CHAPTER-1

INTRODUCTION
1.1 Introduction of small business
Small business is said to be established with few or small capital and operated in
geographically restricted area with fewer than 100 employees. It dose not employ
more than one crore in the business. Ii is comparatively small than other big business
house in the industry in its size. It has flow but important impact in the industry and
the whole economy. Most of Nepalese business is small that they are established with
less capital and employees of less than 100 in the organization. Most of Nepalese
people are self employed in farming and rests are engaged in small business. It has
helped to employ more people and helped to boost the economy.
1.2 REVIEW OF LITERATURE
1.2.1 INTRODUCTION TO NEPALI KAGAJ
Nepali Kagaj is one of the mostly used papers in Nepalese governmental institution
Nepalese Kagaj must be used in the documents in regard to government institutions.
There are nearly fifty thousand Cori pre years.
Not only that the demand of Nepali Kagaj is very high in German and America. Most
of the Nepali Kagaj product in Nepal is supply to these countries. The only one raw
material used to make Nepali Kagaj is Lokta which is available in the mountainous
area above 5000 ft... Most popular place for Lokta are Solukhumbu, Darjeeling,
Bajura, Jajarkot, etc...Nepal is very much popular for this.
Selling Lokta has provided employment for the local people and also provided
opportunities for the small enterprises.

Nepali Kagaj is not a new thing. In the early days of using papers only these papers
used to be used place but later other papers replaced it. The business requires less
equipment and high manual works. A machine called Bitter machine can be used
for making papers but in village areas the works of this machine also is done by people
themselves.
1.2.2 INTRODUCTION TO SUKUNDA PAPER UDGHYOG
Mrs. Sumina Pradhan, the proprietor of the business started Nepali Kagaj business
5yrs ago with the machine costing Nrs 1,00,000, nearly 20 employees and 7 ropani
land taken in lease for 10 yrs. She is paying Nrs 6000 per month as lease. Business is
situated in Kapan Bekh.
She receives lokta from Solukhumbu and other places. There is one leader who
collects lokta from local people and supplies to her. Getting raw materials is very
hard, since it is available in hilly areas, she says. She needs 20tons lokta yearly
which she gets 4-6 times a year. She has to pay after she gets raw materials .
Sometimes it should be paid in advance.
Initially she had started with the capital of 6,00,000 but now it has increased such that
she uses 6,00,000 only to purchase raw materials at once. She supplies papers on
contract basis to government institutions and to foreign countries.
1.2.3 OBJECTIVES OF SPU
a) To utilize local resources
b) To provide employment to herself and others
c) To earn foreign currencies by increasing export
1.2.4 PROBLEMS OF SPU
a) Getting raw materials is very hard
b) Getting raw materials cost high

c) Finding customer in foreign countries is not simple

d) Labors are unstable, they leave the work when they get new one
e) Price becomes very high than others

1.2.5 PROCESS OF MAKING PAPER

a) Boiling raw lokta
b) Grinding and purify lokta
c) Dying in the sun
d) Coloring the paper
e) Dying again
f) ) Packing

1.2.6 ORGANIZATION STRUCTURE

OWNER/MANAGE
R

SUPRVISOR
Paper making

STORE-KEEPER

SHOWROOM
AT BAGBAZAR

SUPERVISOR
Dying department

STAFFLEADER
AT DANG

1.3OBJECTIVESS OF STUDY
Research has been conducted for the following objectives:
a) To fund out the utilization of resources
b) To analysis the employment generation to local people

c) To know about the export and earning of foreign currencies

d) To conclude and recommend

1.4 REST ARCH METHODOLOGY

The possible ways of collecting information are used. They are primary and secondary.
They are:
A.

Primary data

Primary data is collected by the person who wants to use it. It is not published
anywhere before. These data are collected though.
a) Interviews with proprietor
b) Use of questionnaire
c) Interviews with employees

B.

Secondary data

Secondary data is that which is derived from primary data which is previously
collected by others. And that data is used by one to whom it is required some of
theses sources are:
a) Financial data of business
b) Use of different sites
1.5 LIMITATION
Since only the sukunda paper udhyog is taken in consideration, it may not review the
situation of all the Nepali kagaj Udhyogs. These mentioned data may not be
sufficient for the fulfillment of the objectives because ideas of original supplier of
lokta could not be taken. But necessary information has been collected as far as
possible.
CHAPTER-2
Data presentation and analysis

2.1

INTRODUCTION

The basic purpose of this study is to analyze the use of local resources and find out
the ability to provide the employment to local people .The uses of different local
resources for making different colors are also studied hare. The analysis is also done to
identify the export of papers for foreign countries.
2.2

REQUREMENT OF LOKTA

NATURE OF PAPER( in gm)

20
40
60
80
Table- 1: Requirement of Lokta

LOKTA REQUIRED(in dharni)

20
30
35
40

Analysis of Table:
This above mentioned table shows that the requirement of lokta for the production of
different kinds of papers. These papers are differentiated on the basis of their weight in
gm. We see that the requirement of lokta is gradually increasing with the increase of its
weight. But we see that increase is on decreasing ratio. While showing this table in
following graph:

Fig: 1 Requirement of lokta

Analysis of figure:
This diagram shows the gradual increase in the requirement of lokta while increasing
the weight of paper. This curve is sloped upward to the right side which shows the
increase in requirement of lokta. But curve is sloped on decreasing basis. That curve
clearly shows that the need of lokta is 20 dharni for the production of one coir paper of
20 gm. In the same way the requirement is increased to the 30 while producing the
paper of 40 gm. Likewise, the requirement of lokta is 35 Dharni and 40 Dharni for
producing the paper of 60 gm and 80 gm respectively.

2.3 USE OF DIFFERENT COLOUR

The film is producing the paper of different color by using different local resources
.They are Anar ,Chutro, Okhar, khayar, etc. The use of these colors for the
production of different colors of paper is mentioned in the following table:
Resources
Anar
Chutro
Okhar/khayar
Table-2: Different colors of papers

Colors
Yellow
Pink
Coffee

This table shows the use of resources for the production of different color of paper.
The production of different color of paper in the year 2007 is present bellow:
Colors
% of production in 2
Water
40%
Yellow
10%
Pink
20%
Coffee
30%
Table-3: production of different colors of papers

From the above table it is clear that the production of water colors paper is high i.e.
40% and the production of yellow colors papers is lowi.e.10%. While showing this
table in pie-chart:

Fig-2: Different colors of papers

2.4 cost of paper

After considering the cost of different raw materials, cost of labors and the cost of
transportation the total cost per coir become as follows:

Weight for paper

20
40
60
80
Table-4: Cost of paper

Cost (per cori)

50
65
75
80

2.5 EMPLOYMENT IN THE ORGANIZATION

2.5.1 EMPLOYMENT TO LOCAL PEOPLE
The firm has employed mainly the local people who are living in jorpati. It has
increased the earning power of local people and also has increased the standard of
living. The employment generated by the firm is presented bellow:

Year

2003
2004
2005
2006
2007

NUMBER OF EMPLOYEES
LOCAL

OTHERS

35
45
52
65
72

5
7
8
10
13

TOTAL

%OF LOCAL
EMPLOEES

40
52
60
75
85

87.5
86.54
86.67
86.67
84.70

Fig-5: Employment to local people

From the above table it is shows the firm is employing above 84% of local people.
From the table the firm is employing local people of 86.416% in average of 5 years
from the establishment of the organization. While showing this figure in bar diagram:

Analysis of figure:
This figure clearly shows that the firm is employing greater people in compare to other
people. In the first year, the local employment was 35 while the total number of
employees was 40. It increases to 45 in the second year where total numbers of
employees were 52. Like wise in the third year local employees increased to 52 where
total numbers of employees were 60. In the same way the local employees increased to
65&72 where total numbers of employees were 75&85 respectively in the 4 th and 5th

year. This gradual increase in the employment generation provides the great hope for
expansion of the business and increase in the employment opportunity.

2.5.2 REASONS FOR JOINING THE JOB

There are 85 employees in the organization in this year. Some has joined in this year
and some has joined in the previous year. Basically people do job here for the
temporary period but here are that type of employees too who have joined the job in
the first year says Sumina.
People join job her for the various reasons. Some joins for just passing the time but
some join for living and some do for making pocket money. Employees were
interviewed for expressing their reasons for joining the job. The result of interview is
presented below:

REASONS(FOR

NUMBER OF

JOINING)
LRSTNINH
FOR LIVING
TIME PASS
OTHERS

EMPLOYEES
30
25
20
10

%of employees
35.29
29.41
23.53
11.76

Table-6: Reasons for joining the job

The above table shows that higher number of employees now in this year are joining
job for learning the job. This table is cleared by showing in the following pie-chart.:

Analysis of table and pie-chart:

From the above table and the pie-chart it is clear that most of the employees are doing
job for learning the work ie.35.29%. And 29.42% of total employees are working for
living that means they have no another sources of income and they are making food
and cloth from this salary. They are not doing job by their interest. 23.53 % of total
employees are working for killing time. Its clear that they cant be permanent
employees that they leave the job while they have any other ways of passing time.
10% of total employees have many reasons for joining the job. Some of these reasons
are by not getting other job, for meeting the pocket expenses etc.

2.4 TOTAL SUPLY AND THE SUPPLY TO FORIGN COUNTRIES

The firm has been supplying papers to the government and private sector of country
and also to the foreign countries. But demand of this kind of paper is very high in
foreign countries in countries in compare to the supply to the countries.. So the
domestic supply is very nominal. So the analysis of the total foreign countries is only

done to meet out objective. This firm is supplying the paper to the foreign as per the
demand of these countries. Some of the main countries of supplying the paper are
U.S.A. Canada. Germany and others. The contractors are contacted for finding the
demand on those countries

and the papers are supplied as per those needs. Yearly

total supplies to different countries from the year 2004-2007are presented below:

YEAR

U.S.A

SUPPLY
CANADA
GERMANY

2004
2005
2006
2007

50,00,000
60,00,000
75,00,000
80,00,000

15,00,000
18,00,000
25,00,000
25,00,000

10,00,000
7,00,000
20,00,000
15,00,000

TOTAL
75,00,000
85,00,000
120,00,000
120,00,000

Table 7: Supply of papers to different countries

This table shows the supply of paper to the different countries separately. This table is
presented in following bar-diagram:

Fig-5: Supply of papers to different

Countries
In million
100
75

80
60 50
40
20

80

60

1510

18
7

2004

2005

2520

25
15

2006

2007

U.S.A
CANADA
GERMANI

Analysis of fig:
From the above table its clear that firm is supplying paper to the foreign countries
above Nrs. 50, 00.000. In the year 2004 it supply paper total of Nrs75,00,000. Among
them paper costing Nrs 50,00,000 was supplied to U.S.A.costing Nrs15,00,000 was
supplied to Canada and costing Nrs 10.00,000 was supplied to Germany. Similarly in
the second year paper costing Nrs.60,00,000:18,00,000 and 7,00,000 was supplied to
these countries respectively. On the similar basis

in the year 2006 paper costing

Nrs.75,00,000 ,25,00,000 and 20,00,000 was supplied. On the year 2007 paper of
Nrs.80,00,000: 25.00,000 and 15,00,000 was supplied. From the above figure it shows
that the demand of Nepali paper is comparatively high in U.S.A. and the second
country is Canada and the last one is Germany.
Total supply of paper to the foreign countries from the year of starting to the latest year
is presented in the following graph:

Analysis of the figure:

The above mentioned figure clearly shows that the firm is exporting papers to different
countries on increasing basis. In the first year the total supply was only Nrs.75,00,000
but it increased to Nrs. 85,00,000. This export was increased to Nrs. 120,00,000 in the
third year and remained constant to Nrs.120,00,000 in the year 2007 This clearly
shows that Mrs. Sumina is expanding her business and the great possibility if success
is seems here.

CHAPTER -3
SUMMERY AND CONCLUSION

3.1 SUMMERY OF THE STUDY

Nepali papers are the oldest papers in the world. In the initial phase of using papers,
only these papers are in use but later others papers take place since they are
comparatively less expensive in cost and can be produced with the help of machines.
Manual work is very high in the process of making papers.
The only raw material to produce Nepali papers is lokta which is available in the
hilly area above 5000ft. Nepal is a very suitable place to produce these types of papers.
Form her word it make clear that this business is not a simple one. Getting raw lokta
from the hilly area where the facility of transportation is not available is very much
difficult. A single person can do limited work but Mrs.Sumina would see every aspect
of the business.

Not only are that so many employees in the job getting job done through them is not
an easy thing. Different people have their own intention for joining the job. Knowing
these intentions and treating them accordingly is not a simple.For alone person.
Knowing the different needs and wants of various employees and fulfilling them for
motivating them towards the job is very difficult.

The business has provided the earning opportunity to the local people of Kapan and
also to the people of different regions from where the raw lokta is taken. These people
collect and supply to the firm from which they can earn their living. Collecting lokta
has provided the great earning opportunity to the local people of these regions.
There is also great opportunity to export the paper to the foreign countries. Many
paper industries are supplying the papers to the international market. The main
countries for exporting the paper are U/S.A Germany, Canada, England and the others.
But from the above analysis it is clear that the Sukunda paper Udhyog is supplying the
papers mainly to U.S.A. Germany, Canada. This export has helped to enhance the
development of the economy. The firm is exporting more than 120,00,000in a year.

3.2 CONCLUSION

From the above analysis we can draw following conclusions:

The only one way to produce Nepali paper is by using lokta.

Colleting lokta from the hilly area is very difficult

Using lokta to produce Nepali paper has provided great opportunity to utilize
the local resources.
Nepali paper industries have also provided the local employment opportunities.
Local people of hilly area have also the earning opportunity.
Employees of these types of firm have many intentions for joining the job.
Some of these are for learning, for living, for making pocket money etc.
These types of firm have given the opportunities to earn the foreign money.
Foreign markets are the main concentration of these types of industries.
There is less competition in these types of industries.

 People who want to run his industry should have the good knowledge about the
collection of lokta and the foreign market to export it.
3.3 RECOMEDATION
Though the Nepali kagaj industries been success in the promotion of the economy
and increase the export, there are some complications that have been bellow:
Unavailability of raw material has been a major problem. In the same way, over
cost and instability in the cost of raw materials has been affecting the market, so
the government should consider the point and minimize the cost of raw
materials.
The design of product should be modified according to the current market
situation in the overseas.

So, proper information is to be provided to all

manufacturers.
Due to the lack of capital, manufactures ate not being able to supply their
products as per the demand in the market. So the proper loan facilities are to be
provided to the entrepreneurs.
For the development of the products, appropriate training should be provided
form the concerned departments or government organization for that purpose .
The problem in transit is major problem being a landlocked country. So, it
should consider the problem in transportation and its arrangement should be
formulated for its development.
VAT policy is not being properly described incase of these type of industries.
Quality of each and every product should be measured to know that whether
they are in the same quality that the firm claims so that quality control possible.
An adequate market research will be benefit for these kinds of products.
The export price of similar quality product should be brought to the equilibrium
to get proper markets by all manufactures.

BIBLIOGRAPHY

Agrawal, Govind Ram, (2006) Entrepreneurship and small business management in

Nepal.
Bajarac haraya, B.C., (2005) Business statistic and mathematics
Panta, Prem., Raj (2006) Field Work Assignment and report writing
Different Financial and Others Documents of Sukunda Paper Udhyog for the year
2007.