A STUDY ON ROLE OF HANDICRAFT ASSOCIATION IN

EXPORT PROMOTION OF THANKA

A Project work proposal

BY

Anita Basnet

T.U. Regd no.: 7-2-22-321-2014

Patan Multiple Campus

Patan Dhoka, Lalitpur

Submitted to

Research Department

Patan Multiple Campus

In Partial Fulfillment of the Requirements for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Lalitpur, Nepal

March, 2019
 ABBREVIATIONS

BBS Bachelor of Business Studies

C.V. Coefficient of Variation

FHAN Federation of Handicraft Association of Nepal

FY Fiscal Year

GSP Generalized System of Preference

HAN Handicraft Association of Nepal

TRIP Trade Related Intellectual Property

USA United States of America

URL Universal Resource Locator

VAT Value Added Tax

 CHAPTER-I
INTRODUCTION

1.1 Background of the Study

Due to the rapid development in the field of science and technology, the economy of the
any nation is highly affected. Due to the globalization, the organizations are getting
borderless and the world has become very small. No nation can remain isolated from one
another due to the digital revelation in technology. International trade had flourished
worldwide. In fact it has become a part of economic activities in all nations.

Now a day the International trade is regarded as a key factor to measure the economic
growth of a nation. Any country needs foreign currency of its economic prosperity. Both
developed & underdeveloped countries can gain much more benefits from foreign trade.
It can be very good source for earning foreign exchange. So, the developing countries
like Nepal has no such satisfactory industrial products to export. But some distinct
products which it produces "the best" and has high demand and export visibility in the
international market. One of the most common product having good export visibility is
handicraft. So the study of this product regarding export and its promotion is being
essential.

1.2 Statement of the Problem

For the economic growth of a country like Nepal, there is a great role of handicraft goods.
Nepal is a country with rich cultural and traditional value. There is a reflection of old age
tradition and rich Nepalese culture in Nepalese handicraft. So we can earn foreign
currency by export promotion of handicraft goods. In Nepal Handicraft association is
established to promote production and export of handicraft goods. Thanka is one of the
exportable handicraft product. So in this project work the answer of the following
research question is tried to find.

1.3 Objectives Of the Study

Following are the objectives of the Study:

(I) To examine the relationship of thanka export with total export of handicraft
(II) To observer the trend of thanka export
(III) To analyze the country wise export of thanka.

1.4 Significance of the Study

This study is carried out to fulfill the requirement of BBS 4th year. So this is significant
for me to fulfill the requirement of BBS 4th year. Also the detailed methodology applied
to carry out this research is described in this and all the name of the writer and their
publication are included in the bibliography. So this project work will be helpful to those
who want to carry out the study regarding the product of handicraft association in the
future.

1.5 Limitation of the Study

1. This study is mainly carried out to attain the partial fulfillment of BBS IV year, which
is also a limitation of the study.

2. The study is only focused on Export of Thanka and necessary data is collected from
only published source provided by Handicraft Association of Nepal.
3. The study includes only five years data from FY 2069/70 to FY 2073/2074.
4. Only top 5 export countries are selected to carryout study about country wise export of
Thankas.
5. The study has time and economy bond.

1.6 Literature Review

1.6.1 Conceptual Review

In this chapter, an attempt has been made to review the various relevant literatures to
support the study to generate some idea for developing a research design. Literature
review is basically a process of searching the available literature in own field of research
to review and analyze them. The literature survey provides the researcher with the
knowledge to the status of their field of research. That helps the researcher to find out
what research studies have been conducted in own chosen field of survey and what
remains to be done. It provides the foundation for developing a comprehensive
theoretical framework from which hypothesis can be developed for testing.

Handicraft is a type of work where useful and decorative devices are made completely by
]hand or using only simple handy tools. Items made by mass production or machines are
not handicrafts. What distinguishes the term handicraft from the frequently used category
arts and crafts is a matter of objective: handicraft items are intended to be used, worn,
having a purpose beyond simple decoration. The statute of Federation of Handicraft
Association of Nepal (FHAN) in its article 1.4 (i) has defined "handicraft industry" as "an
industry that manufactures a product reflecting the country's tradition, art and culture,
and/or uses labour intensive specialized skills, and/or uses indigenous raw material
and/or resources". Some major handicraft products produced in Nepalese market are
Bags & Accessories, Basketry Products, Ceramics, Christmas Decorations, Craft
Paintings, Ethnic Garments, Hand Knitwear, Horn& Bone Products, Silver Jewellery,
Wood carving etc.

Nepalese Handicrafts, which have been a part and parcel of the Nepalese heritage, depict
the great tradition and proud culture of this nation. Their origin dates back to the Stone
Age when human beings were devoid of tools of any kind. Nepalese handicraft products
have been well known to the World for its rich art, crafts and oriental architecture. The
skill and techniques of making handicraft products, which have been handed down from
generation to generation, not only represent the talent and skill of craftsmen but also
reflect the social, religious and cultural values found in different parts of the country.
1.7 Methods of Study

Thanka, being one of the important exportable handicraft goods, should be studied
extensively for its export promotion. The main objective of this report is to carry out
comparative study regarding total Handicraft export condition and total thanka export
condition of Nepal. Also to fine the trend of thanka export is another objective of the
study. For this the detailed methodology adopted is discussed under the following
headings. Research design, nature and sources of data collection techniques and data
analysis tools.

1.7.1 Research Design

“A research design is the arrangement of conditions for collection and analysis of data in
a manner that aims to combine relevance to the research purpose with economy in
procedure.” Research design is the plan, structure and strategy of customer service
conceived so as to obtain answers to research questions. Descriptive and analytical
research design for the study has been applied as it gets two aspects. At first, it has the
description of the situation and secondly, it has the interpretation of data.

1.7.2 Nature and Sources of Data

This study is conducted on the basis secondary data only. The data related to the study
are collected from the following sources:

1. Annual reports of Handicraft Association Nepal,

2. Various booklets and journal concerned with foreign trade, Handicraft Association of
Nepal and Thanka.
3. From the official URL of Handicraft Association of Nepal: www.nepalhandicraft.com
4. From the site of Thanka: www.yomari.com.np

1.7.3 Date Collection Technique

The information regarding to this study are mainly collected from the office of Handicraft
Association of Nepal from the published annual reports relating to the Export of different
Handicrafts items. Also the Internet is used to find some literature and other necessary
data regarding this study. A prospectus published by HAN is much more useful to collect
the data regarding Introduction, Aim and Objectives, Promotion function. Also other
books regarding foreign trade are also studied to collect the data regarding this Study.
1.7.4 Data Analysis Tools

Presentation of Data: The collected data were presented with the help of simple bar
diagrams, multiple bar diagrams etc.

Statistical tools used: The analysis tools used in this study are Mean, Standard deviation,
Trend analysis, Coefficient of Correlation analysis and Coefficient of Variation analysis.
 BIBLIOGRAPHY

Agrawal, G.R. (2005). Project Management in Nepal. Kathmandu: M.K. Publishers

and Distributors.

Annual Report of Handicraft Association of Nepal From FY 2069/70 to 2073/74

Bajracharya, B.C.(2001). Business statistics & mathematics. Kathmandu: M.K publishers

and Distributors.

Bhatt, P. (2007). A detailed analysis of Nepalese Thanka export. Kathmandu: Buddha

Academic Enterprises.

Nepal, R. (2005). Handicraft products and their viability in Nepalese context. New Delhi:
John Wiley and Sons.

Ulak, J. (2001). The pros and cons of Handicraft Products. New Delhi: Penguin Books.

Shah, J. (2007). Access to finance in Nepalese Handicraft Industries. Kathmandu:

Palgrave McMillan.

Shahi, N. & Kachhipati, S. (1997). Fundamentals of Human Resource Management in

Nepal. Kathmandu: Ratna Pustak Bhandar.

Shakya, H. (1999). Financial planning in Nepal. Kathmandu: Asmita Books.