DEPARTMENT OF ACCOUNTING AND FINANCE

COURSE TITLE:- PROJECT ANALYSIS &

EVALUATION

INDIVIDUAL ASSIGNMENT ON MACRO & MICRO

SOURCE LEVEL

NAME DAGMAWI WENDMAGEGNEHU

Submitted to:- Teacher YARED

Submission date:- Feb /19/ 2026

Good project ideas are the key to success. Therefore a wide variety of sources should be
tapped to analyze them. To have a wide range of options, the sources of project ideas can be
categorized into two they are:

A) Micro level sources

B) Macro level sources

Al Micro level;
These are sources close to the individual, stemming from personal

experiences, daily life, immediate observations and direct interactions.

Characteristics:

 Often highly personal or specific

 Based on firsthand knowledge or felt needs
 May involve solving a personal problem or improving something locally.
 Requires self-awareness and attentive observation of one's immediate surroundings

At micro level project ideas can be generated from various sources. Some of these are
discussed below.

1. Analysis of the performance of existing industries; A study of existing industries in terms

of their profitability utilization can indicate promoting investment opportunities which are
profitable and relatively risk free. An examination of capacity utilization of various industries
provides information about the potential for further investments. Such study is more useful
if it is done region wise. Particularly for products which have high demand for consumption
and wide scope for production.

2. Examination of the input-outputs of various industries: The analysis of inputs required

for various industries may throw some project ideas.

Opportunities exist when Materials,purchased parts, or supplies are presently procured from
distance sources with considerable time lag and transportation cost and Several firms
produce internally some components parts which can be supplied at lower cost by a single
producer who can enjoy economics of scale. Similarly a study of the output of the existing
industries may reveal opportunities for adding value through further processing of the main
outputs, by produce, by products as well as waste products.

3. Review of imports and exports; Analysis of import statistics for a period of five to seven
years is helpful in understanding the trend of imports of various goods and the potential for
import substitution. Indigenous manufacture of goods currently imported is advantageous
for several reasons. [1] It improves the balance of payments situation. [2]It generates
employment, and [3] it provides market for the supporting industries and services. Likewise
an examination of export statistics is useful in learning about the export possibilities of
various products.

4. Investigation of local materials and resources; A search for project ideas may begin an
investigation into local resources and skills. Various ways of adding value to locally available
materials may be examined. Similarly, the skills of local artisans may suggest products that
might be profitably produced and marketed. Such assessment may consider issues such as
the human and material resources, Infrastructure facilities and market for various products.

5. Analysis of economic and social changes: A study of economic and social trends is helpful
in projecting demands for various goods and services. Changing economic conditions and
consumer preferences provide new businesses opportunities. For example a greater
awareness of the value of time is dawning on public. Hence the demand for time saving
products like prepared food items, ovens and powered vehicles has been increasing.

6. Study of new technological developments: New products are the new process and
technologies for existing products developed by the research laboratories may be examined
for profitable communication.

7. Exploring the possibility of reviving sick units: Industrials sickness is spread in many
countries. There are innumerable bossiness units which have been characterized as sick.
These units either closed are have reached the prospect of closure. A significant proportion
of sick units. however can be nursed back to health by sound management, fusion of further
capital and provision of complementary inputs. Hence there is a fairly good scope
investment in this area.

8. Identification of unfulfilled psychological needs: For well-established multi brand product

groups like bathing soaps, detergents, cosmetics and tooth paste, the questions to be asked
is not whether there is an opportunity to manufacture them for satisfying an actual physical
need, but whether there are certain psychological needs of the consumers which are
presently unfulfilled.

9. Attending trade fairs: National and international trade fairs provide an excellent
opportunity to know about new product and developments.

10. Stimulating creativity for generation's new product lines:New product ideas may be
generated by thinking along the following lines: Modifications, rearrangements, reversal,
magnifications, reductions, substitutions, adoptions and combinations.

B. At Macro level:

These are sources originating from broad trends, large-scale societal changes, global issues,
technological advancements, and market analysis affecting large populations or systems.
Characteristics:

 Affects a large number of people or a significant system.

 Requires looking beyond immediate experience.
 Often identified through research, data analysis, reports, and news.
 Can involve addressing major challenges or leveraging significant opportunities.

At macro level project ideas can be obtained from various sources as mentioned below:

1. Project ideas from government policies and plan: From time to time governments
produce guidelines such as the national development plans and session papers which spell
out the directions government should take to achieve certain targets in various sectors of
the economy and guidelines to various organizations and individuals. for Ex: If the
government intends to start number of new schools in a given area then a number of
projects which of related to the establishment such schools would be considered.

2. Project ideas from technical specifications: For many industrial projects, ideas will usually
tend to come from technical specifications, which by virtue of their experience and for
research findings will give use full information which may lead to the manufacturing of new
products or improving the existing products.

3. Project ideas from local leaders: For community and social projects, local leaders usually
have important ideas, which they together with their local people, have identified as being
important in improving the welfare of the people. In the case of social projects depending in
which one is to identify, there may be number of other projects which are linked to the
identified projects.

4. Project Ideas from Entrepreneurs: For commercial and industrial projects,

Entrepreneurship is an important source of ideas. It been recognized that programs for
entrepreneurship development will help individuals to come up with useful ideas which can
be translated into viable projects.