usaid nepal’s education for income generation in …pdf.usaid.gov/pdf_docs/pnadt417.pdfthis book...

USAID Nepal’sEducation for Income Generation in Nepal Program

Pre-Vocational (Part 3)

Towards Entrepreneurship

This book has been prepared for the program "USAID Nepal's Education for Income

Generation in Nepal Program" funded by USAID. It targets youth aged 16 to 30 of the

conflict-affected Mid-western Nepal in 15 districts. The main objective of this book is to

motivate the participants towards initiating micro-enterprise and business through basic

capacity development.

In order to make this book interesting and effective, the subject matter has been

presented through pictures, comics, dialogues, and stories. Symbols and instructions

have been used throughout this book to make it easy for the participants and facilitators

to receive and conduct the activities such as reading, writing, and discussion. In addition,

each lesson includes exercises, important things to remember, and difficult word

definitions.

This book has centered on how to motivate the target community towards

entrepreneurship. It encourages the participants to develop local resource-based

enterprises by maximizing the use of the local resources. To entice the participants

towards micro-enterprises that can be run at the local level, information on local

vocations have been provided in this book in an interesting way. What qualities should

a person possess to become a successful entrepreneur? What means should be

adopted to gain more benefits? Why a feasibility study should be carried out before

starting an enterprise? After starting, how should the enterprise be analyzed? Whom

to contact to receive training related to the enterprise? Similarly, what are the possible

places to search for necessary resources for the business activity? The answers to

these questions and others have been presented in this book.

Objective of the Book and User's Guideline

The main objectives of this book has been divided into three parts:

Part A

- To motivate the participants toward enterprises by providing basic knowledge and

information.

Part B

- To inspire the participants to start enterprises by providing information on various

businesses that can be conducted in their local areas.

Part C

- To enable participants to execute a feasibility study, a business plan, business

analysis, profit/loss statement, and an action plan.

- To identify various organizations or agencies that participants can access for related

trainings, skills, credit and other services and facilities.

- To enable the participants in establishing co-ordination with various organizations,

institutions and groups to run their enterprise.

Reading

This symbol is for reading. This indicatesthat the participants should read by

themselves, together in a group or along

with the facilitator.

DiscussionThis symbol is for discussion. This

indicates that the participants should hold

discussions in small groups.

ExerciseThis symbol is for doing an exercise. Thisindicates that the participants should read

the question and write its answer.

Symbols Used in the Text

Table of Contents

Heading Page No.

Objective of the Book and User's Guideline

Symbols Used in the Text

Part A - Basic Information on Enterprise

Lesson 1: Subsistence-Oriented Production 1

Lesson 2: Commercial Production 4

Lesson 3: Micro Enterprise 6

Lesson 4: Entrepreneurship 10

Lesson 5: Anyone can become an Entrepreneur 12

Lesson 6: Enterprise can be done in a Group 14

Lesson 7: A Healthy Person can be a more Successful Entrepreneur 16

Lesson 8: Places where the Produced Goods can be Sold 18

Lesson 9: What should be done to Gain More Profit? 21

Lesson 10: Ways to Expand a Business 25

Part B - Enterprises that can be Run at the Local Level

Lesson 11: Ready-made Food Production 29

Lesson 12: Dairy Enterprise 31

Lesson 13: Income Generation in a Community Forest 33

Lesson 14: Goods Produced from Bamboo, Cane and Nigalo 35

Lesson 15: Beekeeping 37

Lesson 16: Goat Raising 39

Lesson 17: Fish Farming 42

Lesson 18: Vegetable Farming 45

Lesson 19: Coffee Farming 48

Lesson 20: Production and Sale of Spices 50

Lesson 21: Apple Farming and Processing 52

Lesson 22: Tea and Snacks Shop 54

Lesson 23: Agro-vet Shop 56

Lesson 24: Fruit and Vegetable Shop 58

Lesson 25: Incense-Stick Enterprise 62

Lesson 26: Candle Enterprise 64

Lesson 27: Collective Tika Enterprise 66

Lesson 28: Electronic Goods Repairing and Wiring Enterprise 68

Lesson 29: Beauty Parlor/ Salon 71

Part C - The things to Know for Running an Enterprise

Lesson 30: Feasibility Study of Enterprise 73

Lesson 31: Planning 77

Lesson 32: Dhan Bahadur's Subsistence-Oriented Plan 79

Lesson 33: Radha's Business Plan 81

Lesson 34: Enterprise Analysis 85

Lesson 35: Calculation of Profit and Loss in Business 90

Lesson 36: Calculation of Principal and Interest 94

Lesson 37: Equal Participation 98

Lesson 38: Organizations to Coordinate with for Enterprise Assistance 100

Lesson 39: Organizations to Coordinate with at the Central Level 102

Lesson 40: Organizations to Coordinate with at the District Level 106

Lesson 41: Organizations to Coordinate with at the Local Level 111

Lesson 42: From Where to Collect Investment Resources for Enterprise? 114

Lesson 43: Production to Market Relationship 120

Lesson 44: Selection of Enterprise by the Participants 123

Part A

Basic Information on Enterprise

1

Subsistence-Oriented Productions Lesson 1s Lesson 1

The production done only to meet one's daily needs is called subsistence-oriented production. Let's take a look at the people in our village andhow they make a living.

Bhawanis's familygrows paddy andvegetables in their field.They also raise somehens, a cow, a buffalo,two goats, and theyhave one bee-hive.From this work, theyonly meet the dailyneeds of the family.

Gyanu has a similar situation. He makes shoes but sells them only in hisvillage. Likewise, Bom Bahadur stitches clothes only for the villagers.The food-grain, vegetables, and some cash earned as wages meet onlythe daily needs of these families. This is called subsistence-orientedproduction.

Read the lesson below and discuss.

2

Does Subsistence-Oriented Production help toProgress?

Shobha: How was production this year, Kanchha?

Sanubhai: Don't ask Didi. It's only been enough for daily foodconsumption.

Shobha: What to do? Our work contributes only to our subsistence. Iguess we can take satisfaction in being able to maintain a simpleday to day subsistence living. We do not have time to thinkabout development and progress.

Sanubhai: What should be done for real progress, Didi?

Shobha: We should start commercial production which will improveour income, unlike subsistence production. In other words,whatever work one does, it should not only produce enoughto maintain a good livelihood for the family, but also producemore than the family needs. We should earn income by sellingproduced goods or services in the market and we should savesome part of the income we earn.

3

1. What type of production is called subsistence-oriented production?

.....................................................................................................................

.....................................................................................................................

.....................................................................................................................

2. What should we aim for when producing goods or services?

.....................................................................................................................

.....................................................................................................................

.....................................................................................................................

3. Make a list of the subsistence-oriented activities you have done.

.....................................................................................................................

.....................................................................................................................

.....................................................................................................................

.....................................................................................................................

.....................................................................................................................

.....................................................................................................................

Discuss the following questions in a group and write the answers.

4

s Lesson 2s Lesson 2

Commercial Production

Shobha Didi and the community are having a discussion aboutcommercial production

Sanu Bhai: What is commercial production, Didi?

Shobha: If we do work orproduce goods withthe aim of earningprofits by selling inthe market, as aprofession itself, thenit is commercialproduction.

Janaki: What are the benefitsof commercial production, Didi ?

Shobha: In commercialproduction, a largeamount of goods areproduced at a time. Thiscan reduce investmentor expenses to gainmore profit.

Buddhiram: How can large scaleproduction reduceexpenses?

Read the conversation below and discuss.

5

1. ..............................................

2. ..............................................

3. ..............................................

4. ..............................................

Shobha: While producing goods, there are some expenses that remainclose to the same, whether we produce small or large quantities.Therefore, from the expense point of view, it is beneficial toproduce larger quantities than small. This can minimize theproduction costs.

Sanubhai: Then, how can I change to commercial production from thefarming that I am currently doing? I have only a small piece ofland.

Shobha: If you have a small plot of land, you can grow different kindsof crops in rotation using improved seeds and fertilizers.Vegetable farming is best because today there is a high demandfor vegetables in the market, and you can make a larger incomefrom sales.

5. ..............................................

6. ..............................................

7. ..............................................

8. ..............................................

Discuss the following question in a group and write the answer.

1. Make a list of things you have produced or have seen made in yourvillage that would do well in commercial marketing.

6


Micro Enterprise

Individual Micro-Enterprise Community Micro-Enterprise

A micro enterprise is a small business making a profit with low investmentand making use of locally available resources and materials. Making Nepalipaper, clay pots, opening a retail shop etc. are examples of a microenterprise.

When developing a micro enterprise, it is wise to start small business withlow investment and fewer expenses to operate. This approach can produceprofit early for a micro enterprise. Spending more than you can makeduring a reasonable period may result in losing the business itself. Anyonecan successfully run a micro-enterprise. Similarly, group members or otherindividuals forming a group can operate an enterprise.


7

Types of Micro EnterpriseThere are mainly two types of micro enterprise:

1. Production-Oriented Micro EnterpriseSmall enterprises or small businesses producing goods are calledproduction-oriented micro-enterprises. For example, Harioperates a bread factory,Sarita rears goats,Ghanashyam makes driedginger herbs, Sanu Mayamakes products from leaves,Punita makes clay pots,Padam makes sun dried appleitems, Shyam makes blanketsand rugs etc., and theSayapatri Women's Group raise mushrooms. These businesses areproduction-oriented micro-enterprises.

2. Service-OrientedMicro Enterprise

The enterprise or business thatearns income or profit byproviding a service is called aservice-oriented micro-enterprise or small business.For example, Sharada sewsclothes, Hareram cuts hair,Radha takes care of maternitycases in the village, and Devaki

8

repairs watches and radios. People receive services from all thesebusinesses or enterprises, therefore these are service-oriented microenterprises.

Advantages of Micro EnterpriseA A micro enterprise can be operated from home with a small investment.A Good income can be earned from a micro enterprise in our own country,

with no need to go to another country.A Profit can be increased by keeping expenses down and utilizing local

resources.A Micro enterprises can generate employment for you and your family

members.A People can use down time to operate their enterprise.A Generally micro enterprises meet local market demand and do not require

travel to sell the products.A It is beneficial as it generates income within a short period after business

start-up.A Because operating costs are low, it is easier to get a loan.

Micro Enterprise that can be started with smallcapital while generating early income

A micro enterprise can be operated from homeutilizing local resources and means

9

1. Make a list of the production-oriented and service-oriented microenterprise that can be done in your village.

Things to pay careful attention to while managing aMicro Enterprise

The entrepreneur can make use of his/her own home, porch, land, andlocal raw materials to operate a microenterprise. Production should becost effective and use local resources, and skills. As much as possible, theentrepreneurs should utilize their own labor and skills producing only thegoods or services that are in demand in the local markets. Consumers' canbe motivated by good quality, reasonable prices, and advertisementspromoting the products or services.

Production-Oriented Micro Enterprise Service-Oriented Micro Enterprise

a. ................................................b. ................................................c. ................................................

d. ................................................e. ................................................f. .................................................

Raw materials: Things used for production of ready-made goods.Individual Micro Enterprise: Micro enterprise that is run by, and with

the investment of, an individual or a family.Community Micro Enterprise: Micro enterprise operated in a community

with collective investment.

Read the meaning of difficult words.


10


Entrepreneurship

Aperson running an enterprise is called an entrepreneur. Entrepreneurshipdescribes the skill, efficiency, and ability of the person who runs thebusiness. Along with the above skills, the person should possess thequalities of enthusiasm, promptness, diligence, dedication, and patience.What kinds of goods are needed in the market? How are these goodsproduced? How are prices determined? How are goods sold in the market?How are different problems solved that may arise in a business? Thesequestions can be answered by a person who has the qualities and skillsof an entrepreneur. An entrepreneur will also know how turn a profit andmake the business progress to keep up with the demand.


Income

Saving

Economic Development

11

1. Write any three qualities that an entrepreneur should possess.

a) ............................................................................................................

b) ............................................................................................................

c) ............................................................................................................

Qualities of an EntrepreneurAn entrepreneur should have the following qualities:

– ability to identify the types of means and resources available at thelocal level,

– ability to run the enterprise based on identified local resources,

– ability to generate funds necessary to run the business,

– promptness to sell the produced goods in the markets,

– diligence and allegiance toward the work to be undertaken,

– decisiveness to know what risks to take in operating a business,

– ability to solve or face any problems patiently when they arise,

– ability to receive information on new ideas, concepts, and technology,

– ability to prioritize tasks, including When? How to do? Where to do?etc. and to plan accordingly and,

– positive thinker.


12


Anyone can become an Entrepreneur

Ramkali lives in Banke. She andher husband, both are hardworking and they learned aboutthe benefits of a dairy businesswhen they started selling milkdaily in the market. They havebought an improved breed of cowand buffalo with the earningsmade from selling milk. Now theysell 50 liters of milk per day. Thishas increased Ramkali's incomegreatly. Seeing this, another friendJamuna also has started sellingmilk in the market from her twobuffaloes.

Hari and Rama are brother and sister.They live in Surkhet. They have noland to grow anything, but theyreceived training on repairing watchesand radios with assistance from asocial organization. So, Hari andRama opened a watch and radio repairshop in the village marketplace witha loan they took from a savings andcredit cooperative. Both of themknow the skills to satisfy customersand they earn a reasonable profit.Their business is going well and theyare accustomed to make installmentpayments on the loan to thecooperative.


13

1. What did Hari and Rama do after taking the training?

......................................................................................................................

.................................................................................................................................

................................................................................................................................

2. What did Ramkali do with the income earned from selling milk?

.....................................................................................................................

................................................................................................................................

................................................................................................................................

Sadhuram makes pots. Previously, he used to make pots for the villagersonly. After he understood that you cannot progress by subsistence work,he commercialized his production. Today, he also makes modern pots andsells all his products in the market. As a result, his income has increased.

All these stories show that anyone can aspire to become an entrepreneurby producing and selling those goods in the market to make a substantialincome.


14


Enterprise can be done in a Group

You went to sellbamboo baskets in

the market yesterday.Were they all sold?

Yes, the baskets were allsold, but the money from

selling baskets wasenough to pay the cost of

travel only. There wasnot much profit.

When goods are produced and sold by an individual or a family only, thetransportation costs can be high. The production cost will be lower ifsimilar goods are producedcollectively in a group, and itwill be easier to find marketsand transport the goods forsale. All other necessary costswill also be reduced, time canbe saved, and more profitearned.


15

1. What kind of enterprise can you run in your community? Make a list.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

2. What are the benefits of working together in a group?................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Women and men of Madanpokhara village in Palpa district are runningbusinesses in groups. They collect vegetables produced on their ownfarmland and after open discussions, take turns selling the vegetables atthe market. They collectively gather other products including fruits, pickles,milk, ghee, etc. and take to market for sale. By working together, theirincome has increased and their enterprises have expanded.


16


A Healthy Person can be a SuccessfulEntrepreneur

Khadga Bahadur looks lean and fit, but sometimes he complains of colic-pain, fever and headaches. He does not go to the hospital for check upsbecause he does not like tospend money on treatment.Because he is always sick, hehas not been able to giveproper attention to his cropsand his agricultural work. Dueto his ill health he has beenunable to make a reliableincome. Khadga does notunderstand that with goodhealth he can work and earn more than what he might have spent onmedical treatment.

But Jayaram knows the importance of health. He is aware that money canbe earned only if you can stay healthy. He pays special attention to hisdiet and provides medical treatment for himself and his family memberswhen appropriate. When sick with fever and headache, he consults thehealth center of the village and gets treatment. He and his family membersare healthy, strong, smart, and energetic, and share the interest to work.Jayaram keeps a retail shop in the village and earns a substantial profit.By himself, he delivers the goods to the city that is three miles away fromhis village.


17

Since he takes care of hishealth, he is able to do allthis work. His own healthand his family's is mostimportant to him. Today,Jayaram tells others, "Ahealthy person can bea more successfulentrepreneur".

Match the sentences by drawing lines.

Only a healthy person

Only if health is good

Due to poor health

Khadka Bahadur can be a successful entrepreneur.

can money be earned.

there is no reliable income.

is lean and thin.

18


aces here t e Places where the Pc s he e t a e r e Places where the Pr duced Goodroduced Goodsr c d oddu e Goroduced Goodsan ldcan be Solda dn lcan be Sold

At one's own home yard Putting up shop in front of school

Local bazaars and fairs At public places near main roads

Look at the following pictures and discuss in a group.

19

Market

The place where goods and services are bought and sold is called a market.

We go to the market to buy things that are necessary. Similarly, we takethings we have produced to sell in the market. Not only goods but alsoservices are bought or soldin markets. Tailors andbarbers are selling theirskills (service).

There are buyers and sellersat the markets. Buyers lookfor goods that they like mostso the sellers should sellgoods which have a highdemand. Likewise, the producers too must make goods that are in demandin the market.

There is more demand for warm clothes during the winter than in thesummer. Demand for male goats is higher during festival times such asDashain and Tihar than at other times. Demand for fruits and vegetablesare higher in the cities than in villages. Thus, as the market demand varieswith each season, festival, place, and time, production and sales shouldbe done accordingly.


20

1. At which places can the goods produced in your village be sold? Write

the names of such places.

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

2. What kinds of goods have high demand during Dashain? Write the

names of the goods.

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................


21


What should be done to Gain MoreProfit?

Customers should be attractedMotilal and Maili, two neighbors, have gone to the market togetherto sell the pears they raised.

Since Motilal was not careful whilepicking pears, many weredamaged. He had mingled all thepears together - the fine ones,bruised ones, small and big ones.Instead of laying out the pears onthe ground, he had kept all of themin the carriage-basket. Thecustomers did not like his pears sothere were not many sold.

But since Maili was careful whilepicking the pears, her pears weregood and not damaged. She hadplaced them separately - the bestones, small and large ones - andarranged them on the ground,laying a sack underneath. Thecustomers liked Maili's pears verymuch and all her pears sold.


22

Producing off-season goods

Cucumbers are a monsoon crop. They needs hot weather to grow. Thecucumbers produced in an area where the weather is hot and sold in themarket where the weather is cold iscalled the off-season product.Cauliflower is grown during thewinter season. If it is sold in themarket where the weather is hot, thenthe cauliflower becomes the off-season product for that area.

In Jumla, there is good production ofspring onion during July. If the sameonion is sold at the market ofNepalgunj, it is an off-season productbecause it is too hot to grow themthere.

If the vegetables are produced in seasons other than the regular season,such vegetables are off-season products. The goods produced in off-season can be sold for a higher price than those produced in the regularseason. They will be in high demand also so those products are sold atgood prices in the market. Vegetables such as cauliflower, cabbage,tomato, pumpkin, cucumber, gourd, and coriander can be sold as off-season products by selling them in areas where they cannot be produced.Similarly, more money can be made storing fruits, vegetables, and otherfood-grains and selling them during the off-season. Different varietiesof vegetables can be produced during off-season and can be easily soldin the market. We can get more profit by doing this.

23

Production of light weight, valuable and long lasting goodsby maintaining quality

Processing produce can improve quality, extend shelf life, increase value,and makes some even light weight to reduce transportation cost. Theseproducts can then be cleaned and packaged attractively in differentweights and easily taken to the markets where customers can purchasethem. Examples of processed goods are: milk processed into cheese;

24

============================================== ============================================================================================ ============================================================================================ ==============================================

1. Make a list of vegetables planted in your village.Seasonal Vegetables Off-seasonal Vegetables

a) .................................................

b).................................................

c) .................................................

d).................................................

e) .................................................

f) .................................................

2. What are the things available in your village can be processed? Makea list.

ginger dried to make ginger herbs; radishes, cauliflower, carrots,cucumbers, and lemons prepared as pickles. Similarly, radishes andcauliflower can be sliced, sun dried, and preserved. Jam can be madefrom fruits such as pears, Bel, apple etc., and apples slices can also bedried. In doing so, the products can be preserved for a longer time andsold at a higher price.


a) .................................................

b).................................................

c) .................................................

d).................................................

e) .................................................

f) .................................................

25

e on 10Lesson 10 0e on 1Lesson 10

Ways to Expand a Business

Phulmati has opened a fruit and vegetable shop recently, but she doesnot know how to arrange the produce. It is one year since Bimala openedher shop, she knows how to display goods and attract customers byplacing separate items in separate containers. Her sales are good and sheis earning a profit too.

When Sabitri selected the spot for her business, it was not in a good locationnor was it clean. So the customers went to other shops instead of comingto hers. Now Sabitri has changed her vending spot and selected a neat andclean spot where customers walk by regularly and see her business. As aresult, her sales have increased and she makes a good profit too.

Now


EarlierIs no one hungry or is something

wrong in my shop?

26

To sell attractive goods to customers, they should be packaged separatelyand in different weights. In this way the customers can buy according totheir needs. Satisfying the customer will expand the business and increaseincome.

After Madhu purchases oranges, she separates them into large and smallsizes, and sells them at different prices. Customers are then able topurchase the ones they like. This makes them more eye-catching thanUsha's, who puts all the oranges in one heap. As a result, her businesshas not been good.

Mixed pulsesand beans

Place goods according toquality and size separately

Make a good packet

Madhu Usha

Rs. 1Rs. 4

Rs. 3

27

Today

What is this feastfor ?

Budhani started a small shop two years ago. In the beginning, she couldnot keep a lot of goods on hand and the customers could not get thequantities they desired so her profit was minimal. Today, after makingan additional investment, she has increased her inventory according tothe customers' demand and watched her sales increase.

After Pema took a loan from her group, she spent the money on householdneeds and a feast instead of investing in an enterprise. Now she facesdifficulty to repay just the installments of the debt and she is regrettingthe loan. Uma took a loan from the group and started an enterprise. Herbusiness is doing well and she is earning a profit too.

Two years ago

Celebration forreceiving loan.

Huh! All the money finishedon the feast! Now, how

to repay the debt?

28

1. To increase the sale, goods demanded by the .................. should bekept in the shop.

2. The sales increase when the shop is kept neat and clean and the goodsare displayed in an ...................... manner by separating them andarranging them according to variety and size.

3. Good profit can be earned by increasing ……….. and properlyutilizing the loan.

4. Study the ……… of your product in the market and produce goodsaccordingly.

5. In order to increase sales, goods can be taken to the ……….......... ofthe customers.

Other ways to expand the business

− Carry the products by yourself to the market and sell at placeswhere you can get a higher price.

− Study the demand of your products in the market.

− Sell the products by taking them to the customers’ house.

− Produce or trade goods according to the customers’ demand, time,and season.

Fill in the blank spaces with the appropriate word.

attractive customers demand investment house

Part B

Enterprises that can be Run atthe Local Level

29

L ss 1Lesson 11L s s 1Lesson 11

A ready-made food production enterprise can be operated with a smallinvestment and income can be generated easily with this kind of business.Items such as doughnuts, stick noodles, beaten rice, and rice flakes canbe produced from simple skills you possess and can be sold in villagesand local markets. Because these items can be sold in the local markets,this self-employment business is convenient.

Ready-made Food Production

Ramchandra runs adoughnut shop in front ofthe school where peoplewalk by regularly. Now hesells 500 doughnuts eachday.

Gopal has started to producestick-noodles with a hand-operated machine in hishome. The local hoteliershave become Gopal's biggestcustomers purchasing thenoodles from him and sellingthem at their ownestablishments.


30

1. What kinds of food items can be produced and sold in your village?

.................................................................................................................

.................................................................................................................

.................................................................................................................

.................................................................................................................

.................................................................................................................

Points to remember in this lesson

– You can earn income by producing ready-made food items usingsimple skills you already have.

– Food items produced at the local level can be sold in villages, schools,public places, and shops, and in places with high people traffic.


31


Running a dairy enterprise can provide a good income. Many peoplecan benefit from this business. The milk produced by the local farmerscan be sold to the market. Many people will get employment. Dairyfarming can flourish in the community.

Within the dairy enterprise, milk can be processed to make curd, ghee,khuwa (milk solids used to make sweets), chhurpi (hard, dried cheese),ice-cream, and cheese. This keeps the milk that is not sold from going towaste. Similarly, a milk-chilling center can be established to keep themilk cold for a longer time. If milk is kept cold, it will not spoil, and canbe carried safely to distant markets.

Dairy Enterprise

Chandra Bir Oli lives in Chhinchu village of Surkhet district. He hasbeen operating a milk-chilling center since 2055B.S. with an investment of300,000 rupees to startthis business. In thebeginning he used tocollect 30 to 40 liters ofmilk a day, but now hecollects 200 to 300 litersdaily. Milk produced bylocal farmers is collected at the chilling center and is sold or suppliedto the local markets.


32

safely cattle farming benefitchhurpi/cheese spoil farmer

1. Many people will ………….from operation of a dairy processingcenter.

2. ……………… can be produced by processing milk.

3. When milk is kept cold at a chilling center, it does not …………..

4. Chilled milk can be carried to distant markets ………….

Points to remember in this lesson

– Curd, ghee, Khuwa, cheese, Chhurpi, ice-cream and other productscan be produced by processing milk.

– If a milk processing enterprise is opened, the cattle farming businessflourishes and good incomes can be made.

1. What are the possible milk processing enterprises that can be operatedin your village?

2. If any of you decide to operate a dairy business, then what kind oftraining should you take? Give suggestions.

Read the following questions and discuss in a group.

Fill in the blank spaces with the appropriate word.

33


Income Generation in a Community Forest


Increased income generation can bedone within a community forest.Bamboo, cane, and similar plants canbe grown in the free spaces inside theforest from which various handicraftgoods, furniture, carriage baskets,and containers can be produced andsold. Similarly, herbal plants, fodder,and other quick growing plants can

be harvested from inside the forest.Cardamom and amriso (a type ofgrass to make brooms) can begrown in damp places inside theforest and sold in the market. Onthe outer edges of the communityforest, beekeeping can also beundertaken.

Income can be earned by gathering andselling fodder, making plates and bowlsfrom leaves, and collecting herbs,spices, local mushrooms (GuchchhiChyau), soap-nuts (Riththa), etc. TheNepalese paper can be made bycollecting Lokta (kind of jute plant)from the community forest and sold inNepal and other foreign countries.

34

Baskets can be produced bee farming can be done.

In wet place cardamom Nepali paper can be made.

By collecting lokta and Amriso can be produced.

On the outer sides of the forest and sold.

Read the following question and discuss in a group.

But before starting such works, discussions should be held at Forest UsersCommittee meetings. The Community Forest Users Committee can putthese works into action after seeking permission from the District ForestOffice.

Advantages of conducting income generation programs insidecommunity forest:

1. Farming herbal plants, bamboo, cane. and Nigalo (kind of mini-bamboo) in the community forest helps to prevent landslides.

2. When the consumers get direct benefits from the forest, they begin toappreciate and preserve the community forest.

3. As consumer's movement continues in the community forest, forestproducts remain safe from theft.

What kinds of income generating work can be done in the communityforest of which you are a member?

Match the following parts of sentences by drawing lines.

35



Goods Produced from Bamboo, Cane,and Nigalo

Different items can be made from bamboo, cane (Bet), and Nigalo (akind of mini-bamboo) which are found in our village area and can besold in the market. We can make sitting stools, things that can be usedduring rain or sun like shyakhu, ghum, chhattri; doka, dala (baskets andcontainers), nangla (kind of utensil for winnowing) ; mandro (kind ofmattress), bhakari (large basket for storage of grains) etc. Not only thesegoods can be sold. Nowadays, there is a high demand for tables, chairs,sofa, cloth hangers etc. made from cane and bamboo in city areas. Assuch goods/ items are light and durable, people like to use them. Manyentrepreneurs are earning a profit by selling such items.

We can also develop an enterprise to make such goods. We can learn tomake dokas, dalas, nanglas, bhakaris, syakhus, chhattris, etc. which are

36

What products can be made from bamboo, cane and nigalo within anenterprise in your village area?

1. ..................................................

2. ..................................................

3. ..................................................

4. ..................................................

5. ..................................................

6. ..................................................

7. ..................................................

8. ..................................................

traditionally in use in our village. Those who have traditionally madethese products could teach us. If we take training, we can produce suchitems in a better more attractive way. We should contact the office of theCottage and Small Enterprise Development Committee of the districtfor training. Sometimes we can also receive training with assistance ofthe local non-governmental organizations. We can make such items andsell in the village, nearby markets and even up to the district headquarters.

In this way we can use our local bamboo, cane and nigalo to earn goodincome. Therefore, it would be better if we move towards learningnecessary skills and making such goods.


37


BeekeepingRead the lesson below and discuss.

Among the various kinds of enterprises that could be started in our villages,beekeeping is one that has potential. Flowers are necessary for honeyproduction and there are many varieties of flowers available around ourfarms and hillsides where bees can pollinate. This would enable abeekeeping enterprise to succeed.

There are two kinds of bees that wecan keep in our village area.

1. Serana: This honeybee is a bitsmall and requires only a smallamount of food. And these bees arepopular in our village.

2. Melifera: This kind of bee islarger in size and needs more food, alarger space, and proper care andattention.

In order to operate beekeeping as an enterprise, bees as well as modernhives are necessary.

For training and necessary information, one can contact the DistrictAgricultural Development Office. Additional information can be acquiredby reading books on horticulture and holding discussions with those whoare already running this business.

38

If someone runs a beekeeping enterprise in your neighborhood, meet andask about his/her investment and income. A discussion will be held intomorrow's class.

Hive è nest of beeSugar syrup è thick liquid material prepared by mixing sugar and water

Beehives should be placed inopen areas where plenty offlowers grow. If necessarythe hives can be taken forgrazing far from home topollinate places (fields/orchards) where lots offlowers are found. Duringthe rainy season and whenthere are few flowers, sugar syrup should be provided to the bees. If abeehive gets infected by any disease or another problem is found, it canbe treated with the advice from the District Agricultural DevelopmentOffice.

Honey is consumed by mixing with other foods. It is also used as medicineand as an energizing substance. Therefore, the demand for honey isincreasing in both local and international markets. Honey can easily besold in villages as well as local markets.

In summary, producing honey through the operation of a horticultureenterprise can earn a good income.

Read the word and its meaning.


39


Goat Raising


Another enterprise that can be started in our village is goat raising. Sinceadequate fodder is often available in the forests near the villages, goatraising becomes plausible.

There are two kinds of goats: local and the improved breed. Chyangra,Sinhala hilly, and Terai goats are local kinds and the improved breedsare Jamunapari, Barberi and Sanan goats. When starting a goat raisingbusiness, different species of goats can be raised according to the climateand geographical location.

The improved breeds, such as Sanan, Jamunapari, Barberi, and localgoats can be raised in the mid hills. Jamunapari/ long-eared and local

40

goats can be raised in Terai and inner Terai. In the mountain regions,sheep and Chyangra can be raised. Wool and meat can be produced andsold from these animals. Rugs, blankets, sweaters, gloves, socks, mufflers,coats etc. can be made and sold to earn income from their wool.

For goat raising purposes, sheds need to be constructed by using wood/bamboo, hay, brick, stone, corrugated sheet, roofing-tile, roofing-slateetc. Sheds for the goats should be constructed in a dry and sunny placefacing towards south if possible. Along with green fodder, the goatsshould be fed maize flour, wheat, barley flour, paddy husk, and mustard-cakes. While operating a goat raising business, knowledge about goatdiseases and ways of treatments should be learned. Some of the symptomsof goat illness can be seen below:

w It doesn't like to walk with itsherd

w It doesn't show interest to eatw It gets thinner

w Its skin looks rough and dry w It will have moist eyes w It will have a runny nose

Among the various goat diseases, Khoret and Namle are the mostdominant and will require the help of a veterinary service.

For goat raising, the breeds should be selected according to thegeographical location. By doing so, more income can be earned withless expense and within a shorter period of time. If you compare localgoats to the improved breed, the improved breed of goat gives moremeat. As people realize that more income can be collected from the goatraising business, the demand for goat kids is increasing. Specifically,the sale of castrated as well as normal male-goats rises during Dashain,Tihar, and other festivals. The goats can be taken to local villages anddistant cities for sale from which higher incomes can be earned.

41

How much money is required to invest to operate a goat raising businesswith 20 goats? Please discuss and write the answer.

1) ...........................................................................................................

2) ...........................................................................................................

3) ...........................................................................................................

4) ...........................................................................................................

5) ...........................................................................................................

1. There are two kinds of goats, local and improved breed.

2. The goats do not catch any diseases.

3. As much as possible, goat shed should be built at a dry,sunny place facing south.

4. The sale of castrated and normal male-goats decreasesduring different festivals.

5. We do not need any knowledge on the diseases andtreatment methods of goats.

Put (üü) mark for true statement and ( x ) mark for false statement.


42



Gopilal and Ramjanam are from the same village. They are talkingabout fish farming.

Gopilal: Ramjanam! Why did you make the pond near this tap?

Ramjanam: I made this pond for fish farming. Listen Gopilal, I havejoined the vocational literacy class conducted by the educationprogram for income generation and conflict mitigation. In thisclass, discussions are held on different income generatingenterprises. Among the various enterprises, I found fisheriesas the most appropriate for me. I took a 15,000 rs. loan fromthe commercial bank and started this business. My classmateshave also started other micro enterprises.

Gopilal: Is fish farming profitable?

Ramjanam: We can make a good income from this business. Fish canbe sold within 8 to 10 months at a good price in villages,markets, and hotels, and the demand for fish is high.

Fish Farming

43

Gopilal: How many species of fish can be found? What should we feedthem? Where can we find fish fingerlings?

Ramjanam: Silver carp, big-head carp, grass carp, and Rohu are someof the species of fish that do well in ponds. In addition to grass,paddy husks and mustard-cakes should also be given as food.We can purchase fish fingerlings from fisheries centers inBhairahawa, Nepalgunj, and Dhangadi. Technical help alsocan be found there.

Gopilal: How much do the Fingerlings cost? What kind of diseases affectfish?

Ramjanam: Cost differs according to the species and size of the fish.When fish are small, they should be protected from birds,

44

Can a fish-farming business be done in your village or not?

snakes, and frogs. When they are grown, they may be affectedby a scale disease. This disease can be treated with the use ofpotash and lime. During the rainy season, flood water shouldbe diverted to keep it from entering the pond. If any otherproblems arise, help can be found at the nearest fisheries center.

Gopilal: How is your income from this business?

Ramjanam: I started this fish farm by digging the small pond myselfand investing about Rs. 15,000. My first earnings from sellingthe fish crop was Rs. 25,000, and I am paying back the loan ininstallments. I have since constructed another pond to increasemy fish farming business. I have decided to do this businessbecause I can earn a good income with a small investment.

After listening to you, I also want to enter the fish farmingbusiness and may consider it soon.


45


Vegetable Farming


Ramkali, a member of Sayapatri Group, is inquiring about the methodof vegetable farming with J.T.A., Dhan Bahadur.

Dhan Bahadur: Your idea of doing vegetable farming is very good. Manypeople are earning good returns with this business and haveimproved their standard of living.

Ramkali:Which vegetables should be planted and in which season?

Dhan Bahadur: Vegetables are planted according to the season. Seasonalvegetables for summer and winter can be grown in theirappropriate season. For example, cauliflower, radishes, cabbage,carrots, etc. are winter season vegetables. Pumpkins, gourds,chilies, etc. are summer season vegetables. However, if thesevegetables are produced during the off-season, more incomecan be earned.

Ramkali:Good and healthy fruit can be expected only from good seeds.So while selecting vegetable seeds, what things should I payattention to?

Dhan Bahadur: While selecting good seeds for vegetable planting, theseeds of other crops, weeds, stone particles, and dust shouldnot be mixed with these seeds. Seeds should be of good quality,uniform and unbroken. They should be mature and healthy, andnot infected by insects.

Ramkali:How should the land be prepared for vegetable planting?

46

Dhan Bahadur: Sandy and mixed soil is most appropriate for vegetablefarming. The land should be plowed three or four times beforeplanting. Then compost fertilizer should be spread evenly onthe land and equal furrows should be made. Seeds can then besown on top of the furrows. If this is done properly, the weeding,thinning, and watering is easier to manage. This increasesproduction.

Ramkali:While transplanting the vegetable seedlings, when should it bedone and how do you irrigate?

Dhan Bahadur: Seedlings should be transplanted in the evenings. Theland should be lightly irrigated and this can be done in variousways. Some methods used are plain irrigation, furrow irrigation,pot irrigation, drip irrigation, refused or dung hill irrigation,and pitcher irrigation. For hot sunny days, frosty days, and duringheavy rain, the vegetable plants should be protected by makingshade or covers where necessary.

Ramkali:While harvesting vegetables what things should be considered?

47

Make a list of vegetables that you plant during winter and summer.

Winter vegetables

......................................................

......................................................

......................................................

......................................................

Summer vegetables

......................................................

......................................................

......................................................

......................................................

Mixed soil (Dumat)è Soil mixed with sand – sandy soilCompost fertilizer è Fertilizer prepared by rotting weeds, Ashuro,

Titepati, fallen leaves etc. by putting into a pit mixedwith dung

Nutrient è Healthy foods giving necessary energy to the body.

Dhan Bahadur: Vegetable needs to be collected before the nutrients arelost. For example, tomato, green beans, white beans, lady'sfinger, mustard greens (Rayo), spinach, bitter gourd, gourd,radishes, and carrots should be collected before they are mature.Moreover, vegetables should be picked in the morning andevening time. After collection, vegetables should be cleanedand prepared to take to the market. Vegetables should be storedin a cool, dry, and airy place.

Ramkali:Today, I got the opportunity to learn many things. Now I willteach these things to my neighbors and begin a vegetable farm.

Read the word and its meaning.


48


Coffee Farming

Dil Bahadur is a veryhardworking farmer of LimghaVDC, Gulmi. He knew from theAgriculture Development Officethat coffee grows very well inGulmi. Based on this, he startedraising coffee. He has beeninvolved in coffee for the last fiveyears. He not only produces butalso purchases coffee from otherfarmers.

He had taken training on coffeeprocessing from the AgricultureDevelopment Office. After the training, he bought a pulping machine topeel the coffee beans. After peeling the coffee beans, he dries them inthe sun for 2 or 3 days. Then he washes the dried beans with water andagain dries them in the sun. Then he roasts the dried beans in a heatediron cauldron. After roasting, the coffee beans are cooled and put into amachine to crush them into powder. Then he packs the coffee-powder in

Read the story below and discuss .

49

1. From where did Dil Bahadur know that the coffee farming is good inGulmi?

....................................................................................................................

....................................................................................................................

2. What are the necessary steps to produce coffee powder from coffeebeans?

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

packets in different weights and sends to hotels and restaurants for sale.Packed coffee can be kept for a long time.

Dil Bahadur has made contact with businesses in the district to sell hisproduct. His product is supplied to the local markets as well as distantmarkets such as Nepalgunj, Pokhara and Kathmandu. Recently thedemand for coffee is increasing. He has earned a very good income fromcoffee farming and trading. He has managed to send his children to school.To expand his farming, he has planted coffee in more land. Other farmersof his village are also encouraged from his coffee farming.


50


Production and Sale of Spices

Spices include ginger, turmeric, cardamom (big), chilly, garlic, onion,Tejpatta (cassia), coriander, fenugreek, cumin, mustard, timur etc. Thesethings are used for preparation of food in the homes, local motels, smallerhotels in villages as well as big hotels in the cities. Spices are used evenmore during feasts and festivals.

We can sell these products by drying, grinding and packing them at home.For example, we canmake dried ginger bydrying it; we can dryand grind chilly andturmeric to makepowder; we can dryand pack cardamometc. There will be lessrisk of spoilage if dry.They can be stored athome for long time and sold later. They can also be sold when the pricerises. Producers can earn more income if they take packed spices to themarket themselves. The more we produce such goods, the more profit


51

1. What spices do you use during food preparation?

....................................................................................................................

....................................................................................................................

2. What spices do you plant in your farmland ?

....................................................................................................................

....................................................................................................................

we can earn. We can producevarieties of spices suitable tothe climate and soil of ourvillage and in our own farm-land. We can also takeadvice from the AgricultureDevelopment Office.

Before starting on any spicesproduction work, we should think about where we will take and sell theproduct. It is also necessary to consider in which time or season there ishigher demand for such things.


52

L ss Lesson 21s L s Lesson 21

Apple Farming and Processing


Manisara: The apples have grown well this time. We should sell themat good price.

Dhan Bahadur: Not only thefruits, but we shouldalso.think of sellingprocessed apples.

Manisara: How can apples beprocessed?

Dhan Bahadur: Apple can besliced, dried andpacked into plastic bags, this is also processing. Similarly,making jam and juice of the apple is also apple processing.

Manisara: Can we make a profit by processing apples to make jam,sukuti (dried slice) and juice?

Dhan Bahadur: Why not? There is a market demand for sukuti, jamand juice of apple just like the fruit itself. Sukuti, jam and juiceis sold at a higher price than fresh apples. These items do not rotor perish. They can be kept for longer periods than the fruit.

Manisara: And where should they be sold?Dhan Bahadur: Demand for dried apple slices, jam and juice is higher

in the big cities of Nepalgunj, Pokhara, Butwal, Dhangadi, and

53

1. Making jam and juice from apples is also ……………

2. We should also think about selling …………… by processing it.

3. ………….. can be kept for longer period than fruits.

4. We can contact the …………….. Office in our district headquartersfor training

5. These products can be sold easily by contacting ……………. in urbancities.

packing apple jam and juice apple processingbusiness persons business Cottage Industry training

Kathmandu. These items can be sold easily by contactingbusinesses dealing in these products in these cities.

Manisara: Don't we need training for this?Dhan Bahadur: Yes, we need training. We can contact the Cottage

Industry Development Office in our district headquarters fortraining. Today, different nongovernmental organizationsworking in our villages are also providing this training. We canalso learn from people who have already taken the trainings.

Manisara: So what are you thinking of doing?Dhan Bahadur: I am thinking of starting my own apple processing

business and will buy apples from others in the village andprocess them in my home. First, I will contact the CottageIndustry Development Office for training.

Manisara: Listening to your idea, I also want to do this business. I willdiscuss it with my family members.

Fill in the blank spaces with appropriate word.

54


Tea and Snacks Shop

Read the story below and discuss.

There is a new road to Sukamari's village now. Shops have begun toopen in different places around the village square, and it has becomeeasier to bring goods home from the markets. People have become moremobile. Now Sukamari is thinking that a small restaurant could succeedin the village square.

Sukamari used to observerestaurants and gatherinformation about the businesswhen she travelled and thoughtabout the things necessary toopen a restaurant.

Sukamari has the skills to make delicious tea, puri, curry, sel roti, andothers. She also has learned to make sandwiches, samosa, and noodlesfrom her neighbor, Manakumari. She realised that milk, curd, ghee, oil,gram, peas and soybeans produced at home can be used to run the teashop. By doing this, she required less money to start the business.Therefore she started a small restaurant at the village square. She took aloan of Rs. 10,000 from the group and bought spoons, plates, dishes,cooking utensils, jugs and bowls.

55

What are the possible places in your village where tea and snacks shopscan be operated?.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

She has arranged the furniture for her shop properly. She bought thecupboard recently. She has arranged the glasses, plates, containers ofmilk and curd, everything in the cupboard so that they can be seen fromthe outside. She has used a net to protect the curry and other food itemsfrom flies. As the products of her home are also utilized in the business,she sells snacks at a cheaper rate. Now, her tea and snacks shop is doingwell. There is always a crowd of customers at her shop.

Her family members are very happy with this business. Her husband hashelped her as well. Sukamari has also saved some money in addition topaying school-fees for her children and managing the daily expenses ofthe business.

We can run such shops in our villages, especially near schools, at publicplaces, village markets, bus parks, by the main road and big settlementareas, in front of offices, and passageways.


56


Agro-vet Shop

Dhaniram of Naubasta VDC of Banke district is a hardworking farmerwith a deep interest in agriculture and animal husbandry. Many otherfarmers of his village also doanimal husbandry and vegetablefarming. But the farmers have togo to Kohalpur to get the requiredvegetable seeds, insecticides,chemical fertilizers, buffalo andcow feed, chokers, and medicines.Considering all this, Dhaniramdecided to open an agro-vet shopin his village.


A shop that sells seeds of fruits, vegetables, and other crops,insecticides, medicines, and feed for cattle is called an agro-vet shop.

Those who want to run an agro-vet shop should have good knowledgeof cattle and vegetable farming. They should also have good knowledgeof the diseases that may affect cattle and vegetables, and how to chooseand use the proper medicine for treatment. Dhaniram did not have thenecessary knowledge, skills and training for operating an agro-vet shop.So he consulted with the Veterinary Service Office, the AgricultureDevelopment Office of the district, and an employee of anongovernmental organization working in his village. He received

Dhaniram Agro-vet Shop

57

training for the agro-vet shop operation with the assistance of the DistrictAgro-vet Office and Agriculture Development Office. He also acquiredthe agro-vet shop registration certification from the AgricultureDevelopment Office.

Dhaniram learned from the training the different vegetable seeds that couldbe farmed in his village, vegetable diseases, and the quantity of insecticidesto be used. He also learned about the diseases that affect cows and buffalo,medicine to be used for treatment and the method of treatment.

After acquiring training, Dhaniram took a loan of Rs. 15,000 from thevillage cooperative and started his agro-vet shop. Today, vegetable seeds,necessary pesticides for vegetables, pesticide spray, vitamins andmedicine for cattle, feeds, and drugs can be found in his shop. Wheneverthe farmers have problems, he provides a home delivery extension service.He takes a fee for his service.

He has named his shop 'Dhaniram Agro-vet Shop'. The people of hisvillage don't need to go to Kohalpur to get seeds, fertilizers, cattle feed,drugs, vet-medicines etc. any more. They are able to treat their animalson time. So, vegetable and cattle farming business has been flourishingin Naubasta VDC. Villagers grow and sell vegetables and they are alsoearning incomes from selling milk, curd, and ghee by raising cows andbuffalo.

Sometimes, when problems arise, Dhaniram goes to the DistrictVeterinary Office and Agriculture Development Office to consult withthe technicians. Now, his income is good and he is thinking of takingfurther training and expanding his enterprise.

58

a) Dhaniram takes a ……….. for his service.

b) Vitamins and medicine for cattle are available in the………….

c) Dhaniram took a loan to operate an agro-vet shop from the…………..

d) Dhaniram took training on agro-vet operations with the assistance of

District Agro-vet and ………………

Can an Agro-vet shop be operated in your villages like Dhaniram’s?



feecooperativeagro-vetshop

AgricultureDevelopment Office

59


Fruit and Vegetable Shop


Tulasi's maternal home is in Ward no. 9, Gulariya Municipality of Bardiyadistrict. She has come to her maternal home after being away for a longtime. When she went to meet herclose friend since childhood,Kalawati, she learned that herfriend was running a vegetableshop in the small market of thevillage. She went to meet her atthe shop and she was very glad tosee her friend's shop. They had thefollowing conversation.

Tulasi: Oh! You have started avegetable shop. How long have you been doing this?

Kalawati: It has been about six months.

Tulasi: From where do you purchase vegetables and fruits?

Kalawati: I bring all the vegetables and fruits from the Gulariya market.As customers need vegetables in the morning for cooking, theycome early at six o'clock to buy. So, I have to go to the market atfive in the morning. If the vegetables couldn't be brought so

60

early, the regular customers will go to other shops and my saleswill decrease.

Tulasi: How is the sale of vegetables and fruits?

Kalawati: Vegetables are indispensable for people every morning andevening. Fruits like apples, pomegranates, grapes, and orangesalso sell well when they are in season. Vegetables and fruits aresold in larger quantities during festivals than during the rest ofthe year. Sometimes goods bought to sell remain unsold due tolow sales. Therefore before purchasing, a list must be preparedto decide how much of what vegetables and fruits are to bebought. How much of what items were sold yesterday or theday before should also be considered.

Tulasi: What methods are you using to make additional profit?

Kalawati: After I bring back the goods, I separate the good from thebad, the bigger from the smaller ones. I fix the prices of goodsaccording to the quality and size. By doing this more profit canbe made. As vegetables are necessary for all, and are fresher inthe morning, I take a little higher price in the morning. If salesare good in the morning, then I don't have to worry about thoseleft over for the evening time. But, if there seems to be moreunsold, then I sell them at reduced prices in the evening.

Tulasi: What other things have you done?

Kalawati: I bring vegetables and fruit and before selling, I calculate theinvestment of my labor, time and transportation cost along with

61

Tulasi has thought of starting a vegetable and fruit shop like Kalawatiafter returning home. What suggestions do you give her to run such ashop in a successful manner?................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

some profit and then sell them. If we do that, there will never bea loss. I treat the customers well to keep them coming back.

Tulasi: So, where did you get money to start this shop?

Kalawati: The Rural Development Bank has formed groups in ourvillage. I am a member of the group. I started this shop byobtaining a loan of Rs. 5,000 from the bank with guaranteesfrom the group.

Tulasi: I will also start a shop like you after returning home. The RuralDevelopment Bank also works in our village. I will contact themfor a loan.

Kalawati: You are right. Time is wasted if you just stay at home. Instead,if we do business in whatever way, we can earn additional money.Though it may be little, you can save and it will be easier tomanage household expenses.


62

L ss Lesson 25s L s Lesson 25

Incense-Stick Enterprise

Agarbatti (incense-stick) is used in daily prayer, worship and at differentfeasts, festivals and religious activities. It makes puja rooms,monasteries, temples, and other religious places smell good.


Prakash Rana lives in Ward No. 5 of Kohalpur VDC in Banke district.He faced difficulty maintaining a daily livelihood from doing onlyagriculture. So he has been operating an Agarbatti business for the lasttwo years. He consulted with the Micro Enterprise Development Programof Banke in 2062 B.S. and took part in a five-day micro enterprise training.He also made a business plan there. Two months later, he took part in theincense production training.

After the training, he obtained a loan of Rs. 5,000 from a local cooperativeorganization and started an incense stick production business. His familymembers helped him in this business. In the beginning, he sold hisproducts in local markets or shops. When the sales increased, he paidback the loan to the group. Then he again took out another loan of Rs.15,000 from a local cooperative and increased his production. In thebeginning, he used to pack his Agarbatti in a simple plastic pack.

63

1. Prakash Rana consulted the Micro Enterprise DevelopmentProgram and took part in a five-day micro enterprise training.

2. His family members did not help him in his incense stickmaking business.

3. As Agarbatti was of good quality, demand began to go down.

4. He brings raw materials from Nepalgunj to be used in makingAgarbatti such as oil, aromatic materials, and packing materials.

Put (üüüü) mark for true statement and ( x ) mark for false statement.

Now, he packs the products in separate boxes to increase the quantityand quality. He has started selling them in the local Kohalpur andNepalgunj market. As his Agarbatti is of good quality, the demand forhis product is also high. Presently, his family is not able to manage allthe work in his business, so he has employed two workers.

He brings raw materials such as oil, aromatic materials, and packagingmaterials from Nepalgunj. He purchases other materials such as bamboo,coal, dhupi, titepati, malgiri and kaulo from the locals. From this, somelocal people have also received employment indirectly.

In the coming days, Prakash has plans to generate self-employment forunemployed village women by enabling them to make sticks in differentweights. He also takes counseling from the Micro EnterpriseDevelopment Program, District branch from time to time. This has helpedhim to systematically run his business and expand the market area. Hesays, he has covered the school fees for his children and the familyexpenses with the income earned from the business. He has also savedsome money each month.

64


Candle Enterprise


Shanti lives in Ghorahi, Dang. She knew that there was a high demandfor candles in the market as the electricity would go out frequently. Shealso knew that candlesare used very heavilyduring Dashain, Tihar,Maghi, Chhat, Lhosar,and Christmas. So shetook training on candle-making with theassistance of a localn o n g o v e r n m e n t a lorganization. After thetraining, she started a candle-making business. She brought candle moldsand wax from Nepalgunj. She bought the other required materials suchas color, thread, polythene bags, kerosene, and a stove from the localmarket. Because she has taken the training, she has been able to makecandles that sell well.

She had seen candles packed in different shapes and colors in the marketsso she also made candles in different sizes and colors - some long, someshort, some thin and some thick. She used different colors in her candles

65

Shanti took candle-makingtraining in local markets and villages.

to attract customers, such as red, white, green, blue, yellow and others.This made it easy for her to sell them in the market. As the candles wereof different shapes and colors, she got a higher price too.

She started this enterprise by taking a loan of Rs. 20,000 from a localcooperative/ organization. She started earning a handsome profit. She ispaying back her loan in installments. It has been easy to pay householdexpenses from her income. Her neighbors are surprised to see how muchshe earns. She receives regular support from her family to run theenterprise.

Match the following parts of sentences by drawing lines.

from the candles.Candles can be sold in

from a local nongovernmentalorganization.

Shanti earned a handsomeincome

Colorful and different sizedcandles are sold more.

66


Collective Tika Enterprise

The members of the Srijana Group have started to produce and sell tikacollectively after seeing the sale of tika in the markets. Not only do theysell their product in the villages, but also in nearby markets and cities.The group sent theirmembers Phulmati andMaya to take tika-makingtraining conducted by alocal nongovernmentalorganization. Phulmati andMaya learned at thetraining how to make tika,create designs, and whereto buy the raw materials.

After Phulmati and Maya returned from the training, all the membersgot together and decided to start a collective Tika enterprise. They hadalso decided to invest Rs. 13,000 from the group fund. Presently, theyhave settled on tasks for each member to conduct the enterprisesystematically. For example, who is going to make tika? Who is goingto the market to sell it? Who is going to purchase the required materials?Who is going to contact the local markets? The tasks have been divided


67

Just like Srijana group members, what kinds of collective businesses can

you do in your village? Write names of feasible enterprises.

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

between group membersand the work is being done.

Presently, every memberhas been doing herrespective duties sincerely.As they have contacts inmany places, it has beeneasy to sell their tika. Theyhave also supplied their product to other groups and local marketsthroughout the district. They take turns to sell the tika in the village fair.They have maintained records for income and expenditures in the group.Their group has had good earnings so far.


68


Electronic Goods Repairing andWiring Enterprise

Dil Bahadur lives in Mahat VDC, Jumla district. Electricity has notreached his village. Recently a nongovernmental organization hasconducted a program on lighting by solar power in the village. DilBahadur has installed a solar powered system at his home with the helpof the NGO. Even theTV works with solarpower. So he boughta television fromNepalgunj. Thehappiness of his sonRamesh studying in class4, knows no bounds.When his next-dooruncle, aunt, elderbrother, sister and friendscome to watch TV, hefeels very happy. DilBahadur now worriesabout what to do if theTV breaks down. Whyshouldn't he fear that? He has not been able to play the cassette player hebrought last year because it's damaged. Radios, TVs, cassettes, and


69

watches of his neighbors are not working and are lying around unused.There is no repair center near the village. Even at the district headquarters,Khalanga, there are no good repair centers.

While talking about this with Dinesh, an employee of a nongovernmentalorganization, it wassuggested that Dil Bahadurrun a maintenance/repairenterprise for electronicgoods and wiring. DilBahadur has studied up toclass 8. He can easily takethe training and learn themethods.

There are radios and cassettes in every household in the village. Thereare also TVs, cassette decks, and mobiles in many houses. There arealso computers in some government and non-government offices workingin the VDC. Most of the families have a solar-powered system. Butagain there are no repair centers. Additionally, there is talk of electricitybeing supplied to the village. When electricity is supplied, there will bea need for wiring technicians in the village. Therefore, if Dil Bahadurcould do this business then many problems would be solved. Also ahandsome income could be made while living in the village.

Dinesh from the NGO told him to contact the Cottage IndustryDevelopment Office at the district headquarters. Likewise,nongovernmental organizations working in villages also provide suchtrainings. If you have some money, training could be received at privatetraining centers in Nepalgunj.

70

Where do you go to repair your electronic goods if they are damaged ?

1. TV can be operated by solar power also.

2. When electricity is supplied, there is not much need ofwiring work.

3. Training on repairing of electronic goods and wiringcannot be taken from Cottage Industry DevelopmentOffice.

4. Radio and TV are not included in electronic goods.

Put (üü) mark for true statement and ( x ) mark for false statement.

By doing this, you don't have to wait for the trainings provided bythe government personnel or other organizations.

After considering all of this, Dil Bahadur decided to take training andstart a business on repair and maintenance of electronic equipment andwiring. Dinesh also promised to help him in this goal.


71

j;GtL Ao"6L kfn{/


Beauty Parlor/Salon

Basanti's house lies in Ghorahi, the headquarters of Dang district. Lastyear she had taken a six-month training onrunning a beauty parlor conducted by theCottage Industry Development Office.Besides receiving training on the beauticianskills, she also learned about the thingsnecessary to operate a beauty parlor, howmuch investment is required, and where youcan purchase the necessary tools. Whenmany of the women in the neighborhoodstarted going to the market for beautytreatments, she launched a beauty parlor inher home.

She was also a member of the localcooperative organization. She took loan ofRs. 15,000 from the same cooperative andpurchased scissors, combs, creams, mirrors,chairs, towels, handkerchiefs, shampoos, and soap and pastes from themarket. On opening day, she invited all her friends, brothers and sistersto her beauty parlor. This worked as an advertisement for her beautyparlor. Now she has hung a small sign board saying 'Basanti's Beauty


72

One of the members of your group is thinking of running a beauty parlor.What suggestions do you give her?

Parlor'. Today her beauty parlor has become a subject of talk in the village.She cuts hair and does make up for the women. She cuts men's hair too.Because she couldn't do this job alone, she has hired an assistant.

Basanti's income has increased. She is also paying back her loan byinstallments from her income. She is also maintaining householdexpenses. Once the loan has been cleared, she is thinking of taking anew loan to purchase more beauty products. Others in the village arehappy seeing her shop do well. They are also thinking of starting somenew enterprises. A livelihood can be earned by operating a hair cuttingsalon at places of high population and at village squares. Haircuttingskills can be learned in the village as well as by contacting the districtoffice of the Small and Cottage Industry Development Committee.Scissors, blades, towels, mirrors, creams, and lotion are necessarysupplies for a salon. This business can also be operated as a mobileshop.

Though many of our youths in the village have these skills, they are notbeing used. They go to the markets for haircuts and spend their money.In many hilly regions, people come from other places to do this businessand are earning money. Therefore, we can also earn money by operatingsuch businesses in our own village, market areas, and highly populatedcenters.


Part C

The Things to Know forRunning an Enterprise

73


Feasibility Study of Enterprise

Local youths of Salyantar Village are discussing a feasibility study foran enterprise. Among them, Maya has thought of starting vegetablefarming, Gokul of starting a radio and watch repairing center, Dhaniyaof bee-keeping and Devisara of starting a pickle-making business. Atthis moment, Chandrakala, a neighbor, arrives.

Dhaniya: Namaste, Didi.

Chandrakala: Namaste toall of you. Whyhave you gatheredhere today?

Maya: We all have madeup our minds to doone enterpriseeach. We havegathered to discusshow we can do a business so that we can earn more.

Chandrakala: I appreciate your thoughts. But before starting any business,a feasibility study should be carried out to find out whether thebusiness can be done or not.

Gokul: But Didi, what is this feasibility study?


74

Chandrakala: Before starting any business, we should find out whetherit is possible to do the particular business or not. Understandingthings such as: do we have the necessary skills for running thebusiness? Can we sell our product or service? What is the demandfor the product or service? How much loss or profits will therebe? A feasibility study is conducted through research and/orobservation. In a feasibility study, we must pay attention mainlyto the following six stages:

1) Selection of the business: First, it is good to select a businessthat can be done in the village, which utilizes our skills,knowledge, and is of interest to us. For example, vegetablefarming, haircutting/salons, painting, apple processing, and pickle-making.

2) Finding out demand: In the second stage, we should observewhether the customers of the products or service are in the marketor not. This is called finding out demand. For example, beforestarting vegetable farming, we should identify how manycustomers there are and where they live. Whether the productswill sell or not? Whether the customers will come to buy or not?We must answer these questions.

75

3) Things related to management: The third stage includesmanagement-related issues. This includes knowing about: whetherthe necessary materials for production or raw materials areavailable at the local level or not? Where are these materials found?What kinds of skills are needed? Where are the necessary skillsacquired? Can the workers be found or not? Whether there is a wayto transport the goods or not? What sorts of problems may arise?

4) Finding the cost: In the fourth stage, what kind of materialsare needed for the enterprise and their total cost should be foundout. For example, what kind of equipment is necessary and howmuch money is needed to open a cycle repair center? The totalcost should be calculated.

5) Determining income and profit: Finding out the cost of abusiness is not enough. After starting an enterprise, how muchincome and profit can be expected? This should also be calculated.

6) Decision on theenterprise: Finally, if yousee a good market and thepotential for profit in theselected enterprise, onlythen should the enterprisebe started, otherwiseanother enterprise shouldbe selected. So, the sixthstage is the time to decideon whether to do the enterprise you selected or not.

Gokul: Chandrakala Didi, thank you very much. We realize now thatwithout a feasibility study we should not start an enterprise.

Should I startthe business or

not?

76

profits feasibility study skill and knowledge

1. Paying attention to the six stages of feasibility study, which enterprises

can be done in your village? Write them below.

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

1. Before starting any business a……………… should be done.

2. While deciding on a business, the one you have … ……… about shouldbe selected.

3. After the feasibility study, if the selected enterprise is certain to have………., only then should the business be started.



77



After deciding to do an enterprise from the feasibility study, we shouldprepare the framework of the selected business and make a plan. Thisincludes things such as how much capital is to be invested? How much toproduce? Where to sell the products? Similarly, work division such aswhich family member is going to take what responsibility also comesunder this. We are likely to get more benefits from a business that hasbeen planned.

Why Planning?

Planning is necessary for the following reasons:

a) To make the enterprise successful and simple.

b) To know the cost and set the selling price.

c) To assess income and expenditures and also to know the overallsituation of the enterprise.

d) To lead the business in the right direction.

Subsistence Planning and Commercial Planning:

The planning done for work which is for subsistence only is subsistenceplanning. While formulating this plan, its purpose is to give continuity tothe traditional work rather than promoting it towards modernization.

Planning

78

1. Why is planning necessary?

....................................................................................................................

....................................................................................................................

....................................................................................................................


If any business framework is prepared with the objective of making aprofit, then it is called commercial planning. While making this plan,include points such as how much investment / cost is needed for operatingthe business? What materials and tools are needed? Where can they bebought?

Steps of Planning an Enterprise:

n The business should be selected on the basis of interest of theentrepreneur, their skills, and market demand. The entrepreneur must:

n Determine how much capital must be invested;

n Determine how much to produce daily or monthly

n Calculate the per unit production cost.

n Determine the price of the produced goods or services

n Calculate the per unit production and per month profit

n If the business looks profitable and you believe you can do it, onlythen should the business be started.

79


Dhan Bahadur’s Subsistence-OrientedPlan

It is time to sowmaize, when thefield is ploughed.

Yes, yes, we shouldnot delay, we shouldfinish sowing withinthis week.

We labour forthe whole yearbut only 50 –60 baskets ofmaize areharvested.


D h a n b a h a d u r ' soccupation isagriculture. As it isthe time to plantmaize, there wasdiscussion in hisfamily on this subject.His family decided tosow the maize cropwithin a week afterthe field had beenplowed. This is theirplan to plant maize:

Work to be done: Sowing maize within a week/ maize crop planted.

Necessary costs:

Maize seeds: 1 pathi (3.5 kg)

Plow workers: not calculated

Compost / dung fertilizers: not calculated

Chemical fertilizers: not calculated

Workers for plants weeding: not calculated

80

1. Why did Dhan Bahadur's loan increase?.............................................................................................................................................................................................................................................................................................................................................................

2. Why couldn't Dhan Bahadur produce a good yield?.......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Till last year, Dhan Bahadur's household loan was Rs. 15,000.Interest of the loan Rs. 3,000 was added this year making thetotal loan amount Rs. 18,000. There is no way to pay back thisloan from his income this year.

Workers for maize harvesting: not calculated

Maize production cost / basket (Doka): not calculated

Maize production: only sufficient for family(about 60 baskets)

Cash income from farming: finished eating/ not enoughfor selling

Loss or profit from maize farming: not calculated


81


Radha’s Business Plan


I liked the idea of makingand selling doughnut

How much will it cost? How

much profit will be there?

Where to do the activity?

We should findthe place wherethere's lots ofpeople gathering.

We shouldthink from abusiness pointof view.

Radha Devi has doughnut-making skills. She wants to use her skills togenerate income. Radha knows the technique of making doughnuts andhow to attract customers to increase the sales. Since there is no one toproduce and selldoughnuts in hervillage, she decidedto producedoughnuts. She tookthe advice of herfamily. Radha, herhusband, brother-in-law, and sister-in-law together made aplan to operate thisbusiness. Herhusband alsodecided to learn doughnut-baking. Radha has collected Rs.4,500 by sellingtwo goats to start this business.

Radha's business plan

1. Place for doing the business: in front of the village school

2. Total capital to be invested: Rs. 4,500

82

3. Starting cost:

a) Doughnut baking pan - Rs. 1,200

b) Doughnut mold - Rs. 150

c) Plates, 12 units - Rs. 600

d) Tray 3 pieces - Rs. 300

Total - Rs. 2,250

4. Operating cost:

a) Maida ( flour ) 20 kg (Rs. 30 per kg) - Rs. 600

b) Oil 5 ltrs (Rs. 130 per ltr) - Rs. 810

c) Sugar 2 kg (per kg Rs.40) - Rs. 80

d) Yeast 25 gram (to raise the dough) - Rs. 58

e) Salt 100 gram - Rs. 02

f) Fuel wood half bundle - Rs. 100

g) Radha's one day's wage for making doughnuts - Rs. 150

Total - Rs. 1,800

Radha estimated that she could produce 450 doughnuts from 20 kg offlour.

5. Per unit production cost:

Per unit price is calculated dividing the total cost of Rs.1800 by totalproduction unit of 450 doughnuts,

1800 ÷ 450 = Rs. 4 per unit.

So, the production cost of a doughnut is Rs. 4

83

6. Selling price of a doughnut in the market: Rs. 5

7. Profit from one doughnut: Rs. 1

(Subtract the cost of one unit from the selling price of one unit)Rs. 5 - Rs. 4 = Rs. 1

8. Profit from 100 units:

Rs. 1 x 100 units doughnut = Rs. 100

9. Profit from 450 units:

Rs 1 x 450 doughnut = Rs. 450

10. Radha's monthly income:

Rs. 450 x 30 days = Rs. 13,500

The baking pan, molds, and plates purchased by Radha at the beginningto start the business are her fixed assets. These items generally last morethan a year and their cost need not be increased or decreased according tothe production quantity. Thus the expense made for such fixed assets iscalled an initial investment.

Likewise, raw materials, labor charge, and other necessary daily expensesare business operation costs. For example, the money Radha spent onflour (Maida), oil, sugar, salt, fuel wood, and wages are operationalexpenses for running her business. This expense increases or decreasesdepending on the quantity produced. For example, if Radha wanted tomake more doughnuts, more raw materials would have to be purchased.For this, she needs to spend more.

84

1. First choose the business you want to do and develop its businessplan. Use another copy for making the plan.

.................................................................................................................

.................................................................................................................

.................................................................................................................

.................................................................................................................

.................................................................................................................

.................................................................................................................

.................................................................................................................

Sometimes the initial investment may be much higher than operating costs.But the entrepreneur shouldn't be discouraged if this is the case becauseonce the initial costs have been paid for, it need not be spent again andagain. The initial investment must be considered as a long term investmentrequired to achieve future profits. .

While determining the price of the product, how is the position ofcompetitors product, what is the market price of those products etc shouldbe considered. If price is determined without considering these aspects,the products may not sell because they are priced too high.


85


Entreprise Analysis


After starting a business, the entrepreneur should do a business analysis

from time to time to make the business grow. The task of reviewing the

enterprise's strengths and weaknesses, future opportunities that could

improve operations, and assessing the perceived threats/risks to the

enterprise is called a 'business analysis'.

While running an enterprise, many things depend upon us. If we work

hard and manage well it becomes a strong aspect of our business

performance. But if our management is weak, then it becomes an area to

be improved. The strengths found through the enterprise analysis should

always be improved upon. Aspects of our business to be improved should

be a priority for improvement. If we are unable to improve the business

could begin turning a loss that could result in closure of the business

itself.

In the same way, to make more profit by doing a business analysis, you

should determine what other opportunities are available in other sectors.

Along with this, to be able to act in time, entrepreneurs must discover

possible business competitors and other probable obstacles and threats.

86

Gopal's story of successGopal, a resident of Kunathari, Surkhet district made up his mind tostart a business. He carried out a feasibility study and decided on afurniture business. Then he made a plan for this venture. Following theplan, he went to the district headquarter to take one month training onfurniture making before starting the business. In the training, he learnedabout which type of timber should be cut in which way, and which typeof timber should be chosen for which item. Gopal used to do a little bitof woodworking.This enabled him tolearn many thingswithin a short periodof training. Afterreturning from thetraining, he rented aroom and started hisfurniture makingbusiness. He hiredRam Bahadur from the village, as his assistant. He purchased all thenecessary tools and materials such as timber, nails, hammer, basila, color,cutting tools including small and large saws from the Surkhet market.His wife Rama also helps him in his work. Rama has passed GradeEight and both maintain the accounts of income and expenditures together.Gopal has taught his wife about the price of each furniture item for saleand this has made it easy for his wife to sell any item even in his absence.

Individuals and people from various schools, groups, and organizationscome to his furniture shop to buy his products. Gopal treats all hiscustomers well. Sometimes he sells furniture at a discount to his relatives

87

since he is unable to bargain with them. His helper, Ram Bahadur, isalso learning the work. He has a habit of losing his temper when hemakes mistakes like splitting or boring holes in the logs. Sometimes heeven damages the furniture. Therefore, Gopal watches Ram Bahadur'swork very carefully.

Gopal's enterprise is running well. Demand for chairs, tables, bedsteads,and cupboards hasincreased so much thathe is unable to meet thedemand. Sometimes,Gopal cannot get thetimber when needed.

Currently, a motorableroad is beingconstructed from the

district headquarters through Gopal's VDC, linking the next VDC, withsupport from District Development Committee. He feels that his businesswill get much better. Motels and hotels are opening at various placesalong the road being constructed. Some motel keepers have already placedorders for furniture. Gopal has seen prospective customers for hisfurniture even from outside of his village. He thinks that if he couldmake good quality furniture, he could supply his products to differentoffices in the district headquarters as well. Keeping all these things inmind, he and Rama are thinking of obtaining a loan from the CommercialBank of Surkhet. With this development, Gopal has decided to send hisassistant to the Cottage Industry Development Office of the districtheadquarter for training.

88

Strengths of the Business Aspects to be improved

- Starting furniture makingbusiness with planning afterthe feasibility study

- Starting the furniture enterpriseafter taking training

- Having previous experience ofwood related work

- Keeping accounts incooperation with wife

- Treating customers well- Taking the decision to send

helper Ram Bahadur fortraining

- Teaching his wife in the sellingof the products

- Helper Rambahadur's habit oflosing his temper in front ofcustomers

- Selling furniture to relatives atreduced cost

- Inability to supply furnitureaccording to the demands of thecustomers

- Sometimes damaging furniturein handling

- Lack of skilled and trainedworkers

Seeing Gopal's furniture business, Netra Prasad of the same village hasalso started a furniture business. As there are two enterprises of the samenature, Gopal has to compete with the other entrepreneur. He is a bitworried whether his sales will decrease.

To make his furniture business competitive, Gopal has analyzed hisfurniture business as follows:

89

Opportunities from outsidesectors

- Getting opportunities fortraining

- Access to a motorable road inthe village.

- New motels/hotels starting up- Receiving loan from bank

Threat from outside

- New furniture businessstarted by others.

- Lack of availability of timberin the market when needed

=======================

=======================

=======================

=======================

=======================

=======================

=======================

=======================

=======================

=======================

=======================

=======================

=======================

=======================

=======================

=======================

Make a list of the strengths, areas to be improved, opportunities orprospects, and threats to the enterprise of any member of your group orsomeone else in your village.

Name of the business: ...........................………………….

Name of the entrepreneur: ………………………..........................

Strengths of theenterprise

Aspects to beimproved

Opportunities forthe enterprise

Threat to theenterprise

Discuss the following question in a group and write the answers.

90


Calculation of Profit and Loss inBusiness


Suresh is a member of Phulbari group. He used to make bamboo baskets(doko), food grain containers (daalo), and other items made of bambooand Nigalo. He wanted to expand this business. So, he thought of buyingbamboo, color, Nigalo, and other items necessary for the expansion ofhis business. He bought bamboo and Nigalo for Rs. 500 to make smallerbaskets (daali). He knew that the baskets could be sold at a higher priceif they were colored.Therefore, he purchasedpaint for Rs 100. Hemade 20 baskets in 20days. Some bamboo andNigalo were left aftermaking the bamboostrips, so with theleftover materials heprepared 5 book racks and racks to hold other things. After making thebaskets and racks, he took them to the market to sell.

To take them to market, he paid Rs. 150 in bus fare for the goods andhimself. He sold each basket for Rs. 200 and each rack for Rs. 100 in themarket. He ate snacks for Rs. 30. He paid Rs. 50 while returning homeas his bus fare.

91

profitlossAfter returning home from market

Suresh prepared his calculation asfollows:

Total expendituresCost for bamboo, Nigalo - Rs. 500Color/Paint - Rs. 100Transportation cost (both ways) - Rs. 200Snacks at the market - Rs. 30Wages

10 days work @Rs. 150 per day - Rs. 1,500Total expenses - Rs. 2,330

Total incomeBasket (daali) sales

20 units @Rs. 200 per unit - Rs. 4,000Rack sales

5 units @Rs.100 per unit - Rs. 500Total - Rs. 4,500

Profit = Total income - Total expendituresProfit = 4500 - 2330 = 2170

Suresh knew that when the total income is more than the total productionexpenditures you have a profit. Similarly, he also knew that if the totalexpenditure is more than the total income, then it would be a loss.

Profit: When income is more than expenditures.Loss: When expenditures are more than income.

92

Income and Expenditure Detail

Date Income ExpenditureDetails

2064/8/12....................................................................................................................................

Bamboo and NigaloColorBus FareSnacksWagesSale of daaliSale of rack

4,000.00 500.00

4,500.00

500.00100.00200.00

30.001,500.00

2,330.00Total

Profit = Total income – Total expenditureLoss = Total expenditure – Total income

Suresh found out that a total of Rs. 2,170 was profit. He added his 10days wages for his work at Rs.150 per day to the total expenditures,because his labor also had been spent. Similarly, he calculated Rs.2,330as expenditures on bamboo, Nigalo, color, bus fare, and snacks. Hecalculated Rs. 4500 as income by adding the money he made from sellingbaskets and racks. After calculating the income and expenditure, hesubtracted the total expenditure from income (Rs.4,500- Rs.2,330) andfound out that his income was more than his expenditures. He had aprofit. So, Suresh earned Rs. 2,170 as profit.

Suresh's income and expenditures can be tabulated as follows.

93

1. How do you calculate the profit and loss in your business?........................................................................................................................................................................................................................................

2. Parbati purchased oranges for Rs. 300 to sell in the village fair. Shepaid Rs. 20 as bus fare for going to the market. She ate food / snacksfor Rs. 15. If she sold all the oranges for Rs. 500 during day, calculateher profit or loss.

....................................................................................................................

.....................................................................................................................

.....................................................................................................................

....................................................................................................................

n When there is more income than expenditure, it's profit and whenthere is more expenditures than income, it's a loss.

n The expenses made on producing goods or services, such as buyingraw materials, transport fare, snacks including other necessaryexpenses should be put under the expenditure column and the incomefrom the sale of goods should be put under the income column.


Discuss the following in a group

94


Calculation of Principal and Interest

The amount taken as a loan from a person or an organization is called theprincipal. A loan is taken for a certain period of time, for example: 4months,6 months or 12 months. After the loan has been received, interest has tobe paid according to the rule of the lending organization or person. Weshould be able to calculate the interest of the loan one has to pay. Accordingto practices in our village or society, we might have to calculate the interestin one of the following four ways:

1. Time in years and interest rate also on a yearly basis

2. Time in months and interest rate also on a monthly basis

3. Time in years and interest rate on a monthly basis

4. Time in months and interest rate on a yearly basis

Method of Calculating Interest

a) Prakash had taken a Rs 5,000 loan for a year's time from a savingand credit cooperative in his village with an 18% interest rate. Wecan calculate his interest in the following method.

Principal amount (loan amount) = Rs 5,000

Time = 1 year (12 months)


95

b) Shanti had taken a loan of Rs 2,000 with a monthly interest rate of

1% from her group for four months. Her interest can be calculated

in the following way,

Interest = Principal x Time x Interest Rate100

= Rs. 2,000 x 4 x 1 = Rs. 80 100

In this way, Prakash has to pay Rs 900 interest for his loan of

Rs. 5,000 for one year at 18%. He has to pay Principal Rs. 5,000

and interest of Rs. 900 ie a total of Rs. 5,900 in one year.

Interest rate = 18 %

We should use the following formula for calculating interest.

Interest = Principal x time x interest rate100

= Rs. 5,000 x 1 x 18 = Rs. 900 100

On calculator

On calculator

In this way, Shanti has to pay Rs. 80 as interest on the loan of Rs.2,000 for four months at 1% interest rate. She has to pay a total ofRs.2,080 in four months (adding principal of Rs.2,000 and interestRs. 80) to her group.

%18X1X5,000ON/C

%1X4X2,000ON/C

96

c) Arjun took a loan of Rs 3,000 for one year at 1% interest on a

monthly basis. We can calculate his interest as follows:

Interest = Principal x Time x Interest Rate x 12100

= Rs. 3,000 x 1 x 1x 12 = Rs.360 100

d) Budhani took a loan of Rs. 4,000 at 12% interest rate on an annual

basis for 6 months. We can calculate her interest as follows:

Interest = Principal x Time x Interest Rate 100

= Rs. 4,000 x 6 x 12 = Rs.240. 100

On calculator

=12X6XON/C 4,000 12 ÷On calculator %

In this way, Arjun has to pay Rs 360 as interest for loan of Rs. 3,000in one year on the monthly interest rate of 1%. He has to pay Rs.3,000 principal and Rs. 360 interest totaling Rs. 3,360 to the group.

In this way, Budhani has to pay Rs. 240 as interest for the loan of Rs.4,000 taken for 6 months at 12% interest rate. So she has to payprincipal amount Rs. 4,000 and interest Rs. 240 totaling Rs. 4,240 tothe group in 6 months.

%121X1X3,000 XON/C

97

1. Poonam has taken a loan of Rs. 3,500 at 12% interest on an annualbasis from a local cooperative for one year with the purpose of startinga vegetable shop. What is the total amount including principal andinterest she will have to pay after one year?

...............................................................................................................................

.............................................................................................................................

..........................................................................................................................

2. Sukaram has taken a loan of Rs. 6,000 at a monthly interest rate of 2%from the group for 6 months to start a mobile shop. What is the totalamount he will have to pay after 6 months?

...............................................................................................................................

.............................................................................................................................

..........................................................................................................................

3. Usha took a loan of Rs 7,500 at the annual interest rate of 18% for 9months to start a tea shop. How much money should she pay the groupafter 9 months?

...............................................................................................................................

.............................................................................................................................

..........................................................................................................................

Solve the following problem by discussing in a group.

98


Sanumaya lives in Chapagaun, Lalitpur. She is a hard-working farmer.Her husband Harka Bahadur is also very hard working. Both of themused to work hard in their agriculture fields. Even then they faced hardship

in meeting their daily needs.Sanumaya's elderly mother-in-law was very pleased seeingtheir hard work and dedicationto farming. But at the sametime, she was disturbed to seethat it was always difficult tomeet their daily needs nomatter how hard they worked.So she advised her son and

daughter-in-law to work toward a more commercial operation.

One day Sanumaya talked about her situation with her friend Rama Devi.Rama Devi told her about the potential income from mushroom farmingthat she had been doing. She taught Sanumaya and her husband the methodof mushroom farming. She also took them to see her mushroom farm.They were excited after seeing her farm and decided to start a mushroomfarm of their own.

The couple started farming mushroom deligently and every evening theywould discuss what to do the next day, how to do it, and who was going to


Equal participation

99

1. What benefits can be reaped if husband and wife work with equalparticipation in business?

do it. The next day, they would work together as planned the previousevening. After the mushrooms were ready, they would pick them early inthe morning, pack them in plastic bags and sell them.

Sanumaya would sell the mushrooms in their village and Harka Bahadurwould sell in the markets a little further away. They both kept records ofthe total expenditures and income from the mushrooms from planting toselling time. Because of their hard work, they have earned substantialincome. Their economic condition has improved. They have sent boththeir children to school. Today they are happy and content and Sanumayasays, "The reason for our success is equal participation of my husbandand I in all the work."

Discuss the following question in a group

100


District ForestOffice

Organizations to Coordinate with forEnterprise Assistance

Read the following chart and discuss as a group. After the discussion,one person in each group should report on what they talked about.

AgricultureDevelopment

Office

NGOs andINGOs

IndustrialEnterprise

DevelopmentInstitution

Council forTechnical Education

and VocationalTraining

Organizationsworking on Micro

Finance

Industry andCommerceAssociation

MicroEnterprise

DevelopmentProgram

VeterinaryOffice

CottageDevelopmentCommittee

Office

DDC/Municipality/VDC Office

WomenDevelopment

Office

Enterprise

101

1. Which offices or organizations have you contacted so far and for whatpurpose? Write below.

Name of offices/organizations?

........................................................

........................................................

........................................................

For what purpose?

..................................................................

.................................................................

.................................................................

To operate an enterprise successfully, it is necessary to have the relatedknowledge and skills. If the entrepreneur has the necessary knowledgeand skills, only then can an enterprise run well and profit be earned. Forthis, we should acquire information about the types of services providedby various district and local level organizations, institutions, and programs.The district offices, especially government offices, conduct trainings tomake people business-oriented. Anyone can get in contact with these officesand receive the benefit of their programs and the services they provide.

The organizations, offices, or programs that can be contacted for runningan enterprise are divided into the three categories below and furtherinformation about them is provided in subsequent lessons.1. Organization to coordinate with at the central level2. Organizations to coordinate with at the district level3. Organizations to coordinate with at the local level

Discuss the following question in a group and write the answers.

102

Organizations to Coordinate with atthe Central Level

1) Micro Enterprise Development ProgramThis program has been conducted in only twenty districts of Nepal. Amongthem are the four districts of Dang, Banke, Bardiya and Pyuthan of theMid-Western Region. This program provides the following services:

- To survey resourcesand markets

- To identify feasibleentrepreneurs

- To provide training onmicro enterprise generationand development

- To form groups of micro entrepreneurs

- To provide a variety of technical and professional trainings necessaryfor micro entrepreneurs

- To provide professional counseling

Anyone can use additional services regarding enterprise development fromthe Micro Enterprise Development Program Office of the district.



M i c r Eo no E nt ierpr iseD e ve l o p m e ntt Pro g ra m

Tr ga i n i gCe nte r

103

2. Industrial Enterprise Development Institute

This institute gives trainings to potential entrepreneurs that want to run amicro enterprise, those who are already operating small enterprises, andthose organizations involvedin the micro enterprise sectoron the following issues:

- How to start anenterprise?

- How to do a marketsurvey?

- How to make an existingenterprise moreprofitable?

- How to expand thebusiness?

In the Mid-Western Region, the branch office of this organization is locatedin Nepalgunj. It has conducted the Rural Enterprise Support Program infour districts - Dolpa, Mugu, Humla and Jumla. We can use this programfor coordination, counseling, and advice for business/enterprise operationpurposes. Along with this, this organization also provides entrepreneurialeducation in new technologies and training on the role of men and womenin enterprise development.

104

3. Council for Technical Education and VocationalTraining (CTEVT):

This council gives technical education and skill-based trainings to thosemoving toward self-employment. Individuals who have received basicliteracy, those who have leftschool after five or six classes,those who have not passedS.L.C. and are thusunemployed, and those whohave passed S.L.C. but wantto acquire some technicaleducation, can use the serviceof this council for technicaleducation and skilldevelopment. This council(CTEVT) gives training forsuch things as J.T.A.,Overseer, CMA, andAssistant Nurse. It also offers training and courses of varied durations onsubjects such as: agriculture, cattle farming (livestock), health, hotelmanagement, computer skills, mechanics, and engineering. CTEVT alsoprovides education and long- or short-term trainings on different subjectssuch as: off -season vegetable farming, pulse production, tea and coffeeproduction, apple processing, furniture making, plumbing, masonry, housewiring, auto mechanics, cooking, photography, carpentry, beauty parlor/salon, and house painting. The schools operated by CTEVT in the Mid-Western Region are:

105

a) ..................................................

b)..................................................

c) ..................................................

1. What types of trainings can be taken from CTEVT ?

2. What facilities or services does the Micro Enterprise DevelopmentProgram provide?

....................................................................................................................

....................................................................................................................

.....................................................................................................................

....................................................................................................................

.....................................................................................................................

1. Karnali Technical School, Jumla

2. Bheri Technical School, Nepalgunj

3. Rapti Technical School, Dang

These schools can be contacted for if you are interested indifferent technical skills-oriented education and training.

d)..................................................

e) ..................................................

f) ..................................................


106



Organizations to Coordinate with atthe District Level

1) Office of Small and Cottage IndustryDevelopment Committee

Except for Dang, Banke, and Bardiya, all the districts of the Mid-WesternRegion have offices ofthe Cottage IndustryDevelopment Committee.Training is provided on themaking of differentproducts or processingtraining can be acquiredfrom these offices. For example:

Production of: stick noodles, Dalmot, potato chips, incense-sticks, broomsticks, chalk, pickles, soap, spices, glass handicrafts, Tika, jam and jelly,envelopes and files, stools and baskets from chhwali and babiyo), beads,bread, carpets, leather shoes, modern bags, Nepali paper

Processing of: fruit, honey, apples, tea

Occupations: bee-keeping, sewing machine repair, knitting (plastic bags,caps, blankets, rugs), wool yarn dying, house painting, rickshaw andbicycle repair, fabric painting, sign-board painting, sewing, house-wiring,carpentry, masonry, radio and TV repair, haircutting, and plumbing.

107

2) District Agriculture Development OfficeThis office is located in all the districts of Nepal. Different programs/services are offered in agriculture development by this office. For instanceit offers: training for on- and off-season vegetable farming andbeekeeping; improved seeds/fertilizers and insecticides and theirapplication; training on vegetable and fruit nurseries; plants, samplings,and seeds of food/cash crops/cereals/pulse and podproducing crops; and advisoryservices in all these areas. Thisoffice also provides training onhow to form agriculturalgroups, emphasizingorganizational development,and organizes farmers' visits.Among these services, many services can be accessed from theagricultural service center at the local level and from sub-centers as well.

3) District Veterinary Service OfficeThis office is located in all districts of Nepal. This office offers servicesin advising and training on raising livestock such as cows, buffalo, goats,rabbits, and sheep. Different advisoryservices on cattle diseases and treatment,animal health workers training, livestockvaccination, and other health facilities arealso provided by the office. Similarly, itforms farmers' groups and arranges studytours to build their capacity. Among these

108

services, many can be accessed at the local level from the veterinaryservice centers and from the sub-centers.

4) Women Development OfficeThis office supports and involveslow-income women in theforming of women's groups. Itprovides trainings on incomegenerating skills according tolocal conditions such asvegetable farming, goat raising,and beekeeping. It promotes andencourages women's groups totake the initiative towardsforming cooperatives and alsoprovides seed money.

5) District Forest OfficeThe District Forest Office is located in all districts of Nepal. Specificallythis office: promotes formation of Community Forest Users' Groups;provides revolving funds; helps to develop nurseries and make andapprove community forest action plans; provides different species ofplants; conducts forestation programs; provides income-generatingtraining to group members on demand; helps different enterprises basedon micro forest resources such as producing Nepali paper, bamboo, Bet,and Nigalo products; and encourages income-generating activities basedon non-timber forest products. Among these services, many may beaccessed from the local level ranger post.

109

6) Office of the District Development CommitteeThe District Development Committee is one of the bodies underthe Nepalese government that allocates anddistributes available support and resources inthe district. This office formulates andimplements special programs for developmentand promotion of women, Dalits, ethnicgroups, and the poor. It also helps in startingup income generation activities and providesvarious trainings. This office also conductsdevelopment and construction works in thedistrict coordinating with national and international organizations to carryout the work.

7) Industries andCommerce AssociationThis is a association of district levelindustrial business people. Thisorganization provides training to thoseoperating local level small enterprises.Specifically, it provides trainings ontapestry weaving (Dhaka), tailoring,house wiring, basic knowledge ofcomputer operation, radio/TVrepairing, producing/making goodsfrom bamboo, Bet and Nigalo, andcooking.

110

Agricultural DevelopmentOffice

Veterinary ServiceOffice

Incense stick/bagknitting training

Formation of communityforest users’ groupsand training

District Forest Office Vegetable farming training

Office of CottageDevelopment Committee

Goat raising training

Instructions to facilitator

Contact and invite representatives of the nearest available officesrelated to agriculture, forest, livestock, and others to the class at anyfavorable time and request them to give information about theservices and facilities being provided by their respective offices forenterprise operation.

Match the following offices with the services they offer bydrawing a line.

111


1) Village Development Committee:Village Development Committee(VDC) is the local level governmentbody. It allocates and distributessupport and resources that areavailable at the local level andcarries out local developmentand construction works. It formulates special programs for thedevelopment of women, the poor, Dalits, and ethnic communities. Itimplements these programs, provides support in income-generation,and conducts training.

2) Organizations Working on Micro-FinanceThere are organizationsto motivate communitymembers, and toprovide training andloan assistance foroperating small ormicro enterprises andbusinesses at thelocal level. Amongthese are the


Organizations to Coordinate with atthe Local Level

112

Savings and Credit Cooperatives and other organizations operatingon micro-finance with approval of the Rastra Bank. For example,nongovernmental organizations, cooperative organizations, RuralDevelopment Bank, and Nirdhan Utthan Bank, are among the majororganizations. In the Mid-Western Region, some organizations inBanke, Bardiya, Dang and Surkhet districts, in partnership with RuralMicro Finance Development Center, have been providing loans undergroup guarantees by forming small groups in the community to operatesmall enterprises or businesses. If such organizations are in your districtor VDCs, you can access micro-credit and other services.

3. NongovernmentalOrganizations andtheir programsIn our village, variousorganizations areworking for thedevelopment andwelfare of Dalits,women, indigenousgroups, the poor and

1. Women Welfare Forum, Banke2. United Youth Club, Bardiya3. Environment Improvement,

Surkhet4. Bauddha Rural Saving and Credit

Cooperative Limited, Surkhet

5. Nepal Women Community ServiceCenter, Dang

6. Rural Women Uplift Center, Dang7. Rural Women Development

Organization, Dang8. SUPER, Dang

Names of organizations working on micro-finance

113


a) …………………….. allocates and distributes the resources andmeans available at the local level.

b) Nongovernmental organizations are conducting programs helpful toincome generation for ……………..

c) ……….. deals in micro-finance.

disadvantaged, and conflict-affected people. These organizations areproviding trainings in villages on different subjects to generateadditional income. Such organizations may range from local to thenational level.

These nongovernmental organizations are supporting different skill-based and income generating programs. For example, WinrockInternational (nongovernmental organization), Poverty AlleviationFund, and Rural Development Programs have been providing differenttrainings to the communities to motivate people towards enterprise.Likewise, DEPROSC Nepal and Karnali Integrated RuralDevelopment and Research Center are also providing trainings anddifferent facilities for the development of micro entrepreneurs. Trainingon various micro enterprises can be accessed from them.

Women / Dalit/ Poor VDC

Agricultural Development Office Veterinary Service Office

Rural Development Bank Industry and Commerce Association

114


Entrepreneur

From Where to Collect InvestmentResources for Enterprise?

Read the following chart and discuss as a group. After thediscussion, one person in each group should report on whatthey talked about.

NonGovernmental

Programs

GovernmentPrograms

Group

Cooperative NGOsdealing with micro

finance

Communityforest

GraminBikas Bank

NirdhanUtthan Bank

AgricultureDevelopment

Bank

CommercialBanks

OtherFinancialInstitution

PovertyAlleviation

Fund

VDC/DDC

115

Local Level OrganizationsGaumati: Did you know I took pickle-making training because I am

thinking of managing a pickle making business? But how can Imanage the money?

Ujeli: A cooperative has opened in our village. Your husband is also amember of that cooperative. If you ask for a loan, in consultation

with your husband, for a pickle-making business, it can beobtained from the cooperative. And you are a member of awoman's group aren't you? You can receive a loan from therealso.

Gaumati: Ah! You suggested a good idea. What other organizations canwe get loans from?

116

Ujeli: Besides the cooperative organizations and groups, we can alsorequest credit from community forest users' groups, but theperson requesting a loan from them should be a member of thatgroup. Similarly, Poverty Alleviation Fund, Village DevelopmentProgram, Rural Development Bank, Nirdhan DevelopmentBank, and Nongovernmental Organizations dealing with micro-finance sectors also provide loans to operate small businessesby forming small groups. The Poverty Alleviation Program isgoing to implement a program in our VDC too. We can get aloan if we become a member of the group. The VillageDevelopment Center of the next village is also going to conducta micro-finance program. It also invests in people like us wantingto become micro entrepreneurs.

District Level OrganizationsMan Bahadur lives in Birendranagar Municipality of Surkhet. He hastaken a loan of Rs. 20,000 from the Agriculture Development Bank fora buffalo farming business two years ago. He has already paid back thatloan and as the demand for milk has been rising, he has thought of addingtwo more buffalo by asking for another loan of Rs. 40,000 from thesame bank. Man Bahadur's neighbor, Kamala, has been operating acandle-making business since last year. She started this business with aloan of Rs. 25,000 from the Commercial Bank. Now she is paying offthe loan in installments. Today, other development banks also are openingin the district. Apart from the government banks, other private banksalso provide loans. Kamala knows where loans can be obtained and sharesthis information in the meetings of the group.

117

Other Organizations and Programs

These days, different governmental as well as nongovernmentalorganizations and development programs are working at the communitylevel and forming income generating groups. These programs conducttrainings on potential income-generating subjects for the localopportunities to men and women of the community, especially to thepoor to women, Dalits, indigenous and conflict-affected people, and evenprovide revolving funds to them. These helpful programs are alsoconducted through the DDC. In most Mid-Western Region districts,poverty alleviation programs are being conducted by the PovertyAlleviation Fund. Loans can be received from these programs to run anenterprise through groups after joining the group.

The districts of the Mid-Western Region where the Poverty AlleviationProgram is being implemented are Pyuthan, Rukum, Rolpa, Dailekh,Jajarkot, Kalikot, Mugu, Jumla, Humla, Dolpa, Bardiya and Salyan.

118

Micro finance: program to provide small loans to the members of a group through the groups after its formation.

Revolving fund: A fund granted to the group on condition to provideloan to the members of the group on a rotationalbasis.

Financial institution: Institution dealing with money.Coordination: Mutual relation, establishing relationship with

another.

Likewise, by forming groups the village development programsconducted in VDCs through the DDC also provide loans for income-generation activities through these groups.

Likewise, the Community Livestock Development Program also providesloans for income generation through cattle raising/farming in thecommunity. So before starting any business activities, one should contactand consult the local level nongovernmental organizations, differentprograms conducted at the community level, and the VDCs and the DDCsfor business investment opportunities.

The districts in which the Village Development Programs are beingimplemented through District Development Committees in the Mid-Western Region are Dang, Banke, Bardiya, Salyan, Pyuthan,Rukum, Rolpa, Dailekh, Jajarkot, Kalikot and Mugu.

Meaning of the word

119

What are the groups, organizations, and programs in your village fromwhich you can get loans to run micro enterprises?

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

n Loans are available for operating micro enterprises from financialinstitutions, commercial banks, village groups, cooperatives,community forest groups, and nongovernmental programs andorganizations.

n If a loan is needed to run micro enterprise, we should go to theconcerned office/authority, meet with them and listen to their advice.

Read the following points and discuss in a group


120

L s 3Lesson 43L s 3Lesson 43

Relation of Production to Market

Read the following chart and discuss as a group. After thediscussion, one person in each group should report on whatthey talked about.

121

Producing goods is not enough. There should also be a demand for thegoods in the markets. A reasonable price should be received from theirsale. If a reasonable price cannot be received, the producer cannot succeedin commercial production.

In this sense, the producers should organize and gather their products atone place through a collection center, from where the products can besold for a higher price they all agree upon. This reduces the chance forthe customers to purchase the products at reduced prices elsewhere.

Jyamire Village Leading towards Business

The farmers of Jyamire village of Chitwan District are interested invegetable and fruit farming. As there is a good irrigation facility there,both in-season and off-season vegetable can be farmed. Apart from this,others raise cattle and goats and some have even farmed papaya.

Due to increased production of vegetables and fruit, all the productscould not be consumed at the local level, and with no contact with businesspersons from outside markets, they could not get reasonable prices. Likethe saying goes, "Where there is a will, there is a way," so all the farmersdecided to open a collection center together. They also formed amanagement committee for the systematic operation of the center. Thiscommittee works to contact different wholesalers and businessorganizations, fix product prices, and contact the appropriate offices ofthe district for advice. Today, the local farmers bring their vegetablesand fruits to the collection center. Many business persons from other

122

1. Whom can you contact for selling the products of the enterprise thatyou are thinking of starting?

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

markets - Tadi, Narayanghat, Pokhara, and even Katmandu - come totheir collection center to purchase vegetables, fruits, and other goods.As a result, the farmers receive reasonable prices for their products.

Seeing the progress of vegetable and fruit farmers, milk producers alsoestablished milk collection centers, increased milk production, andexpanded their market and sales. They have maintained contacts withthe Dairy Development Center, Katmandu. In this way, we can distributeand sell any product through a collection center. This helps the farmersto get reasonable price and a demand for their products.


123


Selection of Enterprise by theParticipants

Look at the following figure and discuss in a group. After thediscussion, narrate the things you discussed to the class.

124

Ujeli: Kanchha Dai, what are you thinking? What is it you areworried about?

Kanchha Dai: Nothing specific. It's almost nine months since we startedstudying. We learned to read and write. We also learned manythings such as how to operate small businesses, what kinds ofbusinesses can operate in our village, what things should beconsidered while doing business, and how can we earn moreincome. Now that I know all this, I feel that I should operatea business. So I'm thinking what business I should do.

Ujeli: You are right. I also feel the same way. Our classmate JamunaDidi has already started a tea and snacks shop/restaurant atthe town square. It seems to be doing well. Instead of remainingundecided, I believe it may be a good idea to start KanchchaDai. I have already decided to produce goods from bambooand Nigalo because I have these materials everywhere aroundmy farmland and I also have the necessary skills.

Facilitator: Kancha Dai and Ujeli are correct. We already know so manythings. Therefore, we should select a suitable enterprise foreach one of us considering the available resources in ourvillage, our skills, consumers' desires, feasibility of sales,possible problems or constraints, and sources of investment.So, let's prepare our respective business plans by considering


125

Action Plan

who is going to do what business? When? Where? Where tocollect resources? After the plan has been prepared, we shouldprepare an action plan for operating the business. For this, thefollowing sample action plan will help:

What to do? Where todo it?

When tostart?

Where tocollect

resources?

What help isneeded?

Nepalgunj From 2065Bhadra 15 10,000/- From a saving

groupHelp to have

contact

Kohalpur 2065/7/2 4,000/- From a savinggroup

To find theroom

Nepalgunj 2065/7/3 25,000/- From a financecompany

Contactingwholesale shop,and take help of

experiencedmechanics

Arrange/Decorate

goods in theshop

2065/7/5 Arrangementof goods

Opening of theshop

Kohalpur 2065/7/7 500/- From agroup

Advertisementand

management

How muchmoney isneeded?

Radio/TVrepairingTraining

(Refreshertraining tothose whohave taken

already)

Room formanaging this

business

Purchasenecessarymaterialsincludingfurniture

– –Kohalpur

126

A Instruction to Facilitators

• After reading this book, all the participants should make a businessplan of their selected enterprise and its action plan.

• While preparing the business plan, they can get help from thesample of Radha's business plan as described in Lesson 33.

• The facilitator should help all the participants to prepare theirbusiness and action plans. Also, the facilitator should collect andgive the action plans to the appropriate office or organization.

1. Make a business plan of the business you want to do with the helpof the facilitator.

2. After making the business plan, also fill in the table below with theactions to be done to start the selected business.

Action Plan

What to do? Where todo it?

When todo it?

How muchmoney isneeded?

Where tocollect

resources?

What help isneeded?

A Instructions to Participants.

usaid nepal’s education for income generation in …pdf.usaid.gov/pdf_docs/pnadt417.pdfthis book...

Documents