysis

In order to commence Document Verification service business operation, It needs
several permits such as INSA and Ministry of education. These permits should be
renewed annually. The pre-operating costs are as follows:
Amount
Tin No 3000
Business registration and 3000
license
Total 6000

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5. Conclusion and Recommendations

5.1 Summary
As the world transitions from traditional paper-based documents to digital ones, document
verification services are crucial to prevent fraud and maintain security. Document forgery
detection is essential due to the increasing incidence of fraud and identity theft.
Document verification is a process that checks the authenticity and validity of educational
documents, such as degrees, diplomas, certificates, and transcripts. Organizations like
educational institutions, employers, recruiting firms, and immigration authorities can use
this service to ensure the validity of submitted documents.
The marketing study covers the general business condition, , target market, demand. This
area talks about the structured questionnaires distribute to the respondents and the result
determines the demand and supplies.
Financial study provides financial information. This area discusses if the business is
profitable or not. The organizational study shows the form of the organization, the structure
of the business. The socio-economic study shows the contribution of the study to the
government and to the society.

5.2 Conclusions

Based on the research and study that the conducted, we can conclude that the business is
feasible and viable in the market

5.3 Recommendations

It is recommended that further research should be conducted in the technical aspects to

strengthen the proposal's technical analysis. Additionally, enhanced financial analysis
assessments should be incorporated. These recommendations aim to enhance the overall
feasibility and success of the Educational Document Verification project

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References

Mealer, M., Kittelson, J., Thompson, B. T., Wheeler, A. P., Magee, J. C., Sokol, R. J., ... &
Kahn, M. G. (2013). Remote source document verification in two national clinical trials
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Sundaram, B. B., Sowjanya, M. S., Andavar, V., & Reddy, N. R. (2018). Opportunities and
Challenges of E-Commerce in the Case of Ethiopia. International Journal for Research in
Technological Studies, 5(4), 2348-1439.

van Beusekom, J., & Shafait, F. (2011, September). Distortion measurement for automatic
document verification. In 2011 International Conference on Document Analysis and
Recognition (pp. 289-293). IEEE.

Tewodros Yalew, (2021). Effects of Fraud on Bank Performance in Ethiopian Commercial

Banks.
Sundaram, B. B., Sowjanya, M. S., Andavar, V., & Reddy, N. R. (2018). Opportunities and 1.
Challenges of E-Commerce in the Case of Ethiopia. International Journal for Research in
Technological Studies, 5(4), 2348-1439.
https://www.universityworldnews.com/post.php?story=20171214061717655

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