Entrepreneurship and New Venture Creation

REPORT ON BUSINESS IDEA

"ORGANIC FARMING"

Module Code: ADipBA06

Module Title: Entrepreneurship and New Venture Creation

Module Leader: Kelvin Ng

Module Lecturer: Prof. VCL Das

Coursework Type: Individual

Student Name: Kajal Mahato Shah

Student ID: NP02A170036

Date of Submission: 15TH April, 2020

Submitted To: RTE Department, Merryland College Biratnagar

(Google Classroom)

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Acknowledgement
Firstly, we would like to express our genuine pleasure to our Module Leader, Mr.
Kelvin Ng for providing us the opportunity of preparing the report on the business
idea and how to earn profit. We would also like to thanks to our Module Lecturer,
Prof. VCL Das, for his immense support and guidance throughout the course of this
report. Without his timely advice and suggestions, we could not have imagined
completing our accomplished task in token time.

This coursework has helped us to enhance our knowledge about the business and
its idea to sustain in the market. So we would like to thank profusely to the entire
faculty of "Merryland College Biratnagar "who provided us with this innovative
platform. Also, we are really grateful to our friends, parents, teachers and entire
people who have directly or indirectly always been helping, motivating and
cooperating us during our research pursuit.

Table of Contents
Acknowledgement......................................................................................................2

Executive Summary....................................................................................................4

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Chapter – 1..................................................................................................................5

1.1 Introduction....................................................................................................5
1.2 Problem and Opportunity.............................................................................6
1.3. Market Opportunity.......................................................................................7
Chapter- 2....................................................................................................................9

2.1 . Description of the business idea...............................................................9

2.2. Problem Solved................................................................................................9
2.3. Target Customer.............................................................................................10
2.4. Benefits of Organic Farming.........................................................................11
Chapter – 3................................................................................................................12

3.1. Business model..............................................................................................12

Appendices...............................................................................................................14

References...............................................................................................................17

Executive Summary

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The aim of this report is to provide an overview and analysis on business idea and
give review about "Organic Farming". Overall, this report briefs the clear
identification and description of a problem and opportunity observing throughout
online survey to sort out the problems that are being faced by Nepalese people in
today's generation. This report describe about how organic farming target customers
and how it will beneficial. Overall at last, the main aim of this business is to earn
profit by making customers satisfied concerning their health issues by providing them
a hygienic food and concern about impact and benefits on environment.

Chapter – 1
1.1 Introduction

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Everyone have right to do business accordingly to his or her own thought and
choices. My business is not only about profit making but also taking care about
environment and nature friendly. The concept of "Organic Farming" business is
come up by seeing the unhygienic, unhealthy, low nutritious, non-organic food which
causes serious health problem.

Figure 1 : Fresh organic vegetables[CITATION Agn20 \l 1033 ]

Organic farming is a method of farming which increases soil fertility, balance

ecosystem, safe food, animal welfare, healthy communities which raises the
livestock and protect environment free from dirt and pollution. It produces varieties of
vegetables like radish, potatoes, broccoli, cabbage, spinach, cauliflower which can
be stored and from fruits like mango, banana, grapes which is used for making juice
purpose and served to customers. After analysing the research of local area people
and through online survey of different type of people from different places, it seems
that the market demand for this business is too much high.

1.2 Problem and Opportunity

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In the context of Biratnagar, the main issue is not locally available of organic food in
the required destination. Due to that reason many people consume non-organic
unhealthy food which causes severe health issues. There is lack of awareness,
adequate information, and knowledge about Organic farming and the benefits which
is gained by organic products. There is lack of organic inputs such as seeds, bio-
fertilizers and bio- pesticides for producing organic food.[CITATION Org20 \l 1033 ]
Nowadays, the life span of fertile land is also decreasing due to regular used of
harmful pesticides, chemicals which completely lead to hampered to the
environment.

Organic farming can be the best opportunity for the utilization of inherent agro-
ecological endowment to Nepal and to enhance the national economy of the country .
Organic farming utilizes practices that maintain and improve fertility, soil structure
and biodiversity, and reduce erosion. It also reduces the risks of human, animal, and
environmental exposure to toxic materials. Apart from these, this business provides
a job opportunity to the housewife, farmers, unemployed person who is also helpful
to make them aware of knowledge on how to cultivate the crop, seeds and modern
agriculture technique. Beside these, it provide door-to-door service through online
order of essential organic product to the customer home itself directly from farm
which save time and easy process of purchasing.

1.1.3. Market Opportunity

We all know that, about 80% of Nepalese involved in farming as a main occupation.
In the context of Nepal, Organic Farming become one of the leading business which
converts traditional into modern farming technique investing low budget with a high
potential return as results with more hygienic and healthy organic food at a
affordable price. So launching this idea " Organic farming" in Biratnagar, it
concerned about the health issues and environmental impact, it seems to supply
regular organic food directly from farm to supermarket, wholesaler, retailer also
through online order observing the disadvantage gain by non- organic chemicals,
pesticides used food that attract the person who buy organic foods looking their
family health as a most first priority especially in urban area so the market demand
for organic food is rising day by day in 21 st era because people are more educated,
smart regarding their health. Apart from these, this business serves its product to
some of the hotels, restaurant in Biratnagar or else outside Biratnagar as like

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Kathmandu valley do in which all dishes are made only from Nepali Organic food
which lead this business in profit as it gives more order and pay in advance and
itself it become for advertisement purpose too. [CITATION New20 \l 1033 ]

Figure 2: percentage of interested people

From the online survey, it found that 95.4% people would like to visit and buy
organic product f, if it will open in local market. Therefore, the market value for this
farming is increasing too much high observing the demand and need for people.

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Chapter- 2

2.1 . Description of the business idea

The business idea of "Organic farming" is seeing the problems raised by non-
organic food. It is the idea of setting small size business in Ramchowk which is my
village near to Biratnagar where retailer, wholesaler can directly contact to farm and
easily get organic vegetables, fruits, seeds at an affordable price in bulk quantity at
higher quality and fresh food. Organic farming is that type of farming which only
produces food used by local fertilizers like from cow dung, disposal leaf wastes, farm
wastes kitchen wastes, water and ashes which is easily available in rural areas and

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also make environment healthy. The equipment used in this farming are Spade, Hoe,
Pick axe, Hand hoe, Rake, Trowel, Hand fork and so on. This business promotes
more usage of natural pesticides and builds fertility and soil structure. It mainly focus
on how to decrease the health related issues making people risk free which is
caused by non- organic farm products. It mainly ensures the right soil cultivation and
control pests, diseases, prevent from harmful polluted dust free vegetables and
weed. This business also provides job opportunity to needy poor people in rural
areas. Customers can directly visit to farm or indirectly contact through different
sources like online, phone call, advance agreement procedure for the organic farm
product.

2.2. Problem Solved

Bringing Organic farming as concept of business, "Health is wealth" clearly states
that health comes as main priority while organic farming serves regular supply of
hygienic organic foods, vegetables, fruit to get relief from the serious health problem
like kidney, cancer, heart diseases, diabetes, asthma and many more raised by non-
organic farming which is produce from the use of chemicals, pesticides. [ CITATION
Agr20 \l 1033 ]The long term use of agro chemicals in soil declines soil fertility and
imbalances natural ecosystem. Therefore, the organic farming should be adopted to
avoid such harmful effects of agrochemicals in Nepal. From the survey of 65 people,
it found that about 61.5 % people want organic food as it is healthier and more
nutritious.

Figure 3: Percentage of people preferring organic food as healthier

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Therefore, by opening organic food mart and supply it to local vegetable stores, it
will solve the problem of customers and make comfort for their purchasing. Hence, it
increases marketing power of organic product.

2.3. Target Customer

It mainly targets the urban areas people both men and women who purchase foods
for their family. Seeing the current situation of city area of Nepal , fresh air and green
vegetable is rarely found so this business mainly focus to those areas where
organic food is on high demand and needed.

2.4. Benefits of Organic Farming

The main benefits served by "Organic Farming" are as follows:

 Customers will get hygienic, healthy food containing more vitamins, nutritious
which will be beneficial for health.
 It will maintain the soil fertility, good source of compost and balance natural
ecosystem concerned about the environment.

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Chapter – 3

3.1. Business model

The main motive of business is to make profit. Similarly, my business aim is also to
earn profit by satisfying the efficient cost for customers thinking about the nature
friendly environment.

To start this business, acre of land, seeds, essential crops, raw materials, are
needed as it can start with low investment and fewer employees in beginning stage
as it expands it may increases more numbers of labors as well land . This project
"Organic farming" will locate in Ramchowk village near to Biratnagar, Morang. To cut
the cost, I request and convince my father to give his land for this project by making
promise that I will give 5% from profit as return for his contribution. For starting
phase, it needs some labor to set up the area where cultivation takes place and for
that I will spend Rs 20000. There should be one trainer who will be giving idea,
technical knowledge, guiding the instructions on how to cultivate seeds, crop for the
ease of doing farming and there should be 5 farmers who will be working in field for
them I will provide Rs.10000 and Rs.12000 (400 per day) for each farmer salary
respectively. For raw materials, it should be invested Rs 40000. Similarly for
advertisement and publicity purpose, I will spend 5000 for posters, board. The
following are predicted cost acquired for starting this 'organic farming' business:

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Labour cost as starting phase Rs 20000

Raw materials cost(Pick axe, Hand hoe, Rs 40000

Rake, Spade, hand pump)
Advertisement cost Rs 5000

Trainer cost Rs 10000

Total starting cost Rs 75000

Salary for 5 employees (12000 per each) Rs 60000

Profit margin 20% from revenue

Operating cost Rs 20000

Extra cost 5% on profit generated

From this expected cost, it shows all the necessary cost which is invested on
different area. Thus, to start-up cost for this project in early phase is Rs 75000
which is from my saving. I have to give Rs 60000 salary per month to labour. From
all the calculation, the revenue earned by this business is 200000 per month from
which I have 20% of it is Rs 40000.However, I have to give my father 5% from profit
is Rs 2000 per month as he gave me his land to launch this project as it is
mentioned above.

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Appendices
It is the link for online questionnaire survey.

https://docs.google.com/forms/d/e/1FAIpQLSdSDW77ByU7JG6AXAWbaWNHznrPp
YUXD96zUvOeavpqHnV3-g/viewform?usp-url

Here is the screenshot of online questionnaire survey and it's response for prove.

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References
1. Agnetwest.com, 2020. Fresh organic vegetables. [Online]
Available at: https://i0.wp.com/agnetwest.com/wp-
content/uploads/2016/09/Fresh-organic-vegetables.jpg
[Accessed 12 april 2020].

2. Agriculturenepal, 2020. Agricultureinnepal.com. [Online]

Available at: http://www.agricultureinnepal.com/
[Accessed 12 april 2020].

3. New Business Age, 2020. Organic Farming Booming In Nepal. [Online]

Available at: https://newbusinessage.com/Articles/view/2430
[Accessed 12 april 2020].

4. Organic Farming, 2020. Organic farming. [Online]

Available at:
http://www.sasecrtn.edu.np/index.php/en/resources/usefulinfo/orgfarm/orgf
arm
[Accessed 12 april 2020].

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