2. Establishment of Enterprise in Nepal
• A cooperative organization can carry out its functions only after its
registration under the cooperative act 2048. For registration of cooperatives
following procedures should be followed.
1. Preliminary meeting: According to the cooperative act 2048 there should
be at least 25 members to form a cooperative society. Preliminary meeting
must be held before applying for the registration. The meeting is held in the
presence of 25 members under 1 chairman among them. The following things
should be discussed in the meeting:
• Commencement of the business
• The name and address of the society
• The objectives of the society
• The value of each share o Membership fee
3. 2. Filing an application for registration
After preparing and passing proposed by laws and working schemes in
the preliminary general meeting. In application should be submitted to
the office of registrar, department of cooperatives, and government of
Nepal Following things are mentioned in the application form
• Proposed name of society o Address
• Objectives o Working areas o Liabilities
• Total share capital o Total number of shares to be paid
• Two copies of law of proposed society
• Original copy of working scheme
• Copies of citizen certificate
• Application must be signed by chairman.
4. 3. Receiving the certificate of registration
• After filing application for registration, certificate of registration is to
be received. After applying application along with document, they are
submitted at the registration office. Then the registrar checks all the
documents. If the documents are satisfactory then registrar will issue
certificate of registration. After receiving certificate of registration, the
society can operate.
5. Issues and challenges for an enterprise establishment
and management
Lack of requisite skills for effective business management:
• Most SMFEs in the informal forest sector are family-based and proprietors
have low literacy levels. Hence, the proprietors generally lack managerial
and entrepreneurial skills.
Raw material supplies:
• Especially wood – are often times difficult to source, either due to
inaccessibility, unavailability, or high and unstable pricing. Destructive
harvesting practices, indiscriminate logging and clearing of source areas for
agriculture have destroyed the country’s stocks of timber and non-timber
forest products. As a result, proprietors have to travel long distances to
collect raw materials, making harvesting costs high and returns low. Given
the current rate of deforestation, it is feared that all the country’s natural
forests and its products could be lost in the next decade.
6. • Limited access to market and market information: Proprietors are mostly not
abreast of market trends and the changing taste of consumers since the majority
live in remote areas and are mostly illiterate. Access to markets is minimal, either
because of poor infrastructure or because the markets are far away and
transportation costs are high.
• Limited access to financial services: The inability of SMFE proprietors to access
large enough loans on good terms to finance their activities constitutes a key
challenge. Proprietors find it difficult to expand their businesses due to their
limited capital base.
• Crude product processing and packaging: Most proprietors use crude and
indigenous methods of processing and packaging products for the market,
resulting in poor finishing of products. This limits product acceptability on the
local market, where they are outcompeted by imported alternatives.
• Low bargaining power: The individualistic manner of operation and inability to
properly cost activities results in SMFE proprietors having low bargaining power.
Financial returns from SMFE activities are therefore low and that constitutes a key
challenge to the development of economically viable SMFEs in Nepal.
7. Define of coordination and linkages
Define coordination and linkages
• Delivering of services for the forest user group members or farmers by different
organizations or stakeholders or line agencies to ensure that needs are met and
services are not duplicated by the organizations involved in providing services is
known as coordination. Coordination is the essence of management and an
integral part of all the managerial functions. It is also instrumental in binding all
the managerial functions.
• Internal Coordination - Internal coordination is all about establishing a
relationship between all the managers, executives, departments, divisions,
branches, and employees or workers.
• External Coordination - As the name suggests, external coordination is all about
establishing a relationship between the employees of the organization and people
outside it. For example: (DFO, AFO, Ranger) to CFUGs/local people These
relationships are established with a view to having a better understanding of
outsiders like market agencies, public, competitors, customers, government
agencies, financial institutions, etc
8. • Vertical coordination – In vertical coordination, a superior authority
coordinates his work with that of his subordinates and vice versa. For
example, DFO, AFO, Ranger, Forester.
• Horizontal coordination – In horizontal coordination, employees of
the same status establish a relationship between them for better
performance. For example, the coordination between department
heads, or supervisors, or co-workers, etc. Relationships and
interactions between tasks, and organizations that promote flow of
supports, ideas, and integration in achievement of shared objectives is
known as linkages.
9. Importance of coordination and linkages for enterprise
development and management:
1. Coordination and linkages help entrepreneur to establish network with
other supporting institutions.
2. Entrepreneurs obtain a good receiving programs, support and services
(financial and technical) from the supporting stakeholders.
3. It is helpful in lowering the cost of production of the Entrepreneur.
4. It also helps to increase the capacity of entrepreneur for planning, plan
implementation, and monitoring and evaluation of enterprise.
5. It is beneficial for building trust between entrepreneur and supporting line
agencies, and resource pooling in order to jointly accomplish common goals
for reducing poverty through microenterprise development and management.
10. 6. It also contributes to the increased efficiency and competitiveness of an
enterprise.
7. It can contribute to shared skills and resources and enhance product quality
through common production standards.
8. Such coordination and linkages also facilitate collective learning and risk
sharing while increasing the potential for upgrading and innovation.
9. It influences the creation of standards enterprise.
10. It also helps in flowing market information.
11. Small-scale producer groups will have strong potential to increase their
bargaining power in the marketplace due to the support of supporting line
agencies.
12. Coordination and linkages help to overcome common constraints to
pursue opportunities of an enterprise.
13. Finally, it helps to make enterprise successful and sustainable.
11. Identification of stakeholders
• A stakeholder is an individual, a group of people, or an organization who
can affect or be affected positively or negatively by your project.
• Before you can engage project stakeholders, you first need to identify them.
Then you analyses them to place them into appropriate groups. This will
then help you develop the right plan for communicating with those groups
throughout the project.
• The following is a list of some of the common tasks associated with the
Identify Stakeholders process:
1. Identify and document a list of all project stakeholders:
Determine who internal stakeholders may be
Identify/document external stakeholders
Prioritize the stakeholder list by anticipated participation or importance
12. 2. Validate the Stakeholder Register (list):
• Network with stakeholders to determine specific project interests and needs
• Evaluate stakeholder organization influence to determine stakeholder positioning
on the project
3. Create a high-level approach for communicating with all stakeholders
• Prepare a document describing what the overall approach will be toward
stakeholder management for the project
• Develop a preliminary communication plan intended to address general
stakeholder needs
4. Define your responsibilities as project manager, and those of other stakeholders
• Define which stakeholders will be participating and will have an interest by
project phases of the project life cycle to be used on the project
• Communicate the approach to key project stakeholders in order to obtain buy-in
13. Types of stakeholders:
A. Local level stakeholders
• Saving and credit groups and its operatives within CFUGs, Other CFUGs, Local
Government, Local NGOs/CBOs and Clubs, subdivisions, Livestock Service
Centers and Agriculture Service Centre, Health Post, School, Homestay
management committee etc. are the main local level stakeholders of a CFUG.
B. District level stakeholders
• Division Forest Office(DFOs), FECOFUN, District Soil Conservation Office
(DSCO), District Development Committee (DDC), District Agriculture
Development Office, District Livestock Service Office, District/Divisional
Cooperative Office, Federation of Cooperatives, District Education Office,
Women Development Office, District Small Cottage Development Office, District
Drinking Water Supply Office, District Irrigation Office, District Hospital,
I/NGOs, and other projects are the main district level stakeholders of a CFUG.
14. C. Provincial level stakeholders
• Ministry of Forests and Soil conservation, Directorate, FECOFUN,
I/NGOs, Province level project.
D. National level stakeholders
• The Ministry of Forests and Soil Conservation, Federation of
Community Forest User Groups, Nepal (FECOFUN), Ministry of
Agriculture and Cooperative, National Federation of Cooperatives,
Poverty Alleviation Fund, and other I/NGO and Projects are the main
national level stakeholders of a CFUG.
