Entrepreneurship Management in rural area

7/30/2019 Entrepreneurship Management in rural area

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Entrepreneurship

ManagementRural Entrepreneurship @ Vaishnavchak

Hasthshilpa, East Midnapur, West Bengal-

721158

Vaishnavchak Hasthshilpa skillfully pour magic into thecraft items and designs with the help of its master craftsmenand artisans. They are a professionally managed organizationwhich works under self guidance and got an in depth

knowledge of craft making .

NIFT, KOLKATA

SUBMITTED BY:

RAVI KANT (18)

RITURAJ (19)

SEM- VI

2010-2014


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INTRODUCTION

Vaishnavchak Hasthshilpa is a handicraft unit based at village: Durgachatti, panchayat: Vaishnavchak

at East Midnapore, West Bengal- 721158. It is a cottage industry owned by Nimai Chandra Janna. The

enterprise was established in 1987. Vaishnavchak Hasthshilpa is a handicraft store which manufactures

handicraft goods from horns of animals; mainly buffalo. It is operated by Nimai Chandra Janna and hisfamily. They run a family business.

Nimai has got the knowledge of craftsmanship from his ancestors as it was the main family business. He

has got an expertise in craft making. They make products daily. At the time when huge order comes a

large amount of money Is needed. When large order comes, they take advance money for raw material

from their customers. They do so because they dont have capital investment.

Vaishnavchak Hasthshilpa skillfully pour magic into the craft items and designs with the help of its

master craftsmen and artisans. They are a professionally managed organization which works under self

guidance and got an in depth knowledge of craft making .Their collection renders great aesthetic &

functional value as they are handcrafted medley of passion and craftsmanship.


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PRODUCT MADE

They make all kind of handicraft goods. Mainly they make decorative material from the horns of animals.

They make handicraft goods from buffalos horn which comes in two colour: BLACK and WHITE. The

decorative items include birds, animals, Jesus statues and other decorative items. They make functional

items like table lamp, pen stand etc on demand.


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PRODUCTION

Raw Material Used:

Horns of Animals (mainly buffalo)

Wooden blocks, gum

Raw Material detail:

Raw material used:

The only raw material used to make the items is horn of animals (mainly: buffalo)

Source of raw material:

The main source of procurement of raw material is Raja Bazaar, Kolkata. There are other places also like

Haldia market from where the procurement is done.

Price of raw material:

The price of raw material varies as:

Black horn: Rs.200kg -250/kg

White horn: Rs.800/kg

PRODUCTION PROCESS:

After the procurement of raw material the raw material ( horns) are separated according to their variety of

shapes. A horn can be of many shapes and sizes like round shaped, circular shaped, straight shaped,


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broken etc. Now the decision is made on what item would be made from the different shapes available.

As they make different types of decorative materials like birds, table lamp and other items. Each kind of

material needs different kind and shape of the horn. The horns are then selected according to what

material is supposed to produce. Horns are really hard to cut. The main material used to cut the horn is

HACKSAW blade. Horns are heated to high temperature to mold it in various shape. The horn when

heated can be beaten to different shapes. For heating of the horn the traditional CHULHA is used. Theycan use other kind of heating materials also. But due to lack of money they are not able to make such

arrangement for heating of material. When the horn is heated it is now ready to be beaten to any desired

shape. Handicraft made after the beating of horn is in very crude form. They are not usable. They need

some polishing. Sand paper is used to polish the made handicraft good. After polishing is done the

product is ready to be sold at market.

( Process flow of craft making)


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Markets:

Main market:

The product is mainly sold at the market of Kolaghat, Meceheda and Haldia. The owner of the unit

delivers the goods to the local handicraft shops and the above mentioned places.

Other markets:

Except the local market there are other markets where the product is sold. These markets are: Odhisa

(Puri, Bhubaneswar) ,West Bengal ( Digha, Kolkata, Mandarmoni), Khadi Gramudyog. These are

seasonal markets. The product is made when the order comes. Customer give order to the manufacturer

along with the advance money for procurement of raw material as manufactures capital investment is

very low.

The owner himself sale the product at District Industrial Handicraft Fair hold at Kolkata every year by

putting up his stall.

Peak season of sale:

Peak season of sale of goods is winter.

Festivals for maximum sale:

Durga Puja Kali Puja

Price Range of goods:

Rs. 30- Rs. 500/-Labour Cost:

They work regularly on very small basis. Though they produce the items daily, but on a very small

quantity are made. But when the season comes, they get a huge order from their customers. That time

they hire the workers on daily wages basis. Labours are hired on contract basis according to the order. A

labour is paid Rs.60- Rs.80. (approx.) per day.

Monthly Income:

Rs. 6000Rs. 8000 (whole family income)The whole family work for the same. So their average monthly income is Rs.6000- Rs.8000. They earn

very less at non seasonal times. Their maximum percentage of income depends upon the sale at peak

seasons.


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S.W.O.T

S (STRENGTH)

Large, diversified and potential market. There is large product variety and range is available because of diversified culture. Diversified product range that service different market. Cheap labor rates that result to competitive price. Need low capital investment. There is flexible production flexibility. Low barriers of new entry. Easy creation and development of production centers. There is no need for macro- investment. Products are high value added, and handicrafts have various applications. Rural occupation next to agriculture.

W (WEAKNESS)

Lack of infrastructure and communication facilities. Unawareness about international requirements and market. Lack of co-ordination between government bodies and private players. Inadequate information of new technology. Inadequate information of current market trends. Still confined to rural areas and small cities and untapped market. Lack of promotion of products. Low production


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O (Opportunities)

Rising demand for handicraft products in developed countries. Developing fashion industry requires handicrafts products. Development of sectors like Retail, Real Estate that offers great requirements of handicrafts. Development of domestic and international tourism sector. E-Commerce and Internet are emerged as promissory distribution channels to market and sell

the craft product

Growing recognition of Made inIndia brand in global market. Rising flow of tourists in India. Rising export market for quality products across Europe, Latin America and US

T (Threats):

Competition in domestic market. Balance between high demand and supply. Quality products produced by competing countries.

Better Trade terms offered by competing countries.

Increased and better technological support and R&D facility in competing industries. Inflating raw material rate


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Economic Potential:-

Artisans working in rural areas are affected by factors not relevant to their urban counterparts.

Whereas urban-based artisan industries employ significant numbers of both men and women on a

full-time basis, rural-based artisans tend to work part-time in the home. This has both positive and

negative potential implications.

On the positive side, handicraft employment can complement agricultural labour, without

necessitating migration whereas on the negative side, this creates a potential conflict of time between

subsistence production and handicraft work for cash.

Marketing

As the export market in handicrafts represents the highest earnings potential for artisans, knowledgeof the market place is crucial, yet the Western marketplace is alien territory to most artisans. Ofcritical concern is the accessibility of market opportunities and any subsidized marketing programs.

Craft cooperatives, organized as a central buying exchange where many tiny producers can combineto satisfy large orders, are often useful.

Once a group of artisans successfully penetrates the export market, the tale is not over. Marketsuccess can mean the development of an important activity, with hundreds of people dependent on

the sale of the handicrafts. The international market can be heartlessly fickle; demand for a productcan disappear rapidly. Therefore, new applications, adaptations, approaches and markets must becontinually sought.

Access to resources

Institutional support in the procurement of raw materials can be of great use to artisans. However, acaveat is also appropriate; wherever a small supplier would suffice, it may be preferable togovernment intervention, owing to the tendency of bureaucratic supply agencies to turn into unfairmonopolies.

Chal lenges to rural crafts development-

Although, many domestic companies are positively responding to the global conditions, but the

international-domestic combination also comes with considerable multiplicity. Despite the strong

growth momentum, the sector also faces various challenges:

a) Originality faces threat: In any market, emphasis is laid on the consumption pattern. When

the demand for any product is high, it should be made available even if the social costs are high.

This is leading to the development of contemporary artifacts that address the demands of thepeople. In many respects, contemporary artisans maintain the traditionalism and also

simultaneously meet the demands of the international consumers or local tourist market.

The real problem comes up when originality is threatened in the very process of innovation.


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b) Changing patron-client network: It is believed that in the present market system, the craft

industry has seen many vulnerabilities. With the development of the modern market economy,

the old patron-client business network is fast declining. The artisans are dependent on middlemen and trader entrepreneurs to sell their products.

c) Changing occupation: Reports suggest that majority of the artisans in India is illiterate asthey usually do not have formal education. This is forcing many artisans to shift to otherprofessions rather than just sticking to their hereditary occupation.

d) Handmade vs. Machine made: Since mass production and rising mechanization arebecoming the norms of the day, handmade products are fast disappearing.

Government intervention to step up growth

Despite the adaption of the liberalisation of policies, the handicrafts sectorwitnesses

intervention from government to strengthen productivity. In the Indian constitution, handicraft

has been defined as state subject and it is stated that the responsibility of development andpromotion of crafts lies with state governments. The central government via developmental

schemes plays the role of supplementing their efforts. To strengthen holistic growth of the sector,quite a few generic schemes have been implemented.

a) Marketing Support and Service Scheme: Aims to create awareness about the Indian craft

products among the people via marketing events, providing services in the form ofentrepreneurship and providing financial assistance to state handicrafts corporations for setting

up new shops.

b) Baba Saheb Ambedkar Hastshilp Vikas Yojana: Government hopes to develop the

handicrafts sector via the participation of craftspersons. It is implemented through social,marketing and financial interventions.

c) Design and Technology Upgradation Scheme: It hopes to supply modern tools, upgrade the

skills of artisans, revival of rare crafts by offering training along with outsourcing.

d) Export Promotion Scheme: It works for the promotion of export of handicrafts with special

emphasis on hand-knotted carpets and floor covering. The main components of this scheme are

product development, marketing and also welfare measures.

e) Research and Development Scheme: It aims to get feedback on economic, social, aesthetic

and promotional aspects of various craft goods.

f) Training and Extension Scheme: It works in the direction of capacity building.

g) Bima Yojana for Handicrafts Artisans: The Yojana provides life insurance protection to the

artisans, either male or female who are in the age group of 18-60 years. It is being implementedin association with the Life Insurance Corporation of India ltd (LIC).


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h) Special Handicrafts Training Projects: Under this programme, steps are taken to upgrade

the skills of existing and also new craftpersons, enhance employment opportunities in the

handicrafts sector.

Apart from the above mentioned schemes, Centre has been taking special steps for strengthening

the crafts by popularising the products.

Recently, the Export Promotion Council for Handicrafts (EPCH) inked an agreement with

Kazakhstan-based Almaty Chamber of Commerce and Industry to raise the Indian handicrafts

exports in the Commonwealth of Independent States (CIS) region.

Conclusion

Crafts development activities should be considered as part of overall development efforts for a given

region, rather than an economic panacea that will provide "instant" alternative employment and

income opportunities. However, if treated as one element in the development of a comprehensivedevelopment programme, handicrafts can make an important contribution to the development of alocal economy based on environmentally and socially sound principles.

Expectations from efforts aimed at handicrafts development should not be exaggerated. Economic

development handicrafts production, alone, cannot be expected to result in maintenance of culturaltraditions. In fact, as has I noted above, keeping pace with the demands of the international

marketplace may often require modification of traditional designs. However, the improvement ofemployment and income-generating opportunities based on crafts skills cannot but help to foster themaintenance of traditional knowledge held by the craftspeople themselves.


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Bibliography

http://www.fao.org/docrep/u2440e/u2440e06.htm

http://news.indiamart.com/story/indian-handicraft-sector-opportunities-challenges-and-growth-

prospects-168982.html
http://www.fao.org/docrep/u2440e/u2440e06.htmhttp://www.fao.org/docrep/u2440e/u2440e06.htmhttp://www.fao.org/docrep/u2440e/u2440e06.htm

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Entrepreneurship Management in rural area