CASE STUDIES
In 1995, independent consultants met ten entrepreneurs who had attended SBPP's NBC and book-keeping programs. After conversing with them and observing their activities, they handed in unbiased case studies. The study was conducted in Kathmandu, Bhaktapur, Butwal, and Bhairahawa.
Badri Gautam, Ananda Masala Udyog: "When I was a young boy, I ran away from home in search of work and ended up in India. There I worked for eight years in an ayurvedic herb factory," comments Badri Gautam. "When I came back to Nepal, I started a business but it went bankrupt. Then I took SBPP's New Business Creation course and started Ananda Masala Udyog. My main focus is the production of high quality spices: everything from turmeric powder to red pepper, cardamom, cloves, and large cinnamon. Last month, I produced goods worth US $2,000. My herbal medicine branch is also doing well and its produce is very popular among the people in this town. SBPP consultants visit my work areas regularly and give sound managerial advice. My main focus is to make this business secure and to grow. I supply well-packed items to other towns of Nepal as well. At this time Ananda Masala Udyog employs seven persons. One of our productsthe leader masalais replacing well-known brands locally".
Pashupati Basyal, Baba Metal Industries: Four years ago, when the Basyals envisioned the bucket industry at the SBPP training session, they knew that they were looking at a venture with few competitors and high profits. Bank loans and family savings allowed them to equip themselves with space and machinery worth $8,000 and laborers were available at reasonable costs. Their joint family of ten received good financial support from the business and it helped them build a house in the important Butwal town. "The turnover today is 2,000 to 3,000 dollars each month and gives 20 to 25% profits," comments Yashoda. "I generally look after labor management while my husband looks after marketing." Pashupati Basyal, meanwhile, knows that the profit margin has been decreasing due to competition. "We are planning to expand. I have already brought in galvanizing equipment from Kathmandu. Once galvanizing protects our produce from rust, dealers assure us that they will take in much more of Baba Metal Industries' stock. We employed fifteen persons while business was good and have been branching out to provide further facilities to our clients. For example, we have purchased partnership in a steel cabinet business to provide our clients with cabinets on installment basis."
Maina Bhatta, Gandaki Handicrafts: Mrs. Maina Bhatta, proprietor of Gandaki Handicrafts, rented a loom at 25 rupees a month to start her business. She now owns 10 looms and employs 26 people. Eighteen of her employees are women and salaries range from 900 to 1,400 rupees. In the beginning, Mrs. Bhatta sold knot-craft, wall hangings, bags, and toys. At present her products include dhaka cloth and bamboo goods. "I took a training in a book-keeping course organized by SBPP and they helped me get a loan from the bank, she explains. In a month, we sell goods worth $1,200 to $2,000," and since Mrs. Bhatta believes in variety, she encourages the staff to contribute their ideas as well. Every month or fortnight, workers are allowed to create products of their own imagination. It becomes expensive when they make mistakes, but the designs and skills that come out compensates for it all. Our bamboo frames, bags, and wall hangings are very popular and the workshop has exported goods to Germany and Japan. I plan to expand soon. At present, the rooms are very small and I have difficulty overseeing things. Besides, space is also required to stock our bamboo products, Mrs. Bhatta concludes.
Lokraj Acharya, Janata Cotton and Nylon Industries:
According to the Federation of Nepalese Chamber of Commerce and Industry, The textile
industry has been identified as a basic needs industry and high priority is given to investors in this
sector. Per capita consumption of 11 meters a year (low estimate) will mean that Nepals total
requirement of textile by the year 2000 will be 254.8 million meters annually. At the grassroots
level, the owner of Janata Cotton and Nylon Industries Lokraj Acharya is looking at success within
one year of factory operation. His showroom in Butwal was established in March 1995 and regular
orders are coming in. The factory has experimented with nylon, nylon-cotton, cotton-wool, and
pure cotton material. Twenty-five persons work at the factory and plans are underway to increase
the number of staff in order to meet client needs. Salaries range from 2,200 rupees to 3,000 for
salespersons. Mechanics earn 4,000. Shoba, who manages the showroom and is the wife of
Lokraj Acharya, reports that the profit margin is 10%. "The loan to start this business was provided
by the Agricultural Development Bank. However, though we have enough equipment now, we are
having problems because there is little running capital. Even then, things are going well and we are
given special privileges by Butwal Industrial Estate. At this time, Janata Cotton and Nylon
Industries has three factories: for handmade cloth, machine-made cloth, dyeing and finishing. Most
of the products are being sold in Pokhara, Kathmandu, and other big towns.
Kamal Maiya Sakh, Kamal Stores: Ms. Sakh dreamed of starting a tailoring shop as a child. When she opened her workshop four years ago, her dream turned into reality. Her husband and family encouraged her to take a course in book-keeping organized by SBPP and her Kamal Stores today sells Indian-style kurta suruwals, skirts, blouses, dresses, and pants worth $400 to $500 in a month. Mrs. Sakh has a commerce degree, is a mother of three sons, and lives with a joint family of ten. She employs five women who earn an average of 1,000 rupees each month. I hope to train my people to design as well. Starting this workshop has helped me to become financially independent. I have been able to save money for my sons education and I sell my products at my store. I want to focus on the European and other markets in Australia and Japan. I am also planning to introduce more variety in my shop: towels, jackets, and bedcovers.
Mamiswor Neupaney, Restaurateur: Khim Neupaney, 24 years old, and her husband, Mamiswor, 30, have branched out into several businesses since her husband took the SBPP training in management four years ago. They now have a restaurant, a cold store, a stock of raw sugar, an ice cream production plant, and a recently started chicken farm. The farm was a good idea because we do not have to buy meat for the restaurant now. The eggs can be used there and at the cold store. Their business has done so well recently that they have bought land in several places. "My husband looks after the accounts, makes sure that the supplies are adequate, and deals with people in the town. I make sure that the restaurant, poultry farm, and the cold store run smoothly. Since all our businesses are in one place, things are easy." Ramesh Puri, manager of the SBPP branch in Butwal feels that they have done well. "Many persons come to us for advice and those who are willing to work hard progress very soon, he says. "Khim and her husband have started the chicken farm ambitiously. They spent $500 on the shedscientific lighting, ventilation, and proper feeding and drinking containers. Perhaps this is why their production level is high. Only six of their 100 chickens died. This is a very good rate in a country where the traditional survival rate is 50%." Through this chicken farm, we also get natural fertilizer which has good marketability. This area is mostly farmland and artificial fertilizer costs 300 rupees or more per sack and farmers are pleased that they can get natural fertilizer for 35 rupees. Because we are already recognized as reliable people in this region, we plan to grow.
Success rate of NBC in Nepal Method is applied as CEFE in more than Since 1983 = 53% 70 countries worldwide
Mangal Prajapati, Nepal Shramic Ceramic Industry: My ancestors were involved in
the clay business. I have kept the tradition alive through my small enterprise, Mr. Prajapati
says proudly. Ten years ago, he took a course in basic book-keeping. SBPP helped me a lot
because I had no idea about financial dealings. I started manufacturing clay astrays, cups, and
plates. Later I produced terra cotta figures, water jars, flower-pots, and lamps. Among his figures,
the Buddhas image is very popular. He can produce according to the special needs of his buyers.
Sales bring $500 to $1,000 a month, says Mr. Prajapati. I invested $4000 in this business
initially and I am ready to invest more. There is a big market for ceramic goods and I hope to make
use of every opportunity. Our forefathers started this business with very little and now it has
become a thriving business all over the country. I myself have seven employees. With time, energy,
and equipment, Nepalese manufacturers can do well.
Ram Narayan Prajapati, Ritual Wood Art Gallery: Mr. Prajapati teaches Political
Science at the Bhaktapur Campus and began working in the woodcarving business ten years
ago. After attending management and accounting courses of Small Business Promotion Project, I
decided to start my own business, he reports. His shop first sold greeting cards, wrapping paper,
and calendars made of handmade daphne paper. Mr. Prajapati decided that he would look at other
innovative businesses as the paper products grew common. The collection of wooden images and
masks on display in his shops today are varied and are made by the highly skilled craftsmen of
Bhaktapur and Patan. He designs the items and specifies colors. Prices of images vary according to
the work, size, quality of wood, and creativeness that has gone into the piece. A medium sized
image costs $50 and an erotic carving made of several pieces costs $2,000. Mr. Prajapati owns
five showrooms in the Bhaktapur area already and plans to continue expanding. The first shop was
established in 1985, the chain now has an investment of $24,000.
Ganesh Bashi, Rabbit Farm: Mr. Bashi received training in New Business Creation from SBPP five years back. He has, in his time, attempted to run several businesses. His carpet factory was set up at a bad time when Nepalese rug prices were falling and an estimated three-years stock had piled up in Kathmandu and Germany. After the rug enterprise failed, Ganesh was on the look-out for other possible areas he could explore. The rabbit farming venture began when an acquaintance sold two pairs of Angora rabbits to him. One evening, on Nepal Television, he saw a program on processing rabbit fur. His wife spun thread, tightened it, prepared it for the loom, and wove a shawl. Ganesh has already been to many popular tourist shops around the Thamel area, Shopkeepers have said that they will buy our produce for up to $90 if we give them exactly what they want. Not only has the shawl-making business been looking good, but the sales of rabbit pairs will also give profit. We just sold one pair for $40. Ganesh wears a smug lookafter fourteen months of work, this is his first income. With patience and hard work, I am sure that we will do well. His wife must also feel this way, because she is smiling.
Yadav Shrestha, Yakaro Plastic Industries: "During the seven weeks New Business Creation Training Course in 1991 I got the idea of producing plastic appliances. I was familiar with this sector and, in a way, we could also protect the environment by recycling waste plastic products," Yadav comments. Yakaro Plastic Industries, a family owned enterprise, got a loan from Agricultural Development Bank to install an imported automatic molding machine worth $6,400. Additional $4,000 expanded factory utilities and they installed a plastic grinder, shape-molders, and a hand-molding machine. At present, the factory is situated in our house so we dont need to spend money on rent. However, we have plans to move over to the Butwal Industrial Estate. Demand for our products has increased significantly and we offer altogether 31 different electrical appliances. Our dealers ask for more of the same products, but we cant supply them as our stock is already finished.