What Is Economic Viability?
Economic viability is when a project proves to be economically feasible, innovative and sustainable in terms of investing financial resources into the project. Funding for the project must be compatible with the demands and constraints that occur during the project’s life span.
Economic viability means that market operation is sustainable regarding current and projected revenues. The revenues will be greater than or equal to all current and planned expenditures. In simple terms, any project or activity that can financially support itself is economically viable. Using farming as an example, economic viability refers to the ability and capacity of a farm to ‘make a living’ annually.
Part of the concept of economic viability is the implicit recognition that the enjoyment of ? and effort put into ? a project determines how a project or business grows and how often workers are replaced.
For economic viability to work, it must often span generations. Workers must stay on top of best practices and share that information appropriately. In the farming example, this would include sharing with other farmers in the region as well as the community.