KATHMANDU UNIVERSITY SCHOOL OF MANAGEMENT

Economics Term Paper on case: Impact of Growing Futsal Business in Kathmandu

Submitted to:

Mr. Binayak Chhetri

[Faculty of Microeconomics]

Submitted by: Jeevan Regmi

BBA 1st Year, 1st Semester

Sec: A

Roll no.: 18781

Submitted on: 28 December,2018

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ACKNOWLEDGEMENT
I would like to thanks Mr. Binyak chettri sir for providing me such learning opportunity through
this study and research. I also would like to thanks Mr. Aviraj Thapa for giving me the
information that I needed to research. Also I would like to thanks all those futsal players that
were present during the research for that questionnaire. In this research I did survey in
Baneshwor futsal with the permission of Mr. Aviraj Thapa. I have collected all these data by
myself and all the data used in this research is primary data. I also would like to thanks the
Himalayan times for providing such useful article on futsal.

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Table of Contents
1. Futsal in Kathmandu Valley
2.How it is being played in Kathmandu?
3. Pricing for Futsal
4.Futsal: Demand and Supply
5.Factors affecting demand of Futsal
6.Consumer Surplus and Producer Surplus in Futsal
7.Impact of Futsal in Kathmandu Valley
8.Conclusion
References

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Impact of Growing Futsal Business in Kathmandu

Futsal has been developed and played everywhere throughout the world

since past prolonged stretch of time, in Nepal it has been played and is

picking up popularity since recent years. Frequently it is otherwise

called a corporate house amusement. The significant fascination of this

diversion is that it very well may be played at whenever and at any

climate. The offices given by futsal organizations in Nepal fluctuates

from parking garage to sauna shower. Returning to history, Futsal was

begun back at 1930 in Brazil and Uruguay. From that point forward

numerous progressions has been made to the amusement.

Futsal is essentially one of the forms of Football with five-a-side and is

played between groups of five players every, one of whom is the

goalkeeper. Boundless substitutions are allowed. In contrast to some

different types of indoor football, the amusement is played on a hard

court surface delimited by lines; dividers or sheets are not utilized.

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1. Futsal in Kathmandu valley

Football has always been one of the most favorite games of Nepalese
without any targeted age group. But, unlike the case of football, futsal
do have a targeted users and a targeted age group. Mostly students are
more attracted towards it and then the employees as it can be played at
any time. Even during 10PM in the night, people are found playing futsal
with the lights on. This is somewhat a fascinating part of futsal in a
country like Nepal.

2. How it is being played in Kathmandu?

In Kathmandu, it is being played in a hourly premise. Each group comprises of 5

players with 3 to 4 substitutes. It is being played in counterfeit turf under rooftop.

Typically, lights are being given in each futsal field to such an extent that the

amusement can be played under lights amid night moreover. The extent of futsal

ground differs yet ordinarily it will be around 35-50 meters. Since, there is no any

settled standard kept up in Nepal, objective posts resemble 5 feet and 10 inches high

with around 6 feet in width.

3. Pricing for Futsal

Cost of Futsal differs as per area, time and frameworks. Playing on ends of the week cost you

more than playing on weekdays. For the most part, valuing can be as per the following: least

1000NRS every hour to greatest 2500NRS every hour. Limits are additionally given in the event

that you are a part for that field and save the field for settled standard time.

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4. Futsal: Demand and Supply

Futsal was begun in Nepal just about five years back however it began picking up

popularity after some time. Playing football in an open ground didn't require

authorization of anybody; however in any sorts of climate it couldn't be played.

Individuals found an elective route for playing football in any sort of climate and

whenever. This is the means by which futsal picked up prominence in Nepal. After

at some point of its dispatch, the interest for futsal apparently is dependably been

higher in its supply. Aviraj Thapa, proprietor of Baneshwor Futsal & Recreation

Center, says that there were 20-22 groups coming to play every day in 2016 in

Kathmandu contrasted with 10-12 groups in 2014. Also, with the increament in

Futsal Arenas, the quantity of groups coming to play day by day is 13-15 groups

on a normal. The interest of futsal field in Kathmandu valley is for the most part

partitioned into two classes. One is in ends of the week and the other one is in

weekdays. Students play futsal regular paying typical rate every hour while

representatives are generally discovered playing in ends of the week paying higher

rate every hour.

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 2500 S
G F
Rate Per Hour (Nrs)

2000
Surplus of 10 teams
E Equilibrium
1500
Shortage of 5 teams
A B
1000

500 D

0
5 10 15 20 25
Number of teams per
day

In the figure above, the demand for and supply of Futsal in Kathmandu valley is shown. D and S

respectively represent the Demand for and Supply of futsal. In the X-axis we can see the number

of teams playing futsal and in the Y-axis we can see the Rate Per Hour of futsal. The normal

demand per day is of 15 teams playing at an hourly rate of Rs1500. Rs1500 is the equilibrium

rate. Triangle ABE represents shortage whereas triangle FGE represents surplus. If the demand

increases upto Point B i.e. 17 teams per day then there will be the supply of 12 teams per day

only, resulting into the Shortage of 5 teams. However, if the supply increases upto 20 teams per

day then there will be demand of 10 teams per day only because of the high rate per hour. Since,

at higher rate per hour, the consumers will not play futsal and at lower rate per hour, the owners

will not provide the futsal arena. And this is how the market is established at Rs1500/hour with

15 teams playing per day.

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5. Factors affecting demand of Futsal

There are other factors also which affects the demand of futsal. They are:

- Income of consumer

- Number of Consumer

- Available Substitutes

We previously discussed the quantity of consumers for futsal, so here we talk about the income

and accessible substitutes. Since it isn't ensured that workers get timely paid and student will get

pocket money regular. So until the point when they have cash in their pocket, they won't play

futsal. So this is the situation when there may be changes in demand because of the non-price

determinant.

And furthermore about the accessible substitutes, for a futsal field to pull in its client, it must

give the best offices at a sensible expense. There might be many futsal arenas which may charge

you a high cost but might not provide any satisfactory services. So in that case, for a particular

futsal, the demand may vary.

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 6. Consumer Surplus and Producer Surplus in

Futsal

The concept of consumer surplus and producer surplus comes because of the market forces of

demand and supply with an efficient equilibrium and a reasonable price.

Fundamentally, buyer surplus is the estimation of the distinction between the value

customers will pay for an item on the interest bend and the cost really paid for it. Though,

Producer Surplus is the estimation of contrast between the real moving cost of an item and

the value makers will move it for on the supply curve.

Here is the figure showing Consumer and Producer Surplus of Futsal

(a) Consumer Surplus at selected price (b) Producer Surplus at selected price

2500
Rate Per Hour (Nrs)

2500
Rate Per Hour (Nrs)

A 2000
2000
E E
1500
1500
A
1000
1000
500
500
5 10 15 20
5 10 15 20 0
0 25
25 Number of teams per Number of teams per
day day

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Figure (a) represents Market Demand Curve and Consumer Surplus while figure (b) represents

Market Supply Curve and Producer Surplus. X-axis and Y-axis in these two figure respectively

represents the Number of Teams and Rate Per Hour.

In figure (a) we can see that the consumers are ready to pay upto Rs2000 for an hour and in

figure (b) we can see that the producers are ready to sell their court time for just Rs1200. Since

the market equilibrium is at point E of both the figures which result in the amount of

Rs1500/hour, therefore the shaded region of both the figures, figure(a) and figure(b) are

consumer surplus and producer surplus respectively.

7. Impact of Futsal in Kathmandu Valley

Futsal is without a doubt extraordinary compared to other adaptation of football and most adored

games on the planet today. With its dispatch in Nepal, it has possessed the capacity to assemble

numerous young people. Futsal is observed to be a game as well as a recreational action also. For

wellness fans, futsal has been the best option and for non-wellness lovers, it has turned into the

best way to take a break.

There are a few news on the media about the negative effects of futsal entire round the year. The

present world have turned into an innovative existence where individuals are observed to be

secluded and candidly discouraged. In such a unique circumstance, futsal has turned into the

most ideal route for those disconnected and discouraged individuals to carry on with their life

minus all potential limitations. Individuals, rather than squandering their time having pointless

talks in the coffee bar, are currently being occupied towards the futsal fields as a result of the fun

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it gives. The fun it is important, as well as the wellness it gives and individuals are socially

acknowledged in the general public. Likewise for the methods for being fit and solid, individuals

nowadays are being pulled in towards it. For a poor nation like Nepal, where each and everybody

don't have the best possible access to wellbeing offices and the wellbeing offices are additionally

not of that extraordinary dimension, futsal has helped them a ton. For example, a man sitting on a

coffee bar, tattling entire day and drinking right around some tea every day is probably going to

be influenced by Diabetes. Yet, on the off chance that a similar individual will play futsal as

opposed to sitting on a café then the likelihood of him being influenced by Diabetes. So thusly

futsal has helped individuals to remain fit.

So discussing the negative effects of futsal, futsal has likewise helped the medication advertise.

So as to have higher measure of stamina and spend numerous minutes in the court, players are

regularly appear to be taking medications and helping themselves acquire stamina and vitality.

8. Conclusion

In the wake of perusing such a lot of thing about futsal, we can finish up about Impact of

Growing Futsal Business in Kathmandu Valley in the accompanying words. Futsal, without a

doubt is a standout amongst other recreational game in todays world. Alongside the quantity of

groups every day coming to play futsal in Kathmandu, the income earned by the futsal fields are

likewise expanding step by step. In spite of the fact that there are a great deal of elements

influencing the quantity of groups coming to play futsal in Kathmandu, there are additionally

different variables which are include in constraining the supply of futsal fields. There is observed

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to be absence of interest in futsal fields in Kathmandu valley. Notwithstanding the offices that

the fields give to the clients, there are additionally different things should have been considered

for the interest and supply of futsal. So all things considered, futsal has assisted the general

population of Kathmandu valley with remaining fit using any and all means. Likewise it has

expanded the wellness lovers and advanced solid way of life.

References

 https://thehimalayantimes.com/sports/city-police-order-closure-of-futsal-arenas/
 Baneshwor futsal

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