Social entrepreneurship: Chepang Retail Shop updates

Chepang Kirana Pasal has been established in the centre area of Chepang community located at Chitwan District, Korak VDC-03 Jimling. The financial support for shop was provided by Kiran Sitoula and Pranaya Raj Acharya. The amount total received was 1,00,000 (1Lakh) initially. With the amount received one shop was constructed with rs. 75,000 (seventy-five thousand) and remaining 25,000 was used for the retail items.

The opening ceremony of retail shop was done on first of Jestha. The basic necessities like salt, oil, soyabean, beaten rice, noodles, biscuits, and chocolates are kept at shop. Total of rs.20,000 was spent for the items and rs.3500 was used for travelling and the charge of those items.

The turnover of the shop on the first month seems quiet impressive. The daily average sales turnover is rs.500. So this makes rs.15,000 per months. Mr. Motilal Chepang (father of Biswash Chepang) looks after the items to purchase from the nearest wholesale distributor and Bishnu Maya Chepang (Mother) looks after the selling of items to villagers.

The establishment of retail shop has benefitted the villagers in many ways. They do not have to walk for 7 hours to reach to bazzar and purchase twenty rupees salt. Now the daily basic necessities are easily available here. If the villagers had also gone to bazzar it would add more cost on feeding themselves while walking. So it has saved time and have been able to use it in productive sector like planting maize during this season. Though giving the items on credit has been controlled only few people have taken items on credit promising to pay it in 1 month’s time. Now its rainy season; the local bus completely rest for 5 months. So the items from retails shop will be highly demanded during this time.

 Shopkeeper Perspectives:

Shopkeepers are really happy to keep themselves busy in shop. They collect all the money earned in a day and counts before they go to sleep. Now its high time to attract customer during rainy season but they express that they have only limited stocks which may not even last for 1 months. By this month of opening we have earned rs.18,000. Its not a profit. It’s a turnover. They had also reinvested rs.8,000 as the stock had finished.

What they wished is to invest more on urea and fertilizers for this month as it is crop cultivation season. But they are lacking investment and the roadways have been blocked due to landslides and soil erosion.

Shopkeepers would also like to thank the sponsors who have contributed in establishing chepang retail shop. It would not have been possible to establish on their own. Frankly speaking it would have been a dream to establish retails shop as they will not have bulk sum of money.

 Villagers Perspective:

The local people are also happy to receive the basic necessities on their own locality. They are also happy to pay the amount that is tagged for each item. Because people understand that, the transportation cost has to be added too.  They have now saved time and extra money that they would have spent on going to bazzar. Villagers says that the items are not given on credit but they understands the problem as it is a recently established shop they have to get the investment back.

Biswash Chepangs Perspective: It has been a great pleasure to establish retail shop benefitting more than 1000 people directly or indirectly. The basic necessities are kept at retail shop. What we have thought is to add more indigenous items and sell it to the visitors. We will also be collecting the locally available products from the village and selling those to the markets who pays well-Kathmandu.

Payback Scheme: regarding the payback scheme, the MOU will be designed in this mid june and fewer portions of that amount will be kept in piggy bank or returned directly to the supporters. MOU designed will illustrate the total amount to be monthly paid according to the income earned from selling the items. I myself will be contributing rs.1000 monthly for paying back.

Social Business at Chepang Community: Community Retail Shop (ChepangKiranaPasal)

A modest $2,000 Proposal to solve a Community Problem

Social Business at Chepang Community: Community Retail Shop

(ChepangKiranaPasal)

A proposal by: BiswasChepang

NEPAL

  1. Introduction to Chepang Community:

The Chepang are one of Nepal’s most disadvantaged indigenous groups and are classified under the ‘highly marginalized’ category on the basis of a set of socio-economic indicators, such as population size, language literacy rate, house type, landownership, occupation and access to higher education. Due to geographical difficulties Chepangs have not been able to get easy access to food, clothes, and shelter and education facilities in the community. Must research about our community is made available in internet if you Bing, Google it.

A community develops when there is access to basic needs, infrastructure and other factors. An infrastructure includes road, school, health posts, safe drinking water and good market. So a market (retail shop) is a need in our particular community. If there is market then it provides most of the basic necessity of the ourcommunity.

  1. Background on why we need a Retail shop:

Realizing the desperate need of the Chepang community, I have thought of opening a retail shop (KiranaPasal)atJimling of Korakvdc, ward number 3, Chitwan because currently we have none which is causing us the following.

Chepang community people have been walking 5 hours (one-way) to reach the nearest market and purchase items again come back to home in 5 hours, so a whole day is gone for what should be about 15 to 20 minutes activities in any town or city. This has been wasting our time and money to go to the bazzar and fetch simple daily necessity goods.

  1. Objectives:
  • To provide service to the community by opening a retails shop.
  • To save time of local people so that they could use that time.
  • To make sufficient profit to repay the initial loans and expand the shop.

 

  1. General information for the opening of Shop

Based on my current survey and research of our community here is the demographics.

Total potential consumers population:  1500(+)

Numbers of wards benefitted: 1, 2,3,4,6

Number of households: 290(+)

S.N. Areas Covered Ward number Total houses Total Population
1 Surkhandi

 

1 30 150
2 Rekap 2 55 275
3 Jimling

Pongyak

Jhapalang

Chalise

Tingsirang

3 65 325
4 Gonbang

Thandrang

Fashrang

Sano Gonbang

4 100 500
5 Nawalpur 6 40 200
  Total   290 (+) 1450(+)

 

  • Current Status of Shop: None. Our people have to on average 5 hours to fetch sack of rice, a packet of salt and noodles.
  • Occupation of Consumers
    1. Teacher
    2. Farmer
    3. Foreign employment / workers
  • Income source of consumer base:
  • Selling cash crops; buckwheat, millet, mustard, beans, garlic
  • Selling citric fruits; oranges, lemons, Amala
  • Animal (Goat, cow)
  • Poultry
  • Selling Honey/ and bee hives

 

  1. Site Selection for Opening a Shop:

Jimling is 21 Kms North from the East-West highway located in Chitwan district from a local place in the highway: Birendranagar. Jimling lies in KorakVDC ward no 3. Opening a shop at Jimling becomes the center area for 1500 people from 5 wards of KorakVDC. Opening a shop at this area could benefit local people in many ways.Opening a shop at this location could save each individual client at least NRs 300- 400 associated with their travel cost alone. Opportunity cost of losing the day will no longer be the case as they can tend to their animals or farms and continue with their daily productive lives.

Not all people walk to the nearest market. There is one 4 wheeler jeep which leaves at 8am in the morning and returns back at 6pm in the evening. It takes 5 rupees per kilogram while transporting any good like bag of rice or bag of salt. There is no saving of time this way either.

  1. Here is what I plan to sell.

My initial plan is to sell the following basic necessity items. I have not conducted market research on how much it could cost me total including total transportation charge. Based on that I will make determination of the profit margin and price the items accordingly.

S.N. Particulars Rate Amount Remarks
1 Oil
2 Sack of Rice
3 Salt
4 Jira
5 Besar
6 Mashyaura
7 Masala
8 Stationeries
9 PaniPuri
10 Chat pat
11 Recharge Cards
12 Bhujia
13 Chyura
14 Dalmoth
15 Biscuit
16 Cheese Balls
17 Noodles
18 Chocolates
19 Soap
20 Shampoo packets
21 Cooked items:Aaloo chop
22 Chana fry
23 slippers
24 Cigarettes
25 Match sticks
26 lighters
27 Torch lights
28 Battery
29 Plates
30 Tea Shop

 

Risk factors

  • Termites
  • Rodents
  • Insects
  • Fungi

Risk management for above factors:

  • Maintain regular cleanliness
  • Store in warm and dry place
  • Check accountability
  • Research for new products / market analysis on half yearly basis
  • Add tea shop/ fooding services

 

  1. Budget Estimate:
S.N. Particulars Rate Amount

(in Nepali Ruppee)

Amount

(in US $)

Remarks
1 Shop 50,000 500  
2 Initial purchase of inventory for the shop 1,50,000 1,500  
           
  Total   NRs. 2,00,000 US $ 2,000  

 

  • How long does it take to open a retail shop in this location?

It will take me approximately 2 months to open a shop. I would like to open it before this year’s monsoon (rainy season ) arrives in June/July because it will be impossible to transport any goods during rainy season even using the 4 wheel drive as the roads will be severely inaccessible.

  • Monitoring and Supervision:

The shop will be handled by my Father MotilalChepang. He has recently build contacts with suppliers and dealers through his dealings in the past one years while marketing of clothing items and the selling of the  he goat. My mother will be looking after the daily transaction.She has academic background of up to grade 5. She is also the teacher at Adult Literacy Classes conducted by Government of Nepal in our Chepangvillage.

Reordering to replenish the stock will be done every two weeksfor the shop. It will be directly done from the wholesalers. My father has a contact with wholesalers at Khurkhure that is medium sized bazzar located at Chitwan district.

  • Policy of Credit (Udharo)

Inorder to get more customers in village credit should be given should be the villagers. But too much credit may go in loss if that is not controlled properly. There is existing policy in the village that people people can take the goods on credit for 3 months and after 3 months certain percent of interes is charged to the people to encourage to pay the credit amount quickly.

(H)How/When do I repay the Loan?

The loan amount will be repaid by the separating profit earned each month using a separate piggy bank. Honestly I do not know how long it will take to repay because this is the first of our business venture for our family. We used to be nomads so please understand this is modern society thing is very new to us and we request patience. However, we are honest people and we will repay as soon as we can. My current projection is that we can repay the loan in full within threeyears of opening. But I am also at the mercy of the lenders term so please help me here on what makes the most sense.

Pay Back Scheme:

S.N. Year Months Duration Pay back Amount Total
1  

 

2016

June/July  Construction 2 months
2 September 3 months Check availability
3 December 5 months 20,000 20,000
4 2017 June 6 months 20,000 40,000
5 December 6 months 20,000 60,000
6 2018 June 6 months 20,000 80,000
7 December 6 months 20,000 1,00,000
8 2018 June 6 months 20,000 1,20,000
9 December 6 months 20,000 1,40,000
10 2019 June 6 months 20,000 1,60,000
11 December 6 months 20,000 1,80,000
12 2020 June 6 months 20,000 2,00,000
Total 2,00,000

 

(I) My Bio:My name is BishwasChepang and I was born on 30/06/1992. I was brought up in a single parent family as my mom left me when I was 4yrs old. As luck would have it, late Shree KishorKajiDhunganaopened a first school; Shree AntyodayaJanajatiAawasiyaVidhayalaya (community School) for chepangs. Learning Nepali was second language for me as we spoke our own Chepang language in the jungles. The when I was in 4th grade I won a prestigious scholarship from Pestalozzi Overseas Children’s Trust (POCT-UK) to study in the Nations best school, Budhnilkantha School with full scholarship in 2002. I completed my A-level in 2011. If you should ever have a moment to be proud in the miracle of education, then this is it. I am your living proof. This is my typing it via computer and trying to contact you. I am currently an Undergraduate student trying to get a degree in Social works. I expect to complete will complete my Bachelors this year from K and K College in New Baneswor, Nepal. My Bachelors education is supported by Miteree Foundation Nepal. I will be working as full time staff in Underprivileged Children’s Educational Program (UCEP Nepal)Sanothimi, Bhaktapur. I plan to pay your loan setting aside some of my own monthly salary moneywhen I become full time staff there after graduation. Currently, I am interning and am a part time. You can obtain by reference (see below in contact info section).

 

(J)What I do and why I do it:
I am a very proud Chepang. I believe in hard work. In fact we our people have always been independent for as long as we know it. We respect our environment and believe in self-sustenance and subsistence. We are paying a very heavy price in the name of modernization with destruction of our environment and climate change. I believe the solution is not more government hand out but a private market oriented opportunities for us all to engage in the trade that we can do and grow. We are taking one step at a time but it is very hard for us to catch up because so very few among us are educated in our society. Protection of our community is at a very critical stage and we have been the topic of recent research both by our own sociologist and international anthropologists.

Knowing the plight of Chepang community where I belong has been rewarding experience. I have been working as an intermediary where I connect the organization to the community. This has been helpful for the community in getting some kind of supports from NGOs/INGOs and CBOs.

We have formed our own working circle named : Self Sustaining Campaign for Chepang Community and have been working for the welfare of the Chepangcommunity.The recent initiation is on poultry farming on Chepang community as an immediate income generational activity. This has been one of the most effective projects that we carried out for the first time since the age of Fables of Aesop. We as an entrepreneur have started poultry farming in the village collecting the hatched chickens from the villagers whom we had given in the initial phase free of cost.

The second program we are running is One Chepang Child Sponsorship program where a Chepang child is sponsored by the interested sponsors for certain period of time. The donation will be made $150 a year for a child. This will help a child to get education till School Leaving Certificate Level (SLC) which is equivalent to end of Sophomore year in high school in USA.

Thirdly, we are distributing potatoes to the Chepang community people who are interested to cultivate and the harvested. Planter keep the profit but are asked to return the equivalent weight in potatoes that was given to them as seeds so that next family can use them in the next season as the current family use its own seed now. The village coordinating committee will be cultivating potatoes in large scale by empowering single mother. The profit from harvested will be used for One Chepang Child Sponsorship Program.

Contact office Address:

Name of the Organization: Underprivileged Children’s Educational Program (UCEP Nepal)

Juvenile Correctional Home, Kaski, Pokhara

Position:Social Worker

Email: 125bishwas@gmail.com and www.about.me/bishwaschepang

www.bishwaschepang.blogspot.com / www.bishwaschepang.wordpress.com

Website of organization: www.ucep.org.np

Reference: RajidSainju

Email; rrajid@gmail.com

Designation:  Program Coordinator of UCEP Nepal.