Market Study for Business Service Centre

(BSC) supported Women’s Micro and Small

Enterprises in Nepal

Submitted to:
Business Service Centre
FBPWN/ AIDOS - BSC Project
Buddhanagar, Kathmandu, Nepal

21 September 2009

Prepared by:
RED Group Pvt. Ltd.
Kupondole, Lalitpur
Tel: 5532098
Email: [email protected]
www.redgroupnepal.com
Table of contents
1. Executive summary ....................................................................................8
2. Introduction ............................................................................................ 10
2.1. Objective: ........................................................................................................10
2.2. BSC Target Areas ..............................................................................................11
2.3. Activities conducted:..........................................................................................13
2.4. Study sample ...................................................................................................13
2.4.1. Number of samples: 14
2.5. Survey tools .....................................................................................................15
2.6. Study framework ..............................................................................................15
2.7. Study indicators ................................................................................................16
3. Women entrepreneurship .......................................................................... 18
3.1. In Nepalese context...........................................................................................19
3.1.1. Women in wage employment and self-employment: 20
3.1.2. Literacy: 20
3.1.3. Migration: 21
3.1.4. Policy: 21
3.1.5. Socialization: 22
3.1.6. Constraints: 22
4. Study findings with summary and conclusion ............................................... 23
4.1. Focused Group Discussion (FGD) conducted at BSC project areas .............................23
4.1.1. BSC Beneficiaries: 23
4.1.2. Available skills 24
4.1.3. Available agriculture resources 24
4.1.4. Women Daily Routine 25
4.1.5. Division of work (Roles and responsibility) 25
4.1.6. Voice of women 25
4.1.7. Access to resources and control over 26
4.1.8. Women Entrepreneur Barriers 26
4.1.9. Opportunities in BSC working areas 28
4.1.10. Interview findings from existing women entrepreneurs and cooperatives 30
4.1.11. Case: Basla Devi Soap Enterprise – Situation of Enterprise 32
4.1.12. Case: Patriarchal socialization situation leading difficulty in learning new skills – Ms. Krishna
Kumari Maharjan 35
4.2. Product/Service Selection ...................................................................................36
4.2.1. Attractive Matrix Exercise: 37
4.2.2. Ranking Matrix 42
4.2.3. Final selection of potential products/services: 46
4.2.4. Service market opportunities in BSC working areas 48
5. Market Study on Product/Services .............................................................. 51
5.1. Study background .............................................................................................51
5.2. Study goals and objectives .................................................................................51
5.3. Strategy formulation..........................................................................................51
5.4. Seven P’s of Marketing of the selected products/services.........................................53
5.5. Product profile ..................................................................................................56
5.5.1. Product: Candle 56
5.5.2. Product: Tibetean Incense and Religious Incense 58
5.5.3. Product: Rainbow Trout (Oncorhynchus mykiss) 59
5.5.4. Product: Lapsy Products (Choerospondias axillaries) 61
5.5.5. Product: Asparagus (Asparagus Officinalis) 62
5.5.6. Product: Mushroom (White button and Oyster) 63
5.5.7. Product: Fibre based Products - Allo (Girardinia diversifolia) 64
5.5.8. Product: Strawberry (Fragaria ananassa) 66
5.5.9. Product profile: Poultry Farming 67
5.5.10. Product profile: Floriculture – Tata Rose (Rosaceae) 68
5.5.11. Product: Tailoring - Newborn baby clothes 69
5.5.12. Product e: Tibetian Carpet 70

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 5.5.13. Product: KIWI (Actinidia chinenesis and Actinidia deliciosa) 72
5.5.14. Product: Ground Apple (Polymnia sonchifolia) 73
5.5.15. Product: Japanese Sweet Potato (Ipomoea batatas) 74
5.5.16. Product: Chest Nuts (Castanea dentate) 75
5.5.17. Product: Chukandar (Beta vulgaris) 77
5.6. Value addition and market parameters .................................................................78
5.7. Service market .................................................................................................83
5.8. Organic Market .................................................................................................85
5.9. Strategic options ...............................................................................................86
6. Cost Benefits analysis of potential products/services ..................................... 92
6.1. Product Name: Asparagus ..................................................................................92
6.2. Product Name: Strawberry .................................................................................93
6.3. Product Name: Tailoring .....................................................................................93
6.4. Product Name: Vegetable ...................................................................................94
6.5. Product Name: Wax candle .................................................................................94
6.6. Product Name: Poultry .......................................................................................95
6.7. Product Name: Mushroom ..................................................................................96
6.8. Product Name: Bulgar Sweet (Lapsi) candy ...........................................................97
6.9. Product Name: Tata Rose ...................................................................................98
6.10. Product Name: Trout Fish ...................................................................................99
7. Possible intervention strategies for BSC supported entrepreneurs.................. 100
8. Major Findings and Recommendations for BSC project ................................. 103
9. References ............................................................................................ 105
10. Summary of overall product/market information......................................... 106
11. Annex .................................................................................................. 108
11.1. Institutions Providing Services to Women Enterprises ........................................... 108
11.2. Government Agencies ...................................................................................... 108
11.3. Donor/INGOs Programmes ............................................................................... 110
11.4. NGO .............................................................................................................. 110
11.5. Financial service providers ................................................................................ 113
11.6. FGD procedure for BSC market study ................................................................. 118
11.7. Interview Questionnaire for Entrepreneur (Start-up and Growth)............................ 122
11.8. Questionnaire for Cooperative ........................................................................... 127
11.9. Questionnaire and Checklist for Market Study ...................................................... 130
11.10. Field visit schedule of the assignment................................................................. 133
11.11. List of people met ........................................................................................... 134
11.12. Promoters profile............................................................................................. 136
11.13. List of organisations visited for collecting secondary source of information ............... 137
11.14. Fair Trade ...................................................................................................... 138
11.15. Additional reference materials produced during the study...................................... 142

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List of Tables

Table 1: BSC working District, VDC, Households and Population ............................... 11

Table 2: FGD list ................................................................................................ 14
Table 3: Characteristics and traits essential for entrepreneurship recognised by experts
....................................................................................................................... 19
Table 4: Foreign Employment statistic................................................................... 21
Table 5: Listing of opportunities available in two major clusters ................................ 29
Table 6: List of cooperatives and groups working in BSC target areas ........................ 32
Table 7: Listing of selected products/services from the attractiveness matrix.............. 42
Table 8: Final potential products/services as per each cluster:.................................. 47
Table 9: Final selection of potential products/services as per each VDC: .................... 47
Table 10: 7 Ps explained ..................................................................................... 53
Table 11: Analysis of products in 7 Ps ................................................................... 54
Table 12: Product parameters.............................................................................. 79
Table 13: Quality requirements for partership ........................................................ 80
Table 14: Value addition of products ..................................................................... 81
Table 15: Strategic choice and relevant products .................................................... 86
Table 16: suitable location proposed for selected products ....................................... 89
Table 17: List of fair trade Organisations ............................................................. 140

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Acknowledgements

RED Group would like thank the Business Service Centre project for entrusting us to
conduct the overall market study on potential women supported micro enterprises in the
target areas. We would also like to thank specially, the following individuals and
organization’s representatives by giving their valuable time and support during the study
period. We also like to thank:

ƒ the entire study team from both the RED Group and the BSC staffs especially in
data collection from the field and the market traders
ƒ individual women beneficiaries and male family members of the beneficiaries
those participated in the Focused Group Discussion and one to one interview
ƒ cooperatives for their cooperation in sharing existing constraints and its possible
solutions
ƒ individual entrepreneurs in the target VDCs involved in various sectors for
providing product information and entrepreneurial feedbacks
ƒ local level NGOs and market traders in the selected products/services in sharing
their valuable insights to upgrade existing products and other value addition
aspects

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ACRONYMS AND ABBREVIATIONS

BSC : Business Service Centre

VDC : Village Development Committee
MA&D : Market Assessment and Development
SWOT : Strength, Weakness, Opportunities and Threats
MT : Metric Tons
ICIMOD : International Centre for Integrated Mountain Development
AEC : Agro Enterprise Centre / FNCCI
FNCCI : Federation of Nepalese Chamber of Commerce and Industries
OVOP : One Village One Product
JAITI : Japan Agriculture In-Service Technical Institute
FGD : Focused Group Discussion
IG : Income Generation

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Study team:

RED Group

Team leader/Enterprise Development Consultant Mr. Sichan Shrestha

Market Linkages and Enterprise Promotion Consultant Mr. Suhrid Chapagain
Researcher Associate (Marketing) Mr. Nirmal Chapagain
Researcher Associate (Enterprise Development) Mr. Hem Tembe
Researcher Associate (Gender Specialist) Ms. Sita Gurung

BSC

Marketing Officer Mr. Yubak Raj Ghimire

Local promoter Mr. Rishi Raj Koirala
Local promoter Ms. Bimala Shrestha

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1. EXECUTIVE SUMMARY
BSC project started with an aim to support women initiated micro and small enterprises
in Nepal for four years in the selected working VDCs (Kakani, Okharpauwa, Chapali
Bhadrakali, Sirutar, Thecho, Sainbu and Kirtipur municipality) covering four districts
(Kathmandu, Lalitpur, Bhaktapur and Nuwakot). BSC has hired RED Group Pvt. Ltd.,
consulting company to undertake the assignment for assessment of existing situation of
BSC beneficiaries together with the market study from the month of April until June
2009.

After complete preparation of the study design in terms of work-plan, questionnaire and
detailed guidelines, the study team successfully conducted 10 FGDs with the target
women beneficiaries and 24 questionnaire forms were filled from the individual
entrepreneurs at different stages of their business working on different products and
services. Similarly, the market research was conducted with the selected potential
products and services identified during the FGDs conducted in the field. Traders were
identified working in the selected products and services and again from them, few were
further selected those who are interested to work with the BSC beneficiaries as a ‘market
promoter’.

From the FGDs and interviews conducted, following findings are summarised as follows:

ƒ Over all, the BSC target beneficiaries are at the early stage of business. However,
few beneficiaries are successfully operating business with the desired turnover. It
is also observed that mostly women beneficiaries are operating their business by
close observation and supported by their husband or male family members.
ƒ Women beneficiaries have basic technical skills predominantly in agriculture and
in other off-farm based enterprises. However, their skills are traditional and need
to update with the modern ones.
ƒ Modern service market in the target VDCs located in remote areas i.e. Sirutar,
Kakani and Okharpauwa is weak due to low purchasing capacity. There are few
services i.e. Tailoring, Retail Shops, etc., which are viable if the required quality is
maintained as compared to the urban market.
ƒ Availability of resources is limited except land, which is also slowly being occupied
by the housing company. However, in Okharpauwa and Kakani area there are
wider scope for agriculture base farming due to fertile land and suitable climatic
conditions for all types of products i.e. vegetable, floriculture, high value cash
crops etc.
ƒ Mostly beneficiaries allocate time in the day from 11 AM onwards until 3 PM for
working in the agriculture field or in selected enterprise so this time is also
suitable for attending training and other social networking.
ƒ There are many barriers within the beneficiaries at present that is hindering them
to become as a successful entrepreneur. One of the major barriers are not been
able to give sufficient time in the business due to many roles she had to play at
home, limited knowledge on the modern technology and managerial skills. Mostly
beneficiaries are involved income generation activities and not really doing
commercial business.

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 ƒ In the working areas, there are opportunities that need to be explored in terms of
natural resources in Okharpauwa and Kakani areas, indigenous traditional skills
available in the surrounding areas from Thecho, Sirutar, Sainbu, and Kirtipur.
ƒ Women beneficiaries can easily access minimum amount of loan from the credit
and saving group from her affiliated group and from micro-finance institutions,
but if she requires a big amount of loan to expand her business or to purchase,
any equipment then she had to depend with other big commercial bank or finance
company.

Final potential products are selected based on the interaction with the target
beneficiaries during the FGD conducted in all target areas. After feeding inputs in the
‘attractiveness matrix’ and the ‘ranking exercise’ within the given criteria (In attractive
matrix: potential to increase income and potential number of beneficiaries and in ranking
exercise: availability of local resources, skill, availability of technology, and market
potential), final selection was done. Final selected 14 products and services are
Asparagus, Traditional Incense Stick (Agarbatti), Candle, Floriculture, Hotels &
Restaurants, Burglar Sweet (Lapsi), Mushrooms, Nepali Tibetan carpet, Poultry, Retail
shops, Sculpture, Season & off-season vegetables, Strawberry and Trout Fish. These
selected products and services are recommended as per the BSC cluster for future
project interventions (refer product selection process in the section 4.2).

Detailed market survey was carried out within the selected products by exploring market
traders and further selected few traders in each product as a promoters those who are
interested to work with the BSC target beneficiaries. These selected traders as market
promoters will buyback guarantee the products from the promoters and interested to
support them in provided embedded services. Product profile (refer section 5.5) is
prepared as per the discussions with the market promoters and other secondary sources
of information. After the market findings, five strategic choices (refer section 5.9) are
formulated as a future direction for BSC project interventions. Five strategic directions
are as follows:

1. Increasing in production capacity & introduction of improved varieties of products,

2. Strengthen processing technology
3. Introduction of cooperative and group business approach
4. Partnership for product development
5. Strengthen women entrepreneurs by linking them with the service providers and
promoters

Cost benefit analysis of 14 selected products are prepared (refer section 6) with the
costing details at the production level and sales price to calculate the profit margin to the
producers of each product.

For BSC project to support beneficiaries in their business promotion, partnership with the
market promoters in the selected products and services is necessary. BSC should
facilitate in building the long-term relationship between the beneficiaries and the market
promoter by understanding both their needs and supporting them in terms of
technology, skills, management and marketing of the products and services.

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2. INTRODUCTION
The Federation of Business and Professional Women of Nepal (FBPWN) with the technical
assistance of the Italian Association for Women in Development (AIDOS) has started the
implementation of the Project “Establishing a Business Service Centre (BSC) for
Women’s Micro and Small Enterprises in Nepal”. The four-year project, launched in
February 2008 is co-financed by the European Union (EU).

The Project aims to enhance women’s active role in the labour market through the
upgrading of existing micro enterprises run by women into more viable, self-sustainable
and growth -oriented businesses and through the creation of new ones. By doing so, the
Project intends to contribute to mitigate the poverty affecting Nepalese families by
enhancing women’s capacity to organize their labour in an economically feasible way.

The Project strategy focuses on strengthening FBPWN’s capacity to manage enterprise

development programmes through the creation of a Business Service Centre (BSC) for
women’s Micro and Small Enterprises (MSEs). The BSC acts as a counselling / training /
business development centre to support women’s led subsistence income generating
activities to become more viable, and profitable. The BSC is managed by a technical
team including a Director, a Training Coordinator, a Marketing Officer, a Business
Counsellor/Credit Officer, and two Local Promoters. The BSC Team is trained by AIDOS
outsourced international experts in the field of enterprise development, promotion,
marketing and communication and it is supported on-the-job by the International Project
Manager (AIDOS) and the National Project Manager (FBPWN) support it on-the job.

The BSC provide existing and potential women’s MSEs in the Project target areas with an
integrated package of business development services (BDS) including: entrepreneurship
orientation, business management training, technical skills training, product design and
development (PD&D), facilitation to access micro and small credits, follow-up and
business counselling, marketing assistance, and business networking. The BSC will also
offer, on a contractual basis, technical assistance and capacity building services for
organisations involved in local socio-economic development. The BSC is established as a
donor–funded development cooperation Project. However, the Project will work to
define, in coordination with FBPWN, an appropriate sustainability strategy to establish
the BSC as a permanent centre of excellence for the promotion of women’s
entrepreneurship in Nepal.

2.1. Objective:
The overall objective of the study is to conduct market study and assessment of BSC
beneficiaries for designing strategies for providing services to the BSC supported women
beneficiaries. Other specific objectives are as follows:

1. Assessment of BSC beneficiaries to understand their current status and explore

future possibilities they can adopt.
2. Study market at district and local level of the selected products/services.
3. To develop strategies with reference to the few selected potential
products/services as an input so that BSC could design service package suitable
for all level of enterprises from sustenance towards growth-oriented enterprises.

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 4. Explore opportunities to increase competitiveness of products/services by
improving quality, packaging and value addition aspects.
5. Identification of potential market promoters (well established traders) who are
already working in the selected products and are ready to work in the BSC
program areas for long term business promotion and explore other value addition
aspects i.e. organic and fair-trade.

2.2. BSC Target Areas

The study areas are once again divided into three clusters according to the natural
resources and human skills.

The BSC operates from FBPWN premises in Buddhanagar, Kathmandu, and it extends its
services to the following areas: Kathmandu District (in Kirtipur Municipality , and Chapali
Bhadrakali VDC); Bhaktapur District (in Sirutar VDC); Lalitpur District (in Sainbu and
Thecho VDCs); and Nuwakot District (in Okharpauwa and Kakani VDCs).

The Project targets disadvantaged, poor women (between the age group 18-50 years)
who are residents in the target areas. Preference will be given to female heads of
household and family breadwinners and those already involved in business activities or
intended to start an entrepreneurial activity.

Three clusters VDCs:

A. Sirutar, Sainbu and Chapali Bhadrakali
B. Thecho and Kirtipur Municipality
C. Okharpauwa and Kakani

District VDC/Municipality
Kathmandu Kirtipur Municipality, Chapali Bhadrakali
Lalitpur Sainbu and Thecho
Nuwakot Okharpauwa and Kakani
Bhaktapur Sirutar

Table 1: BSC working District, VDC, Households and Population

District VDC Households Population Male Female
Kathmandu Chapali Bhadrakali 903 4544 2278 2266
Bhaktapur Sirutar 830 4532 2273 2259

Kathmandu Kirtipur Municipality 9487 40835 21686 19149

Lalitpur Sainbu 1789 8337 4243 4094

Lalitpur Thecho 1550 8020 4021 3999

Nuwakot Okharpauwa 1274 7277 3700 3577
Nuwakot Kakani 1396 7604 3761 3843
Source: Census survey 2001

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 BSC Targeted VDCs

Kakani

b1 # Okharpauwa
Budanilkantha
c1 #
c2 # Chapali
Bhadrakali

5 Km
25 Km
Maharajgung
Three clusters: Chowk
A: Sirutar, Sainbe and Chapali Bhadrakali
Ring Road
B: Thecho and Municipality Kirtipur
C: Okharpauwa and Kakani
¢ Ring Road

Kathmandu
Legend
Cluster A b1 #
Cluster B c1 # Kirtipur ¢
Towards Bhaktapur

Balkot
Cluster C Municipality

Road 2 Km 3Km

Sainbu
VDC/Municipality
Khokana Sirutar

b Male Group c1 # 5 Km
c1 #
c Female Group b1 #
c1 #
Thecho
Figure 1: BSC working VDCs

The BSC project locations are visually sketched as a layout map including all seven VDCs
to plan in terms of sample design and other field level planning details. Three clusters
are separated with different colours and these clusters VDC represent similar
characteristics based on resources and skills. After we had gathered sufficient
information from these each clusters, products / services were selected in these each
cluster for further detailed analysis.

BSC project is implemented in seven VDCs covering three districts of Nepal. Brief
description of BSC project VDCS are as follows:

1. Sainbu: VDC is located very near to the Kathmandu valley in Patan district within
near to the Nakhu River, Khokana, and Bagmati River in the East. Seventy per
cent of the populations are involved in the agriculture sector.
2. Thecho: VDC having population of 8,020 is located near to the popular market
Mangalbazaar in Lalitpur district with major inhabited by Newar community and
also Brahmin and Chhetri community are also exist. There are 10 schools, 1
health post and 1 Red Cross Society.

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 3. Kirtipur: Kirtipur has long traditional history and rich in cultural and heritage
sites. Seven kilometres south of Kathmandu with population of 75,000 and
household size of 7,875. Mostly households are engaged in agriculture sector and
few in wage labour.
4. Chapali: VDC is located 8 km from the north of Kathmandu valley and very near
to the popular temple Budhanilkanth and Shivapuri National Park. Area is having
population of 4,640 with household size of 921.
5. Kakani and Okharpauwa: Kakani and Okharpauwa VDC are having a population of
7,604 and 7,277 respectively with a majority of Tamang community located 25
km far from the Kathmandu valley. Areas are connected with major market
centres Rani-Pauwa, Jurethum and Kakani. Areas are now popular for a picnic
spots as well as major production of Trout fish and Strawberry.

2.3. Activities conducted:

Following specific activities were carried out by the research study team in partnership
with the BSC team starting from the month of April until June.

1. Consultative meeting with project team to understand the scope of work and the
expected results in more details
2. Literature review of existing documents available at BSC office and as specified in
the TOR1 and other available document related to the BSC project.
3. Preparation of questionnaire/checklist and study guideline and pre-test with few
women entrepreneur. Other necessary formats prepared for the field survey
4. Field survey planning: Detail planning of schedule, agenda, timings, etc.
5. Conduction of FGD with the women’s groups in collaboration with local promoters
where members of the group are at early start-up and already in the growth
phase
6. Direct interviews with the individual women entrepreneurs representing all types
of enterprises
7. Selection of few sub sectors that is feasible for the given three clusters
8. Observation visit at the major market centre at all levels (Central District and
Local)
9. Interviews with the market traders (Wholesalers and Retailers) and Cooperatives

2.4. Study sample

Sample size was estimated based on the tentative BSC beneficiaries and the study
timeframe.

1. Focus Group Discussion (FGD) with 7 Women Groups and 3 Male Groups
representing husband’s of women entrepreneurs
2. Interview with 5 Cooperatives, 14 women entrepreneurs and 5 key informants
from other related programme & Government officials.

1
1) the Market Study undertaken by the BSC Marketing Officer; 2) the village profiles by the BSC local promoters; and 3)
general assessment of the BSC beneficiaries and the Project target areas by the local promoters.

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 3. Market assessment with 5 wholesalers and 10 retailers representing selected
products / services
4. All together total of 50 samples will be surveyed through FGDs and interviews

Table 2: FGD list

VDC/District Women Group Male Group

Nuwakot 2 1
Kirtipur 1
Sainbu 1 1
Thecho 1 1
Sirutar 1
Chapali 1
Bhadrakali
Total 7 3

2.4.1. Number of samples:

SAMPLE DESIGN
(49)

Market
FGD Interviews
Assessment
(10) (24)
(15)130

Women Male
Cooperative Entrepreneur Stakeholder Wholesale Retail
Group Group (5) (10)
(5) 14) (5)
(7) (3)

Represen
Growth Growth
tative of Saving & Credit Trader Retail
(4) (7)
Husbands

Startup Marketing Startup Supermarket

(3) Service Provider (7)

Note: Number in brackets represents the number of sample to be surveyed

The above figure represents study samples in tree structure with number of samples in
the bracket. Box represents sample to be collected from various sources i.e. FGD,
Interviews and Market assessment. Similarly, in the second layer samples representing
from various sources are specified from which target groups i.e. women, male,
cooperatives, entrepreneurs, stakeholders, wholesalers, retailers, etc. Further it is also
specified going into very categorically about the types of the enterprises i.e. at the
growth stage, start-up, saving & credit, marketing service providers, organic and Fair
Trade, etc.

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2.5. Survey tools
Following tools were used for gathering information from the BSC beneficiaries, market
traders and promoters.

ƒ Questionnaire / checklist / guidelines

ƒ FGD in the women groups
ƒ Direct interview with the individual women
ƒ Interview with the traders (wholesaler / retailer)
ƒ Observations visit at market centre
ƒ Success and failure cases from the study VDC
ƒ Collection of photographs
ƒ Conceptual analytical tools : Sub sector / Value chain analysis , Market
Assessment and Development (MA&D) , and SWOT

2.6. Study framework

The study framework was designed in three stages as shown below: 1. assessment of
existing situation, 2. product identification and exploring market potentials, 3.
formulation of strategies for BSC program interventions.

Assessment of ƒ Identify target group/cooperatives in all

VDC
existing situation
ƒ List resources and Products/ Services
ƒ Gender specific constraints
ƒ Identify key market constraints
ƒ Ranking of products for final selection
Product Identification and
Explore Market Potential

ƒ Final selection of few potential

products / services
Formulation of strategies for
ƒ Gather market information from the
traders BSC program intervention

ƒ Upgrading strategies
ƒ Action plan
Figure 2: Study framework ƒ Financing
ƒ Monitoring indicators

Assessment of existing situation: After reviewing available BSC literature to

understand existing situation of the BSC targeted VDCs, information was gathered with
the help of FGD and interviews with the women groups/cooperatives. Information is
analyzed with their constraints in collaboration with BSC local promoters.

Selections of final products/services to each clusters and explore market

potentials: To select final products / services, criteria were developed together with the
BSC team followed by ranking exercise. Basically products/services are selected from the
major three sectors: 1. agriculture, 2. off farm, 3. high value crops, other sub sectors

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such as Handicraft, Organic vegetable farming, Food and fruit products, Recycle
products, Traditional skill based enterprise and Cottage and textile enterprise are also
taken into considerations. After final selection of products/services, market potentials
will be explored with the research team by visiting market centres and the traders.

Formulation of upgrading strategies BSC project interventions: upgrading

strategies will be outlined with reference to the potential products/services selected to
the BSC project for future interventions. Cost implications for future BSC interventions
will be projected with the action plan.

2.7. Study indicators

The study indicators from target beneficiaries, women group, cooperatives, service
providers and market traders were designed before designing questionnaire form for
data collection. These indicators were used in the questionnaire form as shown in the
table below.

Women beneficiaries Women Group Cooperative BDS provider Market Traders

- Technical skill - Group dynamics: decision - Existing capacity - Identification of - Design
- Attitudinal Behaviour making, roles & - Trend providers and - Price
competency responsibility, new - Expectations their services - Quality
- Managerial competency investment - Procedure of - Volume
- Family support getting services - Availability
- Financial support by the - Packaging
- Cost Benefits beneficiaries - Delivery mechanism
- Constraints & - Embedded services
Opportunities - Contracts

Indicators for assessment of beneficiaries:

ƒ Entrepreneur education
ƒ Entrepreneur social & legal barriers, socialization pattern, social cultural norms
and support
ƒ Entrepreneur traits
ƒ Enterprise registration procedure and type with level of investment
ƒ Training received
ƒ Quantity / Volume in Metric Ton
ƒ Existing standards/Specification followed
ƒ Basic ingredients
ƒ Quality
ƒ Pricing
ƒ Productivity per Square Metre /Day in months
ƒ Raw inputs in Qty/No. and source/location
ƒ No. of labour : Skilled/Unskilled/Semiskilled
ƒ Machinery inputs and its cost
ƒ Building: own/rented
ƒ Processing by Hygienic and Health considerations
ƒ Access to loan: Source and min and max amount
ƒ Working Capital practices

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 ƒ Investment capital: Minimum and Maximum
ƒ Raw materials resource inventory
ƒ Marketing problems

Indicators for market assessment:

ƒ Market price
ƒ Packaging design available
ƒ Product availability in the types of outlet
ƒ Target consumer profile
ƒ Promotional tools used
ƒ Access of transport facility from the production site
ƒ Other varieties available
ƒ Pricing and trend
ƒ Delivery time
ƒ Product specification and Sizes
ƒ Major manufactures: prepare list with contact details, possibilities of further
trading
ƒ Major turnover
ƒ Product shortage time
ƒ Annual consumption
ƒ Satisfaction/dissatisfaction with the present products
ƒ No of traders involved and segmentation
ƒ Profit margin
ƒ Means of payment
ƒ Payback guarantee
ƒ Sourcing
ƒ Quality
ƒ Annual Quantity
ƒ Demand in Season
ƒ Contract document
ƒ Embedded Services
ƒ Social Responsive

Refer annex for detail questionnaire form used with the above indicators.

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3. WOMEN ENTREPRENEURSHIP
Entrepreneurship can be described
as a creative and innovative
response to the environment. Such
responses can takes place in any
sector. Doing new thing or doing Skills
things that are already being done in
new ways is, therefore, a simple
definition of entrepreneurship. A
person involved in any business Attitude and
Knowledge &
activity where the person sells a Traits
information
product/service and makes profit is (Competencies)
an entrepreneur. Based on years of
experiences and research, it has
identified specific skills and
competencies in any successful
entrepreneur. Therefore, it is
Figure 3: Three components of entrepreneurship
recommended that for developing
women as entrepreneur should have
the following basic three ingredients. All three components are taken into considerations
in the study design.

1. Skills: For a woman to initiate her entrepreneurial career and run it successfully, it is
necessary to acquire the following skills.

ƒ Environment scanning
ƒ Risk and Feasibility assessment,
ƒ Analytical
ƒ Project planning
ƒ Business forecasting and planning
ƒ Communication
ƒ Interpersonal
ƒ Managerial and decision making

2. Knowledge and information: To start and run the business successfully, the
following knowledge and information are necessary.

ƒ Entrepreneurial role
ƒ Process of becoming an entrepreneur
ƒ Opportunities available
ƒ Resource available
ƒ Procedural and legal information
ƒ Problems of enterprise
ƒ Contents of business plan

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3. Attitude and Traits: A woman, intending to take up the role of entrepreneur, needs
to acquire and strengthen requisite attitudes and entrepreneurial traits. The requisite
competencies to be acquired and/or strengthened can be described as under:
ƒ initiative
ƒ persistence
ƒ information seeking
ƒ problem solving
ƒ risk taking
ƒ systematic planning
ƒ concern for high quality
ƒ innovation
ƒ efficiency
Table 3: Characteristics and traits essential for entrepreneurship recognised by experts

Characteristics Traits
Self confidence ƒ Confidence
ƒ Independence
ƒ Optimism
ƒ Individuality
Task resulted ƒ Need for achievement
oriented ƒ Profit oriented
ƒ Persistence
ƒ Perseverance
ƒ Determination
ƒ Hard work, drive, energy
ƒ Initiative
Risk taker ƒ Risk taking ability
ƒ Likes challenge
Leadership ƒ Leadership behaviour
ƒ Flexible (openness of mind)
ƒ Resourceful
ƒ Knowledgeable
ƒ Versatile
Source: workshop on Entrepreneurship, Honolulu, 1977

3.1. In Nepalese context

Women entrepreneurship in Nepal is a relative new
Entrepreneurship has been defied
phenomenon. However, certain ethnic communities as: “Someone who innovates, and
in the country, especially the Newars and Tibetan whose function is to carry out new
from highlands such as Sherpa’s, Gurung’s, and combinations called enterprises”
Thakalis women are known to have been involved (Schumpeter, 1934)
in small business (CEDA, 1981) for a long time.
From few decades, the concept of women entrepreneurship has progressively gained
with the growing recognition that women have unique talents, which could be harnessed
for development, and more employment opportunities created and become part of
national development planning and strategies.

Gender equality and economic development go hand in hand. Since the early 1980s, the
policy makers and planners have become acutely aware of the economic significance of
women’s productive activities and the nature of their contribution to income generation.
It has been firmly established that women in Nepal are vital and productive contributors

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to the national economy but their access to knowledge, skills, resources, opportunities
and power still remain rather low (Shtrii Shakti, 1995).

A large part of women's work is not considered as economic activity, although women
work for more hours than men work and take the major responsibility for maintaining
the family. Available data (UNDP, 2004) indicate that women face higher levels of
unemployment and underemployment in both rural and urban areas. Most women
workers-over 70 percent- are confined to self-employed, unpaid and low wage informal
sector serviced with their contribution - although extremely significant-often
underreported and unrecognized.

Over the past women’s participation in economic activities has also move beyond
agriculture into the local market economy. In search of wage employment, women are
moving into small business and self-employment ventures thereby creating many formal
and informal opportunities for work. Women are increasing migrating to urban areas for
employment in a range of cottage industries, such as carpet weaving, textiles and
handicrafts.

3.1.1. Women in wage employment and self-employment:

In accordance with the socio-economic condition and the phase of development, women
involvement differs in comparison to the male workers. As our society is still dominated
by feudal socio-economic relations, the proportion of women in paid work is less,
whereas that of women as unpaid family workers is very high. On the other hand, the
number of self-employed women workers also seems low in comparison to males. It is
because of the fact that activities of males are counted and those of females are hardly
counted to that extent. Therefore, merely around 8 per cent of the female labour force is
in paid employment and 29 per cent as self employed, but a high majority of altogether
higher than 63 per cent of the total female labour force are working under the status of
unpaid family workers including of course as the attached labour to their male members
of the family working on wage elsewhere.

3.1.2. Literacy:
Although Nepal's literacy rate has increased in recent years, the percentage of literate
women lags behind the percentage of literate men. The male literacy is 81 per cent while
the female literacy rate is only 54.5 percent (NDHS, 2006). Social prejudices against
female education, restriction on mobility the low social status of women, the system of
early marriage and low participation of female in the formal employment sector too
results in lower literacy for females. Although there have been some quantitative
improvements in terms of the number of girls enrolled in school and number of women
receiving training, these efforts have not delivered any significant progress in terms of
uplifting the overall status of women. The lack of qualified and trained female
professionals at various levels in various sectors is the significant problem in Nepal.
Women's literacy programmes have been widely implemented. However, the relationship
between literacy programmes and the realistic conditions of women in Nepal has not
been carefully analysed or addressed.

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3.1.3. Migration:
During the past ten – twelve years due to conflict and underground economy, there has
been reduction in large number of job market in all sectors. Twelve years statistics figure
shows that, all together 7,12,137 numbers of labours had already gone to work outside
Nepal. The statistical figure does not shows a true picture as most of the same labours
are respectively visiting many countries when their contract got expires. Looking at the
current trend, it is estimated by linear projection for five years. The details show from
the trend line that, more than 2,00,000 Nepalese will be visiting other countries every
year. An average of 600 persons left the country for employment purpose daily in the
fiscal year 2005/06, reveals the annual report of Department of Labour and Employment
Promotion (DoLEP).
Table 4: Foreign Employment statistic
SN Name of the Year Total from years 2051 to
Country 2062/63 2063
1 Saudi Arabia 10844 142534
2 Qatar 39397 187991
3 U. A. E 10824 74632
4 Bahrain 329 5460
5 Kuwait 471 9334
7 Hong Kong 97 3609
11 Malaysia 60541 281047
17 Korea 127 5609
19 Israel 592 1921
Total 123,222 712,137
Source: Foreign employment statistic, 2007

The vicious circle of backwardness and poverty can be eliminated by transforming the
agrarian economy into a dynamic one through industrialisation. The contribution of
industry to national income in Nepal is about 6 % of GDP, besides organised industries in
the country there is a large number of micro enterprises operating on a small cottage
basis, which contributes about 4 % of GDP.

3.1.4. Policy:
The major industrial strategies employed in Nepal are both import substitution and
export promotion. In these circumstances, one major way to achieve the goal of
industrial development could be through establishment of small-scale enterprises. For
this to happen, it is recognized that entrepreneurship development can be the key to
raising the prospects for increasing the share of small-scale and cottage industries in the
national income (Aryal, 1992).

It is against this backdrop of industrial development and women’s role and participation
in the national economy that one must critically view the emerging needs of and scope
for women in quite recent. While Nepal has been interested in the development of small-
scale and micro enterprises since the late 70’s, issues and questions relating to the
promotion of women entrepreneurs have been raised more recently (UNIDO, 1988). The
number of women who come under the category of entrepreneurs in a formal sense is
still negligible. The representation is somewhat better in the informal sector with a

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higher percentage of women applying for loans for cottage industry enterprises.
However, this does not necessarily mean that these women intend to enter the economy
as entrepreneurs.

3.1.5. Socialization:
The entire socialization pattern is the Nepalese society is such that the young boys are
prepared for the world of productivity work and decision-making, whole girls are trained
to be effective housewives, mothers and providing services to their families. Self-denial,
putting others before oneself, self-effacement, gentleness, sacrifice, soft spoken and
other feminine qualities is encouraged in her upbringing. Decision making, strength of
expression, articulateness, opinion formation, thinking of one’s needs and interests
future career planning , etc., are not qualities which are promoted to develop her in her
socialization process. Furthermore, she is for the most part confined to an inside world,
and not permitted to interact with the outside world of information, knowledge and
accessing various resources.

There has not been done enough work in the entrepreneurial research arena in Nepal,
the topic of women entrepreneurs virtually remains suspense, with the exception of a
few studies carried out by development organisations and interventions from few NGOs,
and INGOs working in the sector is quite not enough. Degree of awareness has already
been raised, particularly among the urban elite about entrepreneurial ventures,
challenges and scope in small and cottage industries in Nepal but the other parts of the
rural women are in the dark side with lack of knowledge and education.

3.1.6. Constraints:
Women entrepreneurs cited problems as weak in self-confidence, persuasion and
assertiveness. It was also found that the family also lacks confidence in women’s
capability, whether it is related to their mobility outside home or to mortgage as
collateral to obtain loans from banks. Lack of confidence and the negative social
perception towards women have had a disabling impact on building up women’s
confidence (Ranabhat, 1995)

Nepalese society (with the exception of certain ethnic communities of the Tibeto-Burman
group) is predominantly, patriarchal that is male dominated. Women working outside
household work tend to be viewed as degrading to the family status. Working women
have to bear with a double work burden both housewife or a mother and outside work
for income generation.

Women are viewed as weak, passive, obedient or submissive. Further, dominant

religious beliefs and traditions do not favour women being involved in outside works. In
some cases society considers its man weakness if his wife works outside. In business,
women have to deal with many people and sometimes have to travel away from homes.
Such things are not accepted by society as such and therefore constitute major problems
for women entrepreneurs.

Irregularity, non-availability and poor quality of raw materials have been reported as
major constraints for women entrepreneurs.

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4. STUDY FINDINGS WITH SUMMARY AND CONCLUSION
The study findings are divided into three major milestones of activities carried out during
the study process. Each activities conducted are elaborated more with the analysis and
the findings. Three milestones of activities carried out were as follows:

ƒ Product selection and understanding of entrepreneurial dynamics from interaction

and FGDs conducted with the women beneficiaries (representation from groups,
cooperatives and other individuals) and male groups (any male members from
the women beneficiary households).
ƒ Market research from interaction with the traders
ƒ Opinions received from the experts those working in the promotion of women
entrepreneurship sector

4.1. Focused Group Discussion (FGD) conducted at BSC project areas

BSC team (local promoters and marketing officer) along with the research team
interacted with the BSC target beneficiaries in all project VDCs. BSC promoters gathered
target beneficiaries at the discussion place with the help of each local key person
appointed by BSC as an ambassador2 in each VDC. Separate three more FGDs were
conducted with the male groups. Refer annex (FGD procedure for BSC market study) for
guidelines followed for facilitating the FGD process and annex (List of people met) for
more detailed list.

Photo 1: Focused Group Discussion conducted with Male Group (left) at Sanibu VDC and Women Beneficiaries (right) at
Thecho VDC

4.1.1. BSC Beneficiaries:

BSC beneficiaries are disadvantage poor women
aged 18 to 50 years, resident in the target areas,
preferably heads of the households and
breadwinner, with at least functionally literate
who is already running IG activities and willing to
turn into growth enterprise. During the FGDs
conducted, it has been observed that the
beneficiaries are mostly at the primitive stage in
their business start-ups and very few individuals’ Photo 2: Beneficiaries at Kanakni

2
For regular communication with the beneficiary women BSC has appointed one key person as a ‘ambassador’

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women are successfully operating their business. It was also observed that the target
women beneficiaries are operating business mostly in close collaboration with other male
family members.

BSC beneficiaries in Thecho area is mainly dominated by Newar community, Kirtipur is

mainly dominated also by Newar (85%) followed by Chhetri and Dalit, in Chapali VDC
majority are Chhetri community (85%) followed by Newar, in Sainbu Chhetri and Magar
ratio is 80:20, in Sirutar 60% is Newar & Brahmin and 40% Chhetri, in Nuwakot
(Okharpauwa & Kakani) Tamang community people dominates.

4.1.2. Available skills

All sorts of technical skills have been observed by the research team with the women
entrepreneurs in different sectors predominately-in agriculture and in other off-farm
base enterprises related to products and services (refer annex for more details) but their
level of knowledge is at the very basic level. Women entrepreneurs observed lack
necessary managerial skills.

It has been observed that the women do not have basic required skills due to their
Patriarchal socialization. Some of the root causes of the marketing problems of women
entrepreneurs are limited knowledge of markets, lack of skills, experience and self-
confidence, and inadequate entrepreneurial and managerial competency.

In the target areas service market consumers at the local level is very weak and only
limited in few sectors i.e. tailoring, shops, hotels etc. where as other few potential
services i.e. beauty parlour, embroidery etc. that women can operate are not viable due
to the low spending capacity of the local community people. Those potential services can
be viable only if the services can be delivered to the urban market centres by taking
orders from the urban traders in a bulk and women are involved either individually or in
a group. However, few service market opportunities are analysed based on the existing
available infrastructure.

4.1.3. Available agriculture resources

Mostly in project VDCs almost all beneficiaries are to some level dependent on
agriculture sector having minimum of 508 Square Metres land area. However, in the
VDCs (Thecho, Sainbu, Sirutar, and Chapali) located near Kathmandu areas are slowly
being occupied by housing company and other brokers involved in selling lands.
Eventually these areas will not be left out with any land for commercial agriculture
farming. In some areas like Okharpauwa and Kakani are very much fertile and have
suitable climate for agriculture farming in high value commodities and livestock.

Resources (natural and local technology) available at BSC project areas

1. Sirutar: Bamboo, Land, Mill for Paddy and Maize, Straw
2. Sainbu: Compost Fertilizer, Land, Mill for Paddy and Maize, Straw, Water
3. Chapali: Compost Fertilizer, Forage, Forest, Lapsi, Mill for paddy and maize, Pine leaf (Sallebir), Straw, Water
4. Thecho: Yarn, Irrigation and Pond, Land, Bitten Rice preparing Machine, Straw, Water
5. Kirtipur: Compost Fertilizer, Forest, Mill for Paddy & Maize, Water
6. Okharpauwa: Allo, Raw materials for Bio Briquitte, Firewood, Forage, Forest, Land, Mill for Paddy & Maize, Water
7. Kakani: Allo, Bamboo, Banmara - Briquitte, Compost Fertilizer, Forest, Land, Bamboo (Nigalo), Timber

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4.1.4. Women Daily Routine
Women start her daily routine work after cleaning and sweeping house. Normally in
Newari culture and in few others, all households’ works are carried out by daughter in
law. She then prepares tea and food for the family members. She prepares children for
school and husband for work. She is now free from indoor household’s work and goes to
the agriculture land to work in cultivated crops and those having livestock are engaged
in feeding forage and other cleaning works.

During the daytime households having agriculture land still continue to work in the field
and other women are busy working in income generation or micro enterprise that she
owned. She has to take responsibility of her children by bringing back from school and
giving them food. In Okharpauwa and Kakani, women gets time to work in the morning
(7 am to 11 am) and evening (3 pm to 6 pm) where as during the day, due to heat, they
take rest.

In the evening, they are busy in calculation of whole day business transaction and other
planning and preparation for the next day. She then prepares dinner for family
members. She hardly finds time to watch television program before going to bed.

Suitable time for women beneficiaries are from 11 am to 3 pm to learn, work and other
social networking activities i.e., attending women group meetings.

4.1.5. Division of work (Roles and responsibility)

Women constitute about 50 percent of the population of Nepal. However, only 30%
women are literate in comparison to 65% man and out of total school enrolment, only
38% are girls. Indeed, religion and tradition play significant role in the determination of
women’s status in household and society. The general condition of the Nepali women in
terms of work division, women are overloaded. In most of the society (even today),
daughters are considered as the temporary member of the family who leave their
parents after marriage. In Nepalese society, female member of a household have been
playing a vital role in most of the domestic affairs particularly related with physical
activities. Commonly, it is observed that the female member of a household involves in
child care, worshiping, washing dishes, cleaning, cooking, feeding to other household
members, drinking water fetching, firewood collection, feeding to animals (management
of grass and other), kitchen gardening and agricultural labour. Nevertheless, awareness
of women and men has been increasing gradually in regard of work division. It is true
that lives of men and women are intrinsically linked. Therefore, it is essential to share
role and responsibilities equally between men and women.

4.1.6. Voice of women

Traditional practices, norms and values have been followed by most of the Nepalese
society where women are dominated and normally they are restricted to take decision
themselves without consulting male. The interim constitution of Nepal ensures 33
percent women representation among the elected members at the elected bodies.
However, their representation in key decision making political positions and in the civil
service is still very low. Efforts have been given to change the situation from various
side, but long way to go. In many cases, women hesitate to speak in front of male and

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try to escape as possible. However, gender sensitisation/orientation activities launched
by different development actors have been played a significant role in the society. As a
result, slowly, women are being capable to put their voices in the forums and developed
positive attitude of the male towards female. Besides, it has contributed importantly in
the promotion of women participation in development activities. The example of
consequence is establishment of women cooperative in different villages (through
collective voice and action), tremendous number of women involvement in income
generation activities and able to obtain credit from financial institutions etc.

4.1.7. Access to resources and control over

Mostly male keeps control over the resources. Generally, in most of the cases the social
norms as well as culture determines the resource allocation and access. For an instant,
in most of the society the land ownership remains with the male member of the
household. It has reinforced the women’s dependency on man and created obstacles in
capacity of women to make livelihood choices independently. Another example, women
involvement in the care of pet animals like goat, pig, buffalo, cow etc. is very high in
terms of time devotion and labour. However, when it is sold the money goes to the
pocket of male, women never claim her share. This is the common practice of Nepalese
society. Generally, women are not given the entitlement of property right, which has
deprived women more. However, there is a recent amendment in the law for equally
transfer of property to daughters.

4.1.8. Women Entrepreneur Barriers

During the interaction with the BSC beneficiaries following specific women barriers of
entrepreneurs were discussed and agreed from the discussion floor. The constraints
highlighted below do not reflect the specific beneficiaries in the target areas but are just
summarized in general, that may be helpful to take into those considerations for
designing interventions.

a. Usually women are mostly hesitated to talk with the strangers and usually shy in
nature and difficult to express her views. Due to Nepalese socialisation pattern
women are not allowed to talk with strangers from the childhood. Women talking
with a stranger are viewed as a ‘loose character’ and even if she did, later on, she
has to hear lots of gossiping from others. Shy character of women is also one of
the major barriers in Nepal but usually presumed as an asset that is usually liked
by all male.

b. Women are less educated mostly school dropouts so they are not able to plan and
make good decisions mostly in marketing and financial calculation. They do not
have any ideas for product diversification or processing for value addition.
Women beneficiaries interacted have very limited skills and knowledge about the
products. Women are not independently operating their business but usually are
supported by male (husband, brother, etc.) mostly in analytical and marketing.

c. Limited information and knowledge about market and so do not have capacity to
foresee market demand. Women are usually not actively participating in
knowledge and information gathering from various sources. Market is something

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 beyond their scope of work. They can work on what they have been doing in the
past. Getting order and selling products in the market is a big problem to them.

d. Women entrepreneurs usually do not have capacity to invest more amounts. They
are very weak in monetary asset. Usually their assets are jewellery and furniture
accessories provided to them during the time of marriage by her father and
mother. For investment in business, she has to sale her assets, depend on
husband, and take loan from financial institutions. Women are now having easy
assess with the women groups and cooperatives for getting small amount of loans
but if she needs more amount to be invested then she has no other option rather
then to once again depended on her husband.

e. Elder family members do not allow women to spend night outside home even for
work. With exception to few castes, usually women in Nepalese culture are not
allowed to stay outside alone. In business, there may be many incidences where
women may have to stay out of home for procurement of inputs and marketing of
products. However, there are Tamang in Okharpauwa & Kakani areas who are
free to stay outside home for various works.

f. There is a lack of skilled manpower in the local village for business operation.
There are also incidences of male member migrating to urban areas or migrated
to other countries for work. Usually in local village efficient manpower are not
available. Women are left at home alone and not able to start or operate business
alone. During the interaction in Sirutar, one young dynamic women Ms. Mira Raj
Thala was initially operating a small retail store in the village before her husband
migrated to Arab country, but now she has close down due to difficulty working
alone in spite of good sales revenue. She also express that she doesn’t need to
work as her husband is sending money every month. She is also ready to start
later the same old retail store business.

g. Lack of technical skills for non-farm enterprises except traditional agriculture:

Women are found to be working moreover in their land field for cultivation of
agriculture commodities due to transfer of skills from one generation to another.
They are good in traditional agriculture farming concept but are not much aware
of new improved farming practices. In case of non-farm based enterprises women
lack basic skills. Women beneficiaries express that they have limited technical
skills (disease control, quality seed etc.) in agriculture farming.

h. There is very limited land owned by the beneficiaries (less than 508 Square
Metre) for commercial agriculture farming. Most of the areas visited except
Nuwakot District, due to rapid urbanization land is mostly been converted in
building houses. It is observed that there are very little opportunities in the near
future to start any venture, which is depended on agriculture land.

i. In general, women have low risk bearing capacity. They are very less capable in
taking risk in business compare to men. They fear from taking risk due to low
level of confidence and dependency with their husband in the past. Unless she is
supported by her husband in decision-making, it is almost impossible to make

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 any decision by her alone. They also expressed low level of analytical capabilities
for calculation of cost-benefit, investment amount and accounting. Usually women
are not much exposed and so do not get an opportunity to explore outside
environment. In Thecho VDC, Ms. Krishna Kumari Maharjan, wife of Mr. Pancha
Lal Maharjan in the past could not even travel alone Kathmandu market and she
usually takes her husband support.

j. Most of the women shared that they are mostly busy in housework and hardly
gets time to work for other business. Mostly women in her young age, she is
mostly busy in taking care of children until they grow old and later in her age
even she is willing to do something she will not be physically capable and her
level of motivation will be already down. This is one of the major barrier observed
during the discussion with the women participants. One middle age women in
Kirtipur expressed that she is very much willing to start and work in a new
profitable business but she hardly gets sufficient time to work and so she is now
requesting other women to join hand with her so that all can share time.

k. Beneficiaries have no knowledge about group business approach. In any business,

there are ways of working in a group to benefit all especially in procuring raw
materials and collective marketing. This working approach is not known to them.
Due to very limited capital with the beneficiaries to start-up new venture, this
group approach could be best suitable to them.

l. Women are not getting required support from her male family members and
husband. It does not mean that there is no support from their husband but due to
their own internal capacity to do many things, they are depended with their
husband and he may not be supportive in all aspects.

m. There is no clear understanding between IG activities and commercial business

among the target beneficiaries: Most of the women are only involved in income
generation activities by selling few agriculture products near by local market.
They do not have an idea of commercial business. Most of the BSC beneficiaries
are still doing income generation activities. They do not understand about doing
business in volume and making more profits. They are doing business as a
supporting past time activities to support partially in their monthly expenses.

4.1.9. Opportunities in BSC working areas

Five VDCs of BSC target areas are near by urban market centres i.e. Lagankhel,
Koteshwor, Baneshwor, Kalimati and Thamel. Similarly, they can get the necessary raw
materials (seeds, fertilizers, packaging materials) easily from the Kathmandu markets.
Due to the reason that the local resources i.e. water, forest and fodder are available in a
limited quantity the beneficiaries are engaged in off-farm enterprises. On the other hand,
there are possibilities of establishing and expansion of new business ventures supporting
agro-based and tourism business in Kakani and Okharpauwa VDCs located in Nuwakot
district. The area is having natural resources (water, forest, firewood, forage etc.) that
are necessary for establishing and operating any enterprises and a favourable climate for
agriculture based enterprise i.e. Strawberry, Vegetables, Trout fish, Asparagus,

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Mushroom, Floriculture and restaurant business. All BSC working areas have all weather
(can access through out the year) road access and electricity facility available. However,
there are very few areas where three-phase electricity may not be available that is
required for high ampere machinery that is to be installed for processing of products.
Similarly, few VDCs are difficult to access easily due to narrow and earthen roads.
Table 5: Listing of opportunities available in two major clusters

Clusters Opportunities
Cluster A: The traditional skills of the women in these areas are vegetable production and
Sirutar, livestock rearing. This cluster is also famous for milk and vegetable production.
Sainbu Though the land holding of the potential women entrepreneurs is around 508
Bhainsepati & Square Meter per Household, some women are still producing vegetable
Chapali commercially and getting higher price from the markets. However, the growing
Bhadrakali populations in local community, the women also have choices for off farm
business like Bakery, candle making, trade (grocery shop), restaurant and
others. As these areas are near by Kathmandu market, the local women feel easy
to procure necessary raw materials and market the outputs in the local or
Kathmandu market centres. Likely, they can procure better technology easily
from the Kathamndu market. On the other hand, most of the women have
already involved in the cooperatives or informal groups, they feel comfortable to
get loan for an enterprise.
Cluster B: Most of women in this cluster are engaged in off-farm business like Nepalese
Thecho & carpet, cloth making, handicraft (statue, carpentry, jewellery) and in services
Kirtipur sector i.e. teashop, grocery shop and small restaurant. Most of women
beneficiaries have their own loom for carpentry and cloth production. Similarly,
few of them are also producing vegetable. There are few promoters helping for
local women beneficiaries on procuring raw materials and marketing carpets,
statue and other handicraft products. Cluster areas are very close to the
Kathmandu market, so local beneficiaries can easily procure raw materials and
sell their produce.
Cluster C: The main sources of income for local community people are Vegetable and
Kakani & Strawberry. Apart from these, the other possibilities for income generation are
Okharpauwa Mushroom, Asparagus, Floriculture, Kiwi, Ground apple and Trout fish. There are
many organisations supporting to the farmers and poor families in income
generating activities. Most of them are providing skill trainings, subsidy for seeds
and seedling, research in agricultural products and community mobilizations; but
the farmers are not sufficiently aware to take the advantages from these
organizations. There are many opportunities for any enterprise supporting agro-
based and tourism businesses due to popularity for urban population visiting
these areas for spending their holidays. The area is having natural resources
(water, forest, firewood, forage etc.) that are necessary for establishing and
operating any enterprises and a favourable climate for agriculture based
enterprise i.e. Strawberry, Vegetables, Trout fish, Asparagus, Mushroom,
Floriculture and restaurant business. Many business promoters are working in
Mushroom, Floriculture, Strawberry and Trout Fish (Agro-business centre for
research & development, Agro-forestry centre, CCI and others.

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4.1.10. Interview findings from existing women entrepreneurs and
cooperatives
Interviews were done with 14 existing entrepreneurs from the BSC project areas with
the help of questionnaire form. The questionnaire form are entered in the Excel sheet
and analyzed with the findings presented as below. The percentage figure calculation
from the respondents is provided in the bracket:

A. Findings from interviews with Women entrepreneurs:

Enterprise start-up:
Most of the enterprises have started by their own personal interest (64%), some (14%)
have started due to their traditional business run by their ancestors, and others have
started by replicating what others are doing profitable ones. Most of these enterprises
are operated in own land (78%) and very few in rented house (25%).Enterprises are
mostly started due to skill (50%) followed by availability of resources (35%). Small
business are usually operated and managed by self and with supports from the family
members. Where as few staffs are employed on a contract basis when ever necessary.

Registration:
Almost all (92%) enterprises are started without registration due to lack of knowledge
(64%) and are many have ignored due to low quantity transaction and so does not felt
it’s necessity.

Investment amount:
Enterprises were usually started with a minimum starting investment of Rs. 20,000 and
there are very few well-established enterprises with an invested amount of Rs. 600,000.
Profit margin of an enterprises ranges from 12 to 70 % depending upon selection of
enterprise and maximum selling price. For example, in Mushroom business operated
commercially at Thecho VDC where profit margin is 60% with average production of 100
kg per month at selling price of Rs. 120. In case of investment required mostly, people
receive money from cooperatives (42%), family members (25%), groups (25%) and
friends (7%). Existing financial system are group guarantee (35%), collateral (25%) and
credit (28%).

Skill:
Most of the existing entrepreneurs (57%) have common technical knowledge that is
necessary for production but have less knowledge on product development (28%) and
no knowledge on sales and marketing. Entrepreneurs have received technical skills from
various organisations and few have learned by self. They have express further skills
required on marketing (28%), product development (28%), managerial (14%) and
accounting (14%). Most of the service provider available in the district are NGO (35%),
Government (35%). and other technical institute (14%). Many (71%) have also shared
that they are willing to pay, if required for receiving skills.

Page: 30 / 142
Marketing:
Most of the marketing related issues are not getting reasonable profit margin and
difficulty in identification of end market opportunities (57%), Low quality of products
(25%) and low volume of production (14%).

Transportation and Logistics:

Usually products are transported up to the market place through public vehicle (35%) by
bus or taxi, porters (25%), and private owned vehicle (14%). Due to the high
transportation cost, entrepreneurs are interested in-group marketing approach to reduce
transportation cost and reduction in risk for marketing.

Market:
Most the entrepreneurs sell their products to the near by local market (50%), Lalitpur
(14%) from few VDCs and in the Kathmandu major markets (28%).

Work division between men and women:

Entrepreneurs’ works has been basically, categorized as: 1. decision-making authority,
2. Account/Finance, 3. marketing and 4. Production/Cultivation. In the study area, it has
observed that there has been equal participation and division of work. Mostly man takes
responsibilities of decision-making, marketing and account /finance where as women
concentrates more on production aspects. Women met do not have required analytical
skills and have to depend more on their husband or male family members for support in
that aspect.

Judgment about entrepreneur’s attitude and trait:

Most of the entrepreneurs came across are concern for high quality, followed by
information seeking and risk taking and very few are initiative and problem solving.

Overall constraints:
Low level of productivity, identification of target market, marketing, salesmanship, and
unavailability of high quality raw materials are the major concerns put forward by the
women beneficiaries. Similarly, other concerns were literacy, disease and pest control,
irrigation and fertilizer availability.

B. Findings from interaction with the Cooperatives

Most of the cooperatives interviewed basically, does saving and credit activities with the
size of members from 28 up to 600. Smallest cooperatives were Birkeshowari in
Okharpauwa and largest were Panga saving and credit cooperatives, Kirtipur, Panga.
Monthly saving scheme in practice are Rs. 50 and Rs. 100. The cooperatives are
disbursing minimum loan size from Rs. 10,000 up to Rs. 100,000. Apart from credit and
saving very few are also providing skill base trainings on Accounting, Marketing,
Networking and Management. They preferred their money to be invested in income
generation, new enterprise creation or expansion and regular house expenditure. They
have shared that they usually ask for business plan but not in details.

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Major problems identified during the interactions are limited savings from their members
due to low income from their regular business. Due to the reason, savings from them is
low and are not able to provide sufficient loan to their members as requested and
sometimes difficulty in loan recovery. They have limited educated and skilled manpower
to perform their regular operations i.e. accounting, coordination and networking, and
awareness & promotion activities. Members are not very active and mostly busy in their
household works3. They lack accounting and business operation and networking with
various similar other financial institutions.

Few interventions identified in the cooperatives to upgrade them are:

ƒ Increase their members by conducting awareness and promotion activities.
ƒ Build their capacity of the cooperative staffs by training them on computer base
accounting packages, preparation of business plan, etc.,
ƒ Improvement in office environment by investment in office equipment and
furniture (computers and modern furniture)
Table 6: List of cooperatives and groups working in BSC target areas
S Name of cooperative/Group District VDC No. of Monthly Loan
N members saving amount
1 Bhagawati Mahila Bikash Kendra Lalitpur Sainbu 40 n/a n/a
2 Balkumari Mahila Bikash Kendra Lalitpur Sainbu 30 n/a n/a
3 Brahmayani Mahila Bikash Kendra Lalitpur Thecho 35 n/a n/a
4 Nawa Durga Mahila Bikash Kendra Lalitpur Thecho 45 n/a n/a
5 Women development group Kathmandu Chapali Bhadrakali n/a n/a n/a
6 Panga Women Saving & Credit Kathmandu Kirtipur, Panga 596 100 30,000
Cooperation
7 Sidhur Jagrit Women Group Kathmandu Kirtipur, Panga 60 100 n/a
8 Bishnu Devi Mother Group Kathmandu Kirtipur, Panga 60 100 n/a
9 Bhajangal Pragatisheel Women Kathmandu Kirtipur, Bhajangal 60 100 n/a
Group
1 Barahi Ganesh Women Group Kathmandu Kirtipur, Bhajangal 60 100 n/a
0
1 Single Women Group Kathmandu Kirtipur, Bhajangal 60 100 n/a
1
1 Sahayogi Women Group Kathmandu Kirtipur, Bhajangal 35 100 n/a
2
1 Pragati Women Group Kathmandu Kirtipur, Bhajangal 60 100 n/a
3
1 Somalingeshwar Women Saving & Bhaktapur Sirutar 150 100 n/a
4 Credit Cooperative
1 Nawa Bihani Multiple Cooperative Nuwakot Okharpauwa 50 n/a n/a
5
1 Kaule Devi Saving & Credit Nuwakot Okharpauwa 50 30/50 10,000
6 Cooperative
1 Kakani Women's Saving & Credit Nuwakot Kakani 73 100 10,000
7 Cooperative
Note: Regular monthly meeting conducted in different dates of the month, Source: BSC database

4.1.11. Case: Basla Devi Soap Enterprise – Situation of Enterprise

Basla Devi Soap Enterprise was located in Saibu VDC ward no 8, Lalitpur district. VDC is
adjoining to Lalitpur Sub-Metropolitan City and has been developed as a residential and
semi-urban area. The VDC is accessible by road and rich in other physical facilities
(electricity, communication, drinking water, primary health centres). The advantage of
the VDC is that it is accessible by all three major market cities; Kathmandu, Patan and

3
House works : Taking care of family members in preparing foods (tea, snacks, lunch, dinner etc.,) cleaning utensils and
washing clothes

Page: 32 / 142
Bhaktapur. There are very few support organisations except Patan Chapter (a business
networks). The chapter is active to provide credit loan and collect savings. However, the
area is also potential for other small enterprises i.e. off season vegetables farming,
poultry farming, candle making, incense sticks, tailoring, dry snacks food making, and
shoes enterprises. (Source: interaction with group of entrepreneurs)

Women are just idle in the VDC working only at home and taking care of family the
members. One of the members who is of middle class with minimum education in a
group encouraged others (mostly illiterate women) to start a new soap factory and
requested for providing training to them from the Lalitpur District Education Office. They
formed a group with nine members in a year 2062 (BS) and received seven days soap
making training. The outcomes from the group formation were:

ƒ Women are exposed and engaged the enterprise

ƒ They are independently capable to express own ideas and solve problems
ƒ Involved in decision making process
ƒ Involved in the community works
ƒ Income generated are self handled and use by them
ƒ They have access to resources.

The soap enterprise was in operation only for three years from 2062 (BS). They only
used to work for 15 days a month and produced 60 kg soap in one lot (3 lots a day).
The soap factory is now not in operation and closed down. The major causes behind
closure of the soap factory after interaction with the women and male groups were as
follows: (Source: Interaction with male Focus Group and women entrepreneurs)

ƒ They were not able to have market access due to lack of market information.
Besides, they started their enterprise without understanding proper market
dynamics specially competition factor and strategy to overcome.

ƒ They did not actually calculate the actual cost of production but only rely on the
trainer’s reference to set the final selling price. Finally, the cost of production was
much higher than the selling price. As per the interaction with the women
entrepreneurs, they used to sell 1 kg soap for Rs. 27, which was actually fixed
during the training by the trainer, but the cost of production was much higher
than the sales price. Trainer was may be technically sound but he it seems he
does not have an idea to price a product.

ƒ Since the enterprise was established with a group effort, transparency in

accounting system should have been maintained. It causes lack of trust among
the shareholders and does not have and idea whether the enterprise is making
any profits or bearing losses.

ƒ After the training had been conducted, it was understood that the enterprise was
not affiliated with any relevant organisation, nor they got further support from
the previous one. As a result, of that, the enterprise was not supervised with
regular business counselling, refresher training, and marketing support and so
on.

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 ƒ Since all women entrepreneurs were housewives, they devoted only the
remaining time after they are free from their household’s work. They also did not
maintain time schedule so that it could have been properly managed to operate
whole day with the available human resources. May be there was also confusion
between each individual’s roles and responsibilities and there is a confusion who
does what.

ƒ Due to the reason that the group of women entrepreneurs’ owns factory it was
also difficult to get support from their respective husband in keeping accounts,
marketing information and selling the products in the market.

The following lessons can be learnt from the Basla Devi Soap Enterprise for future
project interventions.

ƒ Selection of suitable enterprise for women owned by a group is very important

otherwise, there will be a conflict later on. Selection should be based on various
factors i.e. market demand, availability of resources and identification of
consumers and their needs.

ƒ Before starting enterprise, only product making skill is not only sufficient and
apart from other factors, feasibility based on cost benefit analysis should be
prepared. Cost benefit analysis will guide you about all costing details and also
tell whether it is profitable or not.

ƒ Skill training should also be combined with the operation and management
aspects in the training module. This adds value to the women entrepreneurs to
understand management of day-to-day operation of their business. In addition to
that, as a group owned the enterprise it was felt necessary to teach more about
group dynamics and creating environment to work in a group.

ƒ One time training is something like having horse without its rein. Apart from
training regular support and supervision in checking product quality, marketing
activities is very essential in case of women entrepreneurs who are starting
enterprise very fist time.

ƒ After establishing the enterprise, they should be affiliated with the service
providers i.e. business houses and relevant organisations who can provide them
post training services.

ƒ While building the capacity of female entrepreneurs, the male representative

should be involved. Women entrepreneur needs their supports especially in
account/finance and marketing.

ƒ The importance of the group process should not be underestimated. It is the

development of dynamic cohesive action groups (particularly of women), able to
articulate their needs and act together, that will generate solutions to problems
that are relevant, practical and of high visibility.

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Conclusion:
In a Nepalese society operation and management of an enterprise in a group is not
feasible due to conflict in work division and roles and responsibility. In the case, soap
factory was close down due to various technical and management fault but the real
reason behind its failure is due to operation by a group of women. However, there are
possibilities in a group business especially in input procurement and collective marketing
where women entrepreneurs usually demand.

4.1.12. Case: Patriarchal4 socialization situation leading difficulty in learning

new skills – Ms. Krishna Kumari Maharjan

Ms. Krishna Kumari Maharjan (left)

and Mr. Panchalal Maharjan (right)
along their youngest daughter in their
sculpture workshop.

Ms. Krishna Kumari Maharjan is a resident of Thecho VDC residing there from many
years. She is happily married with Mr. Panchalal Maharjan and having three children and
the youngest is just 6 months. She is a member of women’s group operated by Patan
Chapter. Realizing high cost of living expenditure and to support her family by additional
income from other sources, she once joined training institute near by Thecho area to
learn tailoring skill with a hope to open tailoring shop near by her house. She could not
complete the training course due to the Patriarchal socialization practiced in the house
where in her mother in law usually shout at her early in the morning for no reason. This
has created fear in her mind, could not concentrate on work, and depressed her the
whole day.

By character, she is very shy in nature not able to mingle with the people in the
community. In the past, she even could not go outside alone without her husband. Her
husband is supportive to her and helping her to exposed in the outside world and to take
own initiatives to do small work.

Breadwinner in her family is her husband who is into making Sculptures of various
furious god and goddess prepared from brass material from the past 13 years. He gets
order from traders especially from Shakya and Bajracharya community located at Patan
Dhoka, Lalitpur who are having good contacts with the international buyers. In his small
workshop, he has two more staffs who are working with him in contract basis. He had
taught four other boys to do similar work and they are earning similarly as he does. He

4
Dominance of men in social or cultural systems

Page: 35 / 142
shared that in Khokana area such works has been effectively carried out by Tibetan
women but Newari women are very shy and are not ready to take own initiatives. He
had learned such skills by observations and do not have undergone formal training. He is
proud to say that at least he is able to build one house and repairing another traditional
house with the income by selling his skills. If he had not learned such skills, he may be
at present working in some other country as a labour.

He is facing problems as well. He needs more contacts and orders but till date from the
past 13 years he could not meet even single key buyers. He says with his sad voice, the
contractors whom he is getting order says, “one day I will arrange meeting with my
buyer” but it did not happened till date. He does not have any clue what happens after
he delivers prepared sculptures. Normally after 15 days work, he gets Rs. 6000 for 12-
inch sculpture and he have to spend roughly Rs. 1,000 in purchasing raw materials.

Mainly his work is carving and polishing after design has been finalized by someone else.
Design is normally finalize conceptually in paper and then model is prepared in wax. It is
then coated with mud and then filled with brass to get the desired shape. Later wax will
be removed by heating. He is very enthusiastic to learn design and creative work but he
does not have access. There are other specialize works on carving and he is very
interested to learn. He sees small investment in such venture is not a problem. Actually
to start this venture, he has received money from same women group where his wife is
a member and further when it start growing and required more investment he has to
take money from finance company.

He has taught his wife all works by involving in most of the activities. Ms. Maharjan is
now capable to help in the workshop by polishing and minor carving works and
managing things in his absence. He is visioning to expand small work by adding few
more staffs. If possible, he is also planning to open one retail shops so that his wife will
take care. He is expecting more support from the BSC project to help his wife to start a
new venture by providing behavioural and managerial skills so that she is more proactive
to manage business.
Source: Interview at the beneficiary home

4.2. Product/Service Selection

During the FGD conducted with women and male groups, the potential products/services
were listed with their knowledge on future possibilities as a profitable venture that will
give better return. It was actually difficult to exercise scientific selection process together
with the groups due to their level of understandings and time constraint. However, the
selection process was still made participatory by involving all study team members and
the BSC staffs those who were directly involved in the survey for finalizing the final
selection of potential products. The whole team after completion of all the FGDs sat
together and discussed on five indicators: 1. local available resources, 2. skills, 3.
technology, 4. investment required, 5. Local market potential. Based on the discussions
during the FGDs scores were given for both attractiveness matrix and the ranking matrix
which is describe below.

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4.2.1. Attractive Matrix Exercise:
The products listed from the FGD discussions are one level screened with the help of two
broad criteria: 1. Potential to increase rural income and 2. Potential number of target
beneficiaries that can be involved in that activity. The study team then filled the table
with Low (L), Medium (M) and High (H) with respect to the given two broad criteria
column relating with the field information in the respective VDC. The table filled is given
below:

District: Sirutar
Potential to Increase Potential number of BSC
SN Products/Services Income Beneficiaries
1 Bamboo product making L L
2 Incense Stick (Bateko Dhoop) M H
3 Candle making M H
4 Doll and flower making form cloth L L
5 Incense stick H H
6 Knitting and weaving form wool and cloth L L
7 Raw materials used for preparing alcohol (Marcha) M L
8 Mushroom H M
9 Photocopy M L
10 Retail shops H H
11 Seasonal and off seasonal vegetables H H
12 Soap making - Solid and liquid M L
13 Milk M M

The above table is graphically plotted as shown below:

Sirutar
Potential to Increase Rural Income

Attractive
High 8 10
5 11

Medium 7 9 12
13
2
3

Not Attractive
Low 1 4 6

Low Medium High

Potential Nos. of BSC Beneficiaries

District: Sainbu
Potential to Increase Potential Nos. of MSE
SN Products/Services Rural Income Beneficiaries
1 Bakery products L L
2 Bee keeping M L
3 Buffalo and cow farming M M
4 Candle making M H
5 Dry snacks (Daalmoth) M L
6 Incense stick M H

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 7 Mushroom H M
8 Pickle making L L
9 Poultry farming H M
10 Silk cloth weaving & knitting M L
11 Soap making – Solid M L
12 Tailoring M H
13 Vegetable H H

Sainbu

Attractive
Potential to Increase Income

High 7 9 13

5 11 6
12
Medium 2 10 3 4

Not Attractive
Lo 1 8

Lo Medium High
Potential Nos. of BSC Beneficiaries

Chapali
Potential to Increase Potential Nos. of MSE
SN Products/Services Rural Income Beneficiaries
1 Beads L L
2 Beauty parlour M M
3 Candle making H H
4 Embroidery – Sari M M
5 Floriculture - Seasonal M M
6 Lapsi candy and pickle M H
7 LPG Gas Depot - Collection & distribute M L
8 Mushroom farming M H
9 Potato chips M L
10 Spice production - Masala M L

Page: 38 / 142
 Potential to Increase Rural Income Chapali

Attractive
High
3

9 5 6
7 4
Medium 10 2
8

Not Attractive
Lo 1

Lo Medium High
Potential Nos. of BSC Beneficiaries

Thecho
Potential to Increase Potential Nos. of MSE
SN Products/Services Rural Income Beneficiaries
1 Bakery M L
2 Beauty Parlour H M
3 Dry snacks (Daalmoth/Bhujiya) M L
4 Duck farming M L
5 Electric material repairing and wiring M L
6 Floriculture – Seasonal M M
7 Furniture M L
8 Grocery shop H M
9 Handicrafts M L
10 Knitting and weaving M L
11 Livestock farming – goat M L
12 Milk based sweet making M L
13 Mushroom farming H M
14 Mustard seed oil processing M L
15 Nepali carpet (Galaicha) M H
16 Pickle M L
17 Potato chips M L
18 Potato farming M M
19 Poultry farming M M
20 Rice mill M L
21 Sculpture - wood and copper M M
22 Sweater weaving L M
23 Tea and coffee shop H H

Page: 39 / 142
 Thecho
Potential to Increase Income

Attractive
High 2 8 13 23

12 14 11 16 21 15
Medium 9 19
7 1
20 10 18
4 3 5 6
17
Low
Not Attractive
22

Low Medium High

Potential Nos. of BSC Beneficiaries

Kirtipur
Potential to Increase Potential Nos. of MSE
SN Products/Services Rural Income Beneficiaries
1 Bakery M L
2 Incense Sticks (Traditional Agarbatti) M H
3 Candle making H M
4 Junk food (Daalmoth) M L
5 Fibre base product H L
6 Incense stick H M
7 Mushroom farming H M
8 Poultry H M
9 Retail shop H H
10 Soap making – Solid M L
11 Tailoring H M
12 Vegetable – seasonal H H
13 Nepali Carpet M H

Kirtipur

Attractive
Potential to Increase Income

8
High 5 6
3 9 12
7 11

4
10 13
Medium
1 2

Not Attractive
Low

Low Medium High

Potential Nos. of BSC Beneficiaries

Page: 40 / 142
Okharpauwa
Potential to Increase Potential Nos. of MSE
SN Products/Services Rural Income Beneficiaries
1 Asparagus H M
2 Bee-keeping M L
3 Cardamom M L
4 Floriculture H H
5 Ground apple M L
6 Mushroom H H
7 Pickle – radish and dry radish M L
8 Potato Chips M L
9 Poultry M M
10 Strawberry farming H H
11 Trout fish farming H M
12 Vegetable – Radish, Cabbage, Cauliflower H H

Okharpauwa
Potential to Increase Income

Attractive
High 6
1 11 10
12
4

5
3 9
Medium
7 8 2

Not Attractive
Lo

Lo Medium High
Potential Nos. of BSC Beneficiaries

Kakani
Potential to Increase Potential Nos. of MSE
SN Products/Services Rural Income Beneficiaries
1 Asparagus H M
2 Bee-keeping M L
3 Cardamom M L
4 Floriculture H H
5 Hotels & Restaurant H H
6 Mushroom H H
7 Pig farming M M
8 Potato Chips M L
9 Potato farming M M
10 Poultry farming M M
11 Kiwi fruit H L
12 Soap M L
13 Strawberry farming H H
14 Tailoring M L
15 Trout fish farming H H
16 Vegetable – Radish, Cabbage, Cauliflower H H

Page: 41 / 142
 Kakani

Attractive
Potential to Increase Income

5 15 6
1
High 11

16 4 13

12
3 9
Medium 14 7 10
8 2

Not Attractive
Lo

Lo Medium High
Potential Nos. of BSC Beneficiaries

Table 7: Listing of selected products/services from the attractiveness matrix

Sirutar Sainbu Chapali Thecho
2. Traditional Incense Sticks 3. Buffalo and cow farming 2. Beauty parlour 2. Beauty parlour
3. Candle making 4. Candle making 3. Candle making 6. Floriculture - Seasonal
5. Incense stick 6. Incense stick 4. Embroidery - Sari 8. Grocery shop
8. Mushroom 7. Mushroom 5. Floriculture - Seasonal 13. Mushroom farming
10. Retail shops 9. Poultry farming 6. Lapsi candy and pickle 15. Nepali Tibetan carpet
11. Seasonal and off seasonal 12. Tailoring 8. Mushroom farming (Galaicha)
vegetables 13. Vegetable 18. Potato farming
13. Milk 19. Poultry farming
21. Sculpture - wood and copper
23. Tea and coffee shop

Kirtipur Okharpauwa Kakani

2. Traditional Incense Sticks 1. Asparagus 1. Asparagus
3. Candle making (synthetic) 4. Floriculture 4. Floriculture
5. Fibre base product 6. Mushroom 5. Hotels & Restaurant
6. Incense stick 9.Poultry 6. Mushroom
7. Mushroom farming 10. Strawberry farming 7. Pig farming
8. Poultry 11. Trout fish farming 9. Potato farming
9. Retail shop 12. Vegetable – Radish, Cabbage, 10. Poultry farming
11. Tailoring Cauliflower 11. Kiwi fruit
12. Vegetable - seasonal 13. Strawberry farming
13.Nepali Carpet 15. Trout fish farm
16. Vegetable – Radish, Cabbage, Cauliflower

4.2.2. Ranking Matrix

After filtering the products from the attractiveness matrix, the listed products from seven
project VDCs of three districts was finally ranked with the help of five specific criteria: 1.
Available resources, 2. Skill – Adapted and Traditional, 3. Technology, 4. Investment, 5.
Market potential

Illustration of specific criteria:

1. Available local resources: Local resources are especially looking at the availability in
the near by target areas. It can be natural resources or physical human built
infrastructures i.e. Water, Electricity, Road, Forest etc. Weight given is 0.2

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2. Skills – Adapted or Traditional: Skills available at present with the women that can be
traditional that is learned by knowledge passed on by forebear or adapted through
formal trainings received from the institute or individuals. Weight given is 0.15.

3. Available Technology: The existing available technology in the district with respective
to the product listed above. Weight given is 0.05.

4. Capital investment / availability of credit: The level of investment required to start a

selected enterprise that is associated with the risk bearing capacity and availability of
source of investment. For example: Some business venture can be started with very low
investment that can be easily made available through saving & credit groups or
cooperatives but in an opposite scenario where the investment is high source of fund
may also be an barrier to start a venture. Weight given is 0.25.

5. Market potential: Only local market possibilities were taken into consideration due to
the limited scope from the entrepreneurs at local level. Weight given is 0.35.

With the above five criteria’s, sample Ranking Matrix with the weights is provided below
and elaborated in more details in the next paragraphs.

Products/Services
SN Criteria Weight
1 Available of Resources 0.2
2 Skill - Adapted & Traditional 0.15
3 Technology 0.05
4 Investment 0.25
5 Market potential 0.35
RESULT
Percentage of Maximum Score 1
RANK

To the above specific five criteria’s developed, it was given weighted from the number 0
to 1 looking at the existing target VDC scenario as shown in the given table above.
Further, the table is filled under the products/services column by giving the number from
1 (lowest) to 5 (highest) with respective to the selected products/services and looking at
the criteria. Finally, the Result is calculated by simple multiplication of number received
in the respective column and the weight. Percentage of score is calculated by dividing
the score obtained as a RESULT with the total maximum score of 5. Ranking is
sequentially calculated based on the highest scored towards the lowest. The following
table below illustrated the detail procedure followed in each project VDC with the ranking
exercise.

Sirutar
Products/Services
SN Criteria Weight 2 3 5 8 10 11 13
1 Available of Resources 0.2 2 2 4 4 4 4 3
2 Skill - Adapted & Traditional 0.15 4 3 3 3 4 5 4
3 Technology 0.05 4 4 3 4 4 5 3
4 Investment 0.25 5 4 4 3 4 4 2

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 5 Market potential 0.35 5 5 3 5 3 5 4
RESULT 4.2 3.8 3.45 3.95 3.65 4.55 3.25
Percentage of Maximum Score 1 84 76 69 79 73 91 65
RANK 2 4 6 3 5 1 7

Final products:
1. Seasonal and off seasonal vegetables (11)
2. Traditional Incense Sticks (2)
3. Mushroom (8)
4. Candle making (3)
5. Retail shops (10)

Note: number in brackets represents serial number of products listed in each VDC

Sainbu
Products/Services
SN Criteria Weight 3 4 6 7 9 12 13
1 Available of Resources 0.2 3 3 2 5 4 3 4
2 Skill - Adapted & Traditional 0.15 5 3 3 3 4 2 5
3 Technology 0.05 2 3 3 4 4 2 4
4 Investment 0.25 1 4 3 3 3 3 4
5 Market potential 0.35 3 5 4 5 5 3 5
RESULT 2.75 3.95 3.15 4.15 4.1 2.8 4.5
Percentage of Maximum Score 1 55 79 63 83 82 56 90
RANK 7 4 5 2 3 6 1

Final products:
1. Vegetable (13)
2. Mushroom (7)
3. Poultry farming (9)
4. Candle making (4)
5. Incense stick (6)

Chapali
Products/Services
SN Criteria Weight 2 3 4 5 6 8
1 Available of Resources 0.2 2 3 2 5 5 4
2 Skill - Adapted & Traditional 0.15 2 4 3 4 4 2
3 Technology 0.05 3 4 2 4 3 3
4 Investment 0.25 3 4 3 3 4 4
5 Market potential 0.35 2 5 3 5 5 5
RESULT 2.3 4.15 2.75 4.3 4.5 4
Percentage of Maximum Score 1 46 83 55 86 90 80
RANK 6 3 5 2 1 4

Final products:
1. Lapsi candy and pickle (6)
2. Floriculture – Seasonal (5)
3. Candle making (3)
4. Mushroom (8)

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Thecho
Products/Services
SN Criteria Weight 2 6 8 13 15 18 19 21 23
1 Available of Resources 0.2 2 4 4 4 4 4 3 3 4
2 Skill - Adapted & Traditional 0.15 2 3 3 3 5 4 3 5 4
3 Technology 0.05 1 4 4 4 4 4 4 4 4
4 Investment 0.25 2 3 3 3 2 3 3 3 5
5 Market potential 0.35 2 5 3 5 5 4 4 5 4
RESULT 1.95 3.95 3.25 3.95 4 3.75 3.4 4.05 4.25
Percentage of Maximum Score 1 39 79 65 79 80 75 68 81 85
RANK 9 4 8 4 3 6 7 2 1

Final products:
1. Tea and coffee shop (23)
2. Sculpture - wood and copper (21)
3. Nepali carpet (Galaicha) (15)
4. Mushroom farming (13)

Kirtipur
Products/Services
SN Criteria Weight 2 3 5 6 7 8 9 11 12 13
1 Available of Resources 0.2 3 2 3 2 4 3 4 3 3 3
2 Skill - Adapted & Traditional 0.15 3 3 4 3 2 3 3 3 3 4
3 Technology 0.05 4 3 4 3 4 4 4 4 3 4
4 Investment 0.25 4 4 3 4 3 3 4 3 3 3
5 Market potential 0.35 5 4 4 4 5 4 4 2 5 4
RESULT 4 3.4 3.55 3.4 3.8 3.4 3.85 2.7 3.7 3.55
Percentage of Maximum Score 1 80 68 71 68 76 68 77 54 74 71
RANK 1 7 5 7 3 7 2 10 4 5

Final products:
1. Traditional Incense Sticks (Bate ko Dhoop) (2)
2. Retail Shop (9)
3. Mushroom farming (7)
4. Vegetable – seasonal (12)

Okharpauwa
S Products/Services
N Criteria Weight 1 4 6 9 10 11 12 13
1 Available of Resources 0.2 4 4 3 3 4 4 4 4
2 Skill - Adapted & Traditional 0.15 2 3 3 3 4 3 3 3
3 Technology 0.05 4 4 4 2 4 3 4 4
4 Investment 0.25 3 3 3 2 3 2 3 3
5 Market potential 0.35 5 5 5 4 5 5 3 4
3.
RESULT 8 3.95 3.75 3.05 4.1 3.65 3.25 3.6
Percentage of Maximum
Score 1 76 79 75 61 82 73 65 72
RANK 3 2 4 8 1 5 7 6

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Final products:
1. Strawberry farming (10)
2. Floriculture (4)
3. Asparagus (1)
4. Mushroom farming (6)

Kakani
Products/Services
SN Criteria Weight 1 4 5 6 7 11 13 15 16
1 Available of Resources 0.2 4 4 4 3 4 3 3 5 4
2 Skill - Adapted & Traditional 0.15 2 3 3 3 3 1 3 4 3
3 Technology 0.05 4 3 4 4 3 2 3 4 3
4 Investment 0.25 3 3 3 3 3 3 3 2 3
5 Market potential 0.35 5 5 5 5 2 3 5 5 4
RESULT 3.8 3.9 3.95 3.75 2.85 2.65 3.7 4.05 3.55
Percentage of Maximum Score 1 76 78 79 75 57 53 74 81 71
RANK 4 3 2 5 8 9 6 1 7

Final products:
1. Trout fish farming (15)
2. Hotel and restaurant (5)
3. Floriculture – Tata Rose (4)
4. Asparagus (1)

4.2.3. Final selection of potential products/services:

From the ranking matrix, products are selected from all BSC working areas and are
finally listed as follows:

1. Asparagus - Kurilo
2. Traditional Agarbatti (Bate ko Dhoop) and Incense stick - Traditional incense
made from Nepali Lokta paper and incense powder used for worshiping god and
goddess.
3. Candle - Mostly prepared by bee wax
4. Floriculture – Seasonal, Tata Rose
5. Hotels & Restaurant – Small tea shops which provides general snacks and
consumable items
6. Lapsi candy and pickle
7. Mushroom - White button and Oyster varieties
8. Nepali carpet (Galaicha) – Tibetan carpet
9. Poultry farming – which variety
10. Retail shop – Selling major consumable items with communication facilities
11. Sculpture - wood and copper
12. Seasonal and off seasonal vegetables
13. Strawberry
14. Trout fish

Note: black font denotes product and red indicate services.

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Table 8: Final potential products/services as per each cluster:

SN Cluster A Cluster B Cluster C

(Sirutar, Sainbu and (Thecho and Kirtipur) (Okharpauwa and
Chapali Bhadrakali) Kakani)
1 Traditional Incense Nepali carpet (Galaicha) Asparagus
Sticks (Bateko Dhoop)
2 Candle making Sculpture - wood and copper Floriculture

3 Seasonal and off Traditional Incense Sticks Mushroom

seasonal vegetables (Bate ko Dhoop)
4 Mushroom Retail shop Strawberry farming
5 Poultry farming Vegetable - seasonal Restaurant
6 Floriculture - Seasonal Trout fish farm
7 Lapsi candy and pickle Vegetable

Table 9: Final selection of potential products/services as per each VDC:

S.N. VDC Final potential products/services

1 Sirutar ƒ Traditional Incense Sticks
ƒ Candle making
ƒ Seasonal and off seasonal vegetables
ƒ Mushroom
2 Sainbu ƒ Vegetable
ƒ Mushroom
ƒ Poultry farming
ƒ Candle making
ƒ Traditional Incense Sticks

3 Chapali ƒ Lapsi candy and pickle

ƒ Floriculture – Seasonal
ƒ Candle making
ƒ Mushroom
4 Thecho ƒ Sculpture - wood and copper
ƒ Nepali carpet (Galaicha)
ƒ Retails shop
5 Kirtipur ƒ Traditional Incense Sticks
ƒ Retails shop
ƒ Seasonal and off seasonal vegetables

6 Okharpauwa ƒ Strawberry farming

ƒ Floriculture
ƒ Asparagus
ƒ Mushroom
7 Kakani ƒ Trout fish farming
ƒ Hotel and restaurant
ƒ Floriculture – Tata Rose
ƒ Asparagus
Note: Final selection of products and services is based on the attractiveness and ranking exercise

Page: 47 / 142
4.2.4. Service market opportunities in BSC working areas
Services are explored in the VDCs of BSC working areas initially by identifying existing
infrastructure with the aim that these infrastructures would help us to list down potential
services. In three clusters, existing infrastructures were listed down and service ideas
were generated after interaction with the study team, which is provided below.

Working Existing infrastructure Service market opportunities

Cluster
Cluster A: ƒ Nepalese Carpet Industries ƒ Childcare centre for the women working in carpet industries
Sirutar, ƒ Boarding Schools ƒ Stationery, Photocopy, email-internet services
Sainbu and ƒ Government extension offices i.e., VDC ƒ Tea shops
office, Health post etc., ƒ School dress (tailoring) and sweater (knitting) for students &
Chapali ƒ Transporters (Trucks, Bus, Micro van, Government extension offices
Bhadrakali loaders etc), ƒ Medicine shops
ƒ Small Hotels for Newari food items ƒ Rest room, meal, tea, coffee, beverages and exchange
ƒ Sculpture & Carpentry centres services (coin change)of money for transporters
ƒ Meat, LP gas, Milk and other inputs supply to small hotels but
there are already people doing it today.
ƒ Tea, meal and transport services to wage based workers and
their employers
Cluster B: ƒ Boarding School ƒ Stationery, Photocopy, email-internet services,
Thecho and ƒ Cooperatives ƒ Bakery and other dry food items for school students as Tiffin.
Kirtipur ƒ Transporters (Trucks, Bus, Micro van, ƒ school dress (tailoring) sweater (knitting) for students &
loaders etc), Government extension offices
Municipality ƒ Small Hotels for Newari food items ƒ Rest room, meal, tea, coffee, beverages and money exchange
ƒ GOs extension offices like VDC office, services for transporters
Health post ƒ Meat, LP gas and other inputs supply to small hotels
ƒ Mini sculpture & Carpentry making ƒ Vegetable collection centre and market information
industries dissemination,
ƒ Bag Bhairab Temple ƒ Input suppliers i.e. agriculture equipments, fertilizer, seeds
and pesticides supply (agro-vet), transport services to
vegetable producers/farmers.
ƒ Flowers, sculpture of goddess and photographs and other
worship materials to religious people
Cluster C: ƒ Boarding & School, ƒ Recharge card and communication centre, Rest room, meal,
Okharpauwa ƒ Transporters (Trucks, Bus, Micro van, tea, coffee, beverages and exchange services (coin,
and Kakani loaders etc), change)of money for transporters as well as local tourist
ƒ Hotels – small and mini ƒ Meat (flesh), LP gas, Milk and other inputs supply to small
ƒ GOs extension offices like VDC office, hotels
Health post, ƒ Tea, meal and transport services to wage based workers and
ƒ Natural landscape their employers
ƒ Stationery, Photocopy, email-internet services, snacks, school
dress (tailoring) sweater (knitting) for students & Government
extension offices
ƒ Vegetable collection centre but sustainable and market
information dissemination
ƒ Input suppliers i.e. agriculture equipments, fertilizer, seeds
and pesticides supply (agro-vet), transport services to
vegetable producers/farmers.

Page: 48 / 142
Service market in matrix:

Very Strong
Communication and Tea shops and food
stationary services, shop, grocery
medicine stores,
Agro vet shop

Maintenance and
Repair center
Strong
SUPPLY

Child Care Center, Raw Readymade

material input to
Weak

dresses, Vegetable
hotels and restaurant
collection center,
mobile repair shop

Photo studio,
Jewelry Making
Very weak

Very Weak Weak Strong Very Strong

DEMAND

From the services listed, it is then analysed with the help of above graphical matrix with
two major demand and supply indicators. From the matrix few services those are very
high is demand and supply are selected which is recommended to the BSC for future
intervention. Services recommended to the BSC are as follows:

ƒ Child Care Centre

ƒ Communication and stationery services
ƒ Readymade Dresses
ƒ Raw inputs to small to large scale hotel and restaurants
ƒ Vegetable collection centres
ƒ Maintenance and repair centre

Indigenous and traditional skills available in the project areas are as follows:

ƒ Organic manure as a input for agriculture crops

ƒ Biomass for ‘composting’ and preparing different types of ‘Compost fertilizers’ -
vermin compost
ƒ Straw Mats
ƒ Reviving Beaten Rice (‘Okhal’ beaten process)
ƒ Handmade Paper and paper products
ƒ Incense stick, ‘Dhup’ (Incense dust)
ƒ Wax Candle
ƒ Chalk
ƒ Colouring/dying of paper and fibre
ƒ Fibre based products (Allo and Dhaka) - weaving

Page: 49 / 142
 ƒ Wood Carving
ƒ Thanka Painting
ƒ Emboss Carving
ƒ Silver Jewellery
ƒ Clay pot
ƒ Ceramic products
ƒ Herbal products
ƒ Statue
ƒ Metal Carving

Market is dynamic and keeps on changing as per the need of the consumers. The
present demand of the products thus selected may change in future. The proposed
products are based on the recommendation by the beneficiaries due to their interest and
capacity.

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5. MARKET STUDY ON PRODUCT/SERVICES

5.1. Study background

The study team carried out market survey by interacting with the key market traders
involved in the selected 14 potential products/services. Traders are mostly located in the
urban areas purchasing products from BSC working areas. After interaction with the
potential traders, few of them were listed as a ‘promoters’ those who can work with the
BSC beneficiaries and were detail interviewed. In-depth interviews were done with the
market promoters5 on the following issues.

ƒ Interest on Product/ Services

ƒ Product Specification - Product Design, Product Price, Delivery Mechanism and
Embedded Services
ƒ Approach/quality requirements for partnership - Supply/ Volume, Transfer Market
Information, Information on producers Group, Transfer of Technology, Technical
Information
ƒ Value Addition - Value addition possibilities and initial costing details
ƒ Types of contract
ƒ Constraints
ƒ Delivery Mechanism
ƒ Initial Activities conducted

5.2. Study goals and objectives

BSC aims to promote women entrepreneurs products/services by engaging them in more
value addition activities to develop innovative diversified products to increase their
income. The aim will be fulfilled by building long-term partnership with the market
traders for mutual benefits in preparing and supplying value added quality products to
the market traders.
The objective of marketing strategy was:
ƒ To identify the gaps of present women entrepreneurs skills in marketing of
products/ services
ƒ To explore opportunities for partnership with the market promoters
ƒ To come up with the strategy to empower women entrepreneurs in this
partnership

5.3. Strategy formulation

Segmentation, Targeting and Positioning (STP): Initially women entrepreneurs need
close mentoring support for her business promotion before they bring their products to
the mainstream market.

Segmentation: To identify unique markets of consumers with similar attributes and then
find segments that are profitable. In this case attributes search are market players who
are ready to partnership with women entrepreneurs.

5
Market promoter is the potential trader who is interested in partnership with the local entrepreneurs by
transferring skills and knowledge to develop value added products/services for mutual benefits.

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Targeting: This refers to identifying attractive market segments and tailoring market mix
to match the needs of the target consumers. In this case, target markets are local
existing market centres and opportunity to acquire already existing consumers of the
market promoters.

Positioning: It is defining the product in the consumer's minds. The positioning in this
case has been carried out by understanding the constraints of market parameters like
pricing, quality, delivery and others.

STP is defined with the steps as follows:

Steps Segmentation Targeting Positioning
1 Market actor identified for Targeting based on Vague positioning as for
relevant product generalized customer general customer
2 Market actor identified for Targeting based on Packaging and price
specific product and customer at department competitiveness for
product diversification stores customer at department
stores
3 Market actor identified Targeting based on Market parameters
who are ready for partner existing customer of relevant to market
with women entrepreneurs market actors actors
4 Market Promoters Targeting based on Market parameters
identified who are ready to existing customer of relevant to Market
partnership with women market promoters promoters
entrepreneurs and also
work together

Market Promoter’s Profile: Those who are willing to build partnership with the BSC
women entrepreneurs and empower them for business promotion their name list are
tabulated below. For more detail information, refer annex with the heading promoter’s
profile.
1. Home net - Om Thapaliya
2. Standard Nursery Group - Rajendra
3. Lotus Land Organic Farm - Bishnu
4. Agro Forestry Promotion Centre ( AFPC) - Sameer Man Shrestha
5. Love Green Nepal/ PRAKRIT - Narayan P Gyawali
6. Ninam Ridum Bio Handicraft Centre - Pramila Rai
7. Mahaguthi - Uttara Malakar
8. Nayajivan Sahakari, Okharpauwa - Kancha Man Tamang, Rajendra Titung
9. Oriental Enterprises - Upendra Shrestha
10. Kalimati Wholesale Market - Ram Krishna Sahu
11. Grameen Agro Enterprise Pvt. Ltd - Tanka Raj Parajuli
12. Agro Business Centre for Research and Development - Kamal Subba and Yadav
Karmacharya
13. Nepal Grihani Udyog - Indira Sapkota
14. Valley Feed Industries - Hari Krishna Sahuji
15. Buddha Carpet - Sunil Lama, Sharmil

Page: 52 / 142
5.4. Seven P’s of Marketing of the selected products/services
Marketing analysis of the products is carried out with the 7 P's concept. This analysis is
based on the discussion with market promoter and customer survey. 7 Ps of marketing
or extended marketing mix is a marketing strategy tools that expands the number of
controllable variables from the four in original marketing mix model to seven. This tool
includes People, Process and Physical Evidence apart from Product, Price, Place and
Promotion.

Product: Creation of products that it's intended customers want, characteristic of

product and services that meets the needs of customers. The parameters are for the
Product can be functionality, quality, appearance, packaging, brand, service, support,
and warranty.

Price: Price intended customers are willing to pay. The parameters for the pricing
could be list price, discounts, financing, leasing options, and allowances.

Place: Availability at right place, at the right time, in the right quantities. The
parameters for the Place can be locations, Logistics, Channel, Market coverage,
Service levels, Internet, Mobile etc.

Promotion: Chosen target groups informed or educated about the products and
services, one of the most important P to focus on the parameters for the Promotion
could be advertising, public relation, message, direct sales, sales, media budget etc.

People: All people directly or indirectly involved in consumption. The parameters for
people could be Customer, internal staff, supporting organizations, employees, and
management.

Process: Process is procedure mechanisms and flow of activities by which product/

services are consumed. The parameters for the Process can be logistics, operation
management, marketing channel, and product development process.

Physical Evidence: The ability and environment in which the product or services is
delivered. The parameters for the physical Evidence could be customer feedback,
after sale service, and monitoring of customer.

Table 10: 7 Ps explained

Ps Description Parameters
Product Creation of products that it’s intended Functionality, Quality, Appearance, Packaging,
customers want, characteristic of product Brand, Service, Support, Warranty
and services that meets the needs of
customers.
Price Price intended customers are willing to pay List price, Discounts, Financing, Leasing
options, Allowances
Place Availability at right place, at the right time, Locations, Logistics, Channel, Market coverage,
in the right quantities Service levels, Internet, Mobile
Promotion Chosen target groups informed or educated Advertising, public relation, message, direct
about the products and services, one of the sales, sales, media, budget
most important P to focus on
People All people directly or indirectly involved in Customer, internal staff, supporting
consumption organizations, employees, management
Process Procedure, mechanisms and flow of Logistics, operation management, marketing
activities by which product/ services are channel, product development process
consumed

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Physical The ability and environment In which the Customer feedback, after sale service,
evidence product or services is delivered monitoring of customer

With the above background, the products are analysed in terms of 7 Ps in the following
table. In the table products are analyzed in terms of Product, Price, Place, Promotion,
Process, Peoples Perception and Physical evidences. The information obtained is from in
depth discussion with the market actors along with market promoters.
Table 11: Analysis of products in 7 Ps
S.N. Item Product Price Place Promotion Process Peoples Physical
perception appearance
1 Asparagus Fresh Seasonal Channel of Direct selling to Input supply and Fresh product, Fresh Products
vegetable fluctuation, market market technical Graded
depends on promoter promoter information from products
market price at market
specific day promoters

2 Strawberry Fresh, Jam, Seasonal Channel of Direct selling to Technical Fresh, Graded Fresh, Well
Juice, wine fluctuation, market market support from packaged Juice
depends on promoter promoter market promoter and Jam and
market price wine

3 Organic Fresh Seasonal Channel of Direct selling Technical and Fresh, Graded Fresh
Vegetable fluctuation, market through market input supply
depends on promoter promoter from market
market price promoter

4 Candle Normal and Market price Local market Shop to shop Technical Long lasting for Uniform design
designer for normal for normal selling for information from normal candle for normal
candle and candle and normal candle market promoter and different candle, seasonal
market Market and direct and seasonal design for
promoter price promoter for selling to design for designer candle
for designer designer promoter for designer candle
candle designer
candle
5 Tibetan Incense Incense Market Channel of Direct selling to Technical Good fragrance Black or brown
sticks promoter price market market information from and long lasting colour incense
promoter promoter market promoter stick

6 Rainbow Trout Fresh Market price, Channel of Direct selling to Technical Fresh Fresh
seasonal market market information form
fluctuation promoter promoter market promoter

7 Bulgar Sweet Fresh, Market price Local Local market Technical Well packaged Fresh and well
(Lapsi) Candy, for fresh and traders selling and information from quality candle packaged
pickle Market channel for direct selling to market promoter and pickle
promoter price fresh and market
for candy and market promoter
pickle promoter
channel for
candy and
pickle

Page: 54 / 142
8 Mushroom Fresh, dried Market price Channel of Direct selling to Technical Fresh, quality Certified dried
and powder for fresh and market market information, dried and and powdered
market promoter promoter advance for powdered
promoter price input supply
for dried and from market
powder promoter

9 Fibre Products Allo fibre, Market Channel of Direct selling to Technical Different Pleasing design,
thread, promoter price market market information and design, easy to new look and
clothes, promoter promoter design from use, specific design
wallet, bag market promoter use
etc

10 Poultry farming Layers and Market price, Local market Selling to local Technical and Bird flu Hygienic
Broilers seasonal channel market input supply unaffected products
fluctuation from market poultry products
promoter

11 Tata-Rose Fresh Market price Market Selling to Technical and Fresh, uniform Fresh and
flower and market promoter market input supply size uniform size,
promoter price channel promoter from market good packaging
promoter

12 Tailoring Children Market Shop to Selling to local Technical input Design, fit size Clean and well
clothes promoter price shop selling cloth shop and from market knitted
and local at local selling to promoter
market price market and market
channel of promoter
market
promoter

Some of the important insights during 7 Ps as specified in above table can be further
assessed as:
ƒ For all the product market promoter has built his own channel and entrepreneur
at VDC level can be linked through this channel
ƒ Market promoters and market price of the product depends on the season of the
product (mainly in fresh products like strawberry, asparagus etc.)
ƒ Most of the market promoters are eager to supply technical information to the
entrepreneur for development of the products. Few of the market promoter (as in
organic vegetable, asparagus. mushroom etc. are interested to provide input
supplies to the entrepreneurs.

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 5.5. Product profile
The product profile is prepared based on the discussions with the market actors and
market promoters and other secondary sources of information. Other details
assumptions are as follows:
ƒ Market price is obtained from the market actors and market promoters
ƒ Quantity estimated is approximately provided in average figure and mostly from
the discussion with the market actors
ƒ Detail contact address of all visited market actors and market promoters are
mentioned in the given annex
ƒ Organic products are provided in a separate chapter
ƒ Not all products mentioned are produced in a season. Certain product especially
organic products need more than one year of production cycle. The entrepreneur
thus has to be work with a multiple products (e.g. organic product and candle) so
that they can wait for long gestation.
ƒ Wild collection is for product like Chest Nut, Lapsi, Allo Nettle Fibre, and Tibetan
Carpet.
• Chest nut – Detailed analysis of resources is not available for chest nut
• Lapsi plantation can be done
• Allo nettle fibre resources are available in small quantities in the target
VDCs. Allo thread need to be bought from Sankhuwasabha6 district and
entrepreneurs should be trained in product making. Allo plantation could
be started in the community forestry land.
• Wools are now dyed using chemicals but it can be naturally dye using
natural ingredients.

5.5.1. Product: Candle

Market trend Market is not stable for normal candle. However, there is a demand of designer candle during
festival, if it is prepared according to the preference of customers.

Market Actors ƒ Normal Candle – Shop to shop marketing

ƒ Designer Candle- Mahaguthi especially in Christmas time

ƒ Mahaguthi for designer Candle

Price ƒ Normal Candle – Rs 5 to Rs. 100 depending on size

ƒ Designer Candle – Price depends on its size, design and wrapping

6
Eastern Hilly District of Nepal as main production of Nettle Fibre

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Volume It is difficult to estimate actual volume of consumption and mostly purchased during major festival
7 8
like Dashain , Tihar , and Christmas.

Season ƒ Normal candle is high in demand during the festival (Dashain and Tihar)

ƒ During the load shedding period

ƒ Designer candle is high in demand during Christmas and New Year

Quality Aspects Designer candle- New design according to year and function and usage

Competition Domestic producers

Customer ƒ For designed candle: General people who celebrates Christmas and birthday parties

ƒ Normal candle: General people

Value addition New design and attractive packaging , Use of quality wax and colour
possibilities

Product Benefit Normal Candle for lightening and designer candle for design purpose

Potential Market Mahaguthi and WEAN

Promoter

Feedback of market ƒ Quality – Quality of Wax, finishing in design

actors on product
ƒ Quantity – N/A

ƒ Availability – Mahaguthi and major Department Stores

ƒ Price Packaging – N/A

Potential Partners Village Development Committee

ƒ Training for candle making

ƒ Fund for Dalit and Janajati (secluded caste in Nepal) for enterprise development

Department of Cottage and Small Industry

ƒ Training provider

ƒ Technical know-how

ƒ Linkages with financial services providers

Customer Feedback ƒ Price – N.A

ƒ Quality – Clear

ƒ Usage – Some are less quality

7
Festival of Nepalese citizen for 10 days in the month of September
8
Festival of Nepalese for 5 days in the month of September- October

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 ƒ Product Improvement – No need extra stand, long lasting, smokeless

5.5.2. Product: Tibetan Incense and Religious Incense

Market trend Products have tremendous possibilities as religious market mainly for Buddhist religion. Presently
this is catered by religious incense made in various parts of Nepal like Taplejung (Eastern Hilly
district of Nepal, adjacent to Indo- Chinese border), Rasuwa (Central Hilly district of Nepal adjacent
to Chinese border and 200 km from Kathmandu) and other places.

Market Actors ƒ Local market for religious incense

ƒ Kathmandu market for Tibetan incense

ƒ Local traders for religious incense

ƒ Mahaguthi for Tibetan incense

Price Religious Incense: Rs. 5 per 20 piece

Tibetan Incense: Rs. 50-100 for 20 pieces

Season Religious incense demand in festive time throughout year, religious events

Tibetan incense throughout the year

Quality Aspects Easy burning, Similar size of stick, Use of natural scent, Proper mixing for making incense – Kaulo
(Persea sps), dhupi ( Juniper/ Thuja spectra), bamboo stick etc. , Natural scent Vs artificial

Note: Kaulo (Persea sps), Dhupi (Juniper/ Thuja spectra), Bamboo stick and other raw materials are
easily available in the Kathmandu market.

Competition High competition with the Indian incense

Present Suppliers From hilly districts of Nepal

Customer Religious and general people

Value addition Innovative wrapping and use of natural perfume

Possibilities

Product benefit Used in Meditation and perfume

Potential Market Mahaguthi

Promoter

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Feedback of market ƒ Quality – Similar scent
actors on product
ƒ Quantity- Small packages

ƒ Availability- N.A

ƒ Price Packaging – N.A

Potential Partners Mahaguthi

Customer Feedback ƒ Price – has to be competed with Indian incense

ƒ Quality – Need natural fragrance

ƒ Usage- promoted as wider use of normal incense stick

ƒ Product Improvement- N.A

5.5.3. Product: Rainbow Trout (Oncorhynchus mykiss)

Market trend Rainbow Trout demand has been increasing due to awareness in Nepal through various sources but
due to price factor, it is mostly exported and limited only to expatriate community. The initiative in
Nuwakot and wide spread of information among customer has seen increasing demand for Rainbow
Trout. There are three sales outlets of Rainbow trout located in Jawalakhel, Balaju, and Maharajgunj
with also available in local restaurant in Kakani area that caters visited customers. Annual market
consumption of Rainbow Trout in the Kathmandu market is 30-40 Tons.

Market Actors Rainbow Trout Fish Association, Sales outlet of Rainbow Trout , Agro Business Centre for Research
and Development
Potential Promoter

Price Rs. 600- 800 per kg

Season Annual, depends on water source

Quality Quality Aspects

ƒ Continuous flow of water in pond , perennial source

ƒ Constraints on ownership of water source

ƒ Lack of input supply from hatchery

ƒ Temperature maintain at 10 to 15 Degree Celsius

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 ƒ Close supervision ( day – night)

ƒ Transportation issues

o Vacuum packaging

o Refrigeration

o Dressing

ƒ Fresh sales of Rainbow Trout through restaurant near farm

ƒ High cost of feed Rs. 150-200 per kg of feed due to absence of group input purchasing

ƒ Hotel reluctant to put in menu because of lack of trust for continuous supply

ƒ Major :Average Size 200-250 gm

Competition Competition from Sindhupalchowk with low price

Present Suppliers Nepal Trout Fish House, Restaurant in Kakani area

Customer Hotels, Restaurants and general people

Value addition Vacuum pack and frozen

Possibilities

product Benefit Excellent source of niacin and vitamin B12, Good source of pantothelic acid and selenium

Potential Market Rainbow Trout Fish Association, Agro Business Centre for Research and Development
Promoter

Feedback of market ƒ Quality – Fresh

actors on product
ƒ Quantity- Supply less and not uniform

ƒ Availability- N.A

ƒ Price Packaging – Vacuum packed, long lasting needed

Potential Partners ƒ AEC/ FNCCI , OVOP program on Nuwakot

ƒ Fishery development Department

Customer Feedback ƒ Price – Higher compared to other, so not using in regular basis

ƒ Quality- Not long lasting

ƒ Usage- Not in regular use, for especial occasion only

ƒ Product Improvement – Packaging

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5.5.4. Product: Lapsi Products (Choerospondias axillaries)

Market Trend Lapsi (Burglar Sweet) is an underutilized fruit that found naturally in Nepal and particularly in the
Kathmandu valley and its surrounding areas. It is sour in taste but having full contents of Vitamin C.
Different cuisine could be made from this fruits. At present, different types of Lapsi candy has been
found in the markets and its demand is increasing in the markets. The tourists from different
countries visiting Nepal have had also a nice taste of candy and they have appreciated its taste. This
information has been given by different small candy retailers and the supermarkets

Market Actors ƒ Vegetable Market for Lapsi candy

ƒ Oriental enterprise for Lapsi powder

ƒ Grihani Udyog for Lapsi Pickle

Price Lapsi per kg.: Rs. 18-25

Lapsi dust per kg: Rs. 160

Lapsi Pickle: Rs. 45-60

Lapsi Candy per kg.: Rs. 90-95

Season November to January

Quality Hygienic and healthy, Attractive packaging

Competition Competition from home made Lapsi variety from Bhaktapur area.

Present Suppliers Bhaktapur main supplier

Customer General people to processing companies

Value addition Pickles, Candy, Powder

possibilities

product Benefit Vitamin C

Potential Market Ram Krishna ( Kalimati Vegetable Market), Oriental Enterprise, Mahila Grihani Udyog
Promoter

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Feedback of market ƒ Quality – N.A
actors on product
ƒ Quantity- N.A

ƒ Availability- N.A

ƒ Price Packaging – Better packaging and hygiene for value added products

Potential Partners AEC/ FNCCI – OVOP program on Lapsi in Bhaktapur

Customer Feedback ƒ Price – N.A

ƒ Quality – Hygiene and health issues in value added products

ƒ Usage- Usage limited and less knowledge on its utilization

ƒ Product Improvement – Branding of value added products needed

5.5.5. Product: Asparagus (Asparagus Officinalis)

Market Trend Market trend of the product is increasing and being used to for general people too. There has been
increase awareness of medicinal value of Asparagus and is being sold in high prices in vegetable
market.

Market Actors Kalimati Market, Organic Village, Lotus Organic

Price Range from Rs. 100 to Rs. 200 Per kg.

Season April to September

Volume 5,000 to 6,000 Kg annual consumption in the Kathmandu Valley

Quality Aspects Clean, Standard marketable size 1 fit to 2 fit long and tied in bundle

Competition Local vegetable shops and farmers

Present Suppliers Farmers from Bhaktapur and Kathmandu

Customer Individual person and Hotels

Value addition Grading and packaging

possibilities

Page: 62 / 142
Product benefit ƒ Source of vitamin K

ƒ Prevent from birth defects

ƒ Prevent from heart diseases

ƒ Helps menstrual clamps

Potential Market Lotus land organic farming, Ramkrishan Duwa – Kalimati vegetable market
Promoter

Feedback of market ƒ Quality – N/A

actors on product
ƒ Quantity – N/A

ƒ Availability – Departmental store and vegetable shops

ƒ Price Packaging –N/A

Potential Partners District Agriculture Development Office

Directorate of industrial entomology development office

Customer Feedback ƒ Price – N/A

ƒ Quality – N/A

ƒ Usage – Soup and vegetable

ƒ Product Improvement – N/A

5.5.6. Product: Mushroom (White button and Oyster)

Market Trend Public are now aware of the Mushroom and is reaching is consumed by publics and available in all
hotels and restaurants. Private entrepreneurs are directly working with the farmers group for its
promotion in Kakani areas during off-season and in during the season they are producing
individually in Thecho.

Market Actors Kalimati Market, Syambhu market ,Local business in Thecho, Grameen Agro Enterprise

Price Round Mushroom – Rs. 200 to 350 per kg

Flat Mushroom – Rs. 50 to 150 per kg

Volume 150,000 to 200,000 Kg. consumption per annum (Source: based in Kalimati vegetable market
traders)

Quality Aspects Plastic Pack in ½ kg pack

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 Uniform Size

Competition Mushroom business is carried out throughout Nepal and competition exists as product from various
parts of Nepal comes to Kathmandu

Present Suppliers Mainly Balkhu and Chapagaun, different parts of Nepal

Customer General people and Hotels

Value addition Packaging (1/2 kg. each) and freshness

possibilities

product Benefit Source of protein, vitamin B and minerals

Source of antibacterial substances

Potential Market Grameen Agro Enterprise, Ram Krishna (Kalimati)

Promoters

Feedback of market ƒ Quality – N/A

actors on product
ƒ Quantity – No add water

ƒ Availability – N/A

ƒ Price Packaging – N/A

Potential Partners District Agriculture Development Office , Etymology department

ƒ Technical information on farming

ƒ Disease control and management

Customer Feedback ƒ Price – N/A

ƒ Quality – N/A

ƒ Usage – Vegetable and soup

ƒ Product Improvement – N/A

5.5.7. Product: Fibre based Products - Allo (Girardinia diversifolia)

Market trend Allo Nettle Fibre is contributing 0.18% in Handicraft export (2064/065). Major export destination is
USA for Allo products. Currently the market demand for Allo Fibre has increased due to its usage in
carpet weaving. Recent study shows that only 32% of collection was possible out of total potential
stocks. There has been an increase in number of market actors in Allo products and has seen
increase in usage in domestic and international market.

Market Actors Ninam Ridum Bio Handicraft Centre, Nepal Knot Craft, Home net

Page: 64 / 142
Price Nettle fibre ( Allo ):

Cloth per meter NRs. 550-1700, Fur (fibre) per kg. NRs. 70-120 and Thread per kg. NRs. 300-1500

Banana Fibre:

Thread per kg. NRs. 400-550, Cloth per kg. NRs. 350-400 ( cotton and wool mix 50-50% in banana
fibre )

Volume In the selected VDCs Allo production is very minimum. The product ‘Allo’ can be made by
purchasing threads from other sources. After discussion with market promoters, they have
suggested that 15 beneficiary entrepreneurs can be linked with the market promoters.

Season Nettle fibre: Nov-Feb.

Banana fibre: All month

Quality Aspects ƒ Attractive, well finishing and new design

ƒ The fibre generated out of the stump and leaves do not produce clean fibre. Such raw
fibre is mostly associated with the non-fibrous materials stinging along the fibrous
materials. The product made from these raw materials lack quality on uniformity and clean
products.

Competition ƒ The competition for nettle fibre is mostly from Sankhuwasabha. There are Allo Clubs
(informal group of Allo nettle fibre entrepreneurs), which manufacture Allo products.
Market traders in the Kathmandu valley have good contacts with the Sankhuwasabha
based Allo club/groups and buy products from them directly.

ƒ The banana fibre products are coming from Kawasoti (Nawalparasi) and Sun sari. Banana
fibre based products are new to the market and need more customer orientation and
advertising for raising the benefits of the products.

Present Suppliers Presently the supply of Allo is from mid hills of Nepal and Sankhuwasabha is the main source.
Nearby Kathmandu, Ramechhap also has started Allo production.

Customer Allo based products are mostly exported in the international market with minimum demand in the
domestic market. The bags produced by Allo fibre are used for training and seminars.

Value addition ƒ Product development- Bags, purse, clothes etc.

possibilities
ƒ Benefit of the product to the customers

ƒ Non allergic to body, maintain temperature, good and unique design

Potential Market Nidhan Ridhum, Home net

Promoter

Feedback of market ƒ Quality – Quality of thread not uniform

actors on product
ƒ Quantity- N.A

ƒ Availability- N.A

ƒ Price Packaging – Value added products has less domestic market

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Potential Partners Home Net Nepal, SABAH Project

Customer Feedback ƒ Price – High price compared to other fabrics

ƒ Quality – Finishing not good

ƒ Usage- Used for Main occasion, not regular product

ƒ Product Improvement – Product variety and increase regular use

5.5.8. Product: Strawberry (Fragaria ananassa)

Market Strawberry in Kakani/Okharpauwa area was introduced by Japan Agriculture In- service Training
Institute (JAITI) Nepal and initially it had fetched higher price in the market. The production of
strawberry by the farmers in those areas is in increasing trend. As per the discussions with the
market traders, there is still a gap in the market in terms of adequate supply.

Market Actors Road side sellers in Jamal, New Road, Thamel market, Oriental enterprise, Strawberry house
Lazimpat, Agro Forestry Promotion Centre, Navajivan Cooperative, Agro Business Centre for
Research and Development, Dharma Das ( Juice and Jam processors)

Price A Grade: Rs. 200 – 300 per kg

B Grade: Rs. 150-200 per kg

C Grade: Rs. 70-120 per kg

D Grade Rs. 30-40 per kg

Rs. 300 per kg for export quality

Season October to June

Quality Aspects Well plastic pack, hygienic, large size and attractive

Present Suppliers Farmers from Okharpauwa and Kakani

Customer Hotel, Restaurant, General Public

Value addition Strawberry Juice and Jam, and Strawberry Wine

possibilities

Product benefit Strawberries taste great, but they also have high levels of vitamin C and are a source for
antioxidants.

Potential Market Oriental enterprise, Agro Forestry Promotion Centre, Navajivan Cooperative, Agro Business Centre
Promoter for Research and Development

Feedback of market ƒ Quality – Lack uniform size

actors on product
ƒ Quantity- Unable to meet market demand in season and no alternative way for off season

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 supply

ƒ Availability- N.A

ƒ Price Packaging – Cost is getting lower

Potential Partners District Agriculture Department

ƒ Technical knowledge on strawberry farming

ƒ Disease control

ƒ Farm management

ƒ Linkages with farmers groups

Customer Feedback ƒ Price - N.A

ƒ Quality – unsafe packaging

ƒ Usage- N.A

ƒ Product Improvement – New variety, new usage

5.5.9. Product profile: Poultry Farming

Market Trend Poultry market is ever increasing market due to increase in population in Kathmandu. The major set
back for poultry is danger of spreading of " Bird Flu" at which time the demand of poultry product is
lessened and even challenge entrepreneurs for destroying poultry if infected. There is a high
demand during festival season and marriage calendar.

Market Actors Balkhu, Tukucha, local market, hotels and restaurant, Valley Poultry Industries

Price Chicken per kg. NRs. 350 ( marketable )

Season April to June and September to November

Quality Aspects Healthy, hygienic and clean

Competition Inter competition between poultry farmers

Present Suppliers ƒ Entrepreneurs having poultry farm in outskirt of Kathmandu, from Chitwan and other parts
of Nepal

ƒ Customer

ƒ General people

Value addition ƒ Hygiene, improved breeds

possibilities
ƒ Benefit of the product to the customers

ƒ Protein, nutrition

Potential Market Valley Poultry Industries

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Promoter

Feedback of market ƒ Quality –Hygiene and disease free

actors on product
ƒ Quantity- N.A

ƒ Availability- N.A

ƒ Price Packaging – Hygienically packed

Potential Partners District livestock Support office

ƒ Technical information on poultry farming

ƒ Disease control

ƒ Linkages with DLSO groups

Customer Feedback ƒ Price – N.A

ƒ Quality – Unable to know hygienic or not

ƒ Usage- Regular food

ƒ Product Improvement – Increase hygiene production and processing

5.5.10. Product profile: Floriculture – Tata Rose (Rosaceae)

Market Trend Floriculture market is in increasing trend but important factor has been timely production of
floriculture product to get market. Still Indian share in floriculture market is more but Nepalese
farmers are more interested now in floriculture. The market channel is systemized with involvement
of wholesalers who act as bridge between producers and retail outlet.

Market Actors Market Outlet Kamaladi, Tripureshwor, Standard Nursery, United Flora and other nurseries,
wholesaler, Agro Forestry Promotion Centre, Grameen Agro Enterprise Centre, Agro Business
Centre for Research and Development

Tata-Rose- 20,000 pieces

Price Tata-Rose: Rs. 5 per piece

Season June to November

Quality Aspects Raw Flower, Continuous supply

Competition Competition with other farmers, Indian products

Present Suppliers Farmers in vicinity of KTM, other district of Nepal, India

Customer Young people, present and bouquet

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Value addition ƒ Bouquet
possibilities
ƒ Benefit of the product to the customers

ƒ Gift item

Potential Market Standard Nursery, Agro Forestry Promotion Centre, Grameen Agro Enterprise Centre, Agro
Promoter Business Centre for Research and Development

Feedback of market ƒ Quality – Fresh, exact size, proper wrapping

actors on product
ƒ Quantity- Time based demand

ƒ Availability- N.A

ƒ Price Packaging – Season based pricing, proper packaging for less damage

Potential Partners Floriculture Association of Nepal

ƒ Technical knowledge

ƒ Technical training and market information

ƒ Exposure visit and exhibition

Customer Feedback ƒ Price - Fluctuation

ƒ Quality – Varies

ƒ Usage- Marriage function, party , Gift, Valentine Day

ƒ Product Improvement: Different variety, colour combination

5.5.11. Product: Tailoring - Newborn baby clothes

Market Trend Presently there is a high demand of newborn baby clothes in Kathmandu market. The market is
based on linkages to hospitals and nursing home. Nursing home and hospitals has contract with
tailoring business. There is a hygienic issue in clothes as it for children, which is looked upon by the
market actors.

Market Actors Prasuti Griha, Hospitals , Mahila Grihani Udyog, Departmental stores

Price Depends on product

Season All season

Page: 69 / 142
Quality Aspects Threading, design, quality of clothes (soft and anti allergic)

Competition ƒ newborn baby cloth manufacturers

ƒ imported Chinese

ƒ Indian clothes

Present Suppliers Tailoring entrepreneurs in Kathmandu, Traders importing Indian and Chinese ready made clothes

Customer Parents of new born baby

Value addition Different design, children friendly fabrics

possibilities

Potential Market Mahila Grihani Samaj

Promoter

Feedback of market ƒ Quality – Lack of awareness on children friendly materials

actors on product
ƒ Quantity- N.A

ƒ Availability- N.A

ƒ Price Packaging – Good packaging instead of road side selling

Potential Partners Department of cottage and small industries

ƒ Training on product making

ƒ Information on design and product development

Customer Feedback ƒ Price – N.A

ƒ Quality – Knitting, threading proper, clothes quality

ƒ Usage- for children cloth

ƒ Product Improvement – Natural design, children friendly clothes

5.5.12. Product e: Tibetan Carpet

Market Trend Carpet industry has been one of major export handicraft in Nepal and its market mechanism has
been well established. Presently there has been decrease in business of large size carpet but
increasing demand for 100 knot 3*4 meter (Two-piece carpet) in Lhasa as well as domestic market.
There are specific association that works for advocating rights of weavers, exporters and traders in
carpet industry. Present wage rate of carpet is Rs. 2,000 per meter for 100 Knot size. Generally,
weavers get Rs. 2000 per meter of carpet; contractor gets Rs. 400-450 per meter and trader and
exporter sale the product in different price range.

Market Actors ƒ Exporters: Tibet Carpet, Formation Carpet

ƒ Contractors: Mr. Sunil Lama and Ms.Sharmila

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 ƒ Dyeing units, Wool suppliers, weavers

Price ƒ For 100 knot per meter

ƒ Wage for weaver – Rs 2000

ƒ Contractor selling price- Rs. 4500

ƒ Exporter and Retailer- Rs. 4700 above

Season All season

Quality Aspects Threading, design, colour combination, knitting

Competition Large number of contractors and exporter present, presently high supply and less demand

Present Suppliers Exporter has own production sites and some outsource product making to contractors. Contractor
works will weavers in vicinity of Kathmandu (e.g. Thecho and Sainbu 100 weavers are contracted by
Mr. Sunil Lama and Ms. Sharmila)

Customer Export market, domestic market, Lhasa and Chinese market

Value addition Unique design, variety of products/ new product development

possibilities

Product benefits Used as decorative item, Used as furnishing item, soft and easy

Potential Market Mr. Sunil Lama and Ms. Sharmila in Thecho

Promoter

Feedback of market ƒ Quality – Skill is needed for perfection in product making

actors on product
ƒ Quantity- Irregular demand for product, single person can make only 2 meter in one month

ƒ Availability- N.A

ƒ Price Packaging – N.A

Potential Partners Carpet Association of Nepal

ƒ Information about market

ƒ Information on design and new product development

Customer Feedback ƒ Price – Costlier compared to other furnishing products

ƒ Quality – Unknown in quality parameters

ƒ Usage- for Furnishing

ƒ Product Improvement – Natural design, product variation

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5.5.13. Product: KIWI Fruit (Actinidia chinenesis and Actinidia deliciosa)

Market trend KIWI is highly demand product with yearly market demand of 30,000 kg in Nepal. The present
supply from Nepal is 2,000 kg and rest comes from New Zealand and Australia in the market. KIWI
production is growing due to the initiative taken from the ICIMOD, Love Green Nepal and JAITI.

Market Actors Lotus Organic Farm, Organic Village , Love green Nepal, JAITI Nepal Farming, Fresh Himalaya
Agro-products, Dharmadash Amatya - Panauti

Price ƒ Grade A – Rs. 300 / kg

ƒ Grade B – Rs. 250 / kg

ƒ Australian: Rs. 550 / kg

Volume Annual consumption of KIWI in Nepal is 25,000 to 30,000 Kg., but the total production in Nepal is
less than 2,000 Kg. per annum.

Production Season January, February, March and April

Quality Freshness in product, Grading, Bigger size and Uniform size

Competition Quality products available from the international Markets (New Zealand and Australia)

Present Suppliers ƒ Farmer's affiliated with ICIMOD Research from Godawari

ƒ Love green Nepal from Makwanpur

ƒ Karma Bansa Lama from Kakani

Customer ƒ Mainly Hotels and Restaurants

ƒ Department stores

ƒ Food shop

Value addition Proper Grading and Packaging in a Transparent Container

possibilities

Benefit of the product ƒ Source of Vitamin C

to the customers
ƒ Skin care

ƒ Potential Market Promoter

ƒ Organic village

ƒ Fresh Himalaya Agro-products

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 ƒ Dharmadash Amatya – Panauti

ƒ Love Green Nepal/ Prakrit

ƒ Lotus Organic Farm

Feedback from ƒ Quality – Not uniform size, sour test than sweet
market actors
ƒ Quantity – Not enough quantity is available

ƒ Availability – Department Stores and Fruit Shops

ƒ Price- Competitive with international products

ƒ Packaging – Should keep KIWI of equal size in a pack

Potential Partners District Agriculture Development Office and ICIMOD

ƒ Technical training

ƒ Subsidy in seedling and saplings

ƒ Linkages with DADO farmers groups

ICIMOD

ƒ Knowledge brokerage on farming practices and research carried out in Godavari

Customer Feedback ƒ Price – No complain

ƒ Quality – Sour than sweet

ƒ Usage - Salad

ƒ Product Improvement – Reduce souring taste

5.5.14. Product: Ground Apple (Polymnia sonchifolia)

Market trend Product is new in the market and most of the people do not know about its use and farming
technology. However, at present its market is growing particularly targeting to Hotels, Restaurants
and other food outlets.

Market Actors Organic Village, Lotus Organic Farm, Ranamukteshwore, New road, Soaltee market centres

Price Rs. 90 per kg

Volume It is just introduced in the market, so it is difficult to estimate volume of product been supplied and
consumed.

Production Season ƒ Plantation- April/May

ƒ Harvesting – August/September

ƒ Marketing- August/September

Page: 73 / 142
Quality ƒ Timely delivery

ƒ Continuous supply

ƒ Cleaning, Grading and Fresh

Present Suppliers Lotus Land organic Farming in Kathmandu and Mahila of Kakani

Customer Hotels, Department Stores and Vegetable Shops

Value addition Grading, Packaging and storing

Possibilities

Benefit of the product ƒ An anti cancer diet

to the customers
ƒ Source of vitamin C

ƒ High carbohydrate diet

ƒ Good for diabetes

Potential Market ƒ Organic village and Lotus organic farming

Promoters

Feedback from ƒ Quality – Grading is not done

market actors
ƒ Quantity – Very less

ƒ Availability – Farming and marketing of this product is concentrated in specific

place/venue

ƒ Price Packaging – No complain

Potential Partners District Agriculture Development Office

ƒ Technical training

ƒ Subsidy in seedling and saplings

ƒ Linkages with DADO farmers groups

Customer Feedback ƒ Price – N/A

ƒ Quality – No complain

ƒ Usage – Chips and salad

ƒ Product Improvement – N/A

5.5.15. Product: Japanese Sweet Potato (Ipomoea batatas)

Market trend Normally people consume this product only during Nepali festival (Maghesakranti) time, so its
demand is seasonal.

Market Actors Organic Village, Lotus Organic, Ranamukteshwore market

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Price Rs. 40-50 per kg

Production Season May and June – Plantation

September and October - Harvesting

Quality Uniform size

Regular Supply

Present Suppliers Lotus land organic farm

Customer Hotels and Department stores

Value addition ƒ Quality improvement

Possibilities
ƒ Organic production

ƒ Grading, Storing and Packaging

Benefit of the product ƒ Source of calcium, potassium and vitamin ‘C’ and ‘A’

ƒ It can prevent from cancer

Potential Market ƒ Lotus land organic farming and Organic Village

Promoters

Feedback from ƒ Quality – N/A

market actors
ƒ Quantity - Less

ƒ Availability – Department Store

ƒ Price Packaging – N/A

Potential Partners District Agriculture Development Office

ƒ Technical training

ƒ Subsidy in seedling and saplings

ƒ Linkages with DADO farmers groups

Customer Feedback ƒ Price – N/A

ƒ Quality – N/A

ƒ Usage – Chips and Salad

ƒ Product Improvement – N/A

5.5.16. Product: Chest Nuts (Castanea dentate)

Market trend It is consumed mainly during Nepali grand festival ‘Tihar’ by the Nepalese people.

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Market Actors Oriental Enterprise, Spice Shop in Makkhan, and Lotus Organic

Price Rs. 60 per kg

Season October

Volume Up to 7,000 Kgs. per annum

Quality Aspects Must be grade A

Well dried

Present Suppliers Village based small traders and individual people

Customer Spices shop

Value addition Grading

possibilities
Semi processing

Benefit of the product ƒ Good for body building

to the customers
ƒ Good for teeth

ƒ Fever and cough control

Potential Market Oriental Enterprise and Lotus Organic

Promoters

Feedback of market ƒ Quality – Middle grade is good

actors on product
ƒ Quantity – 7 tones per year, lack of uniform supply

ƒ Availability – Mainly in festive time

ƒ Price Packaging – N.A

Potential Partners Department of forest

ƒ Technical knowledge

ƒ Legal procedures

Customer Feedback ƒ Price – N/A

ƒ Quality – Grading, dried

ƒ Usage –N.A

ƒ Product Improvement – N/A

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5.5.17. Product: Chukandar (Beta vulgaris)

Market trend Recently the market of this product has been increasing because of change of food habit of the
people (people prefer to have salad in their meal or dinner).

Market Actors Organic Village, Summit Hotel, Ranamukteshwore Market, Ram Krishna Duwa, Kalimati vegetable
market

Price Rs.15 to Rs.30 Per Kg

Quality ƒ Uniform Size

ƒ Regular Supply

Volume 15,000 to 20,000 Kg consumption in Nepal

Season September to January

Quality Aspects Size of a product should be such that 5 to 6 pieces of products can weight about a kilogram.

Competition Indian product is dominant in market

Present Suppliers Farmers in Thimi and Kathmandu

Customer Hotels and vegetable retail shops

Value addition Cleaning, Grading and organic

possibilities

Benefit of the product ƒ Juice from its root is one of the most valuable juices for the liver and gall bladder
to the customers
ƒ Root is rich in iron and helps in the generation of red blood cells Amaenia

Raw beetroot is prescribed in cancer as it has a tumour-inhibiting component

Potential Market Organic village ,Ram Krishna (Kalimati) , Lotus Organic

Promoter

Feedback of market ƒ Quality – 5 to 6 Piece per Kg.

actors on product
ƒ Quantity – N/A

ƒ Availability – Departmental stores, vegetable markets

ƒ Price Packaging – N/A

Potential Partners District Agriculture Development Office

ƒ Technical training

ƒ Subsidy in seedling and saplings

ƒ Linkages with DADO farmers groups

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Customer Feedback ƒ Price – N/A

ƒ Quality – Clean and big size

ƒ Usage – Salad

ƒ Product Improvement – N/A

Note: Details of sculpture business is not provided in this report due to difficult to gather information as the trader
was not ready to share information with the team.

5.6. Value addition and market parameters

a. Value addition possibilities: The value addition in the agriculture products and services
has been a major challenge for any entrepreneurs for their existence. The table is listed
with the raw agriculture products and services with the value added products/services
observed in the market. Value addition could be done by simple modification in the
current products or creating completely new products depending upon the entrepreneur
strength. Product diversification is modification of a current product into different forms
that serves the consumers need. The product diversification possibilities of the selected
products are provided below:
S.N. Name Diversified product available in the Market
1 Asparagus Fresh Asparagus, Grading, Asparagus soup (Knoor's Product), Herbal
and medicinal uses
2 Strawberry Fresh, Graded, Juice, Jam, Wine

3 Organic Vegetable Fresh, Graded, soup, powdered

4 Candle Normal, Designer

5 Tibetan Incense Incense stick, Religious, Essential oil mix

6 Rainbow Trout Fresh, Cold stored

7 Lapsi (Burglar Sweet) Fresh, Candy, Pickles, Seat cover

8 Mushroom ( White Button Fresh, Dried, Paste, Soup

and Oyster)
9 Fibre Products Nettle fibre and banana fibre product- fibre, Thread, Cloth, Purse, Bag

10 Poultry farming Boiler and layers, sausage, Cold packed

11 Tata-Rose flower Fresh, graded, essential oil

12 Tailoring Children cloth, designer cloth, Men and women clothing, Boutique

b. Product Parameters: The four product parameters (product design, product price,
delivery mechanism and embedded services) have been tabulated after discussion with
the study team, BSC team and market actors. These parameters were most relevant for
partnership between women entrepreneurs and market promoter as provided in the
table below. The definition embedded services and delivery mechanism are described
below.

Embedded services could be explained with an example i.e., Buyers providing market
information while purchasing products or input providers providing other technical
information while purchasing inputs are an example of how embedded services are in
practice.

Page: 78 / 142
Delivery Mechanism is the channel from which product and services reach the
customers. Some of the examples are direct marketing, through distributors, wholesalers
and retailers, and through the internet.

Table 12: Product parameters

Product Product Design Product Price Delivery Mechanism Embedded Services

Tata- Rose Cut flower of Tata rose Buy in prevailing Presently being supplied Technical information
market price from own farm and from for flower production
farmers who has taken
saplings from standard
nursery
Organic Vegetable Fresh vegetables Buying in Presently being supplied Technical information
(KIWI, Ground Apple, prevailing market from own farm on organic farming
Sweet Potato, Chest price
Nut, Chukandar)
Asparagus, Tata-Rose, Fresh Buying in Have own lease land in Technical information ,
Strawberry prevailing market Jhapa and own land in Land allocation, 50%
price Kakani payment for input
delivery
KIWI Fresh Buying in Presently supplied from Technical information
prevailing market Tistung and Kavre on production
price and selling
through Prakrit
store
Allo Nettle Allo products - bags, Buying in Presently supplied from Technical skills on
purse, clothes etc prevailing market Sankhuwasabha product making
price

Incense stick and Tibetan Incense Stick, Prevailing market Presently supplied from product design, time
Candle Designer Candle price entrepreneurs inside for making products
Kathmandu

Strawberry, Organic Strawberry Juice and Deducing 10% to Supplied from Provides loan service
Vegetable Jam , Fresh Organic market price cooperative members to members,
Vegetable marketing of member
products
Strawberry, Bulgar Strawberry Juice and Buying in Supplied from own farm Linkages to
Sweet (Lapsi) powder Jam, Lapsi Powder prevailing market in Kakani and farmers processors, Export
price market
Asparagus, Mushroom Fresh Prevailing market Supplied from producer Market information
price from different parts of and time to produce
country
Mushroom, planning for Fresh Prevailing market Supplied from own Provides training and
floriculture price product site and farmers input to farmers near
near production sites to their production
Trout, Strawberry and Fresh Prevailing market Supplied from own Planning to provide
Roses price research site and 50% in instalment for
farmers near research saplings and provide
sites marketing linkages
Children Clothes, Lapsi Children clothes, Lapsi product based Own manufacturing unit Technical information
Pickles pickles price, around 15% on clothes making,
less than market design, process of
price pickle making

Page: 79 / 142
Allo Nettle, Dye Allo fibre and products Prevailing market Supplied by Home based Membership based
price workers (Home net approach to provide
Nepal members) business services and
also social security
services
Poultry Fresh Prevailing market own production site and Provide information on
price also from farmers who feed, poultry raising
take feed from them

Carpet Contact weaving as per Govt. price 2000 100 weavers in Thecho Technical training,
demand of market per meter for 100 and Sainbu advance for work
through contractors knot

c. Quality requirements for partnership: Further parameter is identified specific to the

product related business services and constraints and opportunities are identified as
given below. The parameters analyzed are Product, Supply/ volume, Transfer Market
Information, Information of producers Groups, Transfer of Technology and Technical
Information. This information is based on the present parameters of Market promoters.
Table 13: Quality requirements for partnership
Product/ Supply/ Volume Transfer Info of Transfer of Technical
Services Market producers Technology Information
Information Group
Tata-rose Depends on Season and Over Presently Only information on Technical
timing, ready to discuss telephone, working with technology information
with farmers on planning market groups in required embedded with
for timely production information Sankhu input selling
and technical
details
Organic 1000 kg of organic Over Presently doing Only information on Technical
Vegetable vegetable in the market telephone, on his own technology information
(KIWI, Ground market nursery required embedded with
Apple, Sweet information input selling
Potato, Chest and technical
Nut, details
Chukandar)
Asparagus, Depends on Season and Over Presently Only information on Land allocation for
Tata-Rose, timing, ready to discuss telephone, working in technology farming and
Strawberry with farmers on planning market groups in Kakani required technical
for timely production information and Jhapa information in
and technical Kakani
details
KIWI Selling 1500 kg but Through Presently Only information on Technical
market demand of 30000 telephone working with technology information
kg being supplied from groups in required production
import from Australia and Tistung and
New Zealand Kavre
Allo nettle Depends on export Through Presently Linkages to knitting, clothes
demand, ready to telephone working in technology making, product
discuss with Sankhuwasabha providers making
entrepreneurs for group
product making as per
export demand
Incense stick Mahaguthi preparing Telephone Presently Able to provide Technical
and Candle strategies for incense information working with technology cost for information on cost
and candle production market price groups in small amount reduction,
and ready for discussion Kathmandu and production process
on production volume outside and also

Page: 80 / 142
 own

Strawberry, Marketing product from Information market linkages Lack of finance for Through
Organic 150 share members from market of products from cooperative, cooperative on
Vegetable actors, dept members Projects has marketing
store, hotels, supported on
new road, trainings
Jamal
Strawberry, Gap in product supply Through Have own farm Can come as Specialised in
Lapsi powder telephone in Kakani, private sector market information
Exporting to investment in only
Japan( technology
strawberry)
Asparagus, Gap in product supply Through Traders bring Time factor , off- N.A
Mushroom telephone products season supply

Mushroom, Buyback at prevailing Through own working in Provides production system

planning for market price for production site Kakani and technology on
floriculture production from farmers Bhaktapur area sharing basis
Trout, Initial research stage will Information Working with Information on Has own tissue
Strawberry and plan with farmers for from own farmers in transfer of culture lab and can
Roses production volume production Kakani as technology provide technical
farm, linkages research information on
with United production
Flora
Tripureshwor
Children Gap in supply for Information Presently Transfer of Technical
Clothes, Lapsi department stores and through working in own information of information on
Pickles ready to discuss with telephone factory with technology only production
entrepreneurs for women
tailoring business
Allo Nettle, Dye Presently carrying out Through Home based Provides Information on
market research for Allo members and workers more technology to knitting and
product and obtain Home net than 24000 in member, to product making
information and plan for office, going to Nepal , become member it
supply chain mechanism carryout producing takes six months
market natural resource
research for based products
Allo
Poultry Gap in market demand Through Large network of Linkage to Provides training
telephone or more than technology transfer through poultry
while 10000, supplies specialist of DADO
supplying feed feed and chicks
and chicks to them
Carpet Monthly 2 meters by one Information of Large number of Linkages to Provide weaving
women demand weavers in technology training
through vicinity of providers
contractors Kathmandu, own
production

d. Value addition, its constraints, delivery mechanism and initial activities: The value
addition possibilities are linked to various constraints and activities for carrying out value
addition. This is presented below after wide discussion with market promoters.
Table 14: Value addition of products
Product/ Services Value Addition Initial Cost for Constraints Delivery Initial Activities
possibilities value addition Mechanism
Tata-Rose Timely production N.A Farmers slowly Wrap in Discussion with
being able to newspaper and producer and

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 produce flower send to Bansbari Standard Nursery
according to time nursery for joint planning
factors , major for production
constraints in
producing
according to time
Organic Vegetable Timely production Though usage of Regular supply, packaging and Soil testing,
(KIWI, Ground and increase organic fertilizer constraints in supply to Organic identification of
Apple, Sweet productivity and systematic organic Market or organic farm and
Potato, Chest Nut, production certification Bhaktapur nursery discussion
Chukandar) between Lotus
and farmers
Asparagus, Tata- New variety of N.A Regular supply, Contact point Ang Discussion
rose, Strawberry production new product Nima Sherpa in between producer
development Kakani for product and AFPC for joint
(strawberry delivery or planning
presently is through own farm
getting low land in Kakani
resistance to
diseases)
KIWI Packaging Rs. 2 per kg Regular supply, Supply to market Discussion
packaging cost continuous outlet - Prakrit between producer
technical and Love Green
knowledge Nepal for joint
required, problem planning
on getting
saplings
Allo nettle Allo Nettle fibre 20,000 per Quality product, Product to be Arrangement for
from Sankhusabha entrepreneurs for changing demand brought to Bishal fibre buying from
and product equipment for of customer for Nagar factory Ninam and
making in selected product new product producing product
VDCs development design, lack of and selling to
proper national Ninam
market
Incense stick and Candle- Designer , Mould cost for Quality production delivery to outlet Planning of
Candle Incense Stick candle, is difficult, market in Kupondole, production and
Tibetan Ingredients cost in seasonal basis Lazimpat etc timing between
for Tibetan only entrepreneurs and
incense Mahaguthi
Strawberry, Strawberry Juice High cost for lack of payment Product delivered Grading of
Organic Vegetable and Jam promotion from hotels, lack to cooperative strawberry and
of fund for getting office and sold linkages to market
to more members, through own promoter for
Lack of skill on vehicle enterprise
branding development
Strawberry, Lapsi Juice and Jam Cost for Quality of Market linkages Technical
powder from Strawberry, processing products, uniform through Makkan research on
Lapsi Powder technology supply office and Kakani process of making
farm juice, jam and
Lapsi powder
Asparagus, N.A N.A Regular supply, Collection points Production time
Mushroom farmers ability to at VDCs or planning with
produce and sale directly to Kalimati Promoter
considering time
factors
Mushroom, Improving N.A damage of field Through own Joint planning
planning for production and from mushroom production sites with BSC,
floriculture productivity production Grameen Agro
Enterprise and
farmers

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Trout, Strawberry Improving N.A still to go for To the production Joint planning
and Roses production and commercial site and linkages with farmers and
productivity production with United Flora ABCRD
for marketing
Children Clothes, Children clothes, Tailoring Pickle branding Send semi Joint planning for
Lapsi Pickles branded pickles equipment and has to be finished materials clothes making
home based developed, to Nepal Grihani and pickle making
processing for marketing of Udyog
pickles pickle is less
extent
Allo Nettle, Dye Thread Making Thread making Difficult to go Through members Process of Home
initially and then unit Rs. 20000 directly to product net for
product making at it need membership
development in high skill
later stage, and
dye use for
colouring of paper
etc.
Poultry N.A N.A 500 challa has to Local selling or Agreement
be done for selling to Balaju between valley
feasibility, place outlet feed and
has to seen as it producers
may disturb other
Carpet Design, natural N.A Changing from Collection at Strengthening
colouring wage basis to selected points in home based
entrepreneur is VDCs and workers to
challenge as marketing as per entrepreneurs,
carpet channel is demand of buyers strengthening
systematic, market promoter
alternative for new business
channel has to be opportunities
searched

5.7. Service market

A. Child Care Centre

In the cluster A, there are huge number of carpet and other small-
scale factory operating in the vicinity areas. In the carpet factory
mostly women works as a labour. Women usually come to work
along with her children as can be seen in the photograph. Therefore,
there is a possibility of opening a childcare centres with an objective
to take care of children’s mother working as a labour in the carpet
factory. All carpet factory women labours shall have a union and
bargain with the factory owner to contribute in establishing a child
care centre and convince that the mothers shall work with a piece of
mind while they are in work and the productivity shall increased. Separate fund may be
generated by contributing from the owners initially and for the regular operation when
the mothers shall get visible benefits some portion of operating cost shall also be born
by them. It is roughly estimated that approximately NRs. One hundred thousand shall be
required for initial start up for 20 children.
BSC intervention: Detail feasibility of operating a child care centre

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B. Communication and stationery services

In cluster A and B in the BSC program areas there is a scope of

venturing into a communication along with stationery services
locating near by schools and Govt. offices. Communication services
shall be with basic telephone calls as or could also be internet
facilities with few computers and printers. In few areas, many husbands and family
members are migrated to other countries so these services may be very useful for those
households with the facility of cheap VOIP telephone calls by using computers. Additional
stationery products shall be useful for students of all households. Recharge card to input
balance amount in pre paid mobile both GSM and CDMA. Investment amount required
for starting such enterprise shall be estimated One Hundred Fifty Thousands.
BSC intervention: Marketing training on communication technology

C. Readymade Dresses

In most of the BSC areas schools are available from primary level to high
school grade. In all schools dress are compulsory for all students. Those
schools shall undergo contract agreement with the BSC entrepreneurs to
provide school dresses to their students at an affordable price range.
Investment amount estimated is Three hundred thousand in purchasing equipment and
machinery and other expenditure.

BSC intervention: Transfer of mass production of dresses materials, tailoring skills

Target customer: Education academy, large enterprises, Hospitals

D. Raw inputs to small to large-scale hotel and restaurants

In Okharpauwa and Kakani areas there are many small to large-scale hotels targeting
locals and outside domestic and international tourist. These hotels required daily food
materials for cooking in their kitchen, which can be supplied by the vendors who have
good contacts, and networking with the large scale wholesalers located in the nearby
areas. These vendors can become BSC women entrepreneurs whose work shall be
identifying the needs of these hotels and restaurants and their price range so that it can
be supplied from the sources that satisfy their needs.

Skills required are in communication, negotiation and rapport building, logistic

management to reduce the per unit cost of product

E. Vegetable collection centres

In most of the areas, agriculture produced by the local
farmers needs to be transported to the market centre and
currently it is done independently. They local farmers have
to bear loss in transporting small quantity by using
expensive transportation vehicle. If the market centres are
established, which is owned and operated by the
cooperatives then it becomes very profitable to all the local
farmers in logistic supply in a bulk quantity and helps in

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marketing. In our interaction with the beneficiary, they have expressed their interest in
establishing collection centre with storage facility if there are supports to them. Usually
transporting independently they have to bear risk in transporting and sometime are
penalize from local traffic police for unknown reasons.

F. Maintenance and repair centre

Due to technological breakthrough, there is large number of electronic and

mechanical appliances in the market, which is improving the lives of
individuals. There is at least motorcycle, cycle, electronic appliances and other
mechanical equipments available in every household. Some repair centres even though
are available but not capable to repair it. Service centres for those appliances are still
not available to those households with proper knowledge and skills to repair and regular
maintenance. Investment shall be on renting space and purchasing mechanical tools.

BSC intervention: Training on repair and maintenance of home appliances and other mechanical
equipments

5.8. Organic Market

The term ‘organic farming’ is getting popularity in recent days but it was practiced long
back by local farmers with the use of natural resources. Organic agriculture offers a
comprehensive response to the problems of sustainable agriculture. Worldwide there is
an increasing trend for organic products. The international organic market is growing by
approximately 5 billion US dollars a year. Its volume in 2007 topped 40 billion US
dollars. Organic farmers receive a 15 – 20% premium for their product. Government of
Nepal included Organic Agriculture in its 3 year Interim plan.

In Nepal few products are organic certified such as Tea, Coffee, Spices etc. and few
organic certifying agencies i.e. NASAA, Eco-Cert are working in the sector. There are
other products being sold as an organic but without certification label. There are very
few traders working in this sector (Lotus Organic, Organic Village, Kalimati based traders
Mr. Ram Krishna Sahu). Although the organic products are popular, but in Nepal it is
only purchased by the expatriate community peoples from its sales few outlets.

Farmers are producing organic vegetables like Cauliflower, Radish, and Green Vegetables
but without certify from the agency and so there is no as such distinction between the
regular and organic products in Nepal. The organic products identified from the market
survey are Kiwi, Chukundar, Chest Nut (wild), Sweet Potato and Ground Apple. Organic
Certification Nepal (OCN) is the first Nepalese Organic Certification body with local
initiative to promote organic movement in Nepal. OC N is a member of Multi-national
Certification Bodies’ Alliance i.e. Certification Alliance (CertAll).

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5.9. Strategic options
The strategic options for BSC to work on the identified products are developed. These
options are derived from analysing the views of market actors/promoters, target
beneficiaries and BSC working modality.

Kalimati wholesale market – a

major market for vegetables and
fruits

a. Target Beneficiaries Preference: From the FGDs conducted with the BSC beneficiaries
14 products and services have been identified as a potential sub-sectors looking at the
beneficiaries skill, resources and local market potentials.

b. Market Promoter’s Choice: Rigorous discussions were done with the market traders to
understand the market dynamics of the products. The products identified from the FGDs
inputs from the selection process from the target beneficiaries have been further refined
from the market actors perspective. Market promoters (from market actors) have been
identified based on the possibilities of partnership and is ready to work with the BSC
target beneficiaries with additional supports in providing basic knowledge inputs and
market linkages.

c. BSC Working Modality: BSC will work very closely with the beneficiaries for providing
them capacity-building services and other necessary services to produce quality products
that are sellable in the market. Other major role is facilitation between the service
receiver and providers for overall benefit and promotion of the products and services.
BSC shall strengthening existing BDS services and other financial service provisions from
the financial institutions and from the market promoters. More importantly, partnership
between with Market traders has been a crucial factor for developing strategic options.
The table below describes findings from discussions with the market promoters, target
beneficiaries and the study team.

Table 15: Strategic choice and relevant products

Strategic Choice Products

1. Increasing in production capacity and Asparagus, strawberry, Organic vegetable, Bulgar Sweet
introduction of improved varieties (Lapsi), Mushroom, Poultry, Tailoring , Floriculture
products:
2. Strengthen Processing technology Strawberry, Lapsi powder, Lapsi pickle,

3. Introduction of cooperative and Group Rainbow Trout, Processing Units for products
business approach
4. Partnership for product development Incense Stick and Candle
5. Strengthening women entrepreneurs for Allo Fibre and Carpet

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 linkages with the enterprise networks

6. Empowerment of women entrepreneur All products

in business knowledge with partnership
with market promoters

Strategic Choice 1: Increase in production capacity, introduction of improved varieties of

products and effective farm management:

ƒ Discussions with the market actors have shown that there is a high demand of
agriculture products (Refer product profile). There is a gap between the demand
of products and supply i.e. strawberry, asparagus, and floriculture.
ƒ Strategic choice for BSC is to work at the production level and strengthen farmers
and groups for improving their production capacity through technical assistant
and technology transfer.
ƒ There are possibilities of allocating land by the market promoters to the
interested farmers in Kakani area for production of agriculture products. Few
market promoters have shown their interest in providing them a required inputs
mainly saplings with payment in instalment basis. (Refer market promoter
Matrix).
ƒ For market led production it is important to have discussions between the target
beneficiaries for season and time based production (e.g. Floriculture)
ƒ Organic products in the Kathmandu market are still low in demand mostly
consumed by expatriates living in Nepal but growing steadily over a period due to
influence of growing demand in the international market. It is important to
educate farmers now itself about its importance and motivate them to grow
organic products.

Strategic Choice 2: Strengthening Processing Technology (Strengthening hygienic

processing and branding of processed products)

ƒ After discussion with the market traders, it is understood that there are
processing opportunities in Bulgar Sweet (Lapsi) and Strawberry. At present,
market promoters are already processing and selling in a small quantity in the
urban Kathmandu market.
ƒ Bulgar Sweet (Lapsi) products are high in demand and consumers are satisfied
with a unique and healthy taste of different varieties of Lapsi products.
Consumer’s main concerns are hygienic processing and improved packaging.
ƒ Strawberry can be processed for preparing juice and jam and this has been done
in small quantity at Okharpauwa district by the local producers. The customer
from hotel and restaurant ask for hygienic processing with uniform taste and
other uniformity of production. Establishing processing units is best suitable
owned by a group or cooperative. At present, Nava Jivan cooperative is
processing strawberry for preparing Strawberry Jam but with a very limited
knowledge. Strengthening these processing units and linkages with the
involvement of market promoters as an investment partners for its promotion has
been discussed with the promoters.

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Strategic Choice 3: Strengthening Co-operatives and Groups (Co-operative and
Cooperative Private Partnership for business)

ƒ Certain products like Rainbow Trout and Strawberry processing requires high
capital investment (Refer Cost benefit Analysis). Existing cooperative like Naya
Bihani Cooperative in Okharpauwa has initiated production of strawberry jam and
juice. The processors in Kathmandu are hesitated to work in partnership with the
VDCs level processors due to difficulty in maintaining quality and other hygiene
and sanitation. Introducing appropriate technology and required technical
supports for hygiene production can attract private investors for partnership with
the local cooperatives.
ƒ All processed products require branding and promotional activities to meet the
required sales target.
ƒ Similarly, Rainbow Trout fish production has to be initiated through cooperative
business model rather than the individuals due to high investment amount. This
type of business has to be linked with the restaurant so that products can be sold
in fresh. Long-term purpose can be packaging front.
ƒ Project has to strengthen cooperative based enterprise and see active role of
women as entrepreneur and employment for them.

Strategic Choice 4: Promoter Partnership for Product Development (Facilitating Business

between market promoter and entrepreneurs)

ƒ This strategy applied in all partnership process for all identified products. Detail
planning with the market promoter has to be carried out for production, product
improvement and marketing.
ƒ For specific products like incense stick and designer candle, Mahaguthi as a
promoter has shown especial interest for partnership with the BSC entrepreneurs
(Ref: Promoter Matrix).
ƒ BSC project should facilitate in establishing linkages between the market
promoter and the BSC entrepreneur and should work on the gaps for bringing
products as per the market demand.
ƒ Market promoter has to be encouraged to provide embedded services and cost
sharing for production, technology and market promotion.
ƒ Market promoters have shown interest on instalment payment for saplings,
allocation of land for plantation, embedded technical information, market
information, buy back and contract system.

Strategic Choice 5: Strengthening Women for Linkages with Enterprise Network

(Working with existing and potential enterprise)
ƒ Various organizations are working in the BSC working VDCs like OVOP/ FNCCI
(One Village One Product, Federation of Nepalese Chamber of Commerce and
Industries), MEDEP (Micro Enterprise Development Program), World Vision,
SABAH (South Asian Business Association for Home Based Workers), Cottage and
Small Industries, DADO (District Agriculture Development Office), WDO (Women
Development Office), DLSO (District Livestock Service Office) and DFO (District

Page: 88 / 142
 Forest Office). These organizations have carried out various activities for women
entrepreneurship. BSC should work on lessons learned and the gaps identified
with synergetic effort in the promotion of enterprise development.
ƒ Specific products in Allo nettle and Carpet where there is already a well-
established systematic contract system (wage labour) with the women
beneficiaries. SABAH project is currently been implemented by Home net Nepal,
which can be a potential partner for establishing women beneficiaries into
successful entrepreneurs.
Strategic Choice 6: Empowerment of women entrepreneur in business knowledge with
partnership of market promoters

ƒ The important point is to have market promoter’s partnership with women

entrepreneurs. In this regard, for initial phase market promoters have to
empowered women for knowledge on business for bringing them on mainstream
market. Facilitating organisation like BSC project has to work jointly with market
promoter to develop the capacity or empowered women for business operation.

Activities to empower BSC women are:

1. Mentoring on account keeping
2. Providing technical skills on product development
3. Provide business skill knowledge and marketing techniques
4. Support them in identifying customer needs and demand

Table 16: suitable location proposed for selected products

S.N. Product/ Services Location (Target group)
1 Candle Thecho and Saibu
2 Incense Stick Thecho and Saibu
3 Rainbow Trout Kakani and Okharpauwa
4 Lapsi Products Sirutar
5 Asparagus (Kurilo) Kakani and Okharpauwa
6 Mushroom Thecho, Sirutar, Kakani, and
Okharpauwa
7 Allo Nettle Fibre Thecho and Saibu
8 Strawberry Kakani and Okharpauwa
9 Poultry Farming Thecho, Saibu and Sirutar,
10 Tata-Rose- Floriculture Kakani and Okharpauwa
11 Tailoring ( New born baby Thecho,
clothes)
12 Tibetan Carpet Thecho and Saibu
13 Organic Product Kakani and Okharpauwa
14 Sculptures Thecho

Product wise Recommendation

ƒ Asparagus: There is a need of assessment of plantation, identification of key
entry points where production of improved variety, organize meetings between
market promoter and the entrepreneurs for joint planning for timely production,

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 access technical information for production, access to finance for production and
market linkages with the promoter and market.

ƒ Strawberry: Examine present grading system, strengthen cooperative for

inclusion of more members (especially women) for marketing, and research on
processing potentials.

ƒ Organic vegetables: There is a need to identify organic plantation sites,

orientation to the farmers on organic cultivation, linkages between the farmers
and promoter for organic production, access to technical information and finance
for production, marketing linkages with promoter and local market.

ƒ Candle: There should be a discussion between Mahaguthi and BSC entrepreneurs

for candle making, technical training and access to finance for equipments,
initially start with normal candles and make designer candles later on depending
on the seasonal demand.

ƒ Tibetan Incense: There is a need of discussion between Mahaguthi and BSC

entrepreneurs for incense making, assessment of raw materials, linkages with
raw material providers, training on technical knowledge and technology transfer,
and market linkages.

ƒ Rainbow Trout: There is a need of assessment of water source, formation of

group business, development of cooperative level business plan for restaurant
and rainbow trout business, access to technical information and technology
transfer, product development in packaging and storing, and market linkages.

ƒ Lapsi (Burglar Sweet): there is a need of identification of present supply

conditions, increase in production of Lapsi, research on value addition technology,
support on promotion of value added products, access to finance and market
linkages.

ƒ Mushroom (White Button and Oyster) : there is a need of discussion and

partnership between promoter and entrepreneurs, assessment of environmental
impacts of mushroom business, access to technical information and technology
transfer, product development in packaging and branding (joint branding).

ƒ Fibre based Products: There is a need to identify locations for source of Allo nettle
fibre, access to technical information and technology, formation of home based
workers network, access to finance and social security options, product
development, market linkages

ƒ Poultry farming: There should be a discussion between the Valley Feed Pvt. Ltd.
and entrepreneurs on technology transfer and technical information, training on
improved poultry farming, access to finance, hygienic product development, local
market and promoter market linkages

ƒ Tata-Rose: There should be feasibility testing for floriculture business, technical

information and technology transfer, partnership with promoter for production,
improved farm management, marketing linkages with market actor and
promoters.

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ƒ Tailoring business: There should be discussion between women entrepreneurs
and market promoter for product identification, technical information and
technology transfer, access to finance, local market and promoter market
linkages.
ƒ Tibetan Carpet: There should be one round of discussion between the women
entrepreneurs and the contractors for long term planning. There should be
development of plan, linkages with home based women for networking, technical
information and technology transfer, niche product development, access to
finance, market linkages to promoter and market.

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6. COST BENEFITS ANALYSIS OF POTENTIAL PRODUCTS/SERVICES
Cost benefit analysis of potential products/services are prepared with the information
gather at the time of interviews and interaction with the various organisations. Total cost
of production is estimated based on the raw materials, labours, skill and other expenses
required during the production. Selling price is estimated based on the existing market
price. Cost per kilogram is calculated by dividing with the total production amount. Net
profit per kilogram is finally calculated along with the profit margin, which will provide us
a basic reference to judge as a profitable venture to invest in future.

Following formulas are used to calculate financial details in the cost benefit analysis of
each individual product.

1. Total cost of production is calculated by summing up all the cost incurred.

2. Cost per kilogram is calculated by dividing total cost of production with the net
production quantity in Kg. from 300 seedlings.
3. Net profit per kilogram is difference between sales prices with the cost per
kilogram.
4. Net profit is calculated by multiplication of net profit per kilogram with the net
production quantity.
5. Profit margin in percentage is calculated based on formula, which is net profit per
kilogram divided by sales price multiplied by 100.

6.1. Product Name: Asparagus

Assumptions:
ƒ Expenditure details for 300 seedlings, harvesting time of 36 months from the
transplantation dates
ƒ Total production of 200 kg from 300 seedlings

SN Raw materials Unit Quantity Unit rate Amount NRs.

1 Seedling Numbers 300 20 6,000
2 Transplantation Person 12 150 1,800
3 Compost fertilizer Kg 1500 5 7,500
4 Labour used for weeding, cleaning, Person 80 150 12,000
irrigation and harvesting

5 Transportation and carrying charge Kg. 200 5 1,000

6 Others Lump sum - - 5,000

Total cost of production 33,300
Cost per kg. 167
Selling price per kg. 300
Net Profit per kg. 134
Net profit from 300 seedling 26,700
Profit margin in % 45

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6.2. Product Name: Strawberry
Assumptions:
ƒ Expenditure details for 1000 seedlings and harvesting time of 90 days from the
transplantation date
ƒ Net production of 2,500 kg from 1,000 seedlings

SN Raw materials Unit Quantity Unit Amount Remarks

rate NRs.
1 Seedling Numbers 1000 5 5000
2 Transplantation Person 2 150 300
3 Compost manure Kg 1200 5 6000
4 Labour used for weeding Person 15 150 2250
and cleaning For 90 days
5 Irrigation Person 30 150 4500 For 90 days
6 Harvesting Person 90 150 13500 90 days
7 Medicine Litter 1 500 500 1 litter
8 Transportation and carrying Kg. 2500 5 12500
cost
9 Packaging labelling Pieces 2500 7 17500
10 Others Lump 2000
sum
Total cost of production 64,050
Cost per kg. 26
Selling price per kg. 100
Net Profit per kg. 74
Net profit from 1000 seedling 185,950
Profit Margin in % 74

6.3. Product Name: Tailoring

Assumptions:
ƒ Yearly production of 1,800 pieces of finished goods of Kurta salwar
ƒ Net finished goods of 1,800 pieces from 9,000 meters cloth
SN Raw materials Unit Quantity Unit rate Amount NRs.
1 Cloth Mtr. 9000 150 1350000
2 Thread Pcs. 1800 5 9000
3 Button Pcs. 1800 5 9000
4 Huck Pcs. 1800 2 3600
5 Buckram Pcs. 1800 5 9000
6 Wages ( labour ) Pcs. 1800 225 405000
7 Transportation Lump sum
5000
8 Electricity Lump sum
6000
9 Equipment maintenance cost Lump sum
3000
10 House rent Lump sum
6000
11 Annual depreciation of fixed cost 4250

Total cost of production 1,809,850

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 Cost price per pcs. 1005
Selling price per pcs. 1100
Net Profit per pcs. 95
Net profit from 9000 mtr. raw cloth 170,150
Profit Margin % 9

List of Fixed assets (Machine & equipment)

SN Types of assets Unit Quantity Unit Amount
rate NRs.
1 Machine (Sewing ) Pcs. 1 6000 6000
2 Machine ( Piko ) Pcs. 1 6000 6000
3 Machine (Logar ) Pcs. 1 5000 5000
4 Tape Pcs. 3 10 30
5 Seizer Pcs. 2 200 400
6 Stool Pcs. 3 300 900
7 Furniture Rack Pcs. 1 5000 5000
8 Table Pcs. 1 5000 5000
Total Amount 28330
Annual depreciation@15% 4250

6.4. Product Name: Vegetable

Assumption:
ƒ Spinach (in Nepali, Rayo Sag) for 12,000 small package
ƒ Production time June to January from transplantation to harvesting.
ƒ Net production 12,000 small package from 6 kg of seeds

SN Raw materials Unit Quantity Unit rate Amount NRs.

1 Seedling Kg. 300 20 6000
2 Transplantation Person 12 150 1800
3 Compost fertilizer Kg 1500 5 7500
4 Labour used for weeding, cleaning, Person 80 150 12000
irrigation and harvesting

5 Transportation and carrying charge Kg. 200 5 1000

6 Others Lump sum - - 5000

Total cost of production 33,300

Cost per Kilogram 167.00
Selling price per Kilogram 300.00
Net Profit per kilogram 133.00
Net profit from 12000 small package 1,596,000
Profit Margin % 44

6.5. Product Name: Wax candle

Assumption:
ƒ Annual production of 1,530,900 pieces from 24,300 kg of raw wax
ƒ 63 pieces of candle can be prepared from 1 kg raw wax
ƒ Raw materials are imported from China

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SN Raw materials Unit Quantity Unit Amount Remarks
rate NRs.
1 Wax Kg. 24300 111 2697300
2 Thread Kg. 15 140 2100
3 Plastic for normal packaging Kg 200 200 40000
4 Wages for skilled labour Per 2 8000 16000
person
per
month
5 Wages for normal labour Per 2 4500 9000
person
per
1 person for 12
month
months
6 Transportation - - - 84000 1 person for 12
months
7 House rent ( office and warehouse Lump - - 9600
) sum
8 Labelling Lump - - 50000
sum
9 Staff Person 1 6000 6000
10 Annual depreciation of fixed - - - 4970
Assets
Total cost of production 2,918,970
Cost per pieces 2
Sales price per pieces 2.50
Net profit per pieces 0.50
Net profit from 1530900 pieces 765450.00
Profit margin % 20

Depreciation of fixed asset (Machine & equipment)

SN Types of assets Unit Quantity Unit Amount
rate NRs.
1 Key for candle making Pcs. 7 2500 17500
2 Gas cylinder Number 12 1150 13800
3 Kilti Pcs 2 840 1680
4 Knife and seizer Pcs 2 75 150
Total amount 33,130

Annual depreciation @15% 4,970

6.6. Product Name: Poultry

Assumption:
ƒ From 1,000 chicks after 3 months it is ready for meat
ƒ Yearly production of 2,250 kg chickens from 1,000 chicks
ƒ Average weight of chicken is 2.5 per kg.

SN Raw materials Unit Quantity Unit Amount

rate NRs.
1 Rick Husk Kg. 1000 2.4 2400
2 Wood Husk Kg. 600 4 2400
3 Lime Kg 5 30 150
4 Chicks Number 1000 42 42000

Page: 95 / 142
 5 Feeding for chicken Kg. 7000 32 224000
6 Medicine Lump - - 10000
sum
7 Labour and loader Person 3 5000 15000
8 Transportation Lump - - 10000
sum
9 House rent Lump - - 24000
sum
10 Packaging and labelling materials Lump - - 10000
sum
11 Electricity and Telephone Lump - - 3000
sum
12 Annual depreciation of fixed Assets - - - 6447
Total cost of production 349,397
Cost per kilogram 155
Average selling price per
kilogram ( meat ) 200.00
Net profit per kilogram 45.00
Net profit from 1000 chickens 45000
Profit margin 23

Depreciation of fixed asset (Machine & equipment)

SN Types of assets Unit Quantity Unit Amount
rate NRs.
1 Water pot Piece 30 583 17490
2 Feeding pot Piece 30 583 17490
3 Store drum (Bhukari) Number 2 4000 8000
Total amount 42,980

Annual depreciation@15% 6,447

6.7. Product Name: Mushroom

a. White button Mushroom
Assumption:
ƒ For 50 kg production from 20 bottle seeds

SN Raw materials Unit Quantity Unit rate Amount

NRs.
1 Straw Kg. 200 1 200
2 Seeds Bottle 20 25 500
3 Plastic bag for shed Kg. 2 100 200
4 Fire wood Lump sum - - 100
5 Rope - - - 20
6 Wages Person 2 200 400
7 Transportation, marketing and Lump sum - - 300
carrying charge
8 Labelling and packaging materials Lump sum - - 200
9 Medicine Lump sum - - 200
10 Rent Lump sum - - 500
Total cost of production 2620
Cost per kg 52.4

Page: 96 / 142
 Selling price per kg 100
Net profit per kg 47.6
Net profit from 50 kg 2380
Profit margin 47.60%

b. Oyster Mushroom:
Assumption:
ƒ For 200 kg production

SN Raw materials Unit Quantity Unit rate Amount

NRs.
1 Straw Kg. 1000 2 2000
2 Seeds Bottle 20 25 500
3 Ammonium sulphate K.g 20 20 400
4 Tri super phosphate Kg 7 25 175
5 Chun K.g 30 10 300
6 Wages Person 5 200 1000
3 Plastic bag for shed Kg. 10 100 1000
4 Fire wood Lump sum - - 200
5 Rope - - - 500
6 Transportation, marketing and Lump sum - - 2000
carrying charge
7 Labelling and packaging materials Lump sum - - 1000
8 Medicine Lump sum - - 1000
9 Rent Lump sum - - 2000
Total cost of production 12075
Cost per k.g 60
Sales price per k. g 120
Net profit per k.g 60
Net profit from 200 k.g 12000
Profit margin 50%

6.8. Product Name: Bulgar Sweet (Lapsi) candy

Assumption:
ƒ For making 300 kg of candy

SN Raw materials Unit Quantity Unit rate Amount NRs.

1 Sugar K.g 45 60 2700
2 Spices - Hing, Bire Salt, Geen K.g 1 300 300
Cardamom, Corbel.lwang
3 Kerosene Ltr. 10 55 550
4 Lapsi K.g 300 25 7500
5 Plastic K.g 5 45 225
6 Packaging and labelling Pcs. 300 3 900
3 Salt K.g 5 11 55
4 Chilli K.g 1 200 200
5 Transportation, marketing and carrying Lump - - 3000
charge sum

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 6 Rent Lump - - 2000
sum
7 Labour wages Lump - - 8000
sum
8 Annual depreciation of fixed assets 684

Total cost of production 26114

Cost per k.g 87
Sales price per k. g 150
Net profit per k.g 63
Net profit from 300 k.g 18900
Profit margin 42%

Depreciation of fixed asset (Machine & equipment)

SN Types of assets Unit Quantity Unit Amount
rate NRs.
1 Vessels (Dekchi and Bata) Pcs. 3 500 1500
2 Stove Pcs. 2 500 1000
3 Frame Pcs. 1 400 400
4 Knife Pcs. 4 65 260
5 Weighing machine and Pcs. 2 700 1400
Weights
Total amount 4,560
Annual depreciation @15% 684

6.9. Product Name: Tata Rose

Assumption:
ƒ For 1,000 seedlings and harvesting time of 6 month from transplantation date
ƒ Total production 20,000 pieces from 1,000 plants

SN Raw materials Unit Quantity Unit rate Amount NRs.

1 Seedling/plant Number 1000 25 25000
2 Transplantation Person 12 250 3000
3 Compost manure Kg 750 5 3750
4 Weeding, cleaning, irrigation and Person 90 150 13500
harvesting ( Wages )
5 Medicine Lump sum - - 2000

6 Plastic for shed Kg 10 100 1000

7 Bamboo Lump sum - - 1000

8 Pipe Lump sum - - 500

9 Tools Lump sum - - 500

10 Packaging and labelling Lump sum - - 12000

11 Marketing and carrying charge Lump sum - - 5000

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 12 Rent Lump sum - - 6000

13 Others Lump sum - - 2000

Total cost of production 75250

Cost per pcs. 3.7
Selling price per pcs 8
Net Profit per pcs. 4.3
Net profit from 20000 pcs. 86000
Profit margin 53.75%

6.10. Product Name: Trout Fish

Assumption:
ƒ 10,000 fingerlings can be rear in 4 ponds
ƒ from 1 msq, 20 kg fish can be produced, in this way, 2000 kg fish can be
produced from 100 msq)

SN Raw materials Unit Quantity Unit rate Amount NRs.

1 Fingerlings Pcs 10000 4 40000
2 Feeder Kg 2500 200 500000
3 Wages for labour Person 2 52000 104000
4 Electricity Lump sum - - 15000
5 Marketing and carrying charge Lump sum - - 30000
6 Water Lump sum - - 10000
7 Packaging and labelling Lump sum - - 15000
8 Rent Lump sum - - 60000
9 Phone and Administration charge Lump sum - - 20000
10 Medicine Lump sum - - 20000
11 Annual depreciation 5 % - - 35000
Others Lump sum 10000
Total cost of production 859000
Cost per kilogram 430
Sales price per kilogram 750
Net profit per kilogram 320
Net profit from 2000 kg 640000
Profit margin 43%

Depreciation of fixed asset (Machine & equipment)

SN Types of assets Unit Quantity Unit Amount
rate NRs.
1 Ponds (4 ponds 100 msq) Pcs 4 150000 600000
2 Pipes Lump - - 80000
sum
3 Tools Lump - - 20000
sum

Total amount 700,000

Annual depreciation@5% 35,000

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7. POSSIBLE INTERVENTION STRATEGIES FOR BSC SUPPORTED
ENTREPRENEURS
BSC should work very closely with the local women beneficiaries from selection of
suitable enterprise, production, processing and final, the marketing of the products and
services. Local beneficiaries are at early stage of the business and there are many
constraints that could be overcome by supporting them by providing support services
and very specifically linking them with the market promoters. Market promoters will
ultimately purchase all products developed by the beneficiaries and in addition to that
they will provide knowledge on various market information and other technical inputs.
Few market promoters are identified in each identified products that are suitable in the
program areas (refer annex for more details).

Improved products
B

B Beneficiaries
B
as
P
+ =
Successful
women
Enterprise
Entrepreneurs
B B Market promoters

B Knowledge and
Technology transfer
and inputs

Figure: Intervention strategy model

There should not only the buying and selling relationship with the market promoters but
also should build relationship as a long-term business partner. There is a need of right
appropriate technology and should be provided to beneficiaries on a cost-sharing basis.
There are available technologies that are less expensive, appropriate, and simple to
learn and use. Complicated and expensive technologies imported from foreign countries
will not be useful in rural areas. Without technology in this competitive market quality
products cannot be produced. BSC would play a facilitating role and as a service provider
in few areas - counselling, training and backstopping support. BSC will work closely with
the promoters in designing new innovative products and services with the activity and
financial plans. The psychosocial factors are very determinant factors for promoting
women’s entrepreneurship therefore provide training package on raising the self-image
and self-perception to empower women beneficiaries through leadership, and confidence
building.

Strategy for BSC program

A. women entrepreneurs

ƒ Raise awareness to the BSC beneficiary to improve their family environment by

division of works between men and women and encourage women to participate

Page: 100 / 142

 in the income generating activities that would support family. Incentive brings joy
and happiness in the family that will subsides other small problems at home.
ƒ Gradually participate BSC beneficiary in new innovative products/services where
is a high risk of business rather it is always better to start what that are good at
with small innovations. Usually there is a high expectation from the program
implementer from the beneficiary but gaps are high in terms of skill and capacity
of the beneficiaries.
ƒ In Okharpauwa and Kakani area where there are huge possibilities to
commercially produce agriculture commodities those BSC beneficiary who are
having cultivation skills with commitment but limited land areas should be
provided with more land in lease for commercial agriculture practices.

B. Marketing of products/services

Market Environment: It refers collaboration with various other organisations working in

the same sector promotion.

ƒ Collaboration with Agro Enterprise Centre

ƒ Demonstration, awareness and training for entrepreneurship development
ƒ Collaboration with DADO, DLSO and WDO
ƒ Collaboration with other projects like KIVA, MEDEP, OVOP etc.,

Market Assessment: Market assessment research can review one's existing markets
from where one may be able to sell more to current market segment or new market
segment. It exemplifies different market parameters status and helps in developing
market trends and forecast for new planning.

ƒ BSC has to prepare in-depth intervention plan of each products and services in
the target area
ƒ BSC has to contact with market promoter and plan in detail for empowerment of
women entrepreneurs
ƒ Product and service prioritized will be able to provide initial stage of business
knowledge and BSC has to further work with women entrepreneurs for value
addition and product diversification

Product

ƒ Product and services were identified based on the present market situation and in
further other products may be added during the project implementation period.
ƒ BSC has to facilitate beneficiary to work on making the product with consistent
quality and achieve national standard
ƒ Innovation and product diversification should be emphasizing to the beneficiary
once they are involved in the producing and marketing of products/services.

Page: 101 / 142

Place

ƒ Local market potential should not be undermined and should utilize the channel of
market promoters to reach their consumers. BSC can facilitate in further
strengthening the market linkages with the promoters.

Price

ƒ Initial pricing strategy should be based on current market price at the local level
and compromise while dealing with the market promoters. Later on when the
products are more diversified with value addition and trust gained with the
promoters then BSC has to work on ‘Single Brand’ name of the product/services
and the pricing strategy shall be revised.

Promotion

ƒ Development of a ‘Single Brand’ name for multiple products in the later stage of
business promotion when the beneficiaries started producing commodity and
selling in the commercial market.
ƒ Participation in exhibition and buyers- seller meeting
ƒ Documentary programs

Process

ƒ Decreasing the transaction cost for input supply and product marketing in short
term. That is directly linking entrepreneur with market promoter for input supply
and marketing
ƒ Development of single brand and establishment of marketing entrepreneurs in
long run for bulk selling
ƒ Facilitation for provision of embedded services to entrepreneurs from Market
promoters in short term and Empowerment of entrepreneur for increasing scale of
operation and own brand and marketing in long run

People's Perception

ƒ Customer should be educated with product details about its historical background,
how it is been produced and instruction to use etc.,

Physical Appearance

ƒ Improvement on quality of products

ƒ Certification of national standards
ƒ Label and brochure design as per the product specification

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8. MAJOR FINDINGS AND RECOMMENDATIONS FOR BSC PROJECT
ƒ One of the major barriers of women beneficiaries is not been able to give
sufficient time in income generation activities. It will not be wise for us to propose
them to involve in a business where it requires less time for their involvement. In
fact, there are no as such business ventures without time and commitment
required. There is a need of counselling to the women beneficiaries to make them
realised that in a business in addition to the basic skill, time and commitment is
an another important factor for its success.

ƒ There is a need of analytical and management skill to the beneficiaries for

problem solving techniques and operation and management of small business
ventures.

ƒ One of the special characters of an entrepreneur is identification and foresee of

market opportunities. The existing women beneficiaries showed their interest in
starting new ventures and some in further expansion with more market linkages.
Showing interest alone is not sufficient; they need to expose them more with the
market actors. Exposure visit to the beneficiaries at major market centres and
small and cottage industries like Association of Craft Producers (ACP) will help the
beneficiaries to broaden their mindset to think beyond what is there only in areas.

ƒ Technical skill alone is not sufficient to produce quality product. There is a need of
regular coaching and supervision support services by the experts until they are
themselves capable to produce as per the standards.

ƒ Beneficiaries are usually free from 11 AM up to 3 PM so this time is suitable for

interaction and training to them.

ƒ Some of the skill trainings such as tailoring, knitting and weaving are requested
by the beneficiaries due to the reason that it adds value to them as an extra
asset that benefits to their family but this skill is not been utilized properly by all
for commercial purpose.

ƒ Most of the beneficiaries have started their business with a technical skill alone
and that too by not taking formal training or education but mostly by learning by
self. In a business, regular training course adds value to give confidence to the
consumers. That is a reason why many tailoring shop display their training
certificate.

ƒ Selection of suitable enterprise for the beneficiaries is important for its success.
Proper selection required counselling at the time of starting the venture. BSC can
provide counselling to its beneficiaries.

ƒ Beneficiaries have now access with local level saving & credit groups,
cooperatives for small loan amount but for more investment (one hundred
thousands), they should have access with the financial institutions and banks. To
understand the actual investment required at the time of business start-up or
expansion, detail business scheme or plan should be prepared on each selected
sub sectors.

Page: 103 / 142

ƒ Beneficiaries have very less knowledge on business registration process. In
commercial business transaction, Government has enforced provision of separate
PAN number and all financial transactions to be kept transparent. Some level of
registration process and basic accounting knowledge should be provided to the
beneficiaries.

ƒ Skill trainings on different batches should be provided to the beneficiaries with

respect to the VDCs. Such skill trainings should be outsourced to the skill-training
providers after finalizing sub sectors. In some sub-sectors service providers are
located in the VDCs. BSC should facilitate the linkages with the service providers
on cost sharing basis.

ƒ For regular monitoring at the field level activities, ‘Social Mobilizer’ should be
appointed in each project areas if possible one social mobilizer in each VDC or
else one in each cluster. Social Mobilizers will work very closely with the
beneficiaries after they are oriented in business basics.

ƒ For regular purchase of inputs and collective marketing producers group should
be formed in each sub sector. Group leader should be appointed to take the
responsibility together with the support from BSC for procuring raw materials and
linkages with the trader for collective bargaining. There are also chances of
visiting by the traders at the farm location for purchasing of products. The
producers group will act as a collection centre having infrastructure of weighing
machine and storage facility.

ƒ Many beneficiaries have shown their major concern towards improving quality of
product. Quality can be improved by better inputs i.e. quality seeds, systematic
planning, modern affordable appropriate technology and quality controlling
mechanism at place. In agriculture sector, disease and pest controlling
mechanism is another major issues raised by the beneficiaries farmers. Corrective
measures could be taken by exploring possibilities of services from Government
departments (NARC, Department of Agriculture) and private service providers.

Page: 104 / 142

9. REFERENCES

1. BSC database (BSC-Secondary Market Information Report, Village Profile,

Beneficiaries roster, Cooperative list, Micro & small credit scheme report etc.)
2. Rainbow Trout Fish farming technology, fish farming series 13.
3. Rainbow Trout farming Production and Management techniques, Fish farming
series: 14
4. Factor affecting women entrepreneurship in small and cottage industries in Nepal,
Mr. Jyoti Tuladhar, September, 1996, ILO

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10. SUMMARY OF OVERALL PRODUCT/MARKET INFORMATION

Product/Service VDC Skill/Resources Production cost Market price Market

(in kg) promoter/Traders
Asparagus Okharpauwa, Kakani Firewood, Forage, Rs. 167 per kg Rs. 300 per kg Sameer Man Shrestha
Forest, Land, Water,
Bamboo, Banmara,
Compost Fertilizer,
Timber
Traditional Incense Sirutar, Sainbu, Kirtipur, Bamboo, Land, Mill, n/a - Religious Incense: Uttara Malakar,
Sticks Straw, Compost Rs. 5 per 20 piece Mahaguthi
Fertilizer, Water - Tibetan Incense: Rs.
50-100 for 20 pieces
Candle making Sirutar, Sainbu, Chapali Bamboo, Land, Mill, Rs. 2 per piece Rs. 2.5 per piece Uttara Malakar,
Straw, Compost Mahaguthi
Fertilizer, Water,
Forage, Forest, Lapsi,
, Pine leaf (Sallepir)
Floriculture – Chapali, Kakani Water, Forage, Forest, Rs. 4 per piece Rs. 8 per piece 1. Rajendra, Standard
Seasonal Lapsi, , Pine leaf Nursery Group
(Sallepir), Bamboo, 2. Sameer Man
Banmara, Compost Shrestha, AFPC
Fertilizer, Timber
Hotel and Kakani Bamboo, Banmara, n/a n/a n/a
restaurant Compost Fertilizer,
Timber
Lapsi candy and Chapali Water, Forage, Forest, Rs. 87 per kg Rs. 150 per kg Ms. Indira Sapkota,
pickle Lapsi, , Pine leaf Nepal Grihani Udyog
(Sallepir)
Mushroom Sirutar, Sainbu, Chapali, Firewood, Forage, Rs. 60 per kg Rs. 120 per kg 1. Ram Krishna Sahu,
Okharpauwa Forest, Land, Water, Kalimati Wholesale
Bamboo, Banmara, Market
Compost Fertilizer, 2. Tanka Raj Parajuli,
Timber Grameen Agro
Enterprise
Nepali carpet Thecho Yarn, Irrigation and For 100 knot per For 100 knot per Sunil Lama, Boudha
(Galaicha) Pond, Land, Bitten meter Rs. 3000 meter Rs. 4500 Carpet
Rice preparing
Machine, Straw,
Water
Poultry Sainbu Compost Fertilizer, Rs. 155 per kg Rs. 200 per kg Hari Krishna Sahuji,
Land, Mill for Paddy Valley Feed Industries
and Maize, Straw,
Water
Retails shop Thecho, Kirtipur Yarn, Irrigation and n/a n/a n/a
Pond, Land, Bitten
Rice preparing
Machine, Straw,
Water, Compost
Fertilizer
Sculpture - wood Thecho Yarn, Irrigation and n/a n/a n/a
and copper Pond, Land, Bitten
Rice preparing
Machine, Straw,
Water
Seasonal and off Sirutar, Sainbu, Kirtipur Bamboo, Land, Mill, Rs. 167 per kg Rs. 200 per kg Ram Krishna Sahu,
seasonal Straw, Compost Kalimati Wholesale
vegetables Fertilizer, Water, Market
Forage, Forest, Lapsi,
, Pine leaf (Sallepir),
Bamboo, Land

Page: 106 / 142

Strawberry Okharpauwa Raw materials for Bio Rs. 26 per kg Rs. 100 per kg 1. Upendra Shrestha,
Briquette, Firewood, Oriental Enterprises
Forage, Forest, Land, 2. Sameer Man
Mill, Water Shrestha , AFPC
Trout fish Kakani Bamboo, Banmara - Rs. 430 per kg Rs. 750 per kg n/a
Briquette, Compost
Fertilizer, Forest,
Land, Bamboo
(Nigalo), Timber

Page: 107 / 142

11. ANNEX

11.1. Institutions Providing Services to Women Enterprises

Various organisations are involved in the promotion of women entrepreneurship in Nepal.
To understand existing status of services providers in these sectors, the study team
visited various organisations and explored secondary source of information to compile a
service provider’s areas of services and terms & conditions to be abided by the BSC
beneficiaries for receiving those services. Later in the project interventions in the BSC
target areas, these organisations could be collaborated or in partnership, basis services
could be delivered.

11.2. Government Agencies

According to the Industrial Policy (1992), privatization has been part of a new conscious
policy to direct economic activities through the private sector. The industrial policy,
however does not explain how the private sector can achieve sustainability. It does not
consider the need for developing entrepreneurship in general, or adopting sectoral
approaches such as women entrepreneurship development.

The Eight Plan emphasized cottage and small industries to meet internal demand. One
window system was established to provide all facilities to industries. The Ninth Plan
emphasized increase in production of processed commodities. Leading role was given to
the private sector. The Tenth plan emphasized sustainable development of
entrepreneurship & skills for SMEs based on local agro forest resources

In the Eight Five-Year Plan (1992-1992), it has clearly stated that cooperatives
institutions will play an important role in the development of rural women. Agricultural,
cottage and rural industry programmes, as well as cooperative consumer stores and
saving programmes, will be encouraged through cooperatives. Women’s participation will
be increased through various cooperative training programmes.

Besides the bank and other financial institutions, there are also a number of non-
governmental organizations, which provide credit. Some of these organizations provide
credit directly to beneficiaries whereas other provides credit to saving and credit groups
formed among the beneficiaries. As the funds of these groups are minimal, the loan
amounts disbursed by these groups are not enough to start even or small or micro-
enterprises. Thus, no doubt, some initiatives have been introduced to assist women
entrepreneurs but these are mere drops in the ocean.

Women in Development Plans:

ƒ Separate Chapter in the Sixth Plan with WID approach

ƒ 7th Plan recognized the need for amendments of laws & regulations to improve
their social & economic status.
ƒ 8th Plan policy focused in increase in women's representation at the decision
making level.
ƒ Gender development & gender empowerment indicators up to 0.550 & 0.500 &
increase their participation in decision making at least 20%.

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The Beijing Declaration and Nepal

ƒ Macroeconomic policies that target women as producers and contributors to the

national economy with their entrepreneurial skills in market economy
ƒ Rural-based agricultural skills, but also need to expand and incorporate urban-
based skills and technology for women
ƒ Programmes and incentive to encourage women to enter the private sector
through linkages with rural and urban enterprises

a. IEDI
The Industrial Enterprise Development Institute (IEDI), a national resource
organization committed to entrepreneurship development through training, research,
consultancy and enterprise education was established in 1996 as a successor of
Industrial Enterprise Development Centre which itself was a successor of former
Small Business Promotion Project (SBPP), a joint project of Ministry of Industry and
German Technical Cooperation (GTZ) established in 1984. The approach pioneered
and developed in Nepal by the project is being implemented in more than 70
countries in Asia, Africa and South America, under the name of CEFE (Creation of
Entrepreneurs, Formation of Enterprises).

Services:
ƒ Assist organizations, institutions, industries and enterprises through need-based
services such as trainings, entrepreneurship and management development,
feasibility studies, consultancy and training of trainers
ƒ Provide quality support services to industry/enterprise development
ƒ Carry out need-based action research to provide quality services for enterprise
promotion and development
ƒ Conduct need-based programs to develop technical, entrepreneurial and
management related know-how and skills
ƒ Research and development related activities
ƒ Develop projects and organizations for enterprise development.

b. Small and Cottage Industrial Development Board (CSIDB)

CSIDB has established its own Women Development Cell with regular meetings
with potential women entrepreneurs. CSIDBs major services include:
ƒ Providing skill development training and entrepreneur development
training programme
ƒ Providing information regarding industrial policy, acts, rules and
establishment procedures
ƒ Organising industrial fairs, exhibitions and providing recognition and award
certificates, shield and cash prizes to best performing cottage industry
entrepreneurs
ƒ Undertaking industrial feasibility studies and providing industrial project
schemes of feasibility industrial to entrepreneurs
ƒ Providing registration and renewal of cottage and small industries and
recommending the provision of facilities as per acts and rules

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 c. Federation of Nepal Chamber of Commerce and Industries (FNCCI) and Agro
Enterprise Centre (AEC)

FNCCI was established in 1965 and today has a membership of 68 District

Chambers of Commerce and Industry (DCCI), 41 commodity Associations
(including carpet, garment and handicrafts association), some 25,000 members
and 377 associate members including all commercial banks and leading
industries. FNCCI has established its own Women’s Development Committee,
which is committed to lobbying in support of women entrepreneurs.

11.3. Donor/INGOs Programmes

a. Micro-Enterprise Development Programme (MEDEP): MEDEP program was
initiated in 1998 as a pilot programme in 10 districts with support from UNDP.
Main goal was to improve socio-economic status of low-income families through
the development and promotion of micro enterprise thus contributing to the
government’s efforts to reduce poverty in the country. It is aimed to provide low-
income families with skills and technologies necessary for micro-enterprise
development, ensure access to necessary finance and access to business
development services. It has target of developing 70% women entrepreneurs.

Target beneficiaries: MEDEP's target groups are low-income families below the
poverty line. Under low-income families, the target groups are Low-income
families with income of less than Rs.6,400, women, unemployed youths, people
from socially excluded and poor communities.

Services:

• Provide support for product diversification and value addition of

entrepreneurs' products and services.
• Support in market expansion and diversification.
• Support in quality control.
• Develop and maintain a comprehensive database using MIS on all
activities.
• Provide various types of training with focus on existing and potential
women entrepreneurs

11.4. NGO
a. Women Entrepreneurs’ Association of Nepal (WEAN): Federation of Woman
Entrepreneurs Associations of Nepal (FWEAN) is a not-for-profit organization
aiming at representing the collective efforts of Women Entrepreneurs in the
economic progress of the nation and decision making at national and international
levels. FWEAN is the central body of WEAN established in 1989 and looks at
establishing subsidiary WEAN chapters in all 75 districts of Nepal thus involving
10% of the 245,944 Entrepreneurs. Based in Kathmandu, FWEAN is a focal point
for interaction with not only the government, but also the various national and
international women's organizations. One of the key objectives of establishing

Page: 110 / 142

 FWEAN as an umbrella organization has been for the establishment of WEAN
Chapters in the Districts of Nepal. To network and lobby for relevant policies and
programmes on women’s issues with government and non-governmental
organizations for national, socio-economic development. To build linkages and
affiliations at the regional level for joint promotional entrepreneurial activities,
setting up of intra country cooperative, focusing on promoting and marketing of
products of Women Entrepreneurs.
b. Association for Craft Producers (ACP): ACP is a not for profit fair trade
organization providing professional services in technology, design, marketing,
managerial skill for over 1,200 low income, primarily female, craft producers.
Since 1984, ACP has successfully balanced its business priorities with a strong
sense of social obligation and we are proud to define ACP as a socially orientated,
commercially viable enterprise.

ACP is the member of International Fair Trade Association (IFAT), Asia Fair Trade
Forum (AFTF), Fair Trade Group Nepal (FTGN), and Federation of Handicraft
Association (FHAN).

In 1984 the Association for Craft Producers has been founded under the Society
Registration Act of B.S 2034 (1977) as a private, professional non-profit
organization.

The founding members of ACP (all of whom individuals with sound experience in
women and development) had the vision of an autonomous organization which
could do business as well as work for the development of the craft workers. Their
past experience also told them that training alone could hardly help promote
handicraft production unless backed by an integrated support mechanism, which
included, among others, supply of raw material, design, quality control and
organized market outlets. This experience gave rise to a new concept of providing
training emphasizing the up-gradation of existing basic skill of the producer
through continuous on-the-job training, which ultimately unleashed the full
potential of the producers.

The action was initiated with 38 producers and 5 full time staff in a rented
building with 4000 sq. ft area with donors support in three skill categories. ACP
has achieved steady growth since its inception, and today ACP is providing
services to 1,200 artisans (women constituting 90%) from 15 districts of Nepal in
22 skill categories. We have 60 full time staff members and permanent facility of
43,000 sq. ft. area. We no longer have donor's support. Since past 20 years, we
have been self-sustained and achieved annual turnover of over one million US
dollars. We are maintaining sustainability not only from financial standpoint but
also in technical and human resource development.

80% of ACP's production comes from individual and group producers outside our
headquarters. Our headquarters has the facility for raw material preparation,
prototype development, and finishing of crafts. Currently 100 producers are
engaged in these activities.

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 Domestic sales channels are retail store "DHUKUTI" located in the street of
Kupondole and sells its products on a wholesale basis to hotels, restaurants, and
other leisure industry businesses in Nepal. For export, Nepali Craft Trading Pvt.
Ltd (NCT) is an export-trading partner.

c. Centre for Community Development and Research (CCODER): CCODER,

pronounced as 'See-koder' is a people-first, non-profit, non-governmental
organization established in 1990, by the dedicated social workers who believe in
the concept of self-reliant development of the under privileged by the
underprivileged. CCODER is convinced that only the self-reliant and responsible
action of communities and their members can lead to a continuing process of
sustainable development. This process has to include both women and men and
the members of all occupational and ethnic groups.

CCODER’s first step towards poverty reduction is to help the people identify the
root cause of their problems, regain faith in themselves, learn new skills and
realize their potential. The people need to know their worth and their dignity as
human beings. They need to develop a belief that they can change their
environment and should realize, as our motto states that “they are the masters of
their own destiny".

d. Fair Trade Group (FTG)

Seven NGOs involved in handicraft production and marketing have joined to
cooperate and provide each other with marketing information and advice. As
NGOs with social development objectives, they re concerned with reducing
exploitation in the handicraft industry. This group is modelled on a similar group
initiated in Bangladesh by OXFARM. All of the group’s members enjoy trading
relations with OXFARM and with other members. Members pay Rs. 1000 as a
member fee.

The organizations currently represented are Association of Craft Producers,

Janakpur Women’s Development Centre, Kumbeshowor Technical School,
Manushi Art and Craft: Mahaguthi, Nepal Women’s Skill Development Project and
Sana Hastakala.

e. JAITI Nepal: JAITI has purchased about 60 ropanies (3 hectares) of land with
water source for irrigation at Kaulethana area of Kakani VDC of Nuwakot District
in 1989. Some volunteer agriculture experts were invited from Japan and started
trial cultivation on various crops along with improvement of soil structure and
condition. After conducting various experiments on more than 100 species of
different crops in a period of 6 years JAITI became able to disseminate in the
locality with most expensive fruits in Nepal, like strawberry and Kiwi fruit. Beside
that Japanese variety’s sweet potato also been disseminated as well. During this
period the local farmers were employed as an in-service (with pay of local wage)
trainees. They had to do every practical activities required in the and for a farm.
Nearly 35 trainees were trained in-service basis during the past 15 years. Now
one of the trainees is operating the farm by its own income.

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 The farmers who are growing strawberry now were not ready to receive even free
seedlings provided from the farm at the beginning. However, as we demonstrated
them by selling the strawberry at Rs. 200 per kg at the farm they became
interested to learn and grow by themselves, now. The retail price of strawberry
was at that time from 400-600 Rs per kg in the market. Now-a-days more than
400 house farmers of Kakani area are enthusiastically growing strawberry and
gaining 10 folds more income than other crops.

The creditable point of these three crops we disseminate is that it doesn’t need to
buy new seed/seedlings every year. The farmers themselves can produce
seedlings on their own from the old mother plants. Farmers cannot afford
spending money for buying expensive seeds every year.

To provide practical training to local farmers on improved technology of growing

high valued crops, on its quality control and finally market their product at their
own locality.

Mr. Lhakpa Sherpa, who is one of the trainees from the very beginning is living in
the farm with his family members and looking after and operating the farm since
1999. Beside him and his family, there are 4-8 local young farmers employed as
daily basis in-service trainees. The farm is running from its own income since
1999.

11.5. Financial service providers

A. Patan Business and Professional Women (PBPW): Established in a year 1995
with 11 board members (55% from banks, 27% from different business professionals
and 18 % from other professionals). Its working areas are in following VDCs i.e. Khokna,
Sainbu Bhaisepati, Thecho, Chapagaun, Kirtipur, Poor and Disadvantaged communities
of Lalitpur Sub-metropolitan City.

Services:
ƒ Micro credit of amount Rs, 10,000 to 30,000 to each member with group
guarantee at 10 per cent interest rate. Repayment should be done in 24
instalments for fortnightly centre meeting and 12 instalments for monthly centre
meeting.
ƒ Support in-group formation to the target women having per capita income of USD
84 and of age 35 years. Provides pre group training to the new groups with 5
members. At one centre there should not be maximum 8 groups (40 members).
ƒ Conduct trainings to enhance group capacities for strengthening leadership and
income generating skills i.e. Literacy, Gender Equity, Entrepreneurial Skills,
Leadership, Business Skill Development.

Mechanism for exercising those services:

ƒ Women should be the within the criteria as specified above for group formation.

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 ƒ Other criteria’s to be followed by the groups are: Pre Group Training for about a
week should be taken by potential members before forming the group. Patan
BPW will provide such training, 5 members will form one group, Maximum 8
groups (40 members) are considered in a centre, and centre meeting should be
conducted fortnightly or monthly basis.

B. Madhyamanchal Grameen Bikas Bank: Established in a year 1995 now have 42

branch office in 15 districts. Target beneficiaries are women from rural poor household
who owns less than 1 bigha (0.6 hectare) of land in Terai region and 10 Ropani (0.05
hectare) of land in hilly region or earning is below Rs.4, 400 per capita incomes per year.
Socially and economically deprived women populations are also beneficiaries.
Beneficiaries from Kirtipur, Chapali Bhadrakali, Sainbu, Thecho VDCs can avail services
from the Grameen Bikas Bank.

Services:
Services provided by the bank are saving, credit, micro insurance and remittance. Other
specific services are as follows:

ƒ Group formation to the beneficiaries with 5 to 9 members and provide compulsory

group training. 2 to 13 groups in one centre
ƒ Micro credit: Both collateral and without collateral with group guarantee basis
credit are provided to the beneficiaries. The credit disbursement is set yearly as
first year maximum Rs.15, 000 - 20,000; second year Rs.20, 000 – 30,000; third
year and above Rs.30, 000 – 40,000. On collateral based loan up to Rs.150, 000.
Interest rate of 20 % for loan without collateral and of 16 % for loan with
collateral on diminishing method will be charged. Repayment should be made
fortnightly 4 per cent of principal loan amount with respective interest.
ƒ Savings: Both compulsory saving (group fund) and individual saving are done.
Under compulsory saving, every borrower must deposit 5 % of the disbursed
credit amount as a ‘group fund’ at the time of taking loan. Each member must
deposit Rs.10 fortnightly as a ‘group fund’. This fund can be used by particular
group members for their emergency needs. Under individual savings, voluntary
personal saving facility is also available for the members of the bank.
ƒ Micro Insurance: Providing insurance facility for livestock (cow-buffalo) with the
coordination of Karja Surakshan Nigam. Only the members can be received such
facility after taking loan by the bank. Insurance facility for members and their
family is also available.

Mechanism for exercising those services:

ƒ Women should be the within the criteria as specified above.

ƒ Beneficiaries could avail services as specified above by forming a group and being
a member of bank.

C. Chhimek Bikas Bank: Bank is established in a year 2001 by obtaining license from
Nepal Rastra Bank. Target beneficiaries are woman who doesn’t have more than 1.5
Bigha land, house and having per capita income not more than Rs.5500 yearly.

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Services:
Services provided by the bank are saving, credit, micro insurance and remittance. Other
specific services are as follows:

ƒ Group formation: Five deprived & poor women can be formed one group and
Twenty-five member or five groups can be formed one Unit (Centre).
ƒ Micro credit: Under micro credit various types of loans are provided at interest
rate of 18 per cent on diminishing method with fortnightly basis as follows:
a. General loan: The bank provides this loan to its group member for the first
time up to Rs.1, 000 to Rs.20, 000 without collateral security.
b. Discipline loan: The bank provides maximum up to Rs.40, 000 including
General loan only to its member who are disciplined and has completed the
one loan cycle profitably.
c. Micro Enterprise Loan: The bank provides from Rs.40,000 to Rs100, 000 to
the members who have completed Micro Credit loan cycle fruitfully and who
are willing to extend their business.
d. CGISP Loan: The bank provides this loan product to the Water User group &
individual for the irrigation purpose under the Community Ground Irrigation
Sector Project. Under this project, the bank invests up to 90% of total loan
amount of the project.
e. Unit House Loan: Under this loan heading every unit can get from Rs.1, 000
to 50,000 of loan amount in a very low rate of interest (10%). This loan
product is created to make easy for building the unit house that is very
necessary to conduct the monthly meeting and to interact among the group
member.
f. Consumer Loan: The bank finances the old and disciplined member up to
Rs.40, 000 in 0% interest rate for purchasing television, Refrigerator,
Washing machine, Vacuum Cleaners to promote their business.
g. Alternative Energy: To help in the health of the member & environment, the
bank started this loan product for Biogas Plant, Water Mill, Solar energy etc.
ƒ Saving: Under saving schemes various options are available as follows:

a. Monthly Saving: Monthly saving of Rs. 30 for each is a compulsion this

fund is refundable if the saving is more than Rs.5, 000.00 for the purpose
of illness, maternity and for social and educational work but the remaining
balance should be minimum Rs.2, 000 in this saving account.

b. Disaster Saving: At the time of taking General Loan, loanees have to save
5% of the total loan amount. This fund will be provided at the time of
disaster cases like flood, landslide, fire, snakebite, earthquake, thunder
etc. Otherwise, they can withdraw the first saving only after 5 years of the
savings or if the balance is more than 3000 keeping the remaining balance
Rs.1500 in the account.
c. Optional Saving: It is a type of current account of the members. To open
the account, Rs.100/- is necessary for minimum balance. Through this
account, the members can deposit and withdraw the amount from their
account. This fund helps very much at the time of recovery of the loan. In
this saving, member can save from Rs.1 to 1000 in the monthly meeting

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 or up to the remaining loan amount of the member and if they desire to
withdraw their saving, they can withdraw from Rs.5 to 5,000 at the time of
monthly meeting or in the given time by the office.

d. Unit Fund: This fund is created for helping the members to make Unit
house, to afford necessary materials for the meeting & training and to do
the social welfare work. It is compulsory to save Rs.5 per unit member in
this fund monthly.
e. Pension Saving: This is a kind of volunteer saving program only for the
member introduced by CBB in order to secure the future of the member.
Under this saving program, the member of this bank can save Rs.50 or
Rs.100 or RS.150 but not more than 200. After nine years of the regular
saving, the bank provides one and half amount, after 14 years double
amount of the total saving and after sixteen years they get pension.
ƒ Micro Insurance
a. Cattle Security Fund: When the clients take out the loan for big livestock,
they have to pay 5% premium of loan in order to secure the loanee from
the death of their livestock. If the animal died within the loan period, the
clients will get 75% of loan amount instead of loss.
b. Borrower Security Fund: In the time of taking the loan from the bank,
compulsorily the program members should pay 1% of loan amount on
loanee Security fund. This fund operation compensates in the death of
loanee, which provides 100% of loan amount or in the case of guardian’s
death, the loanee will get Rs.1, 500.00 as compensation.
ƒ Remittance: With the motive of making easy to receive the amount from abroad
and different places of Nepal sent by the members’ relatives in their doorstep, the
bank has launched the remittance service too. The bank has provided the
remittance service through the Western Union Money Transfer, Himal Remit, IME,
Prabhu Money Transfer, Manakamana Money Transfer, Bok Money Transfer etc.
ƒ Disciplined Member Welfare Fund: This fund is created for the disciplined unit
(Centre) of the bank. Every Unit can get Rs.250/- monthly by the bank if there is
100% pre recovery, 100% loanee in unit, the unit evaluation number is not less
than 80 in every monthly meeting, Unit with unit house, good utilization of loan,
full unit, good disciplined record. This amount can be used in the work of their
need by themselves such as education, health or in the other crisis etc. This fund
is created according to the need of time and for the support of member future.
The members have not to return this amount to the bank.

E. Nirdhan Utthan Bank: Bank was founded in 1998, and is now having 52 branch
offices. The mandate of this NGO is to provide financial services to the poor rural women
by adopting methodology of Grameen Bank of Bangladesh. Target beneficiaries are
woman who doesn’t have more than 1.5 Bigha land, and having per capita income not
more than Rs.5500 yearly.

Services
Basic services provided by the bank are micro credit to the groups through either group
guarantee or collateral basis with an interest rate of 20 % on declining basis if the clients
pay the instalment in centre meeting and 18% if instalment paid in branch offices. The

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lending methods are 2+2+1. The repayment shall be made on 24 instalments for
fortnightly and 12 instalments for monthly centre meetings. The services provided are
savings, micro insurance and remittance.

G. Mahila Adarsha Sewa Kendra: Established in a year 1984 and since 2003 started
program with micro loan income generation for single women with assistance of Friends
of Nepal, New Jersey, USA. Program is working in advocacy and awareness creation
about health issues: Gender issues, social and legal status issues, and women
empowerment.

Services
Basic services provided are savings and credit facilities to the target beneficiaries. Target
groups are women from the family having per capita income ≤ Rs.5500 or less and
unmarried women with age more than 35 years.

Mechanism for exercising those services:

ƒ Target beneficiaries should have undergone PRA and Pre Group Training for 5-15
days before forming a group of 5 members with maximum 8 groups (40
members) are considered in a centre and centre meeting should be conducted
monthly basis.
ƒ Micro credit of amount Rs. 10,000 to 40,000+5,000 for each member with a
lending method of 2+2+1 with group guarantee in 10 % interest flat rate.
Repayment shall be done in a monthly basis in 12 instalments.
ƒ Each member must have to deposit Rs.50 monthly in every centre meeting.
Interest rate is 6%.
ƒ 5% of loan amount should be deposited into this account at the time of loan
taken.
ƒ After full repayment of the taken loan, such deposited amount will refund with
6% interest.

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11.6. FGD procedure for BSC market study

Time: 10 minutes Step 1: Introduction

max.

A. Introduction of Name, Address, and Current occupation (business, enterprise

each etc.). Recording of this information will help the facilitator to
participants identify individual person name and use effectively during the
discussion.

Introduction of FGD facilitators (list out the name & occupation

of each participants so that we can identify the women for
interview)

B. Explain the Objective1: The first objective of conducting FGD is to identify

Objectives of few the most potential enterprises in the project VDC and to
FGD collect baseline information both qualitative and quantitative
about these enterprises i.e.: resources, local markets, socio
cultural and environment dynamics and norms.

Objective 2: To understand entrepreneurial characteristics and

traits in terms of their skill, knowledge & information and
competencies to really run a business as such.

Time: Max. 50 Step 2: Discussion

minutes

Guiding Questions A. What are the skills do the local women have? For example:
Vegetable production, Tailoring, Carpet weaving etc.
B. Where are the major local near by market centres in your
local areas for these products or services?
C. What are the resources available in your areas for listed
enterprises? (For example Physical, Financial, Human )
D. What are the most common businesses or enterprises
(existing) in this area? (let the participants discuss and list
out the businesses)
E. Have you seen any successful business/enterprise in your
locality? If yes, how do you say it is successful?

Recording
format SN Type of Who Criteria of successful
business/enterprise run?

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Guiding Questions F. Apart from these, what are the possible enterprises in this
area? (let them discuss for 2 minutes)
G. Present the product selection criteria for potential
businesses in a flip chart (Market Potential – value addition
potential, Availability of Resources, Local Skill, Legal )
H. Present a table to tabulate existing and potential business in
a flip chart

Date recording
format Agro-based Local skill based Service based
(non-farm)

Guiding exercise A. FGD facilitator has to list out the indicators for selecting the
potential enterprises with the logical reason behind selecting
these enterprises.
B. Present the Product selection Matrix (attractiveness matrix)
and explain it. Put the identified enterprises in the matrix.

ATTRACTIVENESS MATRIX

Sub-sector Identification & Selection

Potential to Increase Rural Income

Attractive
High

Medium

Not Attractive
Low

Low Medium High

Potential Nos. of MSME Beneficiaries

SUB SECTOR RANKING

S.N Criteria Weight Sub Sectors

PS1 PS2 PS3 PS4 PS5 PS6
1 Market Potential – 30 %
value addition

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 potential

2 Availability of 20 %
Resources
3 Technology - 10 %
processing
4 Skill – Adapted, 15 %
Traditional
5 Investment sources 20 %
6 Legal 5%
Weighted Score

Time: 30 minutes Step 3: Social Cultural , Group dynamics and

environmental issues

A. Do local women spend sufficient time for her business?

What is her daily routine?

Data recording
format
Time Activity
Morning
Noon
Evening
Guiding Questions B. What is the other’s attitude towards the women who
run an enterprise and who do not?
C. What kind of support do the family members provide to
the women entrepreneur (i.e. Labour, Marketing,
Financial or nothing?)
D. If your enterprise makes pollution in the environment
then what is the response from the society? (i.e. using
pesticides, wastage from poultry farming, chemicals
from Nepali carpet etc.)
E. Do you see any group approach kind of business in your
area?

Data recording format

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 SN Type of Name of No. of Establish Product status
business group involved date
members
M F

Guiding Questions F. Is there any potentiality to do profitable enterprises in a

group? I.e. Organic vegetable, Fair Trade business,
Mushroom, Fish farming etc.
G. What are the major constrains do you see in the
community to do potential group business?

Time: 10 minutes Step 4: Closing the FGD

Guiding Questions A. Over all activities during the FGD

B. Present the finding of the FGD. (Promising products in
matrix, Social dynamics and daily routine of a women etc)
C. Inform the successful entrepreneur for interview and take
time
D. Thank the participants
E. Provide tea and transportation cost

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11.7. Interview Questionnaire for Entrepreneur (Start-up and Growth)

Name: .......................................... Address: ……………………………..

Education: ……………………………….. Age: ……

Type of Enterprise: † Agro-based † Services business † Non farm business

Others.………………………………………………………………………………………………………

1. How did you start enterprise?

† Personal interest † Other’s concept † Market demand, † Low investment

† Traditional business
† Any other, Please Specify: ..........................................................................

2. Is your enterprise registered?

† Yes † No

3. Do you know about the registration process?

† Yes † No

4. If no what is the reason?

† Costly † Don’t know

Others…………………………………………………………………………………..

5. How much is your investment amount?

† Below Rs.20,000 † Between Rs.20,000 to Rs.30,000

† Between Rs.30,000 to Rs.50,000 † Above Rs. 100,000

6. What is your business base on?

† Local Resource † Skill † Commission

† Technology † Others……………………………………………………………

7. What sorts of Technical and Managerial skills do you have?

Technical:
† Production † Product processing † Product development

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 Others Specify ……………………………………………………………………………………………….

Managerial:
† Planning †Assessment † Forecasting and planning
†Communication † Interpersonal and Networking † Decision making

Others Specify ……………………………………………………………………………………………….

8. How did you receive such skills?

† From traditional skill † From institute

Others specify............................................

9. What sorts of new skills do you need think is need to improve your business?

† Managerial † Accounting † Product development † Marketing

† Legal & Counselling,

Others…………………………………………………………………………………

10. Do you know where to get these skills? Are you willing to pay for this?

† Local NGOs/Projects † Technical institute † Government body

† Local person † Others …………………………………………………………

Specify the name of organization………………………

Are you willing to pay if provided this?

† Yes † No

If no, why? ……………………………………………………………………….

11. What is your annual production of the products?

Product Unit Yearly production Season/month

in kg.

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 12. What are the raw materials that you use in production?

SN. Types of Unit Quantity Rate Total Sources

raw cost
materials

13. What is your monthly production capacity

Area Daily –Monthly production Daily-Monthly Sales

14. How many are employed in your enterprise?

No. of skilled No. of unskilled No. of semiskilled

employee employee employee

1 to 5 1 to 5 1 to 5
5 to 10 5 to 10 5 to 10
10 to 20 10 to 20 10 to 20
>20 >20 >20

15. What kind of machine, tools and equipment do you use and needed?

Types of machine, tools Cost of equipment in Rs. Sources

and equipment

16. Do you have your owned place or ranted?

† Rented † Owned † Group † others……………………………………………..

17. In your opinion does your work place good enough to manage health and
hygiene?

Sufficient Neat and Clean Noise Pollution Clean water

work Space place and bad smell
Available Available No Available
Not available Not available Yes Not available

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What do you If no, what you If yes, how to If no how to
want……………. want…………… control………………….. manage…………………….

18. Where do you go when do you need money for your business?

† Group † Cooperative † Family member † Banks

19. What type of financial system do you require for working capital?

† Credit † † Group † Collator based

Logistics guarantee

Others………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………

20. Please explain what are the major problems for marketing of your products?

† Lack † Not † Target † † Rules and † Low quality

of getting market Publicity regulation
quantity reasonable can not
price identified

Others………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………

21. Who are the potential products market players at local level? (specify the name &
address, if possible)

Local Collectors Local Traders Kathmandu based Traders

Others (Wholesaler, Retailer, Individuals and Haat bazaar )

…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………

22. What is your mode of transportation when you sell your products?

† Public vehicle † Local taxi or tractor † Porter † Self pottering

Others…………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………

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 23. Do you have any idea to reduce the marketing/transaction cost?

† Marketing through cooperative or group † Attracting buyers by mass

production

Others…………………………………………………………

24. What is your profit margin of selling product?

Types of Cost price in Avg. sales Profit margin Remarks

products Rs. price in Rs. in Rs.

21. Which types of quality is more demanded in the market?

…………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………

22. Where do you sell products?

Product Local market Kathmandu market Other market

23. Who makes decision about the type of business to engage in your household?

† You owned † Husband † Parents

† Father † Brother

Others………………………………………………………………………………………………………………………………………

24. Work division between men and women? Please mark M for Men and W for women

† Decision making †Financing † Production activity

† Marketing activity

25. What are the constraint and challenges faced?

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 Constraints Challenges

26. As per your interaction with the entrepreneur, please give your own judgment about
her Attitude and Traits?

† Initiative † Persistence † information seeking

† Problem solving † Risk taking † Systematic planning
† Concern for high quality † Innovation and efficiency

Other ………………………………………………………………………………………………………………

11.8. Questionnaire for Cooperative

Name of Cooperative: ………………………… Address: ………………………………

Cooperative type: ………………………….. …. Established date: ………………….

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1. Describe the objective of Cooperative

……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………

2. How many members are there in cooperative?

Female Male

3. Can you explain about the monthly savings?

Saving type Amount in NRs.

Regular
Individual/sweschik
Group
Others

4. What is the amount of loan size do you provide to your members?

† Below Rs. 5,000 † Between Rs. 5,000 to Rs.10,000

† Between Rs. 10,000 to Rs.20,000 † Between Rs. 20,000 to Rs.30,000
† Between Rs. 50,000 to Rs.100,000 † Above Rs. 100,000

5. Do you think that this cooperative is providing sufficient loan to your members? If
not, how much money do you need to manage the loan?

† Yes † No Amount needed…………………

6. Do you ask some sorts of business plan before providing loan to your members?

† Yes † No

7. In which sector is most preferable for the cooperative to provide loan to yours
member?

† Income generation/enterprise † Household’s purpose

† Education and medicine

Others…………………………………………………………………………………

8. What are the other services except loan does your cooperative provides to the
members?

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 † Skill training † Managerial training † Account training
† Marketing † Networking
Others…………………………………………………………………………….

9. What are the major problems?

Problems Explanation
Fund/saving

Management and
training

Organization
development

Cooperative norms and

values (good
governance)

Others

10. What kind of technical capabilities you are required to deliver services effectively
to the stakeholders?

Problems Explanation
Fund/Saving

Management and
training

Organization
development

Cooperative norms and

values (good
governance)

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Others

11.9. Questionnaire and Checklist for Market Study

1. Market Actors

Questionnaire for Market visit to understand the product market information with market
actors. These market actors can be retailers, wholesalers and other market actors.

Page: 130 / 142

Name of the Market Actor: ______________________________

Address and telephone No: ____________________ / _____________

Business currently being carried out by Market actor:

_______________________________________________________________________
_______________________________________________________________________

Which of these products/ services out of the 15 selected products/services are interested
in selling by Market Actor?
_______________________________________________________________________
_______________________________________________________________________

Product/ Service Name:

………………………………………………
………………………………………………
………………………………………………

Product/ Services Specification

_______________________________________________________________________

Estimated quantity: …………………………………………………………………………………..

Present supply channel for product/ services ……………………………………………

Further specification of product/ Services

Price ………………………
Volume ……………………….
Quality …………………………..
Competition (within marketers on the same products') ………………………
Supplier ……………………………
Market Trend………………………..
Customer………………………….
Future Plans ………………………

What is benefit of product to the customer?

…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
…………….

Which VDC of BSC target area can be link with this market actor?
______________________________________________________________________

For the product might be constraints from market side/ feedback for the producer from
customer through traders.

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SN. Parameters Feedback from Market Actor
1 Quality
2 Quantity
3 Availability
4 Price
5 Packaging

Any other products/services that can be linked through market actors:

______________________________________________________________________

2. Market Promoters
This market promoter will be identified out of the market actors. The market promoter is
thought to have long term relation with BSC selected entrepreneurs

Name of Market
Promoter…………………………………………………………………………………………………………………
Address of Market
Promoter……………………………………………………………………………………………………………..
Interest of market promoter for Product/ Services
Product/ Services Market promoter Interest in terms of
product/ services ( e.g. Children cloth
for tailoring, designer candle etc.)

Product specification required by the promoter for marketing

Product design
Product Price
Delivery mechanism
Embedded services

Approach/ quality requirements for developing partnership with VDC entrepreneur

Requirements Approach Activities to be carried

out
Supply
Marketing and market
information
Group
Technology Transfer
Technical information

Value addition possibilities of the product/ services

Product/ services Value addition Initial cost for Market segment

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 possibilities value addition for value added
products

Approach or types of contract between Market promoter and BSC supported

entrepreneurs

Buying – Selling
Contract agreement
Embedded services
Constraints of market promoter for partnership with VDC entrepreneurs
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
……………………………………………….
Delivery Mechanism for the products/ services from entrepreneur and market
promoter…………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
……………………………………
Initial activities to be carried out for partnership with Market promoter
…………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………
……………………………………………………………………………………………………

3. Consumer
The checklist for consumer will be very specific to the product that we are discussing
with few of the attributes to be known from consumer. The research team is not going to
do detail consumer survey. At least one consumer in each product/ services will be
discussed for getting their feedback.

Products/ Consumer Attributes

Services Price of Quality of Usage of Consumer
product and product product/ feedback for
its effect Time/ improvement
season/ Way of product

11.10. Field visit schedule of the assignment

Date Place No. of Activities

Participated
person

Page: 133 / 142

April 20, 2009 Thecho VDC 32 FGD/Interview
April 22, 2009 Kakani VDC 17 FGD
April 23-24, Okharpauwa VDC 25 FGD
2009
April 26, 2009 Saibu VDC 12 FGD
April 27, 2009 Chapali VDC 15 FGD
April 28, 2009 Kirtipur, Panga 14 FGD
April 29, 2009 Sirutar VDC 17 FGD

Field Visit Schedule for market survey:

Date Place No. of Participated person Activities
Wednesday June 10, Kakani Discussion with Nayabihani Meeting with local market
2009 cooperative, Rainbow Trout actors
Restaurant, JAITI Farm,
Mushroom entrepreneurs,
Floriculture farmers
May- June 2009 Market Actor Visit List of market actor mentioned Discussing market actor
questionnaire
Jun-09 Market Promoter Visit list of market promoter Discussing market
mentioned promoter questionnaire
Jun-09 Customer discussion One customer for each products Discussing customer
questionnaire

11.11. List of people met

During FGD and interviews with the beneficiaries
Date Place Name of person Designation Name of Institution Contact
number
April, Thecho VDC Rabi Maharjan and Mushroom and
20, Sarita Lama Carpet Entrepreneur
2009
April 22, Kakani VDC Kanti Lama Trout fish Kakani women saving 9745033811
2009 Entrepreneur credit cooperative
April 22, Kakani VDC Dolma Shakya Secretary Kakani women saving
2009 credit cooperative

April 23, Okharpauwa Chinimaya Tamang Chairperson Birkeshowri Women 9841089488

2009 VDC Saving and Credit Group
April 23, Okharpauwa Rajendra Titung Entrepreneur Shree Navabihani Krisak
2009 VDC Bahu uddesiya
Cooperative
April 23, Okharpauwa Rinjilahamu Entrepreneur ( Tata -
2009 VDC Sherpa and Rose
Aangnima Sherpa
April 23, Okharpauwa Kanchhaman Chairperson/Entrepre Shree Navabihani Krisak 9741162711
2009 VDC Tamang neur - Strawberry Bahu uddesiya
Cooperative
April 26, Saibu VDC Bimala Basnet Vegetable - 5592197
2009 Entrepreneur

April 26, Saibu VDC Sngita Khattri Poultry Entrepreneur - 5592209,

2009 9841881894

April 27, Chapali VDC Ramkala Khadka Entrepreneur - 4377011

Page: 134 / 142

2009
April 29, Sirutar VDC Bimala Basnet Entrepreneur Somalingeshore Women 9841393133
2009 Saving and Credit
Cooperative
April 29, Sirutar VDC Meera Rajthala Tea shop Member (Somalingeshore 9841813161
2009 Entrepreneur Women Saving and Credit
Cooperative )
May 10, Kirtipur, Panga Prava Dangol and Staff and Vice Panga Women Saving and 9841330434,
2009 Roshni Maharjan chairperson Credit Cooperative 9841564173
May 11, Sirutar VDC Prakash Shrestha Entrepreneur - 9803315451
2009

May 11, Sirutar VDC Maina Shrestha Green Vegetables - 5639664

2009 Entrepreneur
May 12, Chapali VDC Laxmi Shrestha Candle Entrepreneur 4375584
2009
May 26, Kirtipur, Panga Sarswati Maharjan Retail shop Member -
2009 Entrepreneur

May 31, Saibu VDC Reshma Thapa, Soap making Basaladevi Group -
2009 Shanta Thapa and Entrepreneur
Sanubaini Thapa
May 19, Directorate of Shanker PD. Industrial Directorate of industrial 5524225,
2009 industrial Neupane entomologist entomology development, 5010090
entomology Hariharbhawan, Lalitpur
development,
Hariharbhawan
, Lalitpur

During market assessment

Date Place Name of person Designation Name of Institution Contact Mode of
number discussion

June 08, Thapathali Om Thapaliya Director and Home net/ SABAH Visit
Monday project leader
June 07, New Road Upendra Bahadur Chairman Oriental Enterprise 9851031690, Visit
Sunday Shrestha 4263872
June 09, Bhakundole Sameer Newa Chairman Organic Village Telephone
Tuesday
June 11, Harihar Dr. K.P Paudel Scientist Directorate of 5524225 Visit
Thursday Bhawan industrial
entomology
development office
June 5, Kantipath Rajendra Manager Standard Nursery 4223137, Visit
Friday Group 4372522,
www.standard
nursery.com.n
p
June 3, Bhaktapur Bishnu Proprietor Lotus Land Organic 6610082, Visit
Wednesday Farm 9841257169
June 4, Dillibazar Sameer Man Executive Agro Forestry 4415913, Telephone
Thursday Shrestha Director Promotion Centre ( 9851023399
AFPC)
June 4, Bhaisepati Narayan P Gyawali Manager Love Green Nepal/ 5591377 Visit
Thursday Prakrit
June 2, Bishal Nagar Pramila Rai Managing Ninam Ridum Bio 2081705, Visit
Monday Director Handicraft Centre 9851098542
June 2, Kupondole Uttara Malakar Manager Mahaguthi 5532981 Visit
Monday

Page: 135 / 142

June 10, Okharpauwa Kancha Man President Nayajivan Visit
Wednesday Tamang, Rajendra Sahakari,
Titung Okharpauwa

June 1, Kalimati Ram Krishna Proprietor Kalimati Wholesale Kalimati Visit

Sunday Shrestha Market

June 12, Thimi Tanka Raj Parajuli Manager Grameen Agro 9841413970 Visit
Friday Enterprise Pvt. Ltd
June 12, Kalimati Kamal Subba , Manager Agro Business 9841492330, Telephone
Friday Yadav Centre for 9851031617
Karmacharya Research and
Development
June 1, Dillibazar Indira Sapkota Director Nepal Grihani 4421031 Visit
Sunday Udyog

June 09, Babarmahal Om Thapaliya Executive Home net 4222934 Visit

Tuesday Director www.homenet
nepal.org
June 1, Balaju Daman Lama Proprietor Fall and Trout 016222566, Telephone
Sunday Village Fish Farm 9741148851
with Hotel and
Restaurant
June 10, Tripureshwor Lok Nath Gaire Proprietor United Flora 9841402816 Visit
Wednesday
June 10, Danchi Dr. K.P Paudel Proprietor Nepalese Farming 4451443 Visit
Wednesday Institute
June 15, Boudha Sunil Lama Proprietor Boudha Carpet 9841289675 Visit
Monday
June 09, Balaju Hari Krishna Proprietor valley Feed 4352715, Visit
Tuesday Sahuji 9851033692
may 21, Kathmandu Urmila Tamrakar Proprietor Peeganani 4261108 Telephone
Thursday Handicrafts
May 22, Kuleshwore Radha Shakya Proprietor H.B Crafts 4274599 Visit
Friday

May 22, Kathmandu Min Narayan CEO Rahisha Crafts 4361518 Telephone
Friday Dangol
May 24, Kathmandu Mahalaxmi Managing Beekeeping shop 9851092780 Telephone
Sunday Shrestha Director
May 24, Kupondole Darshana Entrepreneur WEAN 9851005853 Telephone
Sunday Shrestha
May 25, Kathmandu Manila B Sharma Proprietor Designers 9851015822 Telephone
Monday Handicrafts
May 25, Samakhusi Lata Kaini Director Marigold Dyes 4351542 Telephone
Monday Natural (herbal)
May 27, Kathmandu Neera Vaidya Proprietor Neera Handicrafts 9841313439 Telephone
Wednesday
May 27, Kathmandu Raisha Dangol Proprietor Rahisha Crafts 4361518 Telephone
Wednesday
May 28, Kathmandu Yasoda Vaidya Excom FNCCI 4244231 Telephone
Thursday member
May 28, Kathmandu Hari Adhikari Member Red Group 5532098 Telephone
Thursday
May 28, Kathmandu Kalpana Shakya Proprietor Buddhist Treasure 5520344 Telephone
Thursday International
May 29, Balaju Nabaraj Budathoki Managing N.B Hemp House 9851004614, Visit
Friday Director 4365330

11.12. Promoters profile

S.N. Name of the Promoter Address Contact person Interest on Product/ Other product line of market
Services promoters

Page: 136 / 142

1 Home net Babarmahal Om Thapaliya Allo Nettle, Dye Handicrafts, works with Home based
Tel: 4222934 M: 9851013358 workers Network, NGO modality of
www.homenetnepal.or working
g
2 Standard Nursery Kantipath, Rajendra Tata-Rose Floriculture research, input and
Group Tel: 4223137, seedlings supply
4372522,
www.standardnursery.c
om.np
3 Lotus Land Organic Bhaktapur, Bishnu Organic Vegetable Organic vegetable producer and
Farm Tel: 6610082 M: 9841257169 (KIWI, Ground Apple, collector for marketing
Sweet Potato, Chest
Nut, Chukandar)

4 Agro Forestry Dillibazar Sameer Man Shrestha Kurilo, Tata rose, Agriculture and forestry based
Promotion Centre ( Tel: 4415913 M: 9851023399 Strawberry enterprises with own farming in Kakani
AFPC) lease land in Jhapa9

5 Love Green Nepal/ Bhaisepati, Narayan P Gyawali Kiwi Sales outlet for own farm and nearby
PRAKRIT Tel: 5591377 farmers, tissue culture lab

6 Ninam Ridum Bio Bishal Nagar, Pramila Rai Allo nettle Nettle fibre products and has network
Handicraft Centre Tel: 2081705 M: 9851098542 with Sankhuwasabha 10groups
7 Mahaguthi Kupondole Uttara Malakar Incense stick and Fair trade organization dealing with
Tel: 5532981 Candle handicrafts products

8 Nayajivan Sahakari, Kancha Man Tamang, Strawberry, Organic Local cooperative doing business in
Okharpauwa M: 9741162711 Vegetable marketing of strawberry
Rajendra Titung
9 Oriental Enterprises New Road, Upendra Shrestha Strawberry, Lapsi Export and import business in spices,
Tel 4263872 M: 98510 31690 powder incense stick and food items

10 Kalimati Wholesale Kalimati Ram Krishna Sahu Kurilo, Mushroom Vegetable and fruits for Kathmandu
Market M: 98510 37252 valley
11 Grameen Agro Thimi Tanka Raj Parajuli Mushroom, planning for Private enterprise with 1000 farmer
Enterprise Pvt. Ltd M: 9841413970 floriculture members working presently in
Mushroom
12 Agro Business Centre Kalimati Kamal Subba Trout, Strawberry and Tissue culture lab, input for floriculture
for Research and M: 9841492330, Roses and strawberry
Development Yadav Karmacharya
M: 9851031617
13 Nepal Grihani Udyog Dillibazar Indira Sapkota Children Clothes, Lapsi Women focused enterprise working in
Tel: 4421031 Pickles pickles, dresses and supplies to
department stores
15 Valley Feed Industries Balaju Hari Krishna Sahuji Poultry Largest poultry and feed suppliers in
Tel: 4352715 M: 9851033692 Kathmandu
16 Boudha Carpet Boudha Sunil Lama Carpet Carpet agent for export house and
M: 9841289675 Thamel 11based traders
, Sharmil , Thecho

11.13. List of organisations visited for collecting secondary source of

information

9
Eastern Terai district of Nepal rich in agriculture farming
10
Easter Hill district of Nepal rich in Nettle fiber production and processing
11
Major tourist destination in Kathmandu

Page: 137 / 142

S.N. Organisation Address Telephone Remarks
1. District Agriculture Hariharbhawan, 5521323
Development Office
2. Fish Development Centre Balaju 4385646
3. Association for Craft Rabi Bhawan 4275108,
Producers 4270721
4. Handicrafts Association of Thapathali, 4244231,
Nepal 4222940
5. Directorate of Industrial Hariharbhawan, 5524225, Shankar Prasad
Entomology Development 5010090 Neupane
6. Kalimati Fruits and Kalimati, 4271086
Vegetable Market
Development Board

11.14. Fair Trade

Fair Trade is trading partnership based on dialogue transparency and respect that seeks
greater equity in international trade. It contributes to sustainable development by
offering better trading conditions to, and securing the rights of, marginalized producers.
(IFAT Definition 2002)

Fair Trade Standards

a. Creating opportunities for economically disadvantage producers supporting

poorest producers
b. Transparency and accountability; dealing fairly and openly with trading partners
c. Capacity building; developing the skill of producers and creating opportunities for
trading their products
d. Promoting Fair Trade; telling as many people as possible about Fair Trade and
informing customers where products have come from
e. Payment of fair price; ensuring that producers receive a fair price for their
products
f. Gender equity; providing equal pay and opportunities for women and men
g. Working conditions; ensuring that producers are working in a healthy and safe
place
h. Child labour; ensuring that the UN convention on the Rights of Child is respected
i. The Environment; ensuring that materials used in production and packaging do
not damage the environment
j. Trade Relations; maintaining long-term relationship with concern for the social,
economic and environmental well-being of marginalized small producers with
pre-harvest or pre-production advance payment to producers wherever possible.

Criteria for Membership

Fair Trade Group Nepal welcomes application from legally registered organizations who
share their commitments to the ideals of fair trade. To be eligible, the applicant must
fulfil the following criteria:

1. Applicants must adhere to the Fair Trade Code of Conduct set by FTG Nepal

Page: 138 / 142

 2. Applicants must have clearly indicated mission to support the producers/artisan’s
sustainable development process by providing regular income and
employment to them under fair conditions.
3. Applicant must be providing capacity development opportunities to the producers
as well as implementing education and social welfare programme for their benefit.
4. Applicant for membership must have completed at least three year’s of operation
after having legally registered with concerned authorities of Government of Nepal.
5. Applicant must be working with economically, socially and physically challenged
producers. Minimum 10 producers must be getting employment opportunities
from the organization.
6. Applicant must have at least 3 people employed or active in organizational
activities.
7. To qualify for membership, applicant organization must be engaged in
manufacturing and marketing of handicrafts, agro and non timber forest
products. The total sales turnover should account minimum 25% of total regular
income of the applicant.
8. To qualify for membership applicant’s organization must be, owned and managed
solely by Nepalese Nationals.
9. To qualify for membership, applicant organization can be either an NGO or
enterprise based on craft/agro/non timber forest product, fulfilling all the
membership criteria.

Producer's guideline

FTG has formulated following guidelines to effectively implement fair trade practices by
member organizations and their producers.

• Work with socially, economically and physically challenged producers

• Provide Fair Wage as appropriate to local condition
• Encourage to maintain safe and hygienic working conditions
• Provide advance on raw materials and working capitals. Make prompt payments
after receiving final products
• Develop capacity of the producers to enhance their skill, technical know-how and
managerial and risk taking abilities
• Raise awareness among the grass root producers about fair trade practices.
• Encourage and support producers/groups to adopt environment friendly and
sustainable production practices
• To discourage child labour
• To ensure fair dealing with the producers
• To educate the producers on the importance of maintaining confidentiality of the
business secrecy protected design and patterns.
• Have effective communication mechanism to achieve operational transparency
between member organizations and producers

Page: 139 / 142

Application procedure

Documents to be submitted
1. Covering Letter
2. Audited Financial Report of Last 3 years
3. Progress Report of last 3 years
4. Organizational Profile or Brochure
5. Constitution or Memorandum of Articles (Prabandaha Patra)

Procedure for granting membership to the applicant subjected to

1. Submission of documents by the applicant

A complete application form and necessary document as per the membership
application procedure.
2. Sharing/ seeking references/ information about the applicant from the existing
members. The negative reference /remarks, if any about the applicant to be
submitted in writing to FTG board along with evidences by the member.
3. Conduction of entry audit by external certified auditor through field visit/
inspection. The expenses for which to be borne by the applicants
4. Submission of audit report to the board for decision making
5. Granting provisional membership for 2 years initially
6. Providing full fledge membership after completion of provisional period of two
years; based on the submission of Self Assessment Report and Social Audit
Report (if necessary)
7. Existing members to do Mutual/Self review against Fair Trade practices/Standards
biennially

Table 17: List of fair trade Organisations

Organisation Name Contract Person Address Products

1.Association for Craft Ms. Meera Bhattarai Rabi Bhawan Cotton textiles, Felt, Ceramic,
Producers Executive Director Kathmandu Copper and knitwear
Tel:01-4272676
2.Janakpur Women’s Mr. Degendra Raj Janakpur Kuwal Paintings, mirrors (paper made and
Development Centre Pokharel Village-12 items), sewing, screen-print,
Manager Tel:041-521080 ceramic and are producing Mithila
paintings, paper made and mirrors
cotton and woollen textile
household products, ceramics.
3.Kumbeshwar Mr. Kiran B. Khadgi Kathmandu Woollen, silk, Pashmina and cotton
Technical School Executive Director Kumbeshwar hand knitwear, hand woven woollen
Tel:01- carpets, woollen furniture,
5537484/5539216

4. Mahaguthi, Craft Mr. Sunil Chitrakar Kathmandu handloom textiles and garments,
with a conscience Executive Director Pulchowk Lalitpur silver jewellery, ceramics and clay
Tl:01-5533197 crafts, handmade paper, musical
instruments specially singing bowl,

Page: 140 / 142

 metal works, bamboo crafts,

5.Manushi Ms. Padmasana 43-Sarathi Marga, Tie/Die products, cotton

Shakya Gyaneshwor textile/household, cotton craft and
Executive Chairperson Kathmandu knitted, Allo/hemp product, lokta
Tel: 01-4444762 paper, silver ornaments, silver
beads products, silk products,
recycled silk, felt, banana fibres
6.Sana Hastakala Mr. Chandra P. Kupondole Allo, loom cotton, silk, wool and
Kachhipati (Opposite Hotel paper, silver jewellery, felt, filigree,
Executive Director Himalayan) wood carving, metal craft, recycled
Tel; 01-5522628 silk, ceramics.
/5555837
7. Women’s Skill Ms. Ramkali Khadka Srijana Chock, Provides handicraft skill training,
Development Project Executive Director Pokhara, Dying, weaving, material cutting,
Tel; 061-520393 sewing, business management and
other skill related to handicraft
production,
8. New SADLE Mr. Chitra B. K.C. Baikunthapuri Dhaka and heavy cotton bed linen,
Executive Director Nagari, Kapan-6 table linen, bags and accessories,
Kathmandu batik and Thanka paintings, singing
Tel: 01- 4820680/ bowls, buttons, and paper products,
4821259
9. Nepal Leprosy Trust Mr. Kamala Shrestha Tutepani-14, High quality leather and fabric bags,
Executive Director Satdobato, Lalitpur purses, wallets
Tel: 01-5521622/
5523322
10. Women Mrs. Shanta Koirala Janakpur Paper paintings, mirrors, tea
Development Service President Municipality-4, coaster, book marks, greeting
Centre Uttimpur Dhanusha cards, boxes, Mithila cloth
Tel: 041-521668 paintings, photo albums, Mithila art
tray, CD holder, T-shirts, patch
work products, embroidery worked
bags
11. Children-Nepal Mr. Ram Chandra Pokhara- Handicraft product like aprons,
Paudel 7,Masbar,Nepal bags, small purse, Traditional
Executive Director Tel: 061- 532054/ Thaily, Christmas decorations, hair
535138 decorations, puppets, hand
puppets, stuffed toys, t- shirts and
many more accessories,
12. Nepal Girls Care Ms. Devi Lama Kathmandu Nepal Greeting cards, coasters, pen
Centre Executive Director Tel: 01- holders, calendars, necklaces,
4109026(Head bracelets, Christmas ornaments,
office), 01- key rings, hair clips,
4495211(product towel/bathroom tissue holders,
centre) calendars festival accessories,
13.Bhaktpur Craft Mr. Niranjan Nepal Byasi, Bhaktapur Greeting cards, stationary sets,
Printers General Manager Industrial District, notebooks, wrapping papers, bags
Bhaktapur and envelopes
Tel: 01-6610795/

Page: 141 / 142

 611071
14. Get paper Mr. Millan Dev Basbari, Paper bags, paper boxes, note
industries Bhattarai, Director Kathmandu book, greeting cards, photo frame
Tel: 4370819 and albums
15.Folk Nepal Mr. Dhan Kumar Rai, Kathmandu, Nepali handmade papers goods,
Chairman Tel: 4426009 wooden crafts, knitting wears,
garments, interior, metal crafts and
wooden crafts

16. Hatale udhyog pvt Mr. Bishnu Prasad Kathmandu, Nepali handmade paper products,
ltd Shrestha Tell:4274012 felt accessories

11.15. Additional reference materials produced during the study

ƒ Photographs taken is separately provided

ƒ Product selection ranking matrix in the Excel sheets
ƒ Interviews data entry in the Excel sheet (both individuals and cooperatives)
ƒ FGD findings in the matrix format (Excel file format)

Page: 142 / 142