Artha
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young ideas and expressions for entrepreneurship
A joint effort of Entrepreneurs’ Clubs from different Colleges
VOL. 01 ISSUE 03 May, 2010
Cover Story
The Fallen Pyramid of Unity Towers
“A pyramid scheme is a non-sustainable business model that involves
the exchange of money primarily for enrolling other people into the
scheme, without any product or service being delivered. Pyramid
schemes are a form of fraud.” By Jayashwor Subedi
King's College
L
ast month, all the media exclusively covered the works scheme is a non-sustainable business model that involves the
of Unity Towers. It was blasted everywhere for its illegal exchange of money primarily for enrolling other people into the
and unauthorized works. Many people lost their jobs scheme, without any product or service being delivered. Pyramid
and investment after the owners of Unity Towers disappeared. schemes are a form of fraud.
Lots of people had became the member of Unity Life Insurance
(ULI). Madhya Mandal Rank Development Bank (MRDW) was This kind of scheme looks credible business. It has sophisticated
established by the operators of Unity Life. Bandikapur sounding money-making formula but actually it is easy to
Co-Operation too was run by the operators of ULI. understand. A pyramid scheme is called so because of it’s
Different Industries had purchased 32 percent three dimensional pyramid like triangle. The nature of its
of the bank’s share. On the other hand, Unity work is like if the work starts by a person at the top with
Hospitals at different places have been found 1 6 ten people below him and hundred beneath them and
running at a huge loss and deficit of doctors thousand beneath them, etc, and so on the pyramid
2 36
which has eroded the standard of service would exceed the total population of earth. If the
being provided by the company.
3 216 total population of earth was five billion and
4 everyone gets involved, the bottom layer would
1,296
Nu rtici
Nepal Rastriya Bank (NRB) consist of about 4.5 billion people; meaning
5
7,776
Pa
suspended the board on the five hundred million people will be winners
mb pan
6
charge of abetting ULI in its 46,656 and the rest losers. Joiner at last will get
er ts
7 far less profit than at first.
279,936
racket, running the office
of
at Unity Tower without 8
1,679,616
ls
approval, using the Pyramid schemes are taken as a
ve
9 6
10,077,69 more than Nepal's Populati
bank network to on form of fraud and illegal in many
Le
60,466,176
induct mem- 10 countries including, Australia,
Brazil, Canada, France,
362,797,056
bers for ULI, 11
changing Germany, Iran, Italy,
the name of
12
2,176 ,782,336 more than World Population Japan, The Netherlands,
the bank to Unity 13 13,060,694,016 sustain
United States, United
possible to
Grameen Bikas Bank become im Kingdom and Nepal.
hemes can
pyramid sc
and hiding information shows how
The chart
from NRB. The Ministry of Riots broke out in different places of
Foreign Affairs circulated a memo Columbia after several schemes failed in 2008 and forced the
to its 32 foreign missions alerting them of the ULI controversy country to declare economy emergency. WinCapita was a scheme
expanding to other countries. run by Finnish criminals that involved about 100 million euros.
So the question arises – Why were the activities of Unity Towers The pyramid schemes also disturb the systems for setting interest
illegal? Why is everyone saying it’s multi-level marketing will fail? rates and government budget as well as the labour market national
The answer lies in its Pyramid Structure or Scheme (It is also known ownerships and many other areas of government interactions into
as multi-level marketing). According to Wikipedia, a pyramid the economy, the other reason for illegalizing the idea. <
Editorial Article
viewpoints and issues
The fever of FIFA World Cup 2010 is
Capabilities
high. All our eyes are glued to South
Africa. Everyone is predicting the
based approaCh
next winners and is ready to support
their team. I too bought a shirt of my
favorite team. Some are buying flags,
accessories etc. Everyone is making By Delon Bharati
Kathmandu University
T
their plans to watch the game live.
he definition or the feel of all the forms of ‘no-freedom’ are the
So are the entrepreneurs! Freedom goes back to the time factors of capability deprivations.
when the human race began. Human capability has always increased
The sales of t-shirts, footballs, flags We invented tools and utensils to with the availability of goods and
are rising. Television companies have make our lives better which were a services; goods being the materialistic
freedom of availability or accessibility human needs and services being the
reduced the price of their products.
that could ultimately lessen the ‘no- education or the knowledge in making
The idiot box isn’t idiot anymore.
freedom’ that had to be dealt with had human lives better.
Other companies are offering if the tools were not invented. People
attractive prizes during this festival without freedom dealt with the harsh Ability of doing and being with the
of football. Ticket to World Cup can environment like hunger threats etc. access of availability is somewhat
be found inside a noodles packet or This was when the human civilization influenced firstly by the rights based
experienced freedom and felt the approach and secondly with the
printed in a drink’s cork!
difference of not having freedom. capital based approach. But when
Here, I have correlated freedom as the commentating upon availability,
Television companies competed ‘feel’ where the people back at that the freedom of availability should
to gain the rights to show World time had started realizing it as their be realized again. The freedom to
Cup live. And for the first time in capabilities got increased with the interchange goods, words, etc ensures
the history of Nepal, two Nepali advent of the early tools and utensils. the notion of availability. So with
accessibility, availability and capability
}
television channels are showing
2 the game live – Nepal Television Capability closely interlinked with each other we
can say capability leads the road to
and Avenues Television. Both are
approach tends freedom.
eyeing millions of profit from the
advertisements during this football
to have a higher The capital and the right based theory
month. A wonderful time for all of hand than the which has always existed and that
should also not be underestimated,
us and entrepreneurs, isn’t it? other approach in always tends to play a significant role.
enhancing human It has also always been agreed that it
This third issue of Artha is now in elevates capability to a higher level but
~
your hands. It has featured technical development the monetary freedom and the other
areas this time but we have tried liberties which ensures it has always
our best to make it simple and easy The definition or the meaning of seemed to be in dim light. Choosing
the word freedom might have been a life one wants to live and choosing
to understand. We are always ready
changed in every possible manner but a person one wants to be fortifies the
to get feedback from you which
the feel remains the same. It describes capability approach which is always
will be sincerely used to make the the same state of accessibility where ensured by freedom.
newsletter an improved one. We the choice of doing and being is all
will meet again in the fourth issue. within reach. This notion of freedom So the idea of the human development
Signing off till then. Enjoy the World is what an overall development longs goal can be defined with the
for which we define in terms of social perspective of capability which is by
Cup. Cheers!
development, economic development ensuring the freedoms.
and political development in today’s
developed world. Whether it be So by all these reasons capability
defined as an upliftment from a lower approach tends to have a higher hand
level to a higher level or as a series than the other approach in enhancing
of progressive changes, development human development. The expansion
ultimately needs to inhale the air of freedom by the capability approach
of freedom to attain a complete is more substantive and promotes the
development. life people want to live with their own
By Bibhu Gautam
Arthalaya 4th Batch
kinds of choices with the expanding
Now talking in terms of capability, opportunity and development. <
Artha | May, 2010
Latest News
market buzz
On verge of Shutdown : MahalaxMi SOap
Mahashakti Soap and Chemical Industries, an old soap factory based in the Hetauda industrial corridor, has remained
closed since March 24. The factory management has clarified that they had to close down the factory due to continuous
losses. However, the workers have blamed inefficient management for the closure of the factory and are hoping to see
resumption of operations. Its popular brands of soaps are Puja, Soaltee and Mayalu.
The management is seeking to liquidate the company and has forwarded a letter to the Department of Industry asking
for permission to liquidate the company. The management has said that it was preparing to pay off its workers as per
the existing Labour Act. <
Prior Approval of
advertisement script Mandatory
The government is doing groundwork to amend the existing Food Act 1996, making it mandatory for food companies to take prior
approval for the script of their advertisements in a bid to establish ethical practice and ensure better food quality.
The Department of Food Technology and Quality Control (DFTQC) has recently forwarded the draft proposal for the amendment
to the Act to the Ministry of Agriculture and Co-operatives (MoAC) to fulfill necessary procedures before endorsing it from the
parliament. <
3
Coffee farmers Ninja 250R hits the road
to get tax incentives
Hansaraj Hulaschand & Co,
In a bid to promote exports and boost coffee sole authorised distributor of
production, the government has decided to offer Kawasaki Bajaj motorbikes
incentives, including tax rebates and export incentives, in Nepal, has introduced
to farmers and exporters.
Kawasaki Ninja 250R in the
domestic market. Ninja
Recently introduced “Coffee Policy
250R was launched as
Implementation Guideline” has
an entry level sports bike.
authorized NationalTea and Coffee
Development Board (NTCDB) to
It has been famed for its light handling, good fuel economy, and comfortable
recommend for permission to
exporters to export green bean riding postures. The motorbike is available in stylish lime green and ebony black
coffee worth up to US$ 30,000 without Letter of colours, has racy dual seats, sporty style and large bodywork. The motorbike
Credit. < boasts of high-end performance with easy controllability featuring petal disc
brakes, 249 cc liquid cooled parallel twin engine (DOHC 8 valves) and wider
step-free power curve. <
Syangja tO be agrO-tOuriSM DeStinatiOn
People in Syangja district have been promoting agriculture as a tourism product. Agro-tourism has been launched in
Jagat Bhanjyang, Sirsekot, Majhkot and Jagatradevi village development committees (VDCs) of the district which are
famous for commercial agricultural production.
Tourist inflow has increased in all the four VDCs in recent days. Representatives from more than 25 districts including
Kathmandu have visited Jagat Bhanjyang and they were impressed by the ongoing development here. There is a
rotating house and view point in Jagat Bhanjyang from where views of 16 districts can be observed. Antique household
goods are displayed in the rotating house constructed at Sirsekot. <
Artha | May, 2010
Opportunity
way ahead
e-Banking in NEPAL
T
he economy of Nepal has remained inactive as a result of or Mobile Banking in 2004. Now in Nepal
poor development of infrastructural facilities in the country. current channels in e-Banking available are
In order to improve the living conditions of people banks - ATM, Point of Sales (POS), Tele, Internet,
in Nepal came up with innovative banking schemes intended to mobile or SMS.
upgrante the economic condition. So, the banking institutions of
Nepal are offering modern banking facilities like e-Banking system. Presently in Nepal, the number of Banks
This system is also offered to the rural areas of the country. and Financial institutions is eighteen By Paribartan Karki
Commercial Banks, twenty six Development Triton College
e-Banking, popularly know as the short form of Electronic Banking Banks and ninety one financial institutions.
is a term for the process by which a customer may perform
banking transaction electronically without visiting a brick and THE BENEFITS TO A BANK ON OFFERING E-BANKING SERVICE
montal institution. • Mass market will allow attracting new, high-valued
customers.
• Having personalized wireless access to critical financial
information is an invaluable service for customers on the
move.
• Reducing the unnecessary labour intensive service
overheads as well as lessens the paper work.
• Enabling the execution of time sensitive financial
transactions anywhere, anytime.
e-BANKING RISK FOR CUSTOMERS AND BANKS
4 • Card duplication - In this the information inside cards are
copied to another card.
• Password leakage through e-mails.
• Cyber Crimes like hacking kits which are difficult to counter.
• E-mails sent with a bank’s valid URL in a link.
Till date in Nepal, e-Banking frauds have not been found. Still
some precautions can be useful. Never give your cards and
account number to any body, update your antivirus program
Process of E-Banking
regularly, don’t use public computer for e-transaction, don’t give
your information in the websites which you don’t know, check the
certificate, use password which are difficult to guess and regularly
In Nepal e-Banking was introduced after the evolution of Joint check your account status.
Venture Bank. After that Nabil Bank introduced Credit Cards in
1990 and Automated Teller Machine (ATM) was introduced by Finally in future the Nepalese financial market must bring
Himalayan Bank Ltd in 1995. The Banking institution are launching cashless transactions, take to target areas like remote places,
lots of e-Banking facilities like Tele Banking. In 2002 Kumari more choices must be given to consumer like internet banking,
Bank introduced Internet Banking, Laxmi Bank introduced SMS enhanced security etc, for the innovative Global Market. <
Corporate Humor
rib ticklers
Frustrated employee stupid Boss
When I take a long time, I am slow When I do well, my boss never remembers A manager of the branch bank found he had no
When my boss takes a long time, he is thorough. When I do wrong, he never forgets. space left to store old records.
When I do not do it, I am lazy When I please my boss, that’s brown-nosing He wrote to his regional manager for the
When my boss does not do it, he is too busy. When my boss pleases his boss, that’s permission to destroy old records.
cooperation. < Regional manager replied back, “I do not mind
When I do it without being told, I am trying to be that you are destroying old records but please
over-smart make sure you keep photo copies of all the
When my boss does the same that is initiative. destroyed papers.” <
Artha | May, 2010
Exclusive
with a soldier of the entrepreneurial army
Background
Agriculture entrepreneur Kumud Singh completed his MBA from
Kathmandu University. Mostly seen in casual dress, recently
married Mr. Singh runs Alpine Coffee Estate with his partner,
Mr. Rabindra Shrestha also a KU graduate. This company largely
focuses on coffee farming processi ng and export. His coffee
farm is situated at Nuwakot district.
opportunities
The business of coffee is growing because of high demand
for it. So there is always good market inside and outside the
country. European countries, Japan, Korea, America etc. have
huge market for coffee. None of these countries grow coffee but
large number of coffee consumers comes from these countries.
Therefore, more than ten thousand farmers are directly
employed. He also shared the idea of making different tasting
coffee.
Kumud Singh challenges
“It was difficult to start at the beginning because we had limited
5
Executive Director knowledge on this business. And we had to train local villagers about
Alpine Coffee Estate the business process and the characteristics and life cycle of the plant,
“recalls Mr. Singh. He also laments the weak policy
of government. “Community leasing system of government is only for five years. To grow coffee, it takes four years. Therefore long-term
provision of lease is not proper for coffee farming,” he complains. He also feels that this business doesn’t flow cash regularly, during its
long gestation period, hence it becomes difficult to run it systematically and properly.
interests
• Likes to travel, watch movie
• Loves to watch football and has passion on PC games
• Adores cooking therefore practice at home with the help from
cooking lessons from www.youtube.com
}
Community leasing
system of government
• Listens to rock music mostly of AC/DC, Metallica and
Led Zeppelin is only for five years. To
happiest MoMent grow coffee, it takes four
• Seeing the coffee plants flower for the first time.
years. Therefore long-term
saddest MoMent
• First year of business because six thousand plants out of total provision of lease is not
twelve thousand plants had to be replanted.
proper for coffee
farming.
~
Artha | May, 2010
Scope
road to prosperity
Web 2.0 anD SOCial MeDia FOr
DEVELOPMENT By Suman Maharjan
Arthalaya 8th Batch
S
ocial media can be considered as media for Development’ shall be conducted
easier, faster and cheaper online media in Nepal to find out its possibilities and
where users can easily participate and challenges and also to find out possible Challenges
contribute. Web 2.0 is a free or a low-cost ways to overcome challenges. Conferences,
interactive web-based service that helps trainings, campaigns and other awareness 1. Internet and internet users
people to share information and collaborate raising programs can also be conducted
online more easily than with tools used using these tools. According to ICT Statistics News-
log - Nepal in April 2009, there were
}
earlier.
total of 76,502 internet subscribers,
Web 2.0 is described as the latest stage of Development including 13,893 ADSL broadband
the internet where one can do more things internet users. Most of the Web 2.0
on the internet rather than on their personal sectors and non and social media websites are com-
computer. And the web-pages do not remain patible with high speed broadband
just fixed pages of information. It comprises profits could also internet and good computer con-
doing things in a web-browser like reading figuration.
mails, etc. Facebook and other such social develop their
networking websites are the part of Web 2.0 2. Policy and regularity provi-
and social media. social media sions
Web 2.0 applications and social media can strategy to use At present, the priority of the whole
6 be used for development purpose. The new
boom in channels called “social media” Web 2.0 and
nation is on constitution making
and the peace process, not on laws
could be the new age channel and means of and legislation on Information
content delivery such as pictures, sounds,
videos, or text, but in different way. Social
social media Communication Technology (ICT).
Overall, Web 2.0 and social media
media may not follow the traditional way of
one-way information sharing like TV, radio
channels more is just a specific and advanced part
of ICT. As the e-Government Master
and newspapers. In social media everyone
can participate, contribute content and
effectively and Plan 2006 Consulting Report said,
“Electronic Transaction Act is an act
be an active receiver of information and a
supplier as well. Everyone is an equal player
efficiently to solely for e- commerce, therefore
additional laws for ICT develop-
with equal ability to share their perspectives
and be part of the conversation. It is also deliver their ment are needed; the foundation
for ICT development through en-
about integrating, combining, aggregating,
generating, moderating and mediating messages to a actment of the ICT promotion fund,
ICT promotion law, e-government
development information, ideas and
~
perspectives. wider audience. law, etc. is needed.”
Development sector, non profits etc. can Access to the internet is the fundamental 3. Language
benefit from Web 2.0 and social media requirement of Web 2.0 and social media.
The dominance of the English lan-
through social networks, online communities, Therefore high speed internet service
guage in Web 2.0 and social media
blogging, micro-blogging, promoting events expansion is required in urban areas
could be considered as another
via social media and content sharing and semi urban and rural areas too. The
challenge in this domain.
worldwide. government does not seem to have enough
rules, regulations and policy to address the
Development sectors and non profits can use of Web 2.0 and social media, therefore 4. Priority areas of development
also develop their social media strategy to it is necessary to make favorable policy, The present plan focuses on physi-
use Web 2.0 and social media channels more rules and regulation on internet mediated cal infrastructure development, so-
effectively and efficiently to deliver their channels. ICT, Web 2.0 and social media
cial integration. And issues about
messages to a wider audience. Education are given less priority by most development
Web 2.0 and social media are not
institutions like universities, colleges, stakeholders. It’s time to start debate and
seen in mainstream development
training institutions, etc. can run educational take action to get benefits from these
because of other dominant priori-
courses on Web 2.0 and social media new technologies and also explore how to
ties.
channels. Research on ‘Web 2.0 and social overcome potential harm. <
Artha | May, 2010
Entrepreneurs' Club Activities
accomplishments of building entrepreneurs
Creative Entrepreneurs’ Club of Entrepreneurs’ Club of
Shreenagar Integrated College Blue Bird College
Tansen, Palpa Manbhawan, Lalitpur
Creative Entrepreneurs’ Club of Shreenagar Integrated College,
Palpa organized a documentary show in its premises on the month
of March. The documentary License Permit Raid Raj helped the
students to know the effects of licensing. <
Animals Are Beautiful People was shown at Standard Chartered
College as a docu-talks series. The event took place on 13th March.
Total number of twenty nine students enjoyed the documentary
made by the director of famous movie Gods Must Be Crazy. <
Entrepreneurs’ Club of
Kantipur Valley College
Kumaripati, lalitpur
Entrepreneurs’ Club
Three different programs were held at Management Campus An Introduction
of Purbanchal University. The Entrepreneurs’ Club organized a
documentary show where Call of an Entrepreneur was shown. Entrepreneurs Club is a gathering of a group of college
7
Similarly, a seminar on ‘How to make Family run Business to students initiated by an arthalaya graduate where the
Professional’ was attended by 130 participants. Another student primary objective is to be able to promote entrepreneurship
seminar ‘Rule of Law, Business Law and Modern Business’ was and enterprise building activity amongst students. Its main
participated by seventy students. < objectives are to conduct discussions on issues affecting
enterprise building in Nepal, train fellow students on the
Entrepreneurs’ Club
CITEKathmandu
Tinkune,
importance of entrepreneurship, who is an entrepreneur,
hold interaction programs with entrepreneurs to know their
experiences, and work with other like minded organizations
and provide platform for budding entrepreneurs. <
WORLD'S EASIEST QUIZ!
1) How long did the Hundred Years War last ?
2) Which country makes Panama hats ?
3) From which animal do we get cat gut ?
4) In which month do Russians celebrate the October
Revolution ?
5) What is a camel's hair brush made of ?
6) The Canary Islands in the Pacific are named after what
animal ?
7) What was King George VI's first name ?
8) What color is a purple finch ?
CITE Entrepreneurs’ Club organized a docu-talks on 19th March.
9) Where are Chinese gooseberries from ?
Eighty six students and teachers watched the documentary “Pirates
10) What is the color of the black box in a commercial
of the Silicon Valley”. The documentary is the story of Bill Gates
airplane ?
and Steve Jobs who changed the way the world thinks, acts and
communicates. 9. New Zealand, 10. Orange
4. November, 5. Squirrel fur, 6. Dogs, 7. Albert, 8. Crimson,
The documentary helped students to know about entrepreneurship 1. 116 years, 2. Ecuador, 3. Sheep and Horses,
skills and showed them how Bill Gates and Steve Jobs managed to Answers:
be there where they are now. <
Artha | May, 2010
IntroductIon to arthālaya making sense of it all
To realize the vision of a prosperous Nepal, young people have an eminent role to play.
Be it in taking the first step towards enterprise building or towards shouldering the risk and
leadership it takes to be innovative and creative.
Arthãlaya (School of Entrepreneurship and Economics) is a five-day workshop promoting the
spirit and skill of entrepreneurship and sensitizing young people about economic freedom and
policy regime.
The main purpose of this program is to help young people explore alternative ideas for Nepal’s existing problems; to help young people
understand the value of entrepreneurship and to help them learn the know how of building new businesses and inject new ideas into the
economy for promoting economic reform.
Samriddhi, The Prosperity Foundation organizes arthãlaya. It is a public policy institute based in Nepal which works towards generating ideas
for a free and prosperous Nepal. <
for details log on to www.samriddhi.org
active entrepreneurs' Clubs
Entrepreneurs’ Club of Sushil Subedi Robin Lama
Chelsea International Academy Prithvi Bandhu Adhikari Gunjan Khanal
Mid Baneshwor Suraj Raj Shrestha Kripa Budathoki
Kirtan Adhikari Swechya Mishra
Ghanashyam Neupane
Nayan Baniya Anup Thapa
Prayash Raj Koirala
Shrijana Giri
Sangam Dahal
Entrepreneurs’ Club of
Ujjwal Poudel
Santwona Memorial College
Bristi Kayastha
Koteshwor Entrepreneurs’ Club of
Pratibha Simkhada
Standard Chartered College
Sonam Bhandari Abhishek Koirala
New baneshwor
Sujan Dangal Nikunja Bhandari
Nishant Sapkota Kamal Tiwari Gaurab Koirala
Santosh Poudel
Entrepreneurs’ Club of Manisha Khawas
St. Xavier’s College Santosh Kadel
Maitighar Sujan Parajuli
Saroj K.C.
Creative Entrepreneurs’ Club of
Akash K.C.
Shreenagar Integrated College
Mristi Rimal
Saput Shrestha
Tansen, Palpa Editorial Board
Prajwol Man Maskey Devendra KC Satish Shahi, KCMIT
Suraj Bhattarai Ramesh KC
Utsav Lamicchane, KIST College
Vivek Bhusal Shanker Bhattarai
Sukra Bikram Rana Bibhu Gautam, Arthalaya 4th Batch
Entrepreneurs’ Club of Mahendra Bista
Kantipur Valley College
Contributors
Kumaripati Entrepreneurs’ Club of
CITE College Members of various
Sujana Raut Entrepreneurs' Clubs
Tinkune
Basanta Raj Mahat
Ananda Jha Bikash Magaiya
Dwarika Thebe Lokendra Thapa Jointly Published by Entrepreneurs’
Nabin K. Gole Jayaram Dahal
Clubs of various Colleges
Nikesh Maharjan
Bhulan Lakhe Entrepreneurs’ Club of
Rajesh K. Jha Bluebird College Print support by
Manbhawan Samriddhi, The Prosperity Foundation
Entrepreneurs’ Club of Manisha Maharjan www.samriddhi.org
KIST College
Kamalpokhari This issue of Artha Can be downloaded from
Entrepreneurs’ Club of
Sanjeet Budathoki Liberty College http://samriddhi.org/page.php?id=8
Alok Pandit Anamnagar
Sacheet Pandit Mail us at: artha@samriddhi.org
Nitesh Kumar Chaudhary
Disclaimer:
The views, ideas and opinions expressed in The newsleTTer are enTirely of The auThors and The respecTive auThor shall be responsible for his/her
publicaTion in The newsleTTer.